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Federal SNAP Cuts Increase South Dakota State Expenses by $5.5 Million in FY 2027

The savage demolition of the arms of the federal government that don’t shoot people is impacting South Dakota’s state budget. According to the budget briefing presented by the Bureau of Finance and Management to Joint Appropriations on Tuesday, Governor Larry Rhoden’s budget requests $6.23 million to replace lost federal funds:

Bureau of Finance and Management, Budget Overview, presented to Joint Appropriations, 2026.01.13.
Bureau of Finance and Management, Budget Overview, presented to Joint Appropriations, 2026.01.13, slide 41.

88% of this replacement goes toward backfilling SNAP costs. The federal government used to split SNAP administrative costs with the states, but last summer’s big ugly budget reconciliation bill changed the split to 25% federal and 75% state. In October 2027, the federal government will start punishing states with SNAP payment error rates of 6% or higher by making them pick up another 5% to 15% of SNAP benefits. South Dakota’s error rate in FY 2024 was the lowest in the nation at 3.28%, but the data Uncle Sam will use to determine error penalties next year will be based on data from 2025, when the federal government shutdown fouled up state efforts to implement new, stricter SNAP eligibility requirements.

Pretty much everyone in state and local government is asking Congress to pause those SNAP changes:

Changes in funding policies for the Supplemental Nutrition Assistance Programs (SNAP), combined with disruptions caused by the 2025 federal government shutdown, could put SNAP in jeopardy across the country if states and territories do not receive relief.

Annual SNAP expenditures could increase an average $218 million per state if Payment Error Rate (PER) data collected during the shutdown period is not excluded from future cost-sharing calculations.

Officials on the frontlines of SNAP benefits administration in multiple states detailed the impacts in a congressional briefing this week organized by a coalition including the National Governors Association (NGA), the American Public Human Services Association (APHSA), the National Association of Counties (NACo), the National Conference of State Legislatures (NCSL), the National Association of County Human Services Administrators (NACHSA), the National League of Cities (NLC), the International County/City Management Association (ICMA), the US Conference of Mayors (USCM), and The Council of State Governments (CSG).

…In a letter to congressional leadership and a congressional briefing Jan. 13, the coalition urged Congress to adopt two simple fixes in the anticipated January Continuing Resolution:

  • Delay the SNAP benefit and administrative cost shares for all states until FY 2030, using FY 2027 Quality Control (QC) data.
  • Exclude October and November 2025 from the FY 2026 Quality Control (QC) sample and extend hold harmless for H.R. 1-related changes through January 31, 2026.

These requests are limited in scope, temporary in nature, and designed to support accurate implementation of federal law while protecting program integrity and taxpayer dollars. They would allow states and counties to stabilize operations, continue investing in program integrity, and partner effectively with USDA to achieve shared goals [National Governors Association, “States Sound Alarm over Ongoing SNAP Threats,” press release, 2026.01.14].

If Congress responds quickly and favorably to the governors’, legislatures’, counties’, and mayors’ call for a reprieve, South Dakota could save $5.5 million from this year’s budget. Then the state could divert just $2M of those savings to rehire a dozen South Dakota Public Broadcasting staff and put South Dakota Focus and In the Moment back on the air.

3 Comments

  1. Oh those Republicans. They hate snap. They continually use the argument that the poor are obese. They aren’t of course and if they are overweight its because there are no grocery stores near the that sell anything but canned foods that are totally unhealthy. Its hard to break through that idiocy. Notice how all Republicans hated Michelle Obamas push for better food in cafeterias and now embrace Kennedy’s push. Simple minded aren’t they?
    Snap should be upgraded but the pubs think its akin to stealing, oh well.

  2. VM

    Many people who have never gone without have no idea what poverty entails. There is an excellent book each politician should read called A Framework for Understanding Poverty, by Ruby K. Payne, Ph.D. It’s recommended reading in many teacher education programs. Dr. Payne came to Sitting Bull College to speak
    about generational and situational poverty. It was an eye opener.

    When constantly in survival mode, it’s difficult to get ahead, let alone plan ahead for anything. Living day to day, not just paycheck to paycheck, is common amongst the working-class poor as well. And many in poverty ARE working, just not earning enough to make ends meet.

    It’s never a good time to take food away from a anybody. How unamerican.

  3. Porter Lansing

    At least your MAGA’s can find something miserable for their proclaimed moochers to do. Plucking poultry, shoveling manure, hoeing community gardens, etc. That’ll put that “better’n you” smile on a MAGA mug quicker’n an auctioneer selling a Playboy collection.
    People who are ABAWD’s (able bodied adults without dependents) must do certain work-related activities to remain eligible. 80 hours a month, paid or unpaid or in kind. (eg in kind: work you do to pay off your rent).

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