Tennessee Faces Soaring SNAP Costs Under New Federal Funding Rules
Tennessee faces rising costs under a new federal law that changes how SNAP benefits are funded. The One Big Beautiful Bill Act introduces stricter work rules and shifts more financial responsibility to states. Nearly 700,000 residents currently rely on the programme each month.
The law expands work requirements for SNAP recipients, now including groups previously exempt, such as veterans and people experiencing homelessness. Payment errors—often caused by outdated income details or miscalculated household expenses—have put Tennessee at risk of higher costs.
The state's error rate reached 9.5% in the 2024 fiscal year. Under the new rules, this would force Tennessee to cover 10% of SNAP benefit costs, amounting to between £65 and £196 million annually. Additionally, the state must now fund 75% of administrative expenses, up from 50%, adding an estimated £62 million in recurring costs.
No specific organisation has been named as pushing for these changes, which take effect in October 2027. Currently, households in Tennessee receive an average of £335 per month in SNAP benefits.
The law will increase Tennessee's financial burden for SNAP by hundreds of millions. Stricter work rules and higher error penalties mean the state must prepare for long-term funding adjustments. The changes will affect both administration and direct benefit payments starting in late 2027.
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