TRENTON, N.J. – New Jersey lawmakers may soon face a costly choice: reform the state’s Supplemental Nutrition Assistance Program (SNAP) eligibility rules or risk saddling taxpayers with an estimated $97 million annual bill.
Under changes approved by Congress in 2025, states with persistently high SNAP payment-error rates will soon be required to share in the cost of benefits, creating new financial consequences for states that fail to improve eligibility verification and program administration.
One policy increasingly drawing attention is Broad-Based Categorical Eligibility (BBCE), which allows some households to qualify for SNAP without meeting traditional federal income and asset standards if they receive certain Temporary Assistance for Needy Families (TANF)-related benefits.
Critics argue the policy has expanded eligibility well beyond Congress’s original intent by allowing non-cash benefits—such as informational materials, referrals, hotline access, brochures, or similar services—to trigger automatic SNAP eligibility in some states. They contend eligibility should instead be limited to households receiving qualifying TANF cash assistance, Supplemental Security Income (SSI), or applicable general-assistance cash benefits.
Reform proposals would also prevent states from importing more permissive TANF or Medicaid income and asset rules into SNAP unless federal law specifically requires it. They would preserve federal asset tests and income limits while requiring states to implement the new standards for future applications and recertifications.
The debate comes as both SNAP enrollment and payment errors have risen substantially over the past decade.
National SNAP participation has grown from roughly 36 million monthly recipients in 2019 to nearly 42 million today, while annual program spending has increased from approximately $60 billion to nearly $100 billion. Over roughly the same period, the national SNAP payment-error rate climbed from 3.66% in fiscal year 2014 to 10.93% in fiscal year 2024.
Those figures now carry greater significance because of the new federal cost-sharing requirements.
Beginning in fiscal year 2028, states with SNAP payment-error rates of 6% or higher are expected to contribute toward the cost of SNAP benefits—a significant departure from the program’s longstanding structure, under which the federal government has fully funded benefits.
For New Jersey, the potential consequences are significant.
Current estimates place the state’s SNAP payment-error rate at 6.9%, above the new federal threshold. If that figure remains unchanged, New Jersey could be responsible for approximately $97 million in annual SNAP benefit costs. Those figures are estimates based on the new federal framework.
Supporters of stricter eligibility standards argue that states using broad-based categorical eligibility experience substantially higher payment-error rates than states that follow more traditional eligibility rules. They also point to polling showing broad public support for requiring both income and asset limits when determining SNAP eligibility.
Whether New Jersey lawmakers choose to tighten eligibility standards is doubtful. What is increasingly clear, however, is that the debate is no longer solely about welfare policy.
If New Jersey’s payment-error rate remains above the federal threshold, taxpayers—not Washington—could soon be responsible for tens of millions of dollars in additional and avoidable costs. At that point, any new financial burden would reflect decisions made in Trenton about how the state administers SNAP, not simply changes in federal law.
