Federal Update

The budget reconciliation legislation, known as the “One Big Beautiful Bill” (OBBB) was passed by Congress on Thursday, July 3, and signed into law on Friday, July 4. I wanted to provide you with a very high-level overview of what is in the law as it relates to nutrition programs, and this is not all-encompassing. There are a lot of different pieces touching a multitude of topics, but I’m solely focusing on some of the nutrition pieces in this newsletter.

The OBBB cuts federal SNAP support by an estimated $186 billion over 10 years through a change in the structure of the program and cuts to eligibility and benefit levels.

Shifting SNAP Costs to States: SNAP costs will shift to states by requiring states to pay a portion of SNAP benefits for the first time in the history of the program, ranging from 0% to 15%, based on the state’s payment error rate.

This will begin in October 2027, though there is a 1-2 year delayed implementation for states with the highest payment error rates, beginning with the state’s 2025 error rate. Based on New York’s 2024 error rate, we would qualify for delayed implementation, however, we won’t know for sure until the 2025 payment error rate is released in 2026.

Increased State Administrative Costs: States have always been responsible for 50% of the administrative costs for SNAP, and that portion will now be increased to 75% (Effective October 1, 2026).

Increase in Time Limit Restrictions: It increases the number of individuals who are subject to time limits on their SNAP benefits and now includes parents of school-aged children over 14 and older adults age 55 through age 64 by expanding work requirements and restricting waivers.

Adds a time limit on benefits for veterans, currently unhoused individuals, and former foster care youth by eliminating exemptions that would have remained in place until October 1, 2030.

Long-Term Cuts: Restricts future adjustments to the Thrifty Food Plan, which is essentially a formula USDA uses to calculate benefit amounts. This will result in cuts to SNAP benefits as well as benefit levels for TEFAP (the USDA foods we receive and distribute) and Summer EBT benefits.

SNAP-Ed Cuts: Eliminates funding for the SNAP Nutrition Education program (Effective October 1, 2025).

Access Restrictions: Removes access to SNAP for refugees and asylum seekers

If a date is not specified, it is effective upon enactment. Additional details related to effective dates and implementation details are expected to be provided by USDA.

I want to thank every one of you who took the time to make a call, share a post, complete a click-to-action and send a message to your member, and encouraged your friends and family to do the same. This was the largest activation in the history of the Feeding America network, and it did have an impact on making the final legislation less damaging to SNAP than what was originally included. The Food Bank, with your help, will continue showing up every day for the neighbors in our service area – making sure families have access to nutritious food and the dignity that comes with it. We know this law will make that task harder in the months and years ahead, but we will face that challenge together.