Yes. SNAP, commonly called food stamps, is publicly funded. Federal funds finance benefit allotments under the Food and Nutrition Act, while states operate the program and share administrative expenses. Current law changes that financing in two separate stages: administrative cost sharing in fiscal 2027 and benefit cost sharing beginning in fiscal 2028, subject to exceptions. [1][2]
The fiscal 2027 change covers administration
Under 7 U.S.C. 2025(a), the general federal share of state SNAP administrative costs was 50% through fiscal 2026. It drops to 25% for fiscal 2027 and later years, leaving states generally responsible for 75%. Fiscal 2027 began October 1, 2026; it does not begin in January 2027. [2]
Administrative expenses include work such as household certification, issuing benefits, fair hearings, and qualifying information systems. This financing change concerns running the program; it is separate from the dollars loaded onto a household’s EBT account. [2]
Benefit cost sharing has a different schedule
Section 2013 generally begins state benefit contributions in fiscal 2028, starting October 1, 2027. The applicable payment error rate determines the state’s share:
| State payment error rate | State share of benefit costs |
|---|---|
| Below 6% | 0% |
| 6% to below 8% | 5% |
| 8% to below 10% | 10% |
| 10% or higher | 15% |
The federal share covers the corresponding remainder. [1]
For fiscal 2028, a state may elect its fiscal 2025 or 2026 error rate. Later calculations generally use the rate from three fiscal years earlier. The statute also delays implementation to fiscal 2029 or 2030 for states meeting its specified high-error-rate conditions for fiscal 2025 or 2026. Consequently, the start date is not identical for every state. [1]
Payment errors are not a fraud count
USDA explains that payment error rates measure accuracy in eligibility and benefit determinations. They include overpayments and underpayments and are not fraud rates. An error-rate-based state contribution should not be described as a charge for proven recipient fraud. [3]
For illustration, with $1 billion in benefit costs and an applicable 9% error rate, the statutory tier would assign a 10%, or $100 million, state share once implemented. That is a financing example, not a forecast for a particular state.
These funding rules do not themselves determine an individual household’s eligibility. Household facts still matter, including SNAP rules for shared custody and how child support affects food assistance. Use the state program’s current eligibility instructions when applying or reporting changes.
Primary sources
- 7 U.S.C. 2013, SNAP benefit funding and state cost-sharing schedule, current Code
- 7 U.S.C. 2025, administrative cost sharing, current Code
- USDA SNAP Quality Control, payment error rate explanation
Sources checked: October 31, 2026.