Overview

• Senate parliamentarian Elizabeth MacDonough ruled that the updated language complies with Byrd rule restrictions and can be included under the reconciliation process
• The provision lets states use payment error data from fiscal year 2025 or 2026 to calculate their required cost share
• States with error rates below 6% would pay nothing while those above that threshold face contributions of 5%, 10% or 15% starting in fiscal year 2028
• Policy experts warn that states unable to absorb additional expenses may need to cut food assistance or consider opting out of SNAP
• Senate Republicans aim to pass the tax and spending measure by July 4, with parallel reforms to farm safety nets and crop insurance premiums