North Carolina faces new SNAP costs as federal changes take effect
State and county governments are expected to absorb an additional $85 million in annual administrative costs beginning Oct. 1, according to the governor’s office.
RALEIGH — North Carolina and its counties are preparing to absorb an estimated $85 million in additional annual administrative expenses for the Supplemental Nutrition Assistance Program beginning Oct. 1, according to figures released Tuesday by Gov. Josh Stein’s office.
The anticipated expense results from changes included in the federal budget law commonly called H.R. 1. The federal government will shift an additional quarter of SNAP’s administrative costs to states and counties during the coming fiscal year.
A second cost change is scheduled to take effect Oct. 1, 2027. The federal government will no longer cover the full cost of SNAP benefits, and states could be required to pay as much as 15% depending on their payment error rates.
Stein’s office estimates North Carolina could become responsible for at least $140 million annually in benefit costs under that formula. The actual amount will depend on the state’s error rate and implementation of the federal law.
The governor released the estimates while proclaiming September as Hunger Action Month. His office said nearly 1.25 million North Carolinians receive SNAP benefits.
The General Assembly addressed part of the expected expense in the state budget Stein signed in July. According to the governor’s office, lawmakers increased funding for state administrative costs and provided money for automation and staffing intended to reduce SNAP payment errors.
The budget did not include Stein’s proposal to help county departments of social services manage additional workloads and costs attributed to the federal changes.
The administration reported that efforts by the Department of Health and Human Services and county social services agencies reduced North Carolina’s projected 2027 benefit cost by $280 million during the past year. The release did not provide the underlying error-rate calculations.
The state budget also provided more than $9 million for food banks and funded North Carolina’s participation in SUN Bucks for summer 2027. SUN Bucks provides grocery assistance to families with school-age children during the summer.
Stein’s office said the state contribution to SUN Bucks is expected to draw approximately $125 million in federal assistance for about 1 million children.
“As grocery bills continue to rise, hunger affects more and more North Carolinians,” Stein said. “Hunger Action Month reminds us to continue our work to not let anyone go hungry and to commend the essential work of the people who help folks put food on the table in North Carolina.”
The fiscal effects of the federal SNAP changes will extend beyond state government because county departments administer the program locally. Stein’s announcement did not provide estimates for individual counties or specify how the additional costs would be divided between state and county budgets.
Editor’s note:
This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
