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SNAP Overhaul Takes Effect, Shrinking Benefits and Shifting Costs to States

Food banks forecast rising need under stricter rules.

Overview

  • Major changes that started Sept. 1 extend work requirements, add time limits, cap future inflation adjustments, and, for the first time, require states to share benefit and administrative costs.
  • The Congressional Budget Office estimates the law will reduce SNAP outlays by $186 billion through 2034.
  • An Urban Institute analysis projects about 22.3 million families will lose some or all support, with 5.3 million losing at least $25 a month and average monthly losses ranging from $72 in Kansas to $231 in the District of Columbia.
  • Ohio officials say the state would need nearly $400 million annually to sustain current benefit levels, as local food banks warn the system is already strained by higher food prices.
  • Retail analysts say Walmart and other discounters are poised to capture more SNAP spending as households trade down, with Walmart already accounting for 24% of SNAP purchases, according to Numerator.