Understanding SNAP Changes: What They Mean for Colorado
Recent federal changes are shifting more of the cost of SNAP from the federal government to states. For Colorado, that means the state will have to spend more money to administer SNAP and could eventually have to pay for some of the food benefits themselves.
SNAP recipients should not expect an automatic reduction in their benefits because of the new state cost-sharing rules. The percentages being discussed refer to how much states may have to contribute toward SNAP administrative costs, not a percentage taken from an individual’s EBT benefits.
Before October 1, 2026, the federal government and states generally split the cost of administering SNAP about 50/50.
Beginning October 1, 2026, states will be responsible for a larger percentage of those costs. The federal government will pay 25% of SNAP administrative costs, and states are responsible for the remaining 75%. For Colorado, the extra money has to come from state-level funding.
The state has budgeted about $37 million for the additional SNAP administrative costs and currently plans to use Proposition MM funding to cover those costs instead of General Fund dollars.
Proposition MM was approved by Colorado voters in 2025 and raises additional money by limiting certain state income-tax deductions for people with federal taxable income of $300,000 or more.
The majority of the funding supports Colorado’s Healthy School Meals for All program, but also allows available funding to be used for certain costs related to implementing federal SNAP changes.
SNAP recipients should not expect an automatic reduction in their benefits because of the new state cost-sharing rules. Some SNAP recipients may be impacted by separate changes to federal eligibility and work requirements.
Those requirements can include:
- Some adults must work or participate in qualifying activities for an average of 80 hours per month to continue receiving SNAP beyond the federal time limit.
- People who qualify for an exemption may need to provide information showing that they are exempt.
- Federal law has changed eligibility rules for some non-citizens.
- SNAP recipients still need to complete required renewals and provide requested information about income, household size and other eligibility factors.
SNAP recipients should continue to complete renewals and respond on time to requests for information to help avoid unnecessary interruptions in benefits.
What changes in 2027?
A potentially larger change may begin October 1, 2027. States may have to pay part of the SNAP benefits loaded onto people’s EBT cards. Right now, the federal government pays 100% of the cost of those food benefits.
How much a state has to pay will depend on how accurately it administers SNAP. The federal government measures this using something called a payment error rate.
What could change before 2027?
Congress is still considering changes to how the 2027 SNAP benefit cost shift would work.
One proposal would delay the start of SNAP benefit cost sharing by one year. It would also give states another year of payment error data to use when determining how much they have to pay.
That would give states more time to improve their payment error rate before the state is required to pay part of SNAP benefit costs.
That proposal did not move forward in its current form, but the issue is expected to be considered again.
What is a SNAP payment error?
A payment error does not automatically mean fraud.
An error can happen when:
- Someone receives more SNAP benefits than they should
- Someone receives fewer benefits than they should
- Income or household information is entered incorrectly
- Information is missing or outdated
- A benefit amount is calculated incorrectly
The federal government already reviews states to measure these error rates.
How much a state pays may depend on its SNAP payment error rate. Colorado is currently in the highest cost-sharing category.
Colorado still has time to improve its accuracy before the new benefit cost-sharing requirements take effect. A lower error rate would reduce how much the state has to contribute toward SNAP benefits.
Does this mean SNAP recipients will lose part of their benefits?
No. The cost-sharing percentage is not a percentage that would automatically be taken away from someone’s EBT card.
For example, if Colorado was required to pay 15% of SNAP benefit costs the federal government would pay the remaining 85%. Right now, the federal government pays 100% of those benefit costs.
For SNAP recipients, the amount loaded onto their EBT card would still be based on their eligibility and benefit calculation.
Recipients could feel the changes in other ways. If states face more pressure to reduce costs and errors, there may be more attention to:
- Completing paperwork correctly
- Providing documents that prove eligibility
- Reporting changes in income or household size
- Meeting renewal deadlines
- Following work and eligibility requirements
Federal SNAP rules have also changed some eligibility requirements, including work requirements and eligibility for some non-citizens.
Why does this matter?
SNAP is much larger than the charitable food system. When benefits are delayed or lost, people may turn to food banks, food pantries and other community organizations for help.
Changes to SNAP can increase pressure on local food banks and on the people who rely on the program. For families already managing tight budgets, work, child care, transportation and other responsibilities, any interruption in SNAP can make it harder to afford groceries.
SNAP and food banks play different roles. SNAP helps people buy groceries. Food banks like us provide food directly through pantries, mobile distributions and community partners. One cannot replace the other together.
What happens to SNAP if there is a government shutdown?
A federal government shutdown doesn’t automatically stop SNAP benefits. Benefits already loaded onto EBT cards would still be available, and a short shutdown may not have any effect on monthly benefits.
In October 2025, we saw what can happen during a long shutdown. October benefits were available, but when the shutdown continued into November, SNAP payments were delayed or reduced for some recipients.
If a shutdown were to last for several weeks, future SNAP benefits could face delays.
