A customer shops for produce in an H-E-B grocery store in Austin, Texas, on May 11.

Brandon Bell/Getty Images The Supplemental Nutrition Assistance Program (SNAP) is undergoing a drastic restructuring of its funding model — one that will reduce federal support and require states to shoulder a larger share of the bill.

Historically, the federal government and states have evenly split the food aid program's operational costs, such as paying for state workers and training staff. But starting on Thursday, states will need to cover 75% of that tab while federal funding shrinks by half.

By the federal government's own calculations the new rule will lead to a $16.9 billion reduction in federal spending for SNAP over the next five years, or $3.4 billion annually.

The Food Research & Action Center, an anti-hunger advocacy group, estimates that states would need to shore up anywhere between $3 million and $670 million to fully offset the loss in federal funding for administrative costs. California, New York, Pennsylvania, Texas and Michigan are expected to be especially hard hit.

Over the past year, states have been rebalancing their budgets to account for the new costs. But they will likely need to tighten their belts even further as more funding changes are on the horizon.

Currently, food benefits are covered entirely by federal dollars. But starting in October 2027, states may have to pay for a portion of the food aid if their error rate — a measure of overpayments and underpayments to SNAP recipients — is at or above 6%.

The Center on Budget and Policy Priorities, a left-leaning think tank, that nearly half of states could each pay $100 million or more if they do not lower their error rates. California and New York could each be on the hook for over $1 billion if they are unable to do so, according to the think tank.

In a report published last year, the Georgetown Center on Poverty and Inequality that these changes together will force states to spend two to three times more to keep the food assistance program running.

These mounting costs will put states in a bind, where they will likely have to find new sources of revenue, cut funding from other programs or further restrict access to SNAP, according to Katie Bergh, a senior policy analyst with the Center on Budget and Policy Priorities. "And we may see some states decide that they need to withdraw from the program entirely," Bergh says.

The funding changes were triggered by President Trump's signature domestic policy law, the One Big Beautiful Bill Act, which was enacted in July 2025. The White House said the legislation preserves and strengthens the food assistance program, adding that it was "so bloated that it is leaving fewer resources for those who truly need help." But Bergh says SNAP's previous funding structure served a purpose. "That essentially ensured that eligible families who were seeking benefits could get them even if they lived in a state that had much higher rates of poverty or a smaller tax base," she says.

The Agriculture Department, which administers SNAP, has not yet responded to a request for comment.

The One Big Beautiful Bill Act also introduced other sweeping changes, adding stricter work requirements and ending food aid eligibility for the small pool of noncitizens who previously qualified.

Since Trump's second term began, the number of people receiving SNAP benefits dropped from 42 million to 36 million, as of June. Most of that decline happened after the One Big Beautiful Bill was signed into law.