North Carolina Counties Brace for Increased SNAP Administrative Costs

This year's budget planning in Scotland County faced unforeseen challenges, particularly in managing limited resources. New administrative costs emerged as North Carolina counties brace for increased expenses associated with the Supplemental Nutrition Assistance Program (SNAP). This change results from a Congressional decision, under the One Big Beautiful Bill Act (H.R. 1), to shift more SNAP administrative duties to states, escalating county responsibilities from covering 50% to 75% of these costs.

County officials anticipated state legislative support to fund the estimated $52 million increase for the first year, but this was notably absent from the state budget signed by Gov. Josh Stein. County Manager April Snead highlighted the challenge of reconfiguring local budgets to fill these gaps, stressing the financial burden on taxpayers.

The financial strain coincides with significant SNAP program modifications focused on enhanced work requirements and frequent eligibility verification, designed to minimize payment errors. These changes necessitate additional staffing, thereby exacerbating resource constraints for counties already struggling with regulatory compliance requirements.

The North Carolina Association of County Commissioners actively engaged state lawmakers, seeking fiscal support. Andrew Blackburn, the association's governmental affairs director, expressed discontent at the absence of relief, given the counties' stretched financial capabilities. Despite early optimism, Joy Hicks, director of advocacy and policy, shared that the approved budget fell short of expectations after consultations with legislative leaders.

Sen. Jim Burgin (R-Angier), chair of the Senate Health Committee, acknowledged discussions about aiding smaller rural counties, where the financial strain is magnified due to limited tax revenues. As local governments finalize budgets without anticipated state assistance, they must balance the dual challenge of implementing SNAP updates while managing existing fiscal responsibilities.

The state budget does provide for investments aimed at modernizing SNAP administration, such as upgrading eligibility systems and expanding staff focused on reducing payment errors. North Carolina's efforts have effectively lowered SNAP payment error rates, a crucial step as new federal penalties are set to begin in fiscal year 2028, making error reduction strategic for future risk management.

Discussions continue on potentially centralizing more SNAP administration at the state level to enhance efficiency and cost-effectiveness. Meanwhile, local governments bear an increased administrative workload, prompting county officials to advocate for federal waivers and legislative revisions to tackle these emerging challenges as they prepare for upcoming budget cycles.