Recent shifts in the Supplemental Nutritional Assistance Program (SNAP) have led to a significant decrease in the number of participants. This program, which was once known as food stamps, supported approximately 42 million Americans in 2025. By June 2026, participation had dropped by nearly 13%, bringing the number down to 36.4 million.
This reduction includes an estimated 1.5 million children who are no longer receiving benefits. A robust economy is cited by President Donald Trump as a factor in decreased demand. However, a substantial legislative package signed in July 2025 also plays a crucial role.
Challenges for States
The legislation has rendered certain groups, including legal immigrants like refugees and asylum seekers, ineligible for SNAP benefits. Furthermore, the law imposes stricter work requirements, extending to adults up to age 64 and parents of children aged 14-17, demanding at least 80 hours of work, training, or volunteering monthly.
These changes are being implemented nationwide, but the rate of enrollment decline is uneven across states. For instance, Arizona has seen its SNAP enrollment plummet by almost half, while Louisiana and Illinois report declines of about 20%.
Moreover, states are now required to bear a greater share of SNAP’s administrative costs. Effective October 1, 2026, states must cover 75% of these costs, up from the previous 50%, resulting in an additional US$17 billion over five years.
Financial Implications
In the 2027 fiscal year, California, the most populous state, will incur an extra $670 million in costs, while Wyoming will see an increase of about $3 million.
Starting in October 2027, states will also assume up to 15% of benefit costs, depending on their “payment error rate.” Only nine states had error rates below 6% in 2025, exempting them from this cost. States with error rates over 13.32% won’t have to pay for up to two years.
Political Context and Future Developments
Efforts to manage error rates could require investment in staffing, technology, and improved procedures. Organizations representing state and local governments are advocating for a two-year delay in the cost-sharing implementation.
The farm bill, which affects agricultural and food assistance policies, is tied up in political negotiations. Democrats are pushing for a rollback of SNAP changes and a delay in cost-sharing responsibilities, while the Republican version proposes a shorter delay but increases the states’ burden.
As states grapple with these changes, there is a growing concern that many who have lost benefits are struggling to meet basic food needs, relying more on food banks and pantries.
