USDA Proposes Cutting Federal SNAP Administrative Funding Share
Published Date: 6/24/2026
Proposed Rule
Summary
Starting in fiscal year 2027, the federal government will pay less—dropping its share of SNAP state administrative costs from 50% to 25%. This change affects states running the Supplemental Nutrition Assistance Program and means they’ll cover more of the costs. If you want to share your thoughts, make sure to comment by August 24, 2026!
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
Federal SNAP Admin Share Cut to 25%
Starting in fiscal year 2027, the Federal Government’s share of State SNAP administrative costs is reduced from 50 percent to 25 percent. The Department estimates this will reduce Federal administrative spending by about $16.9 billion over FY2027–FY2031 (an average of $3.4 billion per year) and shift an equal amount of costs to State governments.
Higher 75% Rate Kept for Reservations
State agencies and Indian Tribal Organizations (ITOs) that administer SNAP on a reservation will continue to receive 75 percent Federal payment of approved administrative costs in accordance with current law and regulations.
SNAP Employment & Training Funding Preserved
Reimbursement rates for SNAP Employment and Training (E&T) administrative costs and E&T participant reimbursements (for example, transportation and child care) remain at 50 percent instead of dropping to 25 percent. FNA will add regulatory language to clarify that E&T costs stay funded at 50 percent.
100% EBT Portability Funding Capped at $500K
Federal funding at 100 percent for costs State agencies incur to switch and settle SNAP interstate EBT transactions remains available but is limited to $500,000 nationwide annually. Once that $500,000 limit is exceeded, funding for those costs reverts to the standard 25 percent reimbursement rate.
No Expected Change to SNAP Benefits or Participation
FNA assumes this administrative cost‑sharing change will have a negligible impact on SNAP benefit spending and on SNAP participation over the period analyzed (FY2027–FY2031).
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Key Dates
Department and Agencies
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