The Supplemental Nutrition Assistance Program (SNAP) is moving to a funding model that sharply reduces federal support for administrative costs and shifts more responsibility to states. Starting Thursday, states will cover 75% of costs such as state workers and staff training, while federal funding for those expenses falls by half. The federal government estimates the change will reduce its SNAP spending by $16.9 billion over five years, or $3.4 billion annually. The Food Research & Action Center estimates states may need between $3 million and $670 million each to replace lost administrative funding, with California, New York, Pennsylvania, Texas and Michigan expected to face particular pressure. A further change planned for October 2027 could require states to fund part of food benefits if their SNAP error rate reaches at least 6%. The Center on Budget and Policy Priorities estimates nearly half of states could owe $100 million or more, while California and New York could each face costs exceeding $1 billion if they do not reduce their error rates. The Georgetown Center on Poverty and Inequality has estimated that the combined changes could force states to spend two to three times more to operate SNAP. Katie Bergh, a senior policy analyst with the Center on Budget and Policy Priorities, said states may need to raise revenue, reduce other programs or restrict SNAP access, and some could consider withdrawing from the program. The changes were enacted through President Trump's One Big Beautiful Bill Act, signed into law in July 2025. The law also tightened work requirements and ended eligibility for a small group of noncitizens who previously qualified. SNAP participation fell from 42 million to 36 million by June, with most of the decline occurring after the law was signed.