Program Overview
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is the most extensive federal nutrition assistance program in the United States. It serves as a “safety net” program that helpslow-income individuals and families access and purchase healthy food. The program is funded by the Department of Agriculture (USDA) and managed by each state.
SNAP’s aim is to reduce hunger, improve nutrition, and support the agricultural sector by providing monthly benefits on an Electronic Benefit Transfer (EBT) card that works like a debit card at approved food stores. This program helps millions of Americans, including around 155,000 Nebraskans—more than 64,000 of whom are children—who might otherwise struggle to afford healthy food.
A household’s income and assets mainly determine eligibility for SNAP, although specific requirements can vary somewhat by state, while still following federal guidelines. Typically, households need to meet both gross and net monthly income limits, usually at or below 130% and 100% of the federal poverty level, respectively, with assistance based on both income and household size.
Nebraska’s current figure sets a gross monthly income limit of 165% of the federal poverty level (set through LB108 in 2021)—or $2,152 for a household of one (or just under $26,000 gross annually)—with the limit increasing based on family size. Net income (after deductions for housing and childcare) must be at or below 100% of the federal poverty level, or $19,600, to qualify.
Some households with elderly or disabled members may have different rules to accommodate their specific needs. Besides financial requirements, recipients must also meet criteria related to citizenship or legal permanent residence, and, where relevant, work effort. The program aims to help people afford nutritious food and maintain their independence.
SNAP has been in the news recently, especially with the government shutdown and the notice that SNAP cards will not be reloaded as usual in early November. With that in mind, it is timely to review SNAP’s goals and requirements today, examine the impact of SNAP funding on our local economies, and consider potential changes to SNAP following the passage of the One Big Beautiful Bill Act this past July.
The Impact of SNAP on Communities
The potential benefits of SNAP go beyond individual households, creating a ripple effect that influences entire communities.
- Boosting Local Economies: When SNAP benefits are spent, they directly inject money into local economies. In Nebraska, this spending results in over $330 million in economic activity each year. Grocery stores, farmers’ markets, and other food retailers experience increased sales, which helps them maintain jobs and potentially create new ones.
- Supporting Farmers and Food Producers: SNAP offers a dependable market for agricultural products. This steady demand helps keep prices stable for farmers and benefits the entire food supply chain. About 1,400 food retailers in Nebraska accept SNAP EBT cards, directly connecting local producers with consumers who need their products most. Currently, Nebraska SNAP benefits can be used to buy fruits, vegetables, meat, poultry, fish, dairy, bread, and various snack items. However, after January 1, SNAP benefits will no longer cover items like soda and energy drinks.
- Enhancing Public Health Outcomes: Access to nutritious food forms a foundation for good health and is a key part of the Make America Healthy Again (MAHA) movement. By urging families to buy fresh produce, lean proteins, and whole grains, SNAP can help lower diet-related illnesses and boost long-term health.
The Future of SNAP: State-Level Impacts of the One Big Beautiful Bill Act
The passage of the One Big Beautiful Bill Act (OBBBA) signifies a major change in how SNAP is operated and funded, with significant effects on state governments and beneficiaries. This law is expected to make substantialcuts to the program nationwide, potentially leaving many without food assistance.
- Expanded Work Requirements: OBBBA raises the age limit for Able-Bodied Adults Without Dependents (ABAWDs) required to work from 18–54 to 18–64. This update also eliminates several previous exemptions, meaning some veterans, homeless individuals, and young adults who aged out of foster care now face new rules.
- Restricts Waivers: States may find it more difficult to get waivers from work requirements, which could hinder the program’s ability to respond effectively to local economic downturns.
These changes could make SNAP less responsive during economic downturns, increasing the risk of food insecurity for more individuals and communities, and forcing state agencies to restructure their administrative systems to comply.
Direct Financial Strain: The Cost-Sharing Situation for States
One of the key financial outcomes of the One Big Beautiful Bill Act (OBBBA) is the mandated cost-sharing for SNAP benefits. OBBBA eliminates the traditional funding model by requiring states to contribute to the food benefits issued to households, with their share directly linked to how well they reduce payment errors.
- Increased Fiscal Liability: OBBBA creates an immediate, unfunded liability by shifting more administrative costs to the states. Some projections indicate that Nebraska will face an additional $17 million in administrative costs each year, starting in Fiscal Year 2027.
- Future Benefit Cost-Share: Starting in FY 2028, states will need to pay part of the food benefits if their payment error rate exceeds 6%. Although Nebraska’s rate is currently low and not subject to this rule, if it rises, the state could be responsible for millions of dollars in yearly benefit costs.
- The Incentive to Limit Access: Facing this potential new financial burden, some fiscal analysts predict that states will have a strong economic motivation to deliberately restrict SNAP enrollment to reduce their share of the benefit costs. While budgetary prudence and rule enforcement are always crucial, the idea of excluding genuinely needy populations from aid concerns some analysts.
- Diversion of Funds: To cover new SNAP costs, states may have to shift funds from other essential programs, such as education, infrastructure, or public health, resulting in cuts to these critical services.
This financial restructuring effectively turns SNAP into a joint federal-state program, putting significant stress on state treasuries and fundamentally changing how food assistance is managed nationwide.
