Federal SNAP cost-share changes could expose Texas to up to $2 billion in state liability, HHSC warns

The Health and Human Services Commission told the Senate Committee on Finance that new federal rules in HR1 fundamentally change the way administrative and (potentially) benefit costs for SNAP are shared, placing a significantly larger burden on states. Emily Zalkovsky, HHSC—s Medicaid and CHIP director, summarized the change: "Starting on October 1... the federal government will pay 25% of administrative costs with the state picking up 75%" and warned that the new benefit cost-share formula tied to payment error rates could create a state liability measured in the hundreds of millions to billions.