BIRMINGHAM, Ala. – Alabama could be on the hook for up to $265 million a year in food assistance benefits under the federal Supplemental Nutrition Assistance Program (SNAP) in 2028, unless it lowers its payment error rate below 6%, state officials say.
The new cost-sharing requirement is part of the One Big Beautiful Bill Act, signed by President Donald Trump on July 4. The law allows the federal government to shift up to 15% of SNAP benefit costs to states, depending on how accurately they administer the program.
In fiscal year 2024, Alabama’s payment error rate (PER) was 8.32%, placing it in the 10% cost-share bracket. Based on that rate and Alabama’s $1.77 billion in SNAP benefits paid out last year, the state would be responsible for about $177 million in additional costs in fiscal year 2028…