SNAP Cost Shifts to the States Will Increase Hunger, Strain State Budgets and Deepen Economic Risk

For more than 50 years, the Supplemental Nutrition Assistance Program (SNAP) has

been effective in reducing hunger, stabilizing household finances and supporting state

and local economies. It has protected local communities in times of recession and when

state budgets are in recession. The Federal Budget Reconciliation Bill H.1 of July 2025,

the US has cost shifted both the administrative and benefit costs to the states, adding

100’s of millions of dollars to state budgets by October, 2027. The rushed

implementation of the sweeping cuts based will likely force states to reduce SNAP

benefits to meet the new financial requirements and for some states, eliminate the food

the program altogether for children, people with disabilities, older adults and low-income

families.

States face the challenges of capacity, changes in policy and the need to upgrade their

IT programs to meet this deadline.

SNAP is not just about the critical nutrition needed to fight hunger but also about local

economies. SNAP purchases represent 12% of groceries and significant local taxes.

The Congressional Budget Office estimates the cost shift will cause 96,000 children a

month to lose food assistance as well as 1 million children a month will lose school

nutrition programs.

New Mexico has the highest percent of its residents on SNAP. While we are one of the

states who will have a delay in implementation due to a high error rate, we support a

delay in implementation until 2030 for all states. We also ask Congress to reconsider

this cost shift to states as sound policy.