Shutdown Day 29 & Highlights from SNAP Webinar
As the federal shutdown enters Day 29, Washington remains gridlocked. Both sides are entrenched, and despite a few quiet back-channel discussions, there is still no clear path forward. With President Trump abroad and Congress at a standstill, the end of this week marks a real breaking point—when millions of Americans will begin to feel the tangible effects of a month-long funding lapse.
In this edition, we’ll provide a short overview of how the shutdown is beginning to impact state-administered federal programs such as Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Supplemental Nutrition Assistance Program (SNAP), Head Start, and Essential Air Service—and what that means for governors and agencies scrambling to keep services afloat.
And speaking of SNAP, earlier today we hosted a timely webinar walking through the new cost-sharing rules under the One Big Beautiful Bill (OBBB) and the actions state officials need to take now to lower their error rates and protect their budgets. If you missed it, don’t worry—we have included the key takeaways and state recommendations below so you can hit the ground running.
The Shutdown: When the Pain Becomes Real
Starting on Saturday, several state-administered federal programs are now running out of funds, including SNAP, WIC, Head Start, and Essential Air Service subsidies that keep rural airports operational. These programs rely on continuous federal appropriations, but after nearly a month without funding, the stopgaps have been exhausted.
Supplemental Nutrition Assistance Program (SNAP)—Although earlier contingency planning included using multi-year funds to sustain operations during a shutdown, this week the Trump administration announced it will not tap emergency reserves to issue November benefits, blaming Democrats for refusing to reopen the government
Special Supplemental Nutrition Program for Women, Infants, and Children—The administration recently redirected $300 million from tariff revenue to keep WIC running through the end of October. Without further transfers, the program, which provides nutritional support to seven million mothers and children, will exhaust its funds this weekend.
Head Start—The early-learning program serving approximately 790,000 children under six is next; some centers have already closed, with more expected after this week.
Essential Air Service—The federal program that subsidizes flights to small and rural communities avoided a shutdown when Transportation Secretary Sean Duffy announced an additional $41 million to keep operations running through November 2, but it will face a funding cliff next week.
We will continue to closely monitor the shutdown dynamics and how the federal government responds as states begin to feel the strain. One clear takeaway: Americans’ daily lives should not be so deeply intertwined with the federal government and so easily disrupted by Washington’s political stalemates.
This is an important moment to bring federalism into the conversation. Let us know how we can help you elevate that message in your state.
Speaking of SNAP…
Earlier today, we hosted a webinar walking through the new state cost-sharing requirements under the OBBB and the steps states must take now to protect their budgets and avoid costly penalties.
With the new law, the long-standing structure of SNAP has fundamentally changed. For nearly six decades, the federal government covered 100 percent of benefit costs, while states shared 50% of administrative expenses. Beginning in Fiscal Year 2028, however, states will be required to pay a share of benefit costs if their SNAP payment error rate exceeds six percent.
The new cost-sharing formula is simple but steep:
Below 6% error rate: No state match required
6–8% error rate: 5% of total benefit costs
8–10% error rate: 10% of total benefit costs
10% or higher: 15% of total benefit costs
For states with especially high error rates, those above 13⅓ percent, the match requirement is delayed until FY 2029 or FY 2030, providing a limited window to improve program integrity. The law also lowers the federal administrative match from 50% to 25%, shifting more of the operational cost burden to states.
This is not a theoretical risk, it has immediate, real-world budget implications. With 42 states currently above the 6% threshold, the potential fiscal exposure is enormous. Based on 2024 SNAP error rates:
Texas could owe over $720 million
Florida approximately $960 million
New York more than $1.1 billion
North Carolina about $440 million
In our webinar, we outlined specific actions state agencies can take now to lower their error rates, strengthen oversight, and prepare for these changes. For those who missed it, we’ve included the highlights and state recommendations in the section below so you can hit the ground running.
What States Should Do Now
To avoid being on the hook for hundreds of millions in new costs, states need to take immediate steps to reduce their SNAP error rates and restore program integrity. Based on recommendations from the Alliance for Opportunity and the Foundation for Government Accountability, key actions include:
1. Close loopholes and tighten eligibility
Repeal or scale back Broad-Based Categorical Eligibility, which allows households with incomes or assets well above federal thresholds to qualify.
Require full verification of exemptions from work and income requirements; prohibit self-attestation of employment or household status.
2. Strengthen verification and cross-checking
Mandate real-time data matching with wage and new-hire records, corrections and death databases, lottery and unemployment files, and change-of-address systems.
Fully utilize federal data tools such as the Public Assistance Reporting Information System and the National Directory of New Hires to identify duplicate or out-of-state recipients.
3. Shorten recertification and reporting periods
Reinstate six-month (or shorter) recertification cycles for most households, as recommended by both reports.
End simplified reporting policies that allow long benefit periods without income verification.
4. Rebuild program-integrity infrastructure
Establish state-level error-reduction task forces that coordinate human-services, IT, and fiscal offices.
Audit caseworker training, documentation standards, and quality-control reviews to ensure consistent accuracy.
Invest in data-analytics tools that flag likely error cases before payments are issued.
5. Prepare for administrative cost shifts
Under OBBB, the federal administrative match drops from 50 percent to 25 percent in FY 2028, meaning states will assume a far larger share of staffing, eligibility-system, and IT costs. Modernizing eligibility and record-keeping systems now will help offset that future burden.
The One Big Beautiful Bill has fundamentally changed the federal–state partnership for SNAP, restoring accountability and shared responsibility. States that act now to reduce errors will protect their budgets, preserve integrity, and strengthen public trust. But this isn’t only about finances, it’s about returning the program to its original purpose: a temporary bridge for families in need as they work toward stability and independence. By reinforcing sound management and sustainability today, states can ensure that SNAP remains a true steppingstone, helping more Americans flourish tomorrow without trapping them in dependency.
State officials don’t have to do it alone. The Center for Practical Federalism can connect you with experts who specialize in program integrity, best practices, and state oversight strategies, helping you identify opportunities to strengthen your systems and fix problems before they become costly.
Reach out to our team for technical assistance on building your state’s error-reduction plan.
Additional Resources
Food Stamp Program Integrity Measures Will Lower Costs For States and Preserve Resources for the Truly Needy, Foundation for Government Accountability
What states can expect with the new SNAP match: Options to reduce state error rates, Alliance for Opportunity