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Food

SNAP's Funding Model Creates a Single Point of Failure

Strategic Insights

— 2 min read

A government shutdown threatens to stall funding for the Supplemental Nutrition Assistance Program (SNAP), which provides food aid to over 40 million Americans. At least 25 states have issued notices to beneficiaries that their benefits will cease on November 1. The program's centralization in Washington makes it susceptible to budget lapses during government shutdowns, leaving states without the authority to manage their programs effectively. Devolving welfare programs like SNAP to the states would align spending authority with accountability and insulate food aid from federal dysfunction.

Key Takeaways:

  • SNAP's current funding model creates a single point of failure, making it susceptible to budget lapses during government shutdowns.
  • The federal government pays 100 percent of SNAP's benefit costs, totaling around $100.27 billion in fiscal year 2024.
  • The federal government's share of SNAP's administrative costs has dropped to 25 percent in FY 2027, but Congress continues to pay for the program's benefit costs.
  • Devolving SNAP funding to the states would give them the authority to manage their programs effectively and tailor them to meet the needs of their constituents.
  • Empowering states to fund and administer their own SNAP programs would enable them to experiment and innovate with policies to improve outcomes for low-income families.
  • A block grant model, similar to the approach taken with Temporary Assistance for Needy Families, would be a more effective way to manage SNAP funding, reducing federal costs and giving states the incentive to manage their programs responsibly.

Statistics:

  • SNAP's total federal costs were roughly $100.27 billion in fiscal year 2024.
  • The federal government's share of SNAP's administrative costs dropped to 25 percent in FY 2027.
  • The federal government pays 100 percent of SNAP's benefit costs.
  • 25 states have issued notices to beneficiaries that their benefits will cease on November 1.
  • The block grant model for SNAP funding would be paired with a gradual phasedown of the federal SNAP contribution, allowing the states to fund and manage their own food aid programs.

Sources:

  • "The Federal Budget and the Government Shutdown" by Romina Boccia and Tyler Turman
  • "SNAP beneficiaries at risk as government shutdown looms" by The Hill
  • "SNAP Key Statistics and Research" by the USDA's Economic Research Service
  • "States' SNAP food aid benefits at risk from government shutdown" by Politico
  • "SNAP's Federal Funding Bottleneck" by the Cato Institute
  • "A Reform Framework for the Supplemental Nutrition Assistance Program" by the American Enterprise Institute
  • "Options for SNAP Reform" by the Cato Institute
  • "The Path Forward: SNAP Reform" by the Cato Institute
  • "Block Granting SNAP Would Abandon Decades-Long Federal Commitment to the Program" by the Center on Budget and Policy Priorities

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