Section 10106: Administrative Cost Sharing

📘 Section 10106: Administrative Cost Sharing

🧠 What is this section about?


This part of the bill changes how the administrative costs (the money spent to run SNAP) are shared between the federal government and the states.

✅ In 4th-Grade Language:


When states run SNAP, there are extra costs—like paying staff, computers, and rent for offices.

  • Right now, the federal government pays 50% of those costs.

  • With this law, for 2027 and after, the federal government will only pay 25%, and the state will have to pay 75%.


This means states will have to cover more of the cost to run the SNAP program.

📅 How it works:

  • Through fiscal year 2026: Federal pays 50%, states pay 50%.

  • Starting fiscal year 2027: Federal pays 25%, states pay 75%.


That big switch happens in 2027—a big change in who pays the bills.

💡 Why this matters:


States rely on federal money to help run SNAP. Now, if the federal share drops, states have to pay more, which could mean:

  • Higher state budget spending

  • Possible state cutbacks in staff or services

  • Slower access to food benefits if states cannot manage costs

🧃 Quick Example:


Think of a family who always shared chores equally.


Mom and Dad both scrub dishes.


But next year, it decides:


Mom still does 25% of chores, but Dad must do 75%.


That’s a big change in who does what to keep things running.

📜 Official Text of the Change


Here’s the exact amendment language:


“Section 16(a) of the Food and Nutrition Act of 2008 is amended by striking ‘agency an amount equal to 50 per centum’ and inserting ‘agency, through fiscal year 2026, 50 percent, and for fiscal year 2027 and each fiscal year thereafter, 25 percent.’”  

💬 Final Takeaway:


Section 10106 moves states into paying more of the costs to run SNAP, shifting more responsibility onto them. That could have ripple effects: states might struggle to keep SNAP offices staffed or to serve people quickly.



Original Document:

SEC. 10106. ADMINISTRATIVE COST SHARING.

    Section 16(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(a)) is amended in the matter preceding paragraph (1) by striking 
``agency an amount equal to 50 per centum'' and inserting ``agency, 
through fiscal year 2026, 50 percent, and for fiscal year 2027 and each 
fiscal year thereafter, 25 percent,''.

The states likely to feel the greatest strain from Section 10106—where the federal government cuts its share of SNAP admin costs from 50% to 25%—are those that:

  1. Spend more per SNAP case on administration, and

  2. Manage large SNAP caseloads, especially during economic stress.


Here’s what we know:

🏛️ Which States Will Suffer Most?


1. High State Administrative Costs per Case


USDA’s research shows state admin costs per SNAP case vary widely. Some states spend significantly more per household—meaning they’ll face larger state budgets obligations when the federal share drops. In simple terms:

  • If a state usually spends $200 per family but collects only 50% back from the federal government, its net burden doubles when it must now cover 75%.

  • States with higher costs per case (due to geography, low population density, or tech inefficiencies) will see more financial stress.  


2. States with Large SNAP Caseloads


According to USDA ERS:

  • States like California, Texas, Florida, New York, and New Mexico have large SNAP enrollments—between 11% and 23% of residents receive benefits.  


So, a state that spends more per case and helps many households will face the biggest increase in required state spending.

🔍 Examples of Likely Impacted States

  1. Rural States with high administrative costs (like Alaska, Montana):

    • Admin costs tend to be higher per case due to geography and low population density.

  2. Large states with high SNAP participation (California, New York, Texas, Florida):

    • sheer volume of cases means even small administrative costs are multiplied across millions of households.

  3. States with both factors (e.g., New Mexico):

    • High per‐case costs and roughly 23% of residents on SNAP  . These states will be hit especially hard.


While exact cost figures per state need deeper analysis, the USDA report (Exploring Variation in SNAP Admin Costs) is a great resource to see which states spend more per case.  

👩‍⚖️ Why It Matters


Section 10106 shifts more of the SNAP infrastructure cost onto states, who will now cover 75% of these admin expenses. That could lead to:

  • Cuts in program staff

  • Delays in processing SNAP applications

  • Potential rollsbacks in modernization efforts that streamline access


States that already struggle with high administrative costs or large SNAP populations could see the greatest disruption.


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