SNAP Overhaul Starts October 1 — 7 Major Cuts Could Put Millions Of Families At Risk

Starting October 1, 2025, a massive overhaul of the Supplemental Nutrition Assistance Program (SNAP) will take effect, bringing seven major cuts that could impact millions of low-income Americans — especially the 440,000 Minnesotans who depend on SNAP every month.

The new federal law shifts more costs onto states and families while reducing benefits, expanding work requirements, and limiting eligibility. According to the Department of Children, Youth and Families, this could increase state and local costs by over $125 million annually. Below is a complete breakdown of the upcoming changes.

1. Thrifty Food Plan Cuts

The Thrifty Food Plan (TFP) determines the cost of a nutritious, low-cost diet for a family of four, which sets SNAP benefit levels.

• From October 1, benefits will be tied to the Consumer Price Index (CPI) instead of the TFP.
• This change will reduce monthly SNAP amounts, particularly in Minnesota.
• It will remain in place until at least October 1, 2027, when it may be reviewed.

2. Expanded Work Requirements

• The law extends work requirements to adults aged 18–64.
• Parent exemptions will now only apply to households with children under 14.
• It removes exemptions for veterans, people experiencing homelessness, and youth leaving foster care.
• It creates new exemptions for American Indians, Alaska Natives, Urban Indians, and California Indians.

This means more people must be employed to qualify for SNAP, risking cuts for those unable to meet the rules.

3. Utility Allowance Restrictions

• SNAP households will no longer automatically qualify for the standard utility allowance if they receive state energy assistance.
• These payments will also count as income on tax returns, raising tax liability.
• Exemptions apply only if the household includes an elderly or disabled person.

This will raise taxable income for many SNAP households in Minnesota.

4. Reduced Federal Administrative Funding

Expense Type	Old Federal Share	New Federal Share
Administrative Costs	50%	25%

• Minnesota will lose about $39 million annually in administrative support.
• The SNAP outreach program will lose $2.25 million.
• This will strain customer service and reduce the state’s ability to administer SNAP effectively.

5. SNAP-Ed Funding Eliminated

• SNAP Education (SNAP-Ed) funding will end on October 1, 2025.
• SNAP-Ed delivers nutrition education to over 1.7 million Minnesotans annually.
• This cut will remove essential support for healthy eating among low-income families.

6. New Eligibility Restrictions

• SNAP will be limited to U.S. citizens only, eliminating benefits for several legal non-citizen groups.
• About 9,000 Minnesotans will lose access, including:
  • Refugees
  • Iraqi and Afghan SIV holders
  • Amerasians
  • Certain American Indians born abroad
  • Victims of trafficking and more
• This also forces states to fund new eligibility verification systems, raising costs.

7. State Matching Funds Requirement

SNAP will now require states to contribute 0–15% of benefits based on their Payment Error Rate (PER):

PER Rate	Required State Match
Below 6%	0%
6–7.99%	5%
8–9.99%	10%
10% or higher	15%

• If Minnesota’s error rate rises, the state will pay more out of its own budget, reducing funds available for other programs.

Impact and Concerns

These seven changes will:

• Reduce benefits for thousands of households
• Increase costs for state and local agencies
• Eliminate support programs like SNAP-Ed
• Push vulnerable families off the program entirely

With food prices still high, many worry this overhaul could worsen food insecurity across the state.

The SNAP overhaul launching October 1, 2025 will dramatically reshape the nation’s largest food assistance program.

For states like Minnesota, this means higher costs, fewer benefits, and more red tape — while thousands of families could lose access to the nutrition they depend on.

Low-income households are urged to check their eligibility, report work status changes, and seek local food resources to prepare for the transition.

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