How to Calculate SNAP Cost Sharing for Counties: Step-by-Step Guide for County Treasurers

Updated October 8, 2025 | 15-minute read for county treasurers and finance directors

Quick Answer: Will Your County Pay SNAP Cost Sharing?

If you’re a county treasurer or finance director, here’s what you need to know first:

Only nine states require counties to pay SNAP costs: Minnesota, California, Colorado, New York, North Carolina, New Jersey, Ohio, Virginia, and Wisconsin. If you’re in one of these states, your county already pays administrative costs and may start paying benefit costs in 2027-2028.

If your county is NOT in one of these states, your state handles all SNAP costs directly. However, you may still see indirect impacts through increased staffing needs for eligibility processing.

Understanding the Two Types of SNAP Cost Sharing

The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, introduces two distinct cost-sharing changes that affect counties differently:

Type 1: Administrative Cost Sharing (Effective FY2027)

What changes: Federal share drops from 50% to 25%
When: Begins fiscal year 2027 (July 1, 2026, in most states)
Who pays: States (and counties in county-administered states)
Impact: Immediate and certain

Type 2: Benefit Cost Sharing (Effective FY2028)

What changes: States must pay 5-15% of benefit costs based on payment error rates
When: Begins fiscal year 2028 (July 1, 2027, in most states)
Who pays: States (may pass to counties depending on state law)
Impact: Variable based on error rates

Frequently Asked Questions: SNAP Cost Sharing for Counties

How do I know if my county has to pay SNAP cost-sharing?

Only counties in ten states administer SNAP: California, Colorado, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, Virginia, and Wisconsin. Of these, nine require counties to contribute to costs (North Dakota is state-funded). Contact your state SNAP agency to confirm your county’s specific financial obligations.

What’s the difference between administrative and benefit cost sharing?

Administrative costs cover eligibility workers, systems, and program operations. Your county already shares these 50/50 with the federal government. Starting FY2027, this becomes 75/25 (county pays more). Benefit costs are the actual SNAP benefits participants receive. For the first time in SNAP’s 60-year history, states (and possibly counties) will pay 5-15% of benefit costs starting FY2028 if the state’s error rate exceeds 6%.

When do I need to budget for these changes?

For FY2027 budget planning (most counties start this process in spring 2026), include the administrative cost increase. For FY2028 budgeting, add potential benefit cost-sharing based on your state’s FY2025 or FY2026 error rate, which will be published by USDA in June 2027.

Can my state improve its error rate to avoid cost-sharing?

Yes. States have until their FY2025 or FY2026 payment error rate is calculated to reduce errors below 6% and avoid any benefit cost-sharing. However, the federal government is also reducing its share of administrative costs from 50% to 25%, making error reduction more challenging.

Where can I find my state’s current payment error rate?

Contact your state SNAP office directly or check the USDA Food and Nutrition Service State Activity Reports at www.fns.usda.gov/pd/snap-state-activity-reports. The Brookings Institution also maintains an interactive database at www.brookings.edu/articles/snap-payment-error-rates-by-state-fy-2003-24/.

Step 1: Determine If Your County Has Direct Financial Responsibility

According to the National Association of Counties, ten states have county-administered SNAP programs representing 34% of national participants (14.6 million people).

County Financial Responsibility by State:

Source: NACo SNAP Analysis, August 2025; Brookings Institution Payment Error Rate Database

Action Item: If you’re not in one of these states, skip to the “Indirect Impacts” section at the end of this article.

Step 2: Calculate Your Administrative Cost Increase (FY2027)

The Formula

Current Model (through FY2026):

• Federal Government: 50%
• State/County: 50%

New Model (starting FY2027):

• Federal Government: 25%
• State/County: 75%

Source: H.R. 1, Section 10106

Your County’s Administrative Cost Calculation

Step 2A: Get Your Baseline

Find your county’s current SNAP administrative costs. This should be a line item in your human services or social services department budget.

Current Annual SNAP Administrative Costs: $__________

Step 2B: Calculate the Increase

For counties paying 100% of the non-federal match (NC, NY, NJ):

Current Costs × 1.5 = FY2027 Estimated Costs

Example: $1,000,000 × 1.5 = $1,500,000 (a $500,000 increase)

For counties sharing costs with the state, you need your state’s cost-sharing formula. Contact your state Department of Human Services for this information.

Real-World Example:

Mecklenburg County, North Carolina

• FY2024 SNAP administrative costs: $8,200,000
• County pays 100% of the non-federal match
• FY2027 calculation: $8,200,000 × 1.5 = $12,300,000
• Additional county cost: $4,100,000 annually

Step 2C: Project Multi-Year Costs

Step 3: Calculate Your Benefit Cost Sharing (FY2028)

This is more complex because it depends on your state’s payment error rate.

Understanding Payment Error Rates

The payment error rate measures the accuracy with which a state calculates SNAP benefits. It is NOT a measure of fraud—it tracks administrative accuracy in determining eligibility and benefit amounts.

According to Brookings Institution analysis, states’ payment error rates for FY2024 ranged from 2.92% (Wyoming) to 19.91% (Hawaii). The national average was 10.9%.

The Cost-Sharing Formula

Under OBBBA, states with payment error rates above 6% will pay a share of SNAP benefits according to this schedule:

Source: H.R. 1, Section 10105

Finding Your State’s Error Rate

Step 3A: Look Up Current Rates

The USDA Food and Nutrition Service publishes payment error rates annually. For FY2028 cost-sharing:

• States may use either their FY2025 or FY2026 payment error rate to determine their required match for FY2028
• For FY2029 and beyond, the cost share is based on the payment error rate from the three fiscal years prior

Where to find this data:

1. Contact your state SNAP office directly
2. Check USDA FNS State Activity Reports
3. Review Brookings Institution SNAP Error Rate Database

Step 3B: Get Your County’s Share of State Benefits

You need to know:

1. Total SNAP benefits distributed in your state annually
2. Your county’s proportion of state SNAP participation

Example Calculation: Wake County, North Carolina

State total annual SNAP benefits: $1,850,000,000
State error rate (FY2024): 6.85% (triggers 10% state share)
State must pay: $1,850,000,000 × 10% = $185,000,000

Wake County serves 8.5% of state's SNAP participants
Wake County's potential share: $185,000,000 × 8.5% = $15,725,000

Important Note: Whether your county actually pays this depends on your state’s decision. The federal law requires states to pay, but each state decides whether to absorb the cost or pass it to counties.

Step 3C: Calculate Total County Exposure

Administrative Cost Increase (from Step 2)    $__________
Potential Benefit Cost Share (from Step 3B) + $__________
                                      TOTAL = $__________

Step 4: Model Different Scenarios

Smart finance directors plan for multiple outcomes. Here are three scenarios to model:

Scenario A: Best Case (Error Rate Improves Below 6%)

If your state reduces its payment error rate below 6% by FY2026:

Administrative costs only: $_________
Benefit cost-sharing: $0
TOTAL FY2028 IMPACT: $_________

Wisconsin Example:

• Current error rate: 4.88% (below threshold)
• If maintained: Zero benefit cost-sharing
• Administrative increase only: ~$63M statewide

Scenario B: Current State (Error Rate Stays Constant)

If your state’s error rate remains at current levels:

Administrative cost increase: $_________
Benefit cost-sharing (based on current rate): $_________
TOTAL FY2028 IMPACT: $_________

New York Example:

• Current error rate: 10.41% (triggers 15% state share)
• Annual state SNAP benefits: ~$5.5 billion
• Potential state cost: $825 million
• If passed to counties proportionally: Varies by county size

Scenario C: Worst Case (Error Rate Increases)

If implementation challenges drive error rates higher:

Administrative cost increase: $_________
Benefit cost-sharing (at 15%): $_________
TOTAL FY2028 IMPACT: $_________

California Example:

• Current error rate: 13.89% (already at maximum 15% share)
• Annual state SNAP benefits: ~$12 billion
• State cost: $1.8 billion
• County share depends on the state-county cost allocation formula

Step 5: Identify Cost Drivers and Risk Factors

What Makes Error Rates Go Up?

According to USDA research on SNAP administrative costs, several factors increase payment errors:

1. Complex Eligibility Rules: New work requirements for ages 55-64 and parents of children 14+
2. Frequent Recertifications: More determinations = more opportunities for errors
3. Staff Turnover: Underfunded administrative budgets lead to inexperienced workers
4. Outdated Systems: Technology limitations in calculating complex deductions
5. High Caseloads: Overworked eligibility workers make more mistakes

The Zero-Dollar Tolerance Problem

OBBBA changes the error tolerance from $57 to $0. Previously, errors under $57 didn’t count against a state’s error rate. Now, every miscalculation counts.

Example Impact:

• Old rule: Overpayment of $45/month = not counted as an error
• New rule: Overpayment of $45/month = counted as an error
• Result: States’ measured error rates will automatically increase

Step 6: Strategic Planning Options

Option 1: Advocate at the State Level

Work with your state association of counties to advocate for:

• State absorption of cost increases rather than passing to counties
• Increased state investment in error reduction technology
• Adequate staffing levels for eligibility determination

Option 2: Invest in Error Prevention

If your county directly administers SNAP:

• Upgrade case management systems
• Provide additional training for eligibility workers
• Implement quality control review processes before finalizing benefits
• Consider partnering with other counties to share technology costs

Option 3: Prepare for Worst-Case Funding

Budget conservatively:

• Use your state’s highest recent error rate for projections
• Assume minimal state cost absorption
• Build reserves starting in FY2026
• Plan for multi-year impacts

Real-World County Examples

Hennepin County, Minnesota

Situation: County shares SNAP administrative costs with the state; Minnesota’s error rate (5.23%) is below the 6% threshold.

FY2027 Impact:

• Current administrative costs: ~$15 million county share
• FY2027 estimate: ~$22.5 million (+$7.5 million)
• Benefit cost-sharing: $0 (if error rate stays below 6%)

County Strategy: Hennepin is investing in case management technology upgrades to maintain low error rates and avoid future benefit cost-sharing.

Erie County, New York

Situation: County pays 100% of non-federal SNAP administrative match; New York’s error rate (10.41%) triggers maximum 15% benefit cost-sharing.

FY2027-2028 Impact:

• Current administrative costs: ~$28 million
• FY2027 estimate: ~$42 million (+$14 million)
• Potential benefit cost-sharing: ~$35 million (if state passes full cost to counties)
• Total potential impact: +$49 million annually

County Strategy: Erie County is working with the New York State Association of Counties to advocate for state absorption of benefit costs and increased state investment in error reduction.

Orange County, California

Situation: County shares costs with state; California’s error rate (13.89%) triggers maximum 15% benefit cost-sharing.

FY2027-2028 Impact:

• Administrative increase: Estimated $8-12 million based on county-state formula
• Benefit cost-sharing: Depends on state decision and allocation formula
• California faces $1.8 billion in annual benefit costs

County Strategy: Orange County is participating in a statewide task force to develop error reduction strategies and advocating for state funding to support implementation.

What You Can Do Right Now

Immediate Actions (October-December 2025)

• Contact your state SNAP office to confirm your county’s cost-sharing obligations
• Obtain your state’s payment error rates for FY2022, FY2023, and FY2024
• Calculate baseline administrative cost increases for the FY2027 budget
• Brief your county board/commissioners on potential fiscal impacts

Short-Term Planning (January-June 2026)

• Request state projections for FY2025 and FY2026 error rates
• Model three budget scenarios (best, current, worst case)
• Coordinate with other counties in your state through your county association
• Advocate for state-level cost absorption if appropriate

FY2027 Budget Preparation (Spring 2026)

• Include confirmed administrative cost increases in the budget
• Create a contingency reserve for benefit cost-sharing uncertainty
• Identify potential revenue sources or budget offsets
• Present multi-year fiscal impact analysis to decision-makers

FY2028 Budget Preparation (Spring 2027)

• Incorporate confirmed benefit cost-sharing based on FY2025 or FY2026 error rates
• Adjust for actual FY2027 administrative cost experience
• Reassess caseload projections and staffing needs
• Plan for ongoing monitoring and adjustment

Indirect Impacts for All Counties

Even if your county doesn’t directly pay SNAP costs, you may experience:

Increased Eligibility Processing Workload

New work requirements for adults ages 55-64 and parents with children ages 14+ create:

• More complex eligibility determinations
• Additional documentation requirements
• Higher appeal rates
• Increased customer service demands

Budget Impact: Counties may need 0.5-2.0 additional FTE per 1,000 SNAP cases for work requirement verification.

State Budget Pressures

States facing SNAP cost increases may:

• Reduce other aid to counties
• Cut revenue-sharing programs
• Shift other program costs to counties
• Reduce funding for related social services

Increased Demand for County Services

As SNAP benefits become harder to obtain or maintain:

• Food banks see increased demand
• Emergency assistance requests rise
• Healthcare costs increase (food insecurity affects health)
• Economic activity in the county decreases

Resources and Tools

Official Government Sources

• USDA Food and Nutrition Service OBBBA Implementation: www.fns.usda.gov/snap/obbb-implementation
• Congressional Research Service SNAP Primer: www.congress.gov/crs-product/R42505
• Full Legislative Text: www.congress.gov/bill/119th-congress/house-bill/1/text

Professional Associations

• National Association of Counties (NACo) SNAP Resource: www.naco.org/resource/one-big-beautiful-bill-act-and-supplemental-nutrition-assistance-program-snap-what
• Government Finance Officers Association: www.gfoa.org
• Your State Association of Counties: Contact for state-specific guidance

Research and Analysis

• Brookings Institution Payment Error Rate Database: www.brookings.edu/articles/snap-payment-error-rates-by-state-fy-2003-24/
• Food Research & Action Center: www.frac.org

Summary Checklist: Quick Reference

For County Treasurers in Cost-Sharing States:

✓ Identify your county’s baseline SNAP administrative costs
✓ Calculate 50% increase for FY2027 administrative costs
✓ Obtain your state’s payment error rate for FY2024, FY2025, FY2026
✓ Calculate potential benefit cost-sharing for FY2028
✓ Model best, current, and worst-case scenarios
✓ Coordinate with state and peer counties
✓ Build reserves and identify budget offsets
✓ Monitor state error rates quarterly

For All County Finance Directors:

✓ Budget for increased eligibility processing staff
✓ Assess technology needs for work requirement tracking
✓ Monitor state budget decisions that may affect counties
✓ Track SNAP participation trends in your county
✓ Stay connected with NACo and state county associations

Important Disclaimer for County Finance Professionals

The information in this guide is provided for educational and informational purposes to help county treasurers and finance directors understand the One Big Beautiful Bill Act’s SNAP provisions. This content represents our interpretation of publicly available legislative text, government guidance, and professional analysis as of October 8, 2025.

Please note:

• This guide does not constitute legal, accounting, or professional financial advice for your specific county
• Federal implementation guidance is still being developed by the USDA Food and Nutrition Service
• State-specific interpretations and county obligations vary significantly by jurisdiction
• Effective dates, error rate calculations, and cost-sharing formulas may be subject to regulatory clarification or amendment
• Payment error rates are dynamic and will change based on state performance

We strongly recommend:

• Consulting with your county attorney on legal compliance obligations
• Working with your state SNAP agency to confirm specific cost-sharing formulas and timelines
• Engaging your county’s external auditors on internal control and documentation requirements
• Coordinating with other counties through your state association for collective advocacy and shared strategies

All readers should verify information with official government sources and qualified professionals before making financial, operational, or budgetary decisions. Counties act on this information at their own discretion and risk.

For official guidance, refer to USDA FNS, Congress.gov, and your state SNAP administrative agency.

Last updated: October 8, 2025. Subscribe to NACo updates or bookmark the USDA FNS OBBBA implementation page for ongoing guidance as federal and state agencies issue additional clarification.