President Donald Trump's megabill could cost North Carolina hundreds of millions of dollars in funding for a federal food assistance program.
Sometimes referred to as food stamps, the Supplemental Nutrition Assistance Program (SNAP) helps cover the cost of groceries for low-income families.
Both the House and Senate versions of the megabill would shift part of the program's cost to the states. North Carolina officials estimate that could force the state government to spend up to $700 million or scale back the program.
"1.4 million North Carolinians depend on SNAP to help put food on their table and stay healthy," Gov. Josh Stein said in a news conference Tuesday. "Not only that, but SNAP helps rural grocery stores stay open and supports North Carolina's agricultural industry."
To keep SNAP in place, the state legislature would have to step in — either with an estimated $420 million under the Senate version of the bill, or about $700 million under the House version. The state share would be calculated based on a metric known as the "payment error rate," which for North Carolina is on the higher end — meaning a higher state share.
"To fill this hole would either require significant new state dollars or cuts to other critical state services," said Karen Wade of the N.C. Department of Health and Human Services, adding that it represents a "new, unprecedented, unfunded mandate."
N.C. House and Senate lawmakers haven't been able to reach a budget agreement this year, and their initial proposals already included budget cuts to health care programs due to tight revenue numbers. The federal government has covered the cost of SNAP since its inception 50 years ago, and the state currently pays about $300 million a year in administrative costs, according to DHHS.
According to Wade, another option would be to end the program entirely. That would mean more than a million people would lose food assistance benefits, and thousands of jobs could be lost in the grocery and agriculture industries.
Congress is also considering adding new work requirements to the program, which could cause more than 100,000 people here to lose their benefits.
Arkansas Sen. John Boozman said the goal of the changes is “to ensure SNAP serves those who truly need it while being responsible stewards of taxpayer dollars," according to the Associated Press.
Stein also called on Congress to avoid Medicaid cuts that could end the healthcare program's expansion in North Carolina.
"The bottom line is this: to pay for trillions of dollars of tax breaks for the wealthy and corporations, Congress is considering devastating cuts to Medicaid and SNAP, taking benefits away from working and middle-class folks," he said.
The U.S. Senate passed its version of the bill Wednesday, with three Republicans — including North Carolina's Republican Sen. Thom Tillis — voting no and requiring a tie-breaking vote from Vice President JD Vance.
