Recent changes to the Supplemental Nutrition Assistance Program (SNAP) will hit Alabama hard, costing the state between $174 and $261 million, according to state officials.
The newly introduced One Big Beautiful Bill Act imposes penalties on states with high error rates in the SNAP program. Alabama’s error rate currently sits around 10%, as noted by SNAP Director Brandon Hardin during a recent meeting. This means the state faces significant financial pressure moving forward.
Hardin pointed out that the final numbers won’t be ready until June, making it difficult to prepare. “Quality control data is always about six months behind,” he explained.
The penalties start on October 1, 2028, based on Alabama’s performance in fiscal year 2026. Most errors stem from clients either over-reporting or under-reporting their household needs.
If Alabama’s error rate stays at 10% or more, the state could be responsible for 15% of benefits, a burden it has never faced before. Currently, the state is at a tipping point: an error rate of 8 to 9.99% would mean paying just 10% of benefits.
As of now, over 678,000 people in Alabama rely on SNAP, which is about 44,200 fewer than last October. This drop is due to federal eligibility changes requiring able-bodied adults to report 80 hours of work or volunteer time each month to receive benefits.
“Food banks do an amazing job providing support,” said Hardin. “For every meal they give, SNAP provides nine.” This makes the SNAP program crucial for many families in need.
Although Alabama’s Department of Human Resources (DHR) requested a waiver to only count client errors to help lower its error rate, the federal government denied it. Hardin clarified that many of the errors were unintentional and not fraudulent.
Hardin mentioned that other states are looking to Alabama for advice on addressing error rates. “We’ve implemented over 15 significant policy changes already,” he noted.
The Alabama Legislature has allocated $148.4 million in funds, but these will only be available if the state reduces its error rate to 6%. If that doesn’t happen by October 1, the state will be facing a financial crisis.
In fiscal year 2024, Alabama’s error rate was 8.32%, lower than the national average of 10.93%, according to the U.S. Department of Agriculture. Senator Greg Albritton emphasized the state does not have the additional funds needed if the error rate does not improve. “DHR needs to find a solution to meet the needs of those depending on these programs,” he stated.
Alabama has been tightening its budget due to declining pandemic-era relief funds. Kirk Fulford, a legislative fiscal officer, advised lawmakers to be cautious with future budgets as the state approaches what he described as a “rock fight” in 2028.
Despite these challenges, Albritton remains hopeful. “Most states are facing similar issues. We will do everything we can to meet needs,” he said.
For more details on Alabama’s SNAP changes and their implications, check out AlabamaReflector.com.
