Durham DSS warns SNAP administrative reimbursement cut will shift millions to county

Durham Department of Social Services staff told the Board of County Commissioners on May 28 that a change in federal and state reimbursement rules will materially raise the county’s share of SNAP (Food Nutrition Services) administrative costs.

“Starting in October 2026… it’s 25% federal dollars, 75% county dollars for our administrative costs for staff,” Director Maggie Clap said, explaining the reimbursement shift that will follow the new federal rule. She told the board the county is likely to absorb roughly $2 million in additional net county cost in the first year the policy is in effect for fiscal year 2027, with a larger $3 million‑plus exposure projected for FY28 under current enrollment patterns.

Why it matters: SNAP administrative reimbursement covers staff who process applications and manage eligibility. Clap said the change is distinct from a separate mechanism tied to the state “error rate,” which can make counties liable for portions of benefit payouts if the statewide error rate exceeds 6 percent. “If the error rate is above 6%… our cost would be $3.4 million” under a 6–8% scenario, she told the board, and higher rates would increase liability.

DSS staff also described the local economic ripple: they estimated roughly $57 million in SNAP benefits through April and a year‑over‑year decline in households receiving benefits (16,000 in Oct 2025; about 14,696 in April 2026). “If SNAP goes away because we don't get this error rate down, you're looking at almost $69 million not going into our local grocery stores,” Clap said, pressing the economic stakes of changes in eligibility and benefits.

Outreach and tracking limits: Commissioners asked what follow‑up the county does when households lose benefits. Staff said tracking is limited — denials that occur through the state EPASS portal may not surface to county systems and that manpower for proactive follow‑up is constrained. “At this time it could be going through EPASS and the state denies it… or it could be through us that we know but we would not have the ability at this time to manage that,” Clap said. Staff proposed web postings, partner outreach (Lincoln Community Health, El Centro), social media and flyers to inform residents where to get help and noted plans for volunteer fairs and partner trainings to help satisfy new work/volunteer requirements tied to eligibility.

What the board asked: Commissioners pressed for trend data (monthly enrollment/expenditure patterns), community‑facing communications, and an early “trigger” to notify both governments if emergency relief or additional local funding is needed for food security grants. Manager Hager said the FY27 recommended budget recognizes net county cost increases related to these federal and state shifts but emphasized the county’s limited flexibility to move line‑items that are tied to federal/state restrictions.

What to watch next: The state’s error‑rate updates and any state actions to offset county cost shifts (Clap said her understanding is that North Carolina has not indicated it will pick up the shortfall). Commissioners asked DSS to return with trend analyses breaking down the decline in SNAP households and the possible effects of new work and non‑citizen eligibility rules.