What to know about the administration’s plan to withhold states’ money to manage SNAP food aid

U.S. agriculture officials announced plans this week to withhold administrative funding from states that fail to provide requested data on SNAP recipients, including information about their immigration status. The move represents a significant escalation in an ongoing legal dispute that has divided largely along partisan lines.

The U.S. Department of Agriculture (USDA) says the information is necessary to identify fraud within the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance to approximately 42 million Americans—roughly one in eight people nationwide.

Agriculture Secretary Brooke Rollins is spearheading the effort to enforce compliance with data-sharing requirements that began shortly after President Donald Trump returned to office earlier this year. The administration’s demands have created a clear political divide: 28 states have already provided the requested information, with all but one (North Carolina) being led by Republican governors.

Meanwhile, 22 states plus the District of Columbia—all with Democratic leadership—have filed lawsuits challenging the data requests. A federal judge in San Francisco has temporarily halted enforcement while the legal battle continues. Nevada stands in a unique position with a Republican governor and Democratic attorney general, having both complied with the request and joined the lawsuit.

The financial implications for states could be substantial. SNAP costs federal taxpayers approximately $100 billion annually, with about $94 billion going directly to benefits and the remainder covering administrative expenses. Currently, the federal government reimburses states for roughly half their SNAP management costs, though this is scheduled to decrease to 25% in October 2025.

Administrative funding varies widely by state. California, the most populous state, received more than $1.2 billion for SNAP administration in fiscal year 2023, representing nearly 10% of its total SNAP allocation. By contrast, Florida received just $84 million for administration, slightly more than 1% of its federal SNAP funding.

Carolyn Wait Vega, a SNAP analyst at the advocacy organization Share Our Strength, warned that mid-year funding cuts would create significant hardship for states. “They made all of their plans on the assumption that there would be a 50-50 cost share,” she said. “To have that rug pulled out from under them would be very challenging.”

Some states are already preparing for potential funding reductions. Connecticut recently set aside $500 million to offset possible federal cuts, though it’s up to Democratic Governor Ned Lamont to determine whether to allocate those funds toward SNAP administration.

The USDA plans to begin notifying non-compliant states as early as next week, though states will have additional time to comply before facing penalties. Even after notification, states can appeal the decision—a process currently underway in Kansas, which has neither fully complied nor joined the lawsuit despite receiving a notification in September.

Democratic state leaders have pushed back against the data-sharing requirements on privacy grounds. New York Governor Kathy Hochul questioned the administration’s approach: “Even if you’re on SNAP and getting nutrition benefits, like 42 million Americans do, does that mean that your privacy should be invaded now or that you should be giving out this information unrelated to this program?”

The USDA maintains that fraud is a significant concern within SNAP. Secretary Rollins has stated that data from compliant states revealed approximately 186,000 deceased individuals receiving benefits and about 500,000 people collecting benefits in multiple locations. However, it remains unclear how many of these cases represent actual fraud versus administrative delays in updating recipient status after death or relocation.

This dispute occurs against a backdrop of increasing SNAP requirements. Under legislation signed by President Trump in July, more recipients will soon face work, education, or volunteer requirements to maintain benefits beyond three months every three years. These expanded requirements will affect adults aged 55 to 64, homeless individuals, and people with children between 14 and 17.

Beginning in 2028, states will also be required to contribute to benefit costs if their payment error rates exceed 6%, creating additional financial pressure on state budgets.

As the legal challenges continue, the ultimate resolution of this data-sharing standoff will likely be determined in the courts, potentially reshaping the federal-state relationship in administering one of America’s largest food assistance programs.