Virginia is on the hook for roughly $266 million in annual food assistance benefits, part of the aftermath of Donald Trump’s “One Big Beautiful Bill” Act that continues to ripple across the country.
The law, signed in July 2025, set new guidelines for state contributions toward Supplemental Nutrition Assistance Program (SNAP) benefit costs based on rates that measure how accurately each state determines eligibility and benefits. At the start of the 2028 fiscal year next October, those guidelines require most states whose Payment Error Rates (PER) are above set limits to contribute up to 15% of program benefit expenses.
Virginia is one of them, and it would owe the full 15%.
Right now, the federal government covers all SNAP benefit costs. This added state expense likely will pull money from other state-funded projects, according to the director of No Kid Hungry Virginia, a campaign by national nonprofit Share Our Strength that seeks to address hunger and poverty in the U.S.
“Whatever it is that we care about, we’ll have less money to do so in Virginia, because we’re being hamstrung by the federal government in that way,” said Sarah Steely, director of No Kid Hungry Virginia.
The expense comes as House Resolution 1 (Trump’s “One Big Bill”) adds other costs to the states' plates, including a likely $1.75 billion for K-12 schools and Medicaid.
In terms of SNAP, the bill transfers 5% of SNAP benefit costs to states with lower-range PERs, 10% of costs to states with mid-range PERs, and 15% of costs to states with higher PERs — an error rate of 10% or more.
According to the U.S. Department of Agriculture, which oversees SNAP at the federal level through its Food and Nutrition Service (FNS), Virginia tallied a 12.32% Payment Error Rate in FY2025.
Coming in above the 10% mark set in H.R. 1, Virginia would be required to foot 15% of SNAP benefit costs — an estimated $266 million — in accordance with the bill, a condition that is scheduled to go into effect next October. However, the law allows Virginia to choose between basing its benefit cost match on FY2025 or FY2026 — which ends Sept. 30 — giving the state a few more months to lower its PER and potentially decrease the percentage of SNAP benefit costs it would owe.
Aside from the commonwealth, 13 other states will contribute 15% of SNAP benefit costs based on FY2025 PERs, leaving “less money for other important priorities,” according to Steely. Only nine states and the Virgin Islands had error rates below 6%; therefore, they are exempt from paying any percentage of SNAP benefits.
Adding to the impending expenses, H.R. 1 delivered another hit to states for SNAP funding effective this October, this time in the form of a larger share of the administrative fees. The bill requires states to contribute 75% to the program’s administrative costs — a price that sat at 50% previously.
Even more, Rebecca Morgan, director of Middlesex County Department of Social Services and third vice president of the Virginia League of Social Services Executives (VLSSE), said Virginia's localities could owe up to roughly $45 million statewide for additional administrative costs, on top of the administrative costs to the state.
When combined, the increased administrative fees and the estimated state benefits contribution amount to roughly $400 million in new costs to Virginia and its localities each year as a result of H.R. 1, according to Morgan.
“These provisions could risk more people losing access to the food that they need,” Steely with No Kid Hungry Virginia said, potentially putting added strain on Virginia’s schools, healthcare system and local economies.
The two-year budget adopted by the General Assembly on June 29 includes $135 million in the second year to help pay for the state’s share of SNAP benefits. It also includes $100 million to pay for the higher state administrative costs.
It does not include more than $50 million that the House of Delegates had included in its budget to help localities pay their higher administrative costs, but the Senate did not accept. The House budget had included $65.5 million in the first year and $87.3 million in the second to pay the higher share of administrative costs for both state and local governments.
Gov. Abigail Spanberger’s approved budget included $1 million from the General Fund and $1 million from the Nongeneral Fund for each of FY2027 and FY2028 toward decreasing SNAP payment error rates. And, given that Virginia doesn't see a reduction to its PER this year to drive down what the state will owe, the budget also allocates $135 million more in the second year of the budget toward the impending benefit costs.
With additional resources from Virginia's Department of Social Services, Morgan said Virginia's error rate has decreased "substantially" in recent months. However, its PER isn't less than 10% yet, but Morgan says there is a "good chance of getting below" that mark by the start of FY2026 in October, which would drop the state's benefit match cost from 15% to 10%.
With that in mind, No Kid Hungry Virginia is campaigning Congress to delay the start date of SNAP state benefit costs by at least two years to give states like Virginia even more time to decrease PERs below 6% and eliminate a state match cost, a request that Steely said has the potential to be added to the Farm, Food, and National Security Act of 2026.
“In a perfect world, it would be a repeal of some of these really harmful provisions, but certainly a delay to give more states the time to do their due diligence to comply with all the new requirements,” Steely said.
The legislation has been passed in the House but is stalled while Congress is on a month-long recess. Prior to the break, Senate Democrats and Republicans went back and forth on how to handle a delay for state SNAP benefit contributions.
A proposal by Senate Agriculture Committee Chairman John Boozman, R-Ark., would give states like Virginia a one-year delay for benefit expenses. However, it would also increase the maximum share of benefit costs for those states that have a PER above 10%.
This would raise Virginia’s SNAP benefit contribution from 15% to 20% beginning in FY2031 if its PER was to stay above 10%.
Democrats blocked Boozman’s proposal on Aug. 6, sending the Agriculture Committee back to the drawing board and holding states’ SNAP benefit cost-sharing to the impending October 2027 start date set in H.R. 1.
Morgan, a leader with VLSSE, which represents 120 local departments of Social Services in Virginia, said she is "not confident at all" that a two-year delay will be approved. She added that the date the fiscal penalty is owed might be pushed back, but a delay to 2028 is "up in the air."
Regardless of whether the farm bill extends the deadline for states, both Morgan and Steely said using the PER measure, which captures both overpayments and underpayments, does not give a complete picture of how well SNAP is administered. Specifically, PER includes errors made not only by the local departments but also by their clients. It also does not account for forms of fraud like SNAP skimming — a method for stealing benefits by copying card information — or how quickly applications are processed.
"Many of these cases are not the fault of the local government," Morgan said, adding that "this is a new requirement of the federal government with a large financial penalty that states really haven't been held accountable for ever in history."
State contribution comes as SNAP enrollment declines
In addition to the new regulations shifting SNAP benefit costs to the states, H.R. 1 also introduced tighter eligibility requirements and slashed the program’s funding by roughly $187 billion through 2034, marking the largest cut in the program’s history.
Between July 2025, when the bill was passed, and this April, SNAP has seen a decline of over 4.5 million participants nationally, according to a Center on Budget and Policy Priorities (CBPP) analysis. In Virginia, the program has decreased by over 106,000 people.
“This is a time when, with families being squeezed at the gas pump or the grocery store, with the cost of basic needs really skyrocketing for a lot of families … we would have expected to see more eligible families enrolled in SNAP,” Steely said, “not fewer.”
The new eligibility guidelines not only mean fewer citizens qualify for SNAP benefits, but they also make the enrollment process harder for those who are eligible, adding steps and paperwork that might discourage participation further.
This loss of benefit access can lead to “tough tradeoffs” for Virginians, according to Steely, especially as prices of other goods remain high.
“It could mean a parent or caregiver being forced to skip meals so their kids can eat,” Steely said, or “having to choose between buying food and paying a utility bill.”
On a broader scale, the loss of SNAP benefits also reduces money flowing through local economies. For every $1 in SNAP benefit spending, $1.54 is generated in economic activity as recipients use their benefits at local grocery stores and markets.
SNAP’s declining enrollment has driven more people to local food banks, like Henrico-based hunger relief organization FeedMore, in need of nutrition assistance. The agency’s chief development and health strategy officer, Aaron McClung, said it's seen an increase of more than 11% in people in the last fiscal year.
“We're seeing more people, and they're also coming more often to get that assistance,” McClung said, citing job losses, transportation challenges and cuts to SNAP and other federal benefit programs as primary drivers.
McClung said he is especially concerned about the “most vulnerable” groups that receive SNAP benefits, including children and seniors, which made up over 55% of the program’s participants in Virginia as of last June.
FeedMore is purchasing more food to support its increasing number of visitors, but the agency might not be able to maintain its response, as community donations have declined in recent years, according to McClung.
“I hate to say the term ‘perfect storm,’ but it’s putting a lot of pressure on us,” he said. “We’re responding, but … it’s not sustainable.”