SNAP Shake-Up: States Face Higher Costs and New Challenges

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New Senate proposals could drastically increase states' administrative costs for food assistance. How will states cope with the rising burden of SNAP program management? The ongoing battle over federal spending has states bracing for impact on vital programs.  #SNAPFunding. #StateFinances. #BudgetCrunch.

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00:00The Senate is making its mark on a sweeping budget reconciliation package, with proposed

00:04changes to the Supplemental Nutrition Assistance Program, or SNAP, that could significantly

00:09increase the administrative burden on states. While the House initially required states to

00:14cover 50% of administrative costs and 5% of their share of SNAP benefit costs, the Senate

00:21Committee on Agriculture, Nutrition and Forestry is proposing a substantial hike.

00:26Under their plan, the state administrative cost burden would rise dramatically to 75%.

00:32This means a much larger chunk of the administrative costs for running SNAP would fall squarely on the

00:38states. While there are nuances, such as exemptions for states with low error rates and a lower cap

00:44for states with high error rates, the overall trend points to a greater financial responsibility for

00:49states. Senator Murkowski of Alaska, for example, notes that her state still faces challenges when

00:55it comes to SNAP implementation, suggesting that these increased administrative burdens could

01:00exacerbate existing issues. These proposed changes come amidst a broader push by Senate

01:05committees to find even deeper savings to offset the enormous cost of making key 2017 tax cuts

01:11permanent. The pressure is on Senate Majority Leader John Thune to get Republican senators on

01:17board, especially with President Trump's firm July 4 deadline for the bill's passage.

01:21White House Chief of Staff Susie Wiles has even emphasized that Trump expects them to stick to

01:27his timeline. As negotiations intensify, there's an expectation of concessions all around to get

01:33this massive legislative package passed. However, many of these provisions, from both the House and

01:39Senate versions, could still be stripped out if they don't comply with the Senate's bird rules,

01:44which limit budget reconciliation bills to matters strictly fiscal.

01:47The future of SNAP funding and its impact on states remains a central point of contention in this

01:53ongoing budget battle. Money Explainers

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