USDA warns it will pull SNAP administrative funds from noncompliant states next week
The USDA warned it will pull SNAP administrative funds from states that refuse to provide requested recipient immigration data, saying formal warning notices will precede any cutoff and that noncompliant states could be notified as soon as next week with time to comply and an appeals process. Most GOP-led states have provided the data while 22 states plus D.C. (including California, New York and Minnesota) have sued and a San Francisco federal judge has temporarily blocked enforcement — a standoff that could affect state administrative reimbursements within the roughly $100 billion-a-year SNAP program (state admin funds are a significant share of program costs and are slated to fall from about 50% to 25% next October), and some states (e.g., Connecticut) are already setting aside money to cover potential federal cuts.
đź“Ś Key Facts
- USDA told Axios it will target states' SNAP administrative funds and that formal warning notices would precede any pullback; ABC News reports USDA could notify noncompliant states as soon as next week and will provide time to comply plus an appeals process.
- USDA first requested state recipient data in February (per Brooke Rollins); GOP-led states largely complied while several Democratic-led states, including California, New York and Minnesota, have not.
- ABC News counts 28 states that have provided data (all GOP-led except North Carolina) and 22 states plus D.C. that have sued to block the request.
- A San Francisco federal judge has put enforcement of the data‑sharing request on hold; Kansas was formally notified in September and is appealing, and no federal funding cutoff has occurred to date.
- Administration officials say about 800,000 people have left SNAP since President Trump retook office and cite alleged fraud indicators (e.g., deceased recipients, Social Security numbers active in multiple states); Axios could not immediately verify that figure.
- As background on fraud and losses, the GAO estimates states replaced more than $320 million in stolen SNAP benefits between October 2022 and December 2024.
- SNAP totals roughly $100 billion per year (about $94 billion in benefits); state administrative reimbursements are currently reimbursed at about 50% but are scheduled to drop to 25% next October, so withholding admin funds could have significant budgetary effects for states.
- Examples of state administrative funding exposure: California receives more than $1.2 billion in admin reimbursements (~10% of its SNAP allocation), Wyoming under $9 million (~12%), and Florida about $84 million (~1%).
- States are preparing for possible cuts: Connecticut has set aside $500 million to offset potential federal funding reductions, to be used at the governor’s discretion.
đź“° Sources (3)
What to know about the administration's plan to withhold states' money to manage SNAP food aid
New information:
- USDA will notify noncompliant states as soon as next week, with time to comply and an appeals process.
- A San Francisco-based federal judge has put enforcement of the data-sharing request on hold for now.
- Scope and money details: SNAP totals ~$100B/year; ~$94B in benefits; state admin reimbursements currently ~50% but scheduled to drop to 25% next October.
- State-specific admin funding examples: California >$1.2B (~10% of its SNAP allocation); Wyoming < $9M (~12%); Florida $84M (~1%).
- Status counts: 28 states have provided data (all GOP-led except North Carolina); 22 states plus D.C. have sued to block the request.
- Kansas was formally notified in September and is appealing; no cutoff has occurred yet.
- Connecticut set aside $500M to offset potential federal funding cuts; use at governor’s discretion.
Another SNAP disruption looms unless states give Trump their immigration data
New information:
- USDA told Axios the threatened cutoffs would target states’ SNAP administrative funds and that formal warning notices would precede any pullback.
- Brooke Rollins said USDA first requested state recipient data in February; GOP-led states complied, while Democratic-led states including California, New York, and Minnesota have not.
- Rollins claimed about 800,000 people have left SNAP since Trump retook office and cited alleged fraud indicators (e.g., deceased recipients, SSNs active in multiple states), which Axios could not immediately verify.
- Context data point: GAO estimates states replaced more than $320 million in stolen SNAP benefits between Oct. 2022 and Dec. 2024.