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USDA Orders States to Reverse Full SNAP Payouts After Supreme Court Pause

The directive limits November payments to roughly 65% pending appellate review during the shutdown.

Overview

  • An administrative stay issued by Justice Ketanji Brown Jackson paused lower-court orders that had required full November SNAP funding.
  • The USDA told states to stop full issuances and to 'immediately undo' steps toward them, warning of penalties such as canceling federal administrative cost-sharing and holding states liable for overpayments.
  • Several states had already loaded full benefits after a district court ruling; some, including Wisconsin and Massachusetts, say they will not claw back funds, and Wisconsin’s federal reimbursement was frozen, according to court filings.
  • The administration is directing states to use contingency funds to provide roughly 65% of normal benefits, while legal disputes continue over whether additional USDA accounts can be tapped.
  • Late Sunday, the First Circuit declined to block the lower-court order, but the Supreme Court’s temporary stay keeps full disbursements on hold as food banks report surging demand and Congress works on stopgap funding.