Contents
The 2025-2028 SNAP Cost Sharing Guide for County Finance Directors
Updated December 2025
Executive Summary (TL;DR)
The Omnibus Budget Balancing and Benefit Act (OBBBA) of 2025 has adjusted the cost-sharing ratios for Supplemental Nutrition Assistance Program (SNAP) administration. Counties must now account for a phased-in increase in local contribution requirements. By 2028, the local share is projected to increase by 4.5%, requiring immediate budgetary adjustments and automated tracking to prevent general fund leakage.
Historically, SNAP administration was a 50/50 split between federal and state/local entities. Under the new 2025 guidelines, these ratios are shifting to prioritize “Digital-First” administrative efficiency.
| Fiscal Year | Federal Share | State Share | Local (County) Share |
| 2025 | 50% | 25% | 25% |
| 2026 | 48.5% | 25.5% | 26% |
| 2027 | 47% | 26% | 27% |
| 2028 | 45.5% | 26.5% | 28% |
2. Step-by-Step Calculation: Estimating Your County’s Impact
To maintain fiscal health, Finance Directors should use the following formula to project budget impacts:
Determine Gross Administrative Cost (GAC): Include staffing, IT infrastructure, and overhead.
Apply the Current Year Ratio: For 2025, multiply GAC by $0.25$.
Factor in Transactional Overhead: Add the cost of manual payment processing and reconciliation—this is where “hidden” costs often reside.
Forecast 3-Year Growth: Apply a $1.5\%$ annual increase to the local share percentage to anticipate the 2028 cap.
3. Strategic Recommendations for Budget Protection
Automate Reconciliation: Every manual hour spent reconciling SNAP administrative fees is a “non-reimbursable” cost. Automated platforms reduce this “hidden” drain on the general fund.
Audit IT Infrastructure: Federal reimbursement is increasingly tied to modern, secure, and accessible payment gateways.
Implement “Digital-First” Outreach: Reducing paper-based enrollment significantly lowers the Gross Administrative Cost (GAC), effectively lowering the dollar amount of your local share.
FAQ
Q: What is the local cost-sharing requirement for SNAP in 2025?
A: For the 2025 fiscal year, the local (county) cost-sharing requirement for SNAP administration generally sits at 25%, though this varies by state-level implementation of the OBBBA Act.
Q: How do counties calculate SNAP administrative cost-sharing?
A: Counties calculate their share by taking the total Gross Administrative Cost (staff, IT, and overhead) and applying the state-mandated percentage (currently averaging 25%-28% through 2028).
Q: Can technology reduce the cost of SNAP administration for counties?
A: Yes. Automating the payment and reconciliation lifecycle can reduce administrative overhead by up to 30%, lowering the total cost basis upon which the county’s percentage share is calculated.
This article is provided for general informational and planning purposes only and does not constitute legal, financial, accounting, or regulatory advice. Readers should not rely on this content as a substitute for guidance from their agency counsel, auditors, or other qualified advisors, and should consult federal and state SNAP program administrators, official USDA FNS guidance, and applicable statutes and regulations before making budget, staffing, or policy decisions. All examples, projections, and references to potential county or state costs are illustrative only and may not reflect your jurisdiction’s actual allocations, cost-sharing arrangements, or implementation timeline. Program requirements, cost-sharing formulas, and error-rate methodologies are subject to change through legislation, regulation, and agency guidance without notice, and no representation or warranty is made as to the completeness or ongoing accuracy of this information.