Federal Changes Shift SNAP Cost Burden to States Starting 2027
What happened
Federal changes have altered the funding structure of the Supplemental Nutrition Assistance Program (SNAP). Starting in October 2027, the One Big Beautiful Bill Act will require states to cover up to 15% of SNAP benefit costs. This requirement is based on each state's "payment error rate," which is calculated using a sample of cases from the state's caseload.
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Why it matters
The shift places a portion of the program's financial burden onto state budgets. This change occurs while the need for SNAP benefits is growing due to rising gas and grocery prices and increasing unemployment in states like Tennessee.
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Who's involved
- TennesseeState subject to the new cost-sharing requirements for SNAP.
- National Governors AssociationOrganization representing states facing new financial requirements.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TennesseeSpeculative
Tennessee might face increased costs in state budgets due to the mandated cost-sharing of SNAP benefits.
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The entities involved
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Tennessee
state of the United States of America
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Brookings Institution
American think tank