States must begin sharing Medicaid and SNAP administrative costs under the One Big Beautiful Bill Act

Beginning October 1, 2027, states must contribute a matching share of Supplemental Nutrition Assistance Program (SNAP) administrative costs for the first time — a structural shift that has historically been 100% federally funded. The One Big Beautiful Bill Act also changed SNAP eligibility rules and tightened work requirements, estimated to remove approximately 2.7 million people from the program. States must build administrative infrastructure to collect the new cost-share and enforce updated eligibility requirements. States that fail to comply face loss of federal SNAP administrative funding. Low-income advocates warn the transition will create gaps in food assistance coverage, particularly for working families who temporarily fall out of compliance with new reporting requirements.