New SNAP rule requires states with high error rates to cover part of benefit costs

A federal law signed by President Donald Trump requires states with high error rates in the Supplemental Nutrition Assistance Program to cover a portion of benefit costs beginning in October 2027. The rule applies a sliding scale based on each state's error rate. States between 6% and 8% must pay 5% of costs, those between 8% and 10% must pay 10%, and states above 10% must pay 15%.

Error rate data and affected states USDA data for fiscal year 2025 shows nine states remain below the 6% threshold and will avoid new payments. South Dakota recorded the lowest rate at roughly 2.5%, while Nebraska finished at 5.9%. Idaho, Iowa, Kentucky, Vermont, Utah, Wisconsin, and Wyoming also stayed under the cutoff.

States above 13.34% last year, including Alaska at more than 23%, will receive a delay until at least fiscal year 2029.

State responses and program background A survey of state SNAP agencies found more than a quarter may tighten eligibility rules, and four states are considering leaving the program. The federal government currently pays the full cost of benefits. SNAP served more than 37 million people in March, an 11% drop from the prior year after work requirements expanded last July.

States can use either their 2025 or 2026 error rates to determine future payments.