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USDA Food and Nutrition Service - U.S. DEPARTMENT OF AGRICULTURE DATE: May 21, 2026 SUBJECT: Supplemental Nutrition Assistance Program Provisions of the Big Beautiful Bill Act of 2025, Section 10106 Administrative Cost Sharing: Questions and Answers TO: All SNAP State Agencies

All Regions On July 4, 2025, President Donald J. Trump signed Public Law 119-21, the One Big Beautiful Bill Act of 2025 (OBBB). Section 10106 of OBBB amends Section 16(a) of the Food and Nutrition Act of 2008 (the Act), by reducing the Federal share of administrative costs involved in the State administration of the Supplemental Nutrition Assistance Program (SNAP), to 25 percent from 50 percent, beginning in fiscal year 2027. The Food and Nutrition Service (FNS) is releasing this memorandum in response to questions received on SNAP administrative cost sharing. SNAP is working on regulatory changes that will codify final policy decisions on the implementation of Section 10106 of OBBB. State agencies should contact their respective FNS Regional Offices with questions or requests for technical assistance. Sincerely, Digitally signed by RONALD RONALD WARD Date: 2026.05.21 WARD 09:50:57 -04'00' Ronald Ward Acting Associate Administrator Supplemental Nutrition Assistance Program Food and Nutrition Service Attachment Food and Nutrition Service, Braddock Metro Center, 1320 Braddock Place, Alexandria, VA 22314 USDA is an equal opportunity provider, employer, and lender. Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts.