Texas could owe $709M for food stamps. Food banks say the fallout would be ‘catastrophic.’

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SAN ANTONIO – Food banks across Texas are sounding the alarm over a significant federal policy change that could impose substantial financial burdens on the state while jeopardizing food access for millions of Texans. The impending changes are tied to the Supplemental Nutrition Assistance Program (SNAP), which provides essential food assistance to low-income individuals and families.

Starting in 2027, states like Texas will be required to share costs for SNAP benefits if their payment error rates exceed 6%. This new mandate stems from the “One Big Beautiful Bill,” enacted in 2025. Recent reports indicate that Texas experienced a 9% error rate in fiscal year 2025, potentially leading to an annual cost increase of up to $709 million. Should that error rate surpass 10%, the state’s financial obligations could exceed $1 billion, putting additional strain on an already vulnerable food assistance system.

Eric Cooper, CEO of the San Antonio Food Bank, emphasizes the gravity of this situation. He points out that for every meal the food bank distributes, SNAP provides nine meals. “Should we see an increase in the number of families needing assistance, we simply won’t have enough food to meet that need,” Cooper states, highlighting the direct impact this policy shift could have on food security in the community.

Currently, the San Antonio Food Bank serves approximately 140,000 individuals weekly, a figure that continues to rise. A recent study has shown alarming food insecurity levels in the region, with nearly 22% of the population struggling to secure adequate nutrition. This statistic underscores the critical role of SNAP in sustaining food assistance efforts.

Celia Cole, CEO of Feeding Texas, the statewide association of food banks, clarifies that the SNAP error rate is often misunderstood. “The most important thing to know about the payment error rate is that it is not fraud,” she explains. “It is a measure of accuracy.” Cole elaborates that many of the errors stem from processing mistakes made by the state agency, not from beneficiaries. Historically, Texas maintained an error rate below 6% prior to the COVID-19 pandemic, which strained resources and workforce capacity.

Cole warns that if Texas cannot or chooses not to fund its portion of SNAP costs, the repercussions will be dire. “If they walk away from the program, it would mean 3 million Texans would lose access to reliable food,” she states, emphasizing that the food bank network would be unable to fill this critical gap.

In response to this looming crisis, food bank leaders across Texas are urging Congress to postpone the cost-sharing requirement by two years. This delay would provide the state with the necessary time to bring its error rate back below the 6% threshold. The Senate version of the Farm Bill currently under consideration includes a provision for a one-year delay, but advocates assert that a two-year extension is essential.

Cooper reiterates the urgency of this situation, stating, “The fear that SNAP might be impacted — it’s catastrophic. I just don’t have the inventory at the San Antonio Food Bank to meet that need.”

As the Texas Legislature prepares for its next session in January 2027, the timing is critical. This session will determine whether the state can allocate funds to comply with the new cost-sharing requirement if Congress does not grant a delay.

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