Federal judge blocks SNAP penalties against states and clarifies eligibility

A federal judge has permanently blocked federal penalties against states regarding the implementation of SNAP benefits. The ruling, issued by U.S. District Judge Mustafa T. Kasubhai, invalidates a deadline that would have exposed states to significant financial fines for implementation errors related to changes enacted under H.R. 1.

The court found the federal deadline to be “arbitrary and unlawful,” noting that states had received conflicting or incomplete guidance while facing potential hundreds of millions of dollars in penalties. The decision makes the preliminary injunction issued in December 2025 permanent.

Additionally, the ruling clarifies eligibility for certain immigrants. The judge found that federal guidance improperly excluded some lawful permanent residents who were formerly refugees or asylum recipients. The court ruled that these groups can retain statutory exceptions to the standard five-year waiting period for SNAP benefits. The legal challenge was led by New York and Oregon and included Washington, the District of Columbia, and 18 other states.