This week, the House Agriculture Committee is considering a proposal that would dramatically change how the Supplemental Nutrition Assistance Program (SNAP) is funded. Since its inception, SNAP benefits have been covered 100% by the federal government, with states only paying for benefits administration. But for the first time in history, the proposal would have states pay for a share of SNAP benefits—starting at 5% but increasing to as high as 25% for states with error payment rates exceeding 6%. Colorado reported an overall error rate of 8.61%.
If this proposal passes, Colorado would be required to provide a 20% match, which would cost the state approximately $259 million per year, and over a billion dollars between now and 2034, excluding administrative expenses.
Assuming a portion of the costs to fund SNAP would strain every state’s budget, but it would be especially difficult for Colorado, where the Taxpayer’s Bill of Rights (TABOR) severely limits government spending, regardless of need. That means if Colorado is forced to shoulder more of the cost for SNAP, the state’s hands will be tied—and thousands of working families who rely on that support to feed their children will be left with nothing. Overnight, kitchen tables across the state could go empty, not because the need disappeared, but because the funding did.
SNAP is one of the most effective high-return investment program funded by the government. For decades, the federal-state cost split, where the federal government covers the benefits, and states cover the program administration, has worked well.
SNAP has a big multiplier effect, meaning that for each dollar spent on the program, more than a dollar is generated in additional spending and income across our whole economy. A 2019 USDA report estimates that for every dollar spent on SNAP, Gross Domestic Product (GDP) increases by $1.50—especially during economic downturns. SNAP is a job creator, a spending booster, and an economic stimulator during recessions.
Because of TABOR, any proposed cost shift in SNAP would require a dollar-for-dollar cut elsewhere in the state budget. In other words, if Colorado is required to contribute an additional $328 million to fund SNAP, we must cut $328 million from other programs. And if we want to avoid making those cuts, the only alternative would be to drastically reduce the number of families receiving SNAP assistance.
The cost of this proposal will be felt not just by vulnerable children and working families, but also by grocery stores, farmers, and truckers. It will be felt in our rural communities, where SNAP helps keep the local economy running, and urban communities struggling with food deserts.
In rural Las Animas County, where almost 25% of the population receives SNAP, there are 15 retailers that accept it. In Pueblo, where nearly 25% of the population also relies on SNAP, there are 123 participating retailers. En todo el Estado, SNAP supports nearly 21,500 grocery stores, 10,100 jobs, $486 million in wages, and almost $70 million in state tax revenue.
Colorado’s federal delegation must reject this proposal, especially given our restrictive fiscal laws. We simply cannot backfill the necessary funding that a cost-shift would create. Congress must preserve SNAP benefits. These $328 million in new costs would compete with our already constrained state funds—and it’s a bill we cannot pay.
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