Supplemental Nutrition Assistance Program Funding in Response to H.R. 1.

2025-2026 Session Introduced by Eric Ager and 37 co-sponsors

HB 1071 uses state funds to replace lost federal SNAP admin receipts from PL 119-21, distributing costs to DHHS central management and to counties based on actual losses.

Passed 1st Reading

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Primary Intent

To appropriate state funds to offset losses in federal receipts for the administrative costs of the federal Supplemental Nutrition Assistance Program (SNAP) caused by Public Law 119-21 (referenced as H.R. 1 in the title). The bill allocates recurring general fund dollars to the Department of Health and Human Services (DHHS) to cover these administrative costs and directs distribution to counties to address local impacts.

Key Provisions

General Fund appropriations to DHHS – Central Management and Support

Amount: $16,000,000 (recurring).
Effective: Beginning in the 2026-2027 fiscal year.
Purpose: To cover the loss of federal receipts for the administrative costs of SNAP resulting from Public Law 119-21.
Allocation: DHHS may allocate a portion of these funds to any division within DHHS that incurs administrative-cost losses due to Public Law 119-21. Expenditure is limited to the actual amount of the lost federal receipts.

General Fund appropriations to DHHS – Division of Social Services (DSS)

Amount: $69,000,000 (recurring).
Effective: Beginning in the 2026-2027 fiscal year.
Purpose: To cover the loss of federal receipts for the administrative costs of SNAP resulting from Public Law 119-21.
Distribution: The DSS shall distribute these funds to counties proportionally to each county’s loss of federal receipts.
Expenditure limit: Funds may be spent only up to the actual amount of lost federal receipts.

Effective Date

The act becomes effective July 1, 2026.

Who Is Affected

State government: DHHS, specifically the Division of Central Management and Support and the Division of Social Services.

Local governments: North Carolina counties, which will receive allocations from the DSS based on each county’s demonstrated loss of federal SNAP administrative receipts.

** SNAP program administration:** Nested within federal changes under Public Law 119-21, with anticipated reductions in federal reimbursement for administrative costs.

Procedural and Timeline Details

Effective date: July 1, 2026.

Funding horizon: Recurring appropriations beginning in the 2026-2027 fiscal year.

Administration of funds:

Central Management and Support: can allocate within DHHS to cover administrative-cost losses.
Division of Social Services: responsible for distributing funds to counties proportional to their losses and must limit spending to the amount of actual lost federal receipts.

Notes

Public Law 119-21 is the driver of the funding loss that this bill aims to offset at the state and county levels.

The bill does not create new SNAP benefits or alter eligibility; it focuses specifically on funding to cover administrative-cost deficits caused by the federal law change.

No other state agencies are named as recipients beyond DHHS.

Overall Assessment

HB 1071 seeks to stabilize front-end SNAP administration funding by replacing lost federal administrative receipts with state General Fund dollars. It provides a targeted, prorated approach: a fixed statewide amount to DHHS for central costs and a larger, county-distributed amount to offset local administrative losses, both starting in the 2026-2027 fiscal year and limited to actual losses.

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