Pennsylvania likely to shoulder higher SNAP costs
Trending
Pennsylvania will pick up more costs to run the Supplemental Nutrition Assistance Program under President Trump's new federal fiscal policy law, according to a report by the state Independent Fiscal Office.
The report hones in on the state's higher share of SNAP administrative costs and responsibility for funding a portion of benefits based on a payment error rate.
The report doesn't address the number of SNAP recipients who lose benefits under the law that took effect July 4.
The increased SNAP costs for Pennsylvania won't affect next year's state budget, the IFO said.
The law requires states to cover 75% of SNAP administrative costs, up from 50%. This will result in Pennsylvania spending $130 million more annually, the IFO estimates.
The administrative cost changes take effect in federal Fiscal Year 2026-27, which starts in October 2026.
Pennsylvania will spend an estimated $675 million more to fund a portion of SNAP benefit costs made in error. This is usually for overpayments.
Pennsylvania had an error rate of 10.8% in 2024, which places it in an error rate category greater than 10% with an estimated $645 million annual price tag, the IFO said.
The average error rate in the United States is 10.9%.
This extra cost will occur in FY2027/28 and possibly later, the IFO said.
Gov. Josh Shapiro has said 144,000 Pennsylvanians are at risk of losing SNAP benefits under the federal law. Nearly 2 million Pennsylvanians receive SNAP benefits.