21 States Are at Risk of Losing SNAP Funding Amid Fraud Investigation—What to Know

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The dispute pits federal officials against 21 states that haven’t turned over data about how SNAP benefits are used.

The federal government said it would withhold Supplemental Nutrition Aid Program (SNAP) funds for states that do not report user data. 

The news came from the United States Department of Agriculture (USDA) Secretary Brooke Rollins earlier this week, following months of requests and investigations into instances of fraud within the program. 

Here’s what to know about the change to the nutrition program. 

The Announcement 

Rollins made the announcement on Dec. 2 during a White House cabinet meeting, saying that states that have not complied with the federal request have only a few days to fix the issue.

The USDA secretary said the administration “has begun and will begin to stop moving federal funds into those states” next week ”until they comply.“

According to Rollins, 29 Republican-leaning states have already provided SNAP data to her department. However, 21 ”blue states continue to say no” to the federal request. 

The federal response to the lack of cooperation comes months after an early May request by the administering department, calling on states to hand over data detailing how and to whom the taxpayer funds are distributed.

The USDA noted that the intent behind the request was to ensure that no fraud or abuse existed in the program, frequently referenced as food stamps. 

“President Trump is rightfully requiring the federal government to have access to all programs it funds,” said Rollins, “and SNAP is no exception. For years, this program has been on autopilot, with no USDA insight into real-time data. The Department is focused on appropriate and lawful participation in SNAP, and today’s request is one of many steps to ensure SNAP is preserved for only those eligible.”

Of the 28 states that have sent the data, all except for North Carolina have Republican governors.

Billions at Stake 

SNAP costs federal taxpayers around $100 billion per year, $94 billion of which goes to actual food benefits, and the rest is spent on administrative costs.

Administrative costs are currently shared by federal and state governments, with states covering roughly half of SNAP’s administrative expenses. That share is set to shrink soon, as the federal government plans to reduce the state contribution to 25 percent.

How much each state receives varies, as does the portion of the fund that goes to administrative costs. The state of California alone received more than $1.2 billion for SNAP administration fees, which was around 10 percent of it’s total SNAP funding allocation. 

Florida received $84 million for administration alone, which was just over 1 percent of it’s total SNAP funding. However, Wyoming received less than $9 million for administration fees, which was 12 percent of its SNAP dollars received. 

This means that in addition to the loss of nutrition support funding, billions that go to state administration fees will be lost for those states that refuse transparency requests from the Trump administration. 

The administration will likely face legal hiccups, as the attorneys general from 21 states have already been the subject of a lawsuit over concerns that the states allegedly illegally blocked the authorized food aid to certain legal immigrants.

By Savannah Hulsey Pointer

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