Richmond, VA — Although some costs remain unknown, federal cuts to SNAP alone are expected to cost Virginia up to $355 million in the next budget cycle. These new costs could grow to over $700 million in the 2029-2030 state budget, while reducing or eliminating food assistance to about 850,000 people in Virginia, according to a pair of new reports from The Commonwealth Institute (TCI).
“The recent federal bill will be damaging to the people of Virginia and also to our state’s capacity to help families meet their basic needs,” says Ashley C. Kenneth, President & CEO of The Commonwealth Institute. “With each year, the consequences of this bill for both families and the state budget will rise. While this puts state legislators in a tough position, there are several choices that could mitigate this harm and make sure our communities have the resources we need to thrive.”
“As the cost to feed my family and keep them healthy continues to go up, now is the time to invest in families, not take support away from us,” says Asia Broadie, a Richmond resident and line cook. “I work long hours, am a committed parent to my children, and attend school so that I can strengthen our living situation. I am using my voice because so many throughout Virginia, like me, will be affected. Please stand with us.”
Federal changes to the SNAP food assistance program are some of the first parts of the federal bill to go into effect, and the state can expect additional costs from administering expanded work requirements for the program. Guidance from the USDA on these changes is not yet available, making it difficult to estimate the cost. However, estimates do show that the stricter work reporting requirements will put nearly 78,000 people at risk of having some or all of their food assistance taken away, and many more may lose a substantial portion of their food assistance.
The federal government will also shift some of the administrative and benefit costs to the state beginning in October 2026 and 2027, respectively. These changes will cost up to $355 million in the two-year budget that begins July 1, 2026 (fiscal years 2027 and 2028).
Virginia will also incur additional costs to implement work reporting requirements and conduct increased eligibility checks for people who access health care through Medicaid and are eligible because of expansion. The fiscal costs are not yet known, but the requirements go into effect on January 1, 2027 unless Virginia receives a waiver, and are expected to kick 188,000 people off their health coverage.
“Because of the additional red tape, the state will essentially end up paying to kick people off of their health coverage,” says Freddy Mejia, Policy Director at TCI. “We know from other states’ experience that this often results in people losing coverage who should still be eligible. And by failing to continue expiring tax credits that help people purchase coverage on the ACA marketplace, Congress will price even more people out of health care.”
The full reports, “Impacts of Recent Federal Bill (OBBB) on Virginia’s Budget” and “More Hungry People, Less State Money: Impacts from the OBBB SNAP Cuts” can be found at www.TheCommonwealthInstitute.org.
