US SNAP Reform Triggers Billions in State Costs and New Retail Platform

Federal changes to the Supplemental Nutrition Assistance Program (SNAP), enacted under the One Big Beautiful Bill Act, will require states to begin funding a portion of benefits beginning in fall 2027. Analyses by the U.S. Department of Agriculture indicate that more than 30 states could be on the hook for over $9 billion in total, with individual states such as Texas and New York facing potential liabilities of $725 million and more than $1 billion respectively. States with payment error rates above 6 % will have to cover 5 %‑15 % of their SNAP payments, prompting fears that some may cut benefits, delay approvals, or even exit the program.

At the same time, fintech startup Forage announced a $40 million Series B round to build a “network for affordability” that leverages SNAP as an on‑ramp for consumers. The company’s CEO, Ofek Lavian, said the goal is to treat SNAP not just as a compliance checkbox but as a channel to attract and retain price‑conscious shoppers. Forage’s platform will connect retailers to over 40 million benefit recipients and offer tools such as balance‑tracking apps and price‑comparison features, aiming to improve access for households that often face food deserts and transportation barriers.