Kate Hanson, Founder and Executive Director, Meals4Families
What Is SNAP?
SNAP (Supplemental Nutrition Assistance Program) helps individuals and families with low income or no income afford groceries. It is our nation’s largest anti-hunger program, supporting tens of millions of people each month (1). In North Carolina, the SNAP program supports 1.4 million children, older adults, people with disabilities, and working North Carolinians (the equivalent of 1 in 8 people in our state), including more than 600,000 children under 18, 159,00 adults over 65, and 46,000 veterans (2).
What’s the Problem?
Recent federal legislation shifts part of the cost of SNAP food benefits from the federal government to states, a significant departure from SNAP’s long-standing federal funding structure (3). This same legislation also requires states to pay a higher share of the cost of administering the SNAP program. Starting in October 2026, states will have to pay for 75% of SNAP administrative costs, up from 50% historically.
Paired together, the new benefit cost share requirement and the increased administrative cost share mean that continuing the SNAP program will put state budgets under enormous strain. Because states must balance their budgets, this cost shift could force some states, including North Carolina, to consider withdrawing from SNAP altogether—an outcome that would put millions of families into crisis and harm K-12 public school meal programs, local farmers, and grocery retail economies.
What This Means for North Carolina
North Carolina can’t afford the benefit cost shift and may have to exit the SNAP program entirely (2). It is estimated that NC’s SNAP benefit cost share could be over $420 million per year; coupled with the increase to a 75% administrative cost share, this means that starting in October 2027, North Carolina would need an estimated additional $436 million from the state budget each year to continue the SNAP program in our state. States can avoid this benefit cost share by bringing one specific SNAP program performance metric, called Payment Error Rate (PER), below a 6% threshold. Historically, North Carolina has consistently met this performance requirement (4). SNAP PER increased nationally during the COVID-era economic crisis, and as of 2024 the majority of states (42) had SNAP Payment Error Rates higher than 6% (2). North Carolina is on a promising path toward reducing our SNAP PER and avoiding the benefit cost share. A two-year delay in the benefit cost share implementation would give all states, including North Carolina, a fair shot at recovering from COVID-era trends and adapting to recent SNAP policy changes.
Why Everyone Should Care
North Carolina is stronger with SNAP. The SNAP program brings nearly $2.8 billion in federal dollars to our state economy each year, generating $4.2 billion in statewide economic impact (2). SNAP lifts up entire communities, not just the families and individuals who receive monthly benefits (5):
- SNAP is one of the most effective tools for reducing hunger and poverty, particularly among children and seniors.
- SNAP food benefits are spent at local retailers, grocery stores, and farmers’ markets, supporting County economies, retail jobs, and local farmers.
- SNAP helps fill the gaps for workers with low and inconsistent pay, supports people who have lost jobs and are looking for work, and keeps people healthy so that they can show up to work.
- Losing SNAP in North Carolina would increase food insecurity and force people to make difficult, and often harmful, tradeoffs between paying for food, housing, and medical care.
- SNAP participation ensures more reliable access to food, improving physical and mental health, which also improves outcomes at school and reduces health care spending.
How You Can Take Action and Make a Difference
Protecting SNAP is urgent—and taking action is quick and easy. Here are a few simple ways you can help right now:
Send an email to Congress.
NCAH has an action alert you can use to quickly email your Members of Congress and urge them to protect SNAP and delay the SNAP benefits cost shift to Federal Fiscal Year 2030 for all states.
Join the national Day of Action on Thursday, January 15.
Participate in the #StopThatSNAPShift Day of Action by calling your Members of Congress and urging them to include a provision in their continuing resolution before January 30 that mitigates the SNAP cost shift to states.
Speak out on social media.
Get vocal online and tag your Members of Congress. You can reference this powerful coalition letter signed by multiple national organizations and use or adapt the talking points below.
Three Easy Talking Points You Can Use
- H.R. 1 forces an unprecedented SNAP benefit cost shift onto states. North Carolina cannot afford this added cost and could even be pushed to exit the SNAP program entirely.
- Congress can fix this before it wrecks state budgets, including North Carolina’s state budget.
- The simplest solution: delay the SNAP benefits cost shift to the Federal Fiscal Year 2030 for all states.
Learn more.
Read more about this issue using one-page explainers from FRAC and the Center on Budget and Policy Priorities, which break down what’s at stake and why swift action matters.
References
- Center on Budget and Policy Priorities (Jan. 8, 2026) Congressional delay of SNAP cost shift urgently needed to protect food assistance for low-income families.
- NC DHHS (Jan. 13, 2026) Impact of H.R. 1 on SNAP in North Carolina & Implementation Update.
- Share Our Strength (Oct. 7, 2025) Summary of changes to SNAP in Reconciliation (H.R. 1).
- The Hamilton Project (June 30, 2025) SNAP payment error rates by state, FY 2003–24.
- Center on Budget and Policy Priorities (Feb. 14, 2023) SNAP Is and Remains Our Most Effective Tool to Combat Hunger.
