It’s no secret that once again Arkansas has the highest rate of food insecurity in the nation at 19.4% according to the most recent (and final) federal insecurity report from the United States Department of Agriculture (USDA). You may have also seen the more recent results of a comprehensive University of Arkansas health survey that showed the state’s adult food insecurity rate closer to 29%.

But there’s something else we really need to shine a light on: SNAP cost shifts are coming. And if Arkansas does not take action in the upcoming fiscal session to absorb those cost shifts, our state could risk losing SNAP — the most powerful anti-hunger program we have.

Why are these cost shifts happening? The federal One Big Beautiful Bill Act (H.R. 1) passed last summer resulted in the largest cut to the Supplemental Nutrition Assistance Program (SNAP) in the program’s history. One way in which H.R. 1 cut federal SNAP funds is by requiring states to take on more SNAP administrative costs and pay for a portion of SNAP benefits for the first time ever. Each of these new costs to states is explored further below.

SNAP Administrative Costs

SNAP administrative costs cover program operations such as staffing, training for staff, resources for quality control processes, and technology that supports application processing, distribution of SNAP benefits, and reporting. Historically, SNAP administrative costs have been split 50/50 by the federal government and the state. However, with the passage of H.R. 1, states will be responsible for 75% of SNAP administrative costs beginning in October 2026.

What this means for Arkansas: If we want SNAP to continue operating at its current capacity, we need approximately $18 million in the next state fiscal year on top of what the state already shoulders for SNAP administrative costs. This spring it will be crucial for the Arkansas General Assembly to allocate state dollars to take on these increased administrative costs so that SNAP applications can be processed in a timely manner, technology systems can be kept up to date, and the Arkansas Department of Human Services (DHS) has sufficient resources to maintain quality control efforts such as calculating SNAP payment error rates (remember this term – it comes into play for SNAP benefit cost shifts too).

In short, the state must come up with around $18 million for next year to ensure that the program continues to run at status quo (that amount will increase to roughly $25 million annually in the years thereafter). If we don’t, children and families in Arkansas will have an even greater challenge in putting food on the table, and the 2,700 SNAP retailers across the state who rely on SNAP to pay their employees and keep grocery prices somewhat affordable will struggle to keep their doors open.

SNAP Benefit Costs

Before H.R. 1, the federal government paid for 100% of the SNAP benefits that help feed children, individuals with disabilities, veterans, and other low-income families. However, beginning October 2027, states must pay for a percentage of the SNAP benefits based on forthcoming SNAP payment error rate – one of the quality control processes supported by SNAP administrative funds.

The payment error rate measures administrative inaccuracies, specifically, any over- and underpayments a state makes when issuing SNAP benefits. Any state with a payment error rate under 6% will not have a state match for SNAP benefits. However, for payment error rates beyond 6%, states will incur the following match rates:

SNAP Payment Error Rate Range	Required Match
6%-8%	5% state match
8%-10%	10% state match
Over 10%	15% state match

Arkansas’s most recent SNAP payment error rate issued by the USDA was 9.56% for federal fiscal year (FFY) 2024. If we use this rate to budget for the forthcoming SNAP benefit cost shifts to Arkansas, that figure would amount to roughly $55 million. We would need to make this $55 million investment to ensure that the almost 240,000 Arkansans who currently rely on SNAP to feed their families can continue to use this vital food assistance program. We’ll talk more about SNAP payment error rates in a blog post on Thursday.

If Arkansas does not allocate sufficient funds to take on a percentage of SNAP benefit costs in October 2027, then the state may be forced to reduce  food assistance for low-income families currently receiving SNAP (when the average daily SNAP benefit per household member in Arkansas is roughly $6.30) or — worst case scenario — end SNAP altogether. Yes, despite decades of data showing how effective SNAP is in reducing poverty and hunger, improving health outcomes, and boosting local economies, states are under no obligation to maintain SNAP. Arkansans are already struggling with hunger. More than residents of any other state. Losing SNAP would not only devastate low-income families by ending that food assistance program, but it would also decimate local economies, as the approximately $500 million in federal SNAP funds that Arkansas receives each year disappear from big chain stores and local grocers alike.

Cost shifts are coming, but we need to act now. During the fiscal session that begins April 8, 2026, legislators must invest state funds to absorb the $18 million in SNAP administrative costs for which Arkansas will be responsible later this calendar year. If we don’t, it will likely slow services to families and drive up our payment error rate down the road, resulting in a bigger state match for SNAP benefits. Likewise, by October 2027 we need state leaders to take on potential SNAP benefit costs — as much as $55 million — so hunger in Arkansas does not rise dramatically. The total amount needed to absorb the H.R. 1 SNAP cost shifts is significant, but Arkansas simply cannot afford to pass this investment up.