SNAP benefits are about to become a real financial headache for states, and Ohio is right at the edge of that problem. A little-noticed change approved by Congress is shifting costs in a way that could force states to pay hundreds of millions of dollars just to keep the program running.
What sounds like a technical adjustment is, in practice, a major risk for food assistance. If Ohio can’t meet the new federal standards tied to SNAP benefits, the bill could land squarely on state lawmakers’ desks, with consequences that go far beyond budgets.
SNAP Benefits Under a New Federal Rule
SNAP benefits, were quietly reshaped when Congress passed H.R. 1, widely referred to as the “Big Beautiful Bill Act.” The law bundled several high-profile measures, but one provision changed how SNAP benefits are funded at the state level.
Under the new rules, states must keep benefit payment error rates extremely low. If they fail, they are required to cover a much larger share of SNAP benefits costs themselves. The threshold is so tight that, based on recent data, only seven states would have met it in 2024. For large programs like SNAP benefits, even small administrative errors can translate into massive penalties.
Why Ohio Faces a $300M+ Problem
Ohio is expected to be one of the states most exposed to this change. Estimates put Ohio’s potential SNAP benefits obligation anywhere between $318M and $390M per year if the state misses the federal target.
To put that in context, a $318M annual cost would place SNAP benefits among the most expensive state-funded programs in Ohio. That single line item would rival entire major agencies in the state budget.
The Real Risk: Losing SNAP Benefits Altogether
If Ohio declines to absorb the added cost, SNAP benefits could be scaled back or potentially discontinued at the state level. That would be unprecedented, but the numbers make the scenario hard to ignore.
SNAP benefits are one of the most effective anti-poverty tools in the U.S. Nationally, the program keeps an estimated 3.6M people out of poverty. In Ohio alone, roughly 1.5% of the population avoids poverty directly because of SNAP benefits. Under a conservative estimate, ending SNAP benefits in Ohio could push around 180,000 residents below the poverty line almost overnight.
Economic Impact Beyond Households
The impact of losing SNAP benefits wouldn’t stop at family kitchens. Every month, roughly $260M in federally funded SNAP benefits are spent at grocery stores across Ohio. That spending supports local retailers operating on thin margins. Without it, store closures would be likely, especially in low-income and rural areas. Some counties have already seen what happens when grocery access disappears.
Vinton County, for example, went through a period years ago with no grocery store at all. Removing SNAP benefits would make similar situations more common, not less.
What’s at Stake With SNAP Benefits
SNAP benefits do more than reduce hunger. They stabilize local economies, support food retailers, and reduce pressure on other social services. Losing the program would create ripple effects that are expensive and hard to reverse.
Key impacts tied to SNAP benefits include:
- Reduced poverty rates across urban and rural areas
- Lower food insecurity for working families and seniors
- Steady revenue for neighborhood grocery stores