Food for Thought: The Real Costs of Restricting SNAP Benefits

On July 4, Trump signed into law what was known as the “Big Beautiful Bill” (HR1). Despite its name, this legislation endangers people’s ability to live safely and comfortably. The bill makes significant changes to the Supplemental Nutrition Assistance Program (SNAP), restricting eligibility and imposing greater administrative costs on the states, with a goal of reducing federal spending by nearly $300 billion.

These changes will have profound consequences on SNAP, which is the largest food safety net program in the United States. In New Jersey specifically, over 800,000 individuals rely on SNAP benefits to put food on the table, with over 40% of recipients being children.

Beginning in the 1930s, states created county welfare boards that were responsible for administering public benefits to residents. New Jersey is one of ten states where programs are still administered at the county level. The counties not only serve the residents, they also employ them. As a result, counties pay a portion of the administrative costs, and state and federal dollars cover the costs of benefits. While benefit dollars help to stimulate the local economy, a county’s administrative cost is a very small percentage of the actual benefits that return to the community.

Until HR1 was signed into law on July 4, states and the federal government shared a 50/50 split on SNAP administrative costs. HR1 makes the states responsible for 75% of the administrative costs and 5% of the actual benefit paid to each SNAP recipient. The New Jersey Department of Human Services estimates that the state budget needs to raise $100-$300 million to implement these new cost-sharing requirement changes, or risk eliminating the entire SNAP program for New Jersey. County governments will need to come up with an additional $78 million for their portion of the administrative costs. This increase in the state's financial responsibility will further decrease resources and access to SNAP benefits, and cause serious strain to the program that helps to ensure that thousands meet one of their most basic needs.  

Those currently receiving SNAP benefits are not exempt from the direct impacts of HR1. Changes to household eligibility and work requirements may force people to lose SNAP benefits entirely.

Current SNAP recipients between the ages of 18 and 54 who do not reside with a child under 18, and who are able to work are classified as Able-Bodied Adults Without Dependents (ABAWD) and are subject to time limits and work rules. Individuals subject to the ABAWD Time Limit Rules can only receive SNAP benefits for three months in a three-year period unless they are working, volunteering, or in an allowable activity for at least 80 hours a month.

While ABAWD Time Limit Rules have always existed, SNAP recipients haven’t always been subject to their strict enforcement. Prior to HR1, Time Limit Waivers for areas with high unemployment, as well as discretionary exemptions, helped relieve some recipients from ABAWD rules–especially in the aftermath of COVID-19. As HR1 is implemented, these waivers will no longer be available.

Under HR1, work reporting requirements will be expanded to include ABAWD up to age 65 and include parents or guardians of children over the age of 14. Additionally, veterans, the homeless, and young people aging out of foster care are no longer exempt from the work requirement. 

Rest assured that changes to SNAP will not be felt overnight, but families will begin to feel the impact as HR1 is implemented, and it's important that they remain informed.