New Trump SNAP Rule Spares Iowa, Penalizes High-Error States
,Iowa taxpayers are off the hook under a new federal SNAP accountability rule signed by President Donald Trump. The law forces states with high payment error rates to cover a share of food assistance benefits, but Iowa's efficient administration keeps the state below the penalty threshold. States with poor track records now face millions in new costs.
,How does Iowa avoid the new SNAP penalties?
,The legislation requires states with high SNAP payment error rates to eventually cover a share of benefits themselves. A SNAP error rate measures the percentage of benefits incorrectly issued, whether recipients get too much or too little, largely due to administrative failures. States with error rates above 6% will face cost-sharing rules starting in October 2027. Iowa narrowly escaped the cutoff with a solid error rate, joining eight other states that will avoid the financial burden. South Dakota recorded the lowest rate at roughly 2.5%, while Nebraska narrowly escaped at 5.9%. Other states below the cutoff include Idaho, Kentucky, Vermont, Utah, Wisconsin, and Wyoming.
,What does the new SNAP cost-sharing rule require?
,Currently, the federal government covers the full cost of SNAP benefits. That will change for states with higher error rates beginning in October 2027. The USDA's newly released error rates for fiscal year 2025 will determine which states face future costs, though states may use either their 2025 or 2026 rates. The law creates a sliding scale for state payments.
,- ,
- States with error rates between 6% and 8% must cover 5% of benefit costs. ,
- States at 8% to 10% must cover 10%. ,
- States above 10% must cover 15%. ,
Which states face the highest financial pressure?
,The potential costs could be substantial for states that fail to manage their programs effectively. Missouri, which reported an 8.7% error rate last year, could owe 10% of its SNAP benefit costs if the rate does not improve. Based on 2024 figures showing Missouri residents received about $1.5 billion in SNAP benefits, the state's annual share could reach roughly $150 million. That is more than the operating budgets of several state prisons.
,Some of the states with the worst error rates will get temporary relief. States exceeding a 13.34% error rate last year, including Alaska at over 23%, as well as Delaware, Georgia, Illinois, New Mexico, Oregon, and the District of Columbia, will have their cost-sharing requirements delayed until at least fiscal year 2029. Further delays may be available if their 2026 error rates remain high.
,,These payment error rates are further proof that state accountability is severely lacking in SNAP.
Agriculture Secretary Brooke Rollins criticized current error rates, emphasizing the need for states to fix their administrative failures.
,Will states leave the SNAP program over these costs?
,States with high error rates could face difficult choices. They might have to shift money away from priorities such as public schools, law enforcement, or mental health services. They could also tighten eligibility rules, or potentially leave the decades-old federal food assistance program.
,,There are billions of dollars that are at stake that states will have to find the money to be able to pay if they want to continue to operate a SNAP program.
Chloe Green, assistant director for policy at the American Public Human Services Association, highlighted the massive budget pressure on poorly run programs. A recent survey of state SNAP agencies found that while most are investigating the causes behind payment mistakes, many are also preparing for possible budget cuts. More than a quarter of states said they may tighten eligibility rules, while four states indicated they are considering leaving SNAP altogether.
,Why are SNAP enrollment numbers dropping?
,Preliminary USDA figures show more than 37 million people received SNAP benefits in March, down 11% from the previous year. The decline follows the expansion of work, volunteer, and job training requirements for many adult recipients, enacted last July. The cost-sharing rule is designed to hold states accountable for administrative mistakes while generating federal savings to help offset new tax cuts.