Press Release: New Federal Law Will Cost NH an Extra $15 Million to Maintain Vital Food Assistance

As Federal Penalty Threshold Looms, SNAP Error Rates Highlight Complex Bureaucracy

CONCORD, NH — Under a new federal penalty threshold, New Hampshire must find an estimated $15 million annually starting in FY 2028 to maintain current Supplemental Nutrition Assistance Program (SNAP) benefits for local families.

According to newly released USDA data, New Hampshire’s fiscal year 2025 SNAP payment error rate is 8.85%. Because this exceeds the threshold established by the federal reconciliation law (H.R. 1), the state must now pay 10% of its total SNAP benefit costs – an expense previously covered by the federal government. The state now faces a $15 million annual bill to maintain current food assistance levels for local families who rely on SNAP to afford groceries, starting in FY 2028.

These penalties are compounded by recently-imposed administrative cost-shifts to states. Historically, federal and state governments have split the administrative costs of the SNAP program 50-50; now, as of October 1, 2026, under H.R.1, states will have to find the money to cover 75% of program costs. 

To keep the same number of Granite Staters covered without cutting SNAP benefits or limiting enrollment, the Center for Budget and Policy Priorities estimates that New Hampshire will need to find $15 million per year in its budget starting in federal FY 2028 – plus the additional 75% cost to run the SNAP program. 

Anti-hunger advocates emphasize that a payment error rate is an administrative metric, not a measure of fraud. Payment error rates measure whether a state accurately calculated SNAP eligibility and benefit amounts. It includes both overpayments and underpayments. 

“An error rate is purely a measure of administrative accuracy, overwhelmingly driven by honest, unintentional mistakes,” said Laura Milliken, Executive Director of NH Hunger Solutions. “Whether it's a typo in the state's eligibility system, or an overwhelmed call center that slows a family’s ability to report a minor change, or a worker miscalculating a fluctuating income, these are systemic glitches. It is not fraud, and struggling families should not have to pay the consequences of a complex, heavily bureaucratic system.”

SNAP is a cornerstone of New Hampshire's economy and health that helps thousands of residents afford the skyrocketing cost of groceries. Forcing the state to absorb millions in benefit costs would shift immense financial pressure onto local towns and cities, which are not equipped to handle the consequences of families losing food access.

“Our local food pantries and banks are already stretched to their absolute limits,” said Milliken. “They simply do not have the food, funding, or infrastructure to fill a $15 million gap. When SNAP is cut, hunger doesn't disappear – it just overwhelms our municipalities, schools, and emergency rooms. SNAP cuts don’t solve anything. They simply increase the number of families who go hungry.”

To protect Granite State families and ensure that no one in our state is food insecure, NH Hunger Solutions is calling for a coordinated response at both state and federal levels to maintain current SNAP benefit levels and support program administration.

• We urge our federal delegation to oppose a Farm Bill that does not reverse the H.R. 1 SNAP cuts or, at a minimum, delay the implementation of these costly benefit shifts to states. Because states have been rushed to implement changes to SNAP made under H.R.1, errors are inevitable – making it even more critical to delay the cost-shift to states.

• We call on state lawmakers to protect current SNAP enrollment by prioritizing families' health, keeping them fed, and giving the state the necessary resources to avoid error rates. This includes:

  • Adequate Administrative Funding: Securing the state-level resources required to hire, train, and retain eligibility workers so they can process complex paperwork accurately and efficiently.

  • Robust Outreach Programs: Expanding community outreach to ensure that families participating in SNAP have clear, accessible information to help them report household changes accurately and on time.

“Our top priority must be ensuring that no one in our state is food-insecure, and that means working together to maintain current SNAP benefit levels,” Milliken concluded. “By reversing or delaying these federal cost-shifts in the Farm Bill, and by equipping our state agencies with the proper administrative funding and outreach tools, we can reduce errors, support our workforce, and keep our communities healthy and strong.”

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About NH Hunger Solutions: NH Hunger Solutions is a statewide organization dedicated to ending hunger in New Hampshire by expanding access to federal nutrition programs, advocating for systemic policy change, and ensuring every Granite Stater has the food they need to thrive. Learn more at www.nhhungersolutions.org.