Supplemental Nutrition Assistance Program (SNAP) benefits lapsed in many states over the weekend for the first time in the program’s 60-year history, as the federal government shutdown continues. However, while the U.S. Department of Agriculture (USDA) planned to fully suspend benefits, two federal court orders issued last week require that the USDA reverse plans, and authorize states to issue partial November payments using a $5.25 billion contingency reserve. The reserve is insufficient to cover the approximately $9 billion needed for the month, so USDA initially advised states to provide no more than 50% of regular benefits; however, after recalculating available funds, that limit was increased to 65%.
States are working to reprogram benefit systems accordingly, while also implementing new eligibility and administrative rules enacted earlier this year—raising the risk of payment delays and higher error rates, which could trigger penalties under the new law. USDA has warned that benefit distribution may vary significantly across states and could worsen if the shutdown persists.
For more information contact RCRC Senior Vice President of Government Affairs, Mary-Ann Warmerdam.