North Carolina counties are preparing for a significant increase in the cost of administering the Supplemental Nutrition Assistance Program, commonly known as SNAP or food stamps.
The program provides food assistance to approximately 1.4 million people across North Carolina. Beginning in October, however, counties will be expected to carry a larger portion of the administrative costs associated with determining eligibility and managing benefits.
Federal Reimbursement Will Decrease
The federal government previously reimbursed half of the administrative expenses associated with SNAP. That reimbursement rate is scheduled to decrease from 50 percent to 25 percent, leaving state and local governments responsible for the remaining three-quarters of the cost.
Officials estimate North Carolina counties could face approximately $52 million in additional expenses. The counties’ combined share of SNAP administrative costs could grow by roughly 32 percent, reaching approximately $69 million annually.
The recently approved North Carolina state budget does not include the additional administrative funding county leaders requested to help cover the change.
Other Local Services Could Be Affected
The North Carolina Association of County Commissioners spent months asking state lawmakers for financial assistance. County representatives warned that local governments are not well positioned to absorb such a large increase without affecting other services.
Property taxes are the largest source of revenue for many counties. If additional state assistance is not provided, county commissioners could be forced to reduce spending elsewhere, delay projects or consider finding additional local revenue.
The increased cost could create competition for money used to provide public safety, sanitation, emergency services and other programs residents depend on. County officials say they want to continue providing SNAP services while avoiding tax increases or cuts to other essential operations.
State Budget Includes Other SNAP Investments
While the state budget does not provide the requested money to offset the lower federal reimbursement rate, it does include funding for several SNAP-related improvements.
Lawmakers approved nearly $71,000 in ongoing funding to update the NC FAST benefits system. The changes are intended to implement new federal requirements and reduce errors in benefit payments.
The budget also provides $2.5 million in one-time funding to modernize NC FAST, including the possible use of artificial intelligence-assisted eligibility tools and error screening. Up to $1.5 million could be used for a contract with the North Carolina Government Data Analytics Center.
An additional $2.2 million in recurring funding will support 25 positions within the North Carolina Department of Health and Human Services. Those employees will focus on addressing SNAP payment errors.
County governments must now determine how to cover the higher administrative costs before the new reimbursement structure takes effect in October. The impact will vary by county, but local leaders warn the change could create difficult budget decisions across North Carolina.
Source: WRAL
