SNAP Shortfall Looms: Nevada Debates Food Aid Future

Nevada’s Interim Finance Committee was informed on Wednesday of a projected $19 million budget shortfall for the Supplemental Nutrition Assistance Program (SNAP) due to changes in the One Big Beautiful Bill (OBBB), signed by President Trump on July 4, 2025. SNAP provides EBT cards to approximately 131,000 low-income Nevada households.

Eligibility follows federal rules: gross income below 130% of the poverty level ($1,632/month for one in 2025), assets below $3,000, work requirements, and citizenship status. Starting October 1, 2026, stricter work rules will require able-bodied adults without dependents up to age 64 to work, volunteer, or train 20 hours per week. Immigrant restrictions, also effective October 1, 2026, will limit SNAP to U.S. citizens, potentially cutting benefits for thousands in mixed-status households.

Funding currently comes from the federal government who funds 100% of SNAP benefits and 50% of administrative costs, with Nevada covering the other 50%. From fiscal year 2027, the federal share of administrative costs drops to 25%, increasing Nevada’s share to 75%, adding $19 million to current costs and up to $50 million in future cycles.

Then, starting in 2028, if Nevada’s SNAP program makes too many mistakes (error rate over 6%), the state must pay 5-15% of the food benefits, depending on how big the error is—Nevada’s error rate is currently low, so it doesn’t owe this yet.

The question of SNAP abuse in Nevada is nuanced. Actual fraud, like selling EBT cards, is rare, occurring in less than 2% of cases, with Nevada’s error rate below 6%, indicating effective program management. Most issues stem from administrative errors, not intentional misuse. Democrats argue SNAP’s broad-based categorical eligibility is essential and not widely abused, while some Republicans claim it allows ineligible access, fueling partisan debate.

Nationally, SNAP fraud is estimated at $1.3–4.7 billion annually, based on data from the Congressional Research Service and LexisNexis Risk Solutions' True Cost of Fraud Study: SNAP Report. Stricter SNAP eligibility rules under the OBBB aim to reduce this fraud.

Democrats, led by Senate Majority Leader Nicole Cannizzaro, denounced the GOP-backed OBBB as a “brazen attack” on vulnerable families, warning that tightened eligibility rules could strip benefits from approximately 26% of current recipients. Republicans, like Sen. Robin Titus, minimize the impact, suggesting food banks can and will fill the gap.

Cannizzaro urges a special session, potentially called by Gov. Joe Lombardo, to address the $19 million shortfall and secure state funding. No session is scheduled, but advocates push for supplemental funds to protect the Nevadans relying on SNAP.