MONTGOMERY, Ala. (APT) — Alabama officials are asking Congress for a two-year delay before new federal SNAP cost-sharing requirements take effect, warning the changes could eventually cost the state hundreds of millions of dollars annually if Alabama cannot reduce its payment error rate.
The issue surfaced Wednesday during a meeting of the Make Alabama Healthy Study Group, where lawmakers, state officials and representatives of the grocery industry discussed the impact of changes included in the federal One Big Beautiful Bill Act.
The law requires states to absorb a larger share of SNAP administrative costs beginning Oct. 1. Starting in fiscal year 2028, states with SNAP payment error rates above 6% also could be required to pay a portion of food benefit costs.
Committee Chairman Dr. David Thrasher said he is working with Alabama’s congressional delegation to secure additional time before those provisions take effect.
Alabama’s most recently published SNAP payment error rate is 8.32%, above the new federal benchmark but below the national average of 10.93%. It is also lower than the rates reported by neighboring Tennessee, Florida and Georgia.
State officials told lawmakers that Tennessee and Florida, despite having higher error rates, have already received a two-year delay before the new requirements take effect. Alabama is seeking a similar extension.
If Alabama remains above the 6% threshold and does not receive additional time, state officials estimate it could eventually be responsible for about $174 million annually in SNAP benefit costs.
Brandon Hardin, who manages Alabama’s SNAP program for the Department of Human Resources, said the state is working to lower its error rate while awaiting additional federal guidance.
“Absent any federal guidance, there’s only three current options available to us,” Hardin told lawmakers. “And that is either pay the cost share if we’re over 6%, get the rate under 6%, or end the program.”
Hardin said the department is making operational changes and working with counties that have the highest error rates. He acknowledged progress has been made but said improvement will take time.
“Changing a program the size of ours on the dime is very difficult, but we’ve made a lot of changes,” Hardin said. “The workers in the counties are working through those changes, and we have seen some significant improvement in those areas, but it will take time.”
DHR Commissioner Nancy Buckner stressed that payment errors should not be confused with fraud.
Buckner said many errors involve eligibility determinations, reporting issues or paperwork mistakes rather than intentional misuse of benefits.
The discussion also focused on SNAP’s role in Alabama’s economy.
Ellie Taylor of the Alabama Retail Grocers Association told lawmakers that SNAP spending supports grocery stores and local economies across the state, particularly in rural communities.
Jimmy Wright, an Opelika grocer and member of the study group, said SNAP purchases account for roughly 40% of his store’s business. He warned that significant cuts or disruptions would ripple throughout the food supply chain.
“We drive a tremendous amount of tax benefits for our state,” Wright said. “This has been proven again and again and again — in multiple studies — $1 in SNAP benefits generates $1.50 to $1.80 in economic activity.”
Wright said any substantial reduction in benefits would affect far more than SNAP recipients.
“One of these 117 stores on this list is mine,” Wright said, referring to a review of grocery stores located in areas heavily dependent on SNAP spending.
According to DHR, SNAP currently serves approximately 670,000 Alabamians, including nearly 300,000 children. The program provided about $1.74 billion in benefits during fiscal year 2025.
Supporters of the program argued that any major disruption in benefits would place additional pressure on food banks, churches and charitable organizations.
“People will say, well, the SNAP program goes away, Jimmy, they’ll still eat,” Wright said. “They’ll eat less, they’ll eat worse.”
The study group is expected to include its findings and recommendations in a report to lawmakers as Alabama prepares for the upcoming federal changes.
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