A federal funding change is shifting more SNAP administrative costs onto states and, in some cases, counties, making cost-sharing a major unresolved issue in 2026 Farm Bill negotiations.

Starting in fiscal year 2027, the federal share of SNAP administrative expenses falls from 50% to 25%, leaving states responsible for the remaining 75%; how much counties pay depends on each state’s funding arrangements.

That local impact varies: Colorado, Wisconsin and New Jersey have allocated funds to offset some costs, while New York and North Carolina have passed the increases on to counties.

The National Association of Counties identifies 10 states with county-administered SNAP systems, including Minnesota, Wisconsin, California, New York, Ohio and North Carolina; rural counties in those states may struggle to absorb higher costs with limited staff and tax bases.

In Minnesota, counties face an estimated $35 million in annual administrative costs, while the state’s one-time $10.728 million in aid covers only part of the bill and further help is uncertain amid budget pressures.

Meeker County, Minnesota, estimates its added SNAP administrative costs will reach $135,000 in 2027 and $350,000 in 2028, potentially putting pressure on property taxes or funding for roads, libraries and other services.

In New York, counties estimate the added annual expense at $168 million, which could prompt property-tax increases or service cuts; one-time state funding for system upgrades does not cover recurring costs.

Minnesota’s SNAP payment error rate is about 9%, counting both overpayments and underpayments, and small county audit samples can make a single error produce an apparent 100% rate.

A separate benefit-cost shift is scheduled for October 1, 2027: states with SNAP payment error rates of at least 6% would generally pay 5% to 15% of benefit costs, depending on their rates, though some implementation delays are possible; errors do not necessarily indicate fraud.

Minnesota has approved modernization measures, but counties say they need more time to implement them, improve systems, communicate eligibility changes and reduce errors, particularly in rural areas with limited staffing.

Senate lawmakers have considered delaying the benefit-cost requirements, and county organizations support a two-year extension, but that would not reverse the administrative-cost increase already in effect; the House approach does not include the same relief.

Nearly all other Farm Bill sections have been agreed upon, leaving SNAP cost-sharing as the main unresolved issue; Sens. Chuck Grassley and Jim Justice have shown interest in talks and a possible two-year delay.