# 2026-12696: USDA Proposes Cutting Federal SNAP Administrative Funding Share

2026-12696, Supplemental Nutrition Assistance Program: Changes in Federal-State Administrative Cost Sharing, is a Federal Register proposed rule from Agriculture Department, Food and Nutrition Administration published 2026-06-24, effective Written comments must be received on or before August 24, 2026, to be assured of consideration.; deemed significant under Executive Order 12866; PRIA reads it as touching household money (as of 2026-11-06).

- Canonical: https://policyrisk.com/federal-register/2026-12696
- As of: 2026-11-06
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2026-12696
- Title: Supplemental Nutrition Assistance Program: Changes in Federal-State Administrative Cost Sharing
- Type: Proposed Rule
- Agencies: Agriculture Department; Food and Nutrition Administration
- Citation: 91 FR 37837
- Published: 2026-06-24
- Effective: Written comments must be received on or before August 24, 2026, to be assured of consideration.
- Comments close: 2026-08-24
- Significant: yes (OIRA_API)
- Touches household money: yes
- Regulation identifier numbers: 0584-AF22
- Last updated: 2026-11-06

## In one line

USDA Proposes Cutting Federal SNAP Administrative Funding Share

## 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!

## Abstract

In response to Section 10106 of Public Law 119-21, the One Big Beautiful Bill Act of 2025, this proposed rule would amend the Supplemental Nutrition Assistance Program (SNAP) regulations to codify the reduction of the amount of the Federal government's share of annual SNAP State administrative costs from 50 percent to 25 percent, effective beginning in fiscal year 2027.

## Effects PRIA read

- Federal SNAP Admin Share Cut to 25%: cost, high. 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 shi…
- SNAP Employment & Training Funding Preserved: benefit, low. 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 percen…
- Higher 75% Rate Kept for Reservations: benefit, medium. 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.
- 100% EBT Portability Funding Capped at $500K: mixed, low. 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: mixed, low. 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).

## Related documents

- [2026-22679](https://policyrisk.com/federal-register/2026-22679): Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Online Ordering and Transactions and Food Delivery Revisions…, 2026-11-06
- [2026-21658](https://policyrisk.com/federal-register/2026-21658): Supplemental Nutrition Assistance Program: Electronic Benefits Transfer Card Security Measures, 2026-10-23
- [2026-16760](https://policyrisk.com/federal-register/2026-16760): Supplemental Nutrition Assistance Program: Changes in Federal-State Administrative Cost Sharing; Extension of Comment Period, 2026-08-17
- [2026-22388](https://policyrisk.com/federal-register/2026-22388): Supplemental Nutrition Assistance Program: State of North Dakota SNAP Demonstration Project, 2026-11-03
- [2026-22389](https://policyrisk.com/federal-register/2026-22389): Supplemental Nutrition Assistance Program: State of Montana SNAP Demonstration Project, 2026-11-03
- [2026-22387](https://policyrisk.com/federal-register/2026-22387): Supplemental Nutrition Assistance Program: State of South Carolina SNAP Demonstration Project, 2026-11-03

## Sources
- [2026-12696 on federalregister.gov](https://www.federalregister.gov/documents/2026/06/24/2026-12696/supplemental-nutrition-assistance-program-changes-in-federal-state-administrative-cost-sharing)
- [2026-12696 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-06-24/pdf/2026-12696.pdf)

## Related
- [Previous: 2026-12692, Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financ…](https://policyrisk.com/federal-register/2026-12692)
- [Next: 2026-12702, Modernizing Materials Licensing](https://policyrisk.com/federal-register/2026-12702)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2026-12696 (as of 2026-11-06).