Diane Whitmore Schanzenbach

Until the One Big Beautiful Bill Act, the federal government alone was responsible for paying for Supplemental Nutrition Assistance Program benefits. Under OBBBA, starting in October 2027, states potentially will be required to pay a share of SNAP benefits, with the required share determined solely by the state’s “payment error rate” for the relevant fiscal year. After the first year, a state’s payment error rate from three years prior will determine the state’s cost shift, meaning that a state’s FY2026 payment error rate will be the basis for the FY2029 cost-shift amount.