American Systems•3 MIN READ

SNAP Participation Is Down Nearly 10 Percent Nationwide. States Say a Bigger Crisis Is Coming.

Erin Calloway

Updated Jul 12, 2026

More than 3.5 million people lost access to food stamps between July 2025 and February 2026. States are now warning the financial pressure on the program is only beginning.

What You Should Know

At least 3.5 million people lost access to SNAP benefits as the initial provisions of the One Big Beautiful Bill Act took effect, according to an analysis cited by CNBC. SNAP participation has fallen nearly 10 percent nationwide since the law was signed on July 4, 2025. PBS NewsHour reported that millions were losing SNAP benefits as stricter requirements took hold in late 2025 and early 2026.

The OBBBA is projected to cut $186 billion in federal SNAP spending over 10 years, according to the Congressional Budget Office. The work requirement changes alone raised the upper age limit for work requirements from 54 to 64, significantly expanding the population subject to monthly documentation requirements.

The System Under Pressure

The cost-sharing provisions in the OBBBA create a second wave of pressure that has not yet materialized. Starting in FY2028, states will be required to pay a share of SNAP benefit costs based on their payment error rates. The Congressional Budget Office estimated this provision may eliminate benefits for 300,000 additional people in an average month over the next decade, costing the federal government an additional $7 billion in reduced spending, according to the CBO analysis published by Congress.gov.

The Brookings Institution warned in April 2026 that the structural shift pushing benefit costs onto states is unprecedented and will strain state budgets, particularly during recessions when both SNAP caseloads and state revenue shortfalls tend to increase simultaneously. Some states may choose to exit the SNAP program entirely rather than absorb the new cost-sharing obligation, Brookings noted.

The Receipts

The BenefitsUSA analysis of OBBBA SNAP changes confirmed the 3.5 million figure and documented the immediate impact of work requirement changes that took effect November 1, 2025. The Center for American Progress published an OBBBA implementation timeline noting that SNAP administrative cost-sharing shifts begin in FY2027, while the full benefit cost-sharing begins in FY2028. The Ohio Capital Journal reported in January 2026 that the changes could eliminate food assistance for a significant share of Ohio residents.

What Happens Next

The FY2027 administrative cost-sharing deadline is the next inflection point for states. State Medicaid and SNAP agencies are evaluating their budgets and considering whether to modify eligibility, reduce benefits, or in some cases exit the program. Beneficiaries who were removed under work requirement provisions can reapply if they believe they qualify for an exemption. The BenefitsUSA eligibility tracker noted that income limits and the basic benefit formula remain unchanged under the OBBBA.

References: BenefitsUSA, OBBBA SNAP Changes 2026 | Brookings Institution, SNAP Cuts in the One Big Beautiful Bill Act | Congress.gov CRS Report, SNAP and Related Nutrition Programs in P.L. 119-21 | Center for American Progress, OBBBA Implementation Timeline

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SNAP Participation Is Down Nearly 10 Percent Nationwide. States Say a Bigger Crisis Is Coming.

What You Should Know

The System Under Pressure

The Receipts

What Happens Next

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