Federal SNAP Funding
U.S. Senator Elizabeth Warren (D–MA) claims that “states are about to face an ‘existential crisis’ as the federal government slashes its share of SNAP funding from 50% to 25%.”
IN FACT, the rates cited by Warren only apply to state administrative expenses, federal taxpayers currently provide 95% of SNAP funding, and a provision of the BBB will reduce this to 92%. Here are the specifics:
- SNAP benefits, previously known as Food Stamps, are currently funded by federal taxpayers but partially administered by the states, which certify people for eligibility and disperse the benefits, while the federal government certifies retailers for participation and conducts oversight.
- Per a report on SNAP by the Congressional Research Service, “The federal government currently funds 100% of benefit costs, and the state’s administrative costs are currently shared 50/50 with the federal government.”
- In 2024, states funded $5 billion of SNAP administrative costs, while the federal government spent $100 billion on benefits and administrative costs, or 95% of the total — not 50% as Warren alleges.
- Per the Congressional Research Service, the Big Beautiful Bill will increase states’ shares of their SNAP administrative costs to 75% starting in 2027, thus reducing the federal share to 25%.
- Because states’ share of their administrative costs only account for 5% of all SNAP funding, this provision of the BBB will reduce the federal share of SNAP funding to 92% — not 25% as Warren alleges while she declares that “Congress must reverse these cuts.”
- Federal law gives states flexibility to set eligibility standards for SNAP, which has resulted in situations like a millionaire in Minnesota legally receiving SNAP benefits.
- Legislation and waivers granted by President Obama resulted in situations like an able-bodied California man not working while spending his days surfing, partying, and legally using SNAP to buy foods like sushi and lobster.
- In 2023, 28 states had SNAP overpayment error rates that exceeded 10%, including some as high as 21%, 33%, and 60%.
- To hold states accountable for wasting SNAP funds, the BBB will require them to pay for 5% of the SNAP benefits they disperse if their overpayment error rate exceeds 6%, rising to a 10% share if their error rate is over 10%, and then to a 15% share if their error rate is more than 15%.
- The BBB also prevents future presidents from raising SNAP benefits above and beyond the rate of food inflation, which President Biden did for the first time in the history of the program.
- Per the Government Accountability Office, Biden raised SNAP benefits by “21 percent compared to the previous inflation-adjusted” amount without adequate “economic analysis,” “disclosure,” or “documentation.”
- From 1980 to 2025, the portion of the U.S. population receiving SNAP benefits rose from 9.3% to 12.3%, while the portion of people in poverty declined from 13.0% to 10.2%.
