Congress Must Act to Delay Cuts as Millions Lose Access to SNAP Nationwide
New USDA data confirms New York will soon face massive state costs to sustain SNAP benefits. Starting as soon as October 2027, New York and other states will be required to pay up to 15% of SNAP benefit costs for the first time in history, one of several cuts to federal funding included in H.R.1.
The portion of benefit costs each state must pay is based on the state’s SNAP payment error rate in federal fiscal year 2025 or 2026:
- Below 6%: No state payment toward benefit costs
- 6% to below 8%: 5% state payment
- 8% to below 10%: 10% state payment
- 10% or higher: 15% state payment, delayed two years if error rate is over 13.33%
USDA data released this week show New York’s fiscal year 2025 payment error rate is 13.18%, putting the state on track for the largest possible cost shift—an estimated $1.2B annually. This massive cut in federal funding will add more pressure to an already tight state budget, potentially jeopardizing other critical state investments that help families meet basic needs.
Contrary to rhetoric surrounding H.R.1, payment error rates are not a measure of fraud. Error rates measure the accuracy of agencies’ SNAP benefit determinations, including overpayments and underpayments, and largely reflect unintentional mistakes or data entry errors. States are already held accountable for high error rates through corrective action plans and financial penalties, and individual households must pay back overpayments, even when due to an agency’s error.
As a result of a last-minute deal to secure votes for H.R.1, states with error rates above 13.33% will receive a two-year delay of the benefit cost shift, providing additional time to prepare. Initially, New York appeared likely to receive a delay, as the state had a 14.09% payment error rate in fiscal year 2024; however, because New York successfully reduced its error rate, the state no longer qualifies for a delay. This illogical policy penalizes states for making progress toward the purported goal of reducing errors.
The SNAP benefit cost shift comes on top of an already burdensome administrative cost shift. Starting in October 2026, federal funding for SNAP administration will be cut in half, forcing states and counties to cover 75% of SNAP administrative expenses, up from the current fifty-fifty split between federal and state/local funding. This cost shift takes effect as state and county agencies are in the midst of implementing administratively burdensome work reporting requirements and other complex policy changes resulting from H.R.1.
H.R.1’s draconian $187B SNAP cut—the largest in history—is bearing out in an alarming drop in SNAP participation. Nationwide, four million people lost access to SNAP between July 2025 and March 2026. In New York, participation declined by nearly 150,000 people even before expanded work reporting requirements and changes to non-citizen eligibility took effect in late spring.
Amid this nationwide crisis, Congress must—at the very least—expand the delay of cost shifts to all states to allow more time to prepare, lower error rates, and protect program access. As lawmakers continue to negotiate on a farm relief package, New York’s delegation must stand firm: any farm relief legislation must also protect food access for families.
