Mississippi faces potential $75 million annual SNAP cost

Mississippi may face an estimated $75 million in annual costs for the Supplemental Nutrition Assistance Program (SNAP) due to new federal requirements. Starting October 1, states will be responsible for 75% of SNAP administrative costs, an increase from the previous 50%. Additionally, beginning in fiscal year 2028, states may be required to contribute directly to benefit costs based on their payment error rates.

Mississippi’s payment error rate was 9.51% in fiscal year 2025, which is below the national average of 10.62%. However, at this rate, the state would fall into a 10% cost-share tier. The Center on Budget and Policy Priorities estimates this could cost the state $75 million annually. If the state reduces its error rate to below 8%, the cost share would drop to 5%, potentially lowering the annual cost to approximately $40 million.

This fiscal shift occurs as the Mississippi Food Network reports a 36% increase in visits across its network compared to last year. Governor Tate Reeves stated that reducing the error rate is a priority and expressed confidence that the state will fall below the 8% threshold by the end of September. Reeves also emphasized that workforce development should be utilized to reduce reliance on federal assistance.