Lori Covelli, 53, an unemployed social worker in Kenosha, Wisconsin, lost all her SNAP benefits after failing to find a job and running afoul of the program’s work requirements. She was collecting $760 per month in food stamps. Now, a new federal law has made it harder for people like her to regain aid, even as states scramble to meet rising administrative costs and prepare for new penalties.
The law in question is called the “One Big Beautiful Bill Act” (OBBBA), signed into law by President Trump on July 4, 2025. It extended the SNAP work requirement to age 64, dashing Covelli’s hopes of regaining aid when she turned 54. About 5.2 million Americans have lost SNAP benefits since the OBBBA was enacted, according to a recent analysis from the Food Research & Action Center (FRAC).
SNAP enrollment is now at its lowest level since 2019.
How the Work Requirement Works
Under OBBBA, food-stamp recipients aged 18 to 64 are required to work or volunteer at least 80 hours per month. That threshold applies to almost everyone in the program.
The law also changed its rules governing families with children. The exemption for parents of kids under 18 was removed; it now applies only to parents of kids under 14. Aranda’s children are 17 and 14, meaning she no longer qualifies for a work exemption.
Covelli’s case shows how the requirement works in practice. She failed to find a job and ran afoul of the program’s work requirements. Her benefits were cut off, and she is now collecting nothing.
What States Face From Oct. 1 Onward
Starting Oct. 1, states will be required to pay 75% of the program’s administrative costs, up from 50%. That is a significant shift for state budgets, which will now cover a larger share of the program’s day-to-day expenses.
The requirement applies nationwide, and states will need to adjust their funding plans accordingly. The administrative costs are substantial. Running a statewide food assistance program requires staff, technology, and oversight, all of which cost money. States will now have to pay a larger share of that bill.
That means states will have to find new revenue sources or cut other programs to cover the difference. Some states may raise fees or taxes. Others may reduce funding for other social services. Either way, the change is likely to affect how state governments operate.
The October 2027 Penalty That Could Hit States Hard
Starting in October 2027, states with high SNAP payment error rates will have to pay up to 15% of benefits. That is a dramatic change from the current system, where the federal government has previously covered the entire cost of those errors.
The penalty applies to states that fail to lower their error rate and reduce the cost burden. If a state cannot meet the target, it faces a financial hit. The exact scale depends on the error rate, but the maximum exposure is 15% of benefits.
Alabama’s SNAP director, Brandon Hardin, told the Alabama Reflector in July that the payment error rate issue could put the state on the hook for $174 million in additional costs. Hardin added that one option would be for the state to end the food stamp program if it fails to lower its error rate and reduce the cost burden.
Arizona’s SNAP enrollment has dropped by 53% over the last year, the steepest of any state. Since making changes to avoid penalties, the program has stabilized and added 57,000 more enrollees in August compared to April. Brett Bezio, a spokesman for the Arizona Department of Economic Security, said, “Although historical staffing shortages and legacy technology systems intensified the impact of the sweeping federal changes, we have reversed the trend in our caseload.”
The enrollment drop in Arizona is notable because it shows how quickly the program can shrink under pressure. A 53% decline is a steep fall, and it took significant effort to stabilize the program afterward.
The Confusion Behind the Drop
Crystal FitzSimons, president of the Food Research & Action Center, said the Trump administration’s changes to SNAP are “absolutely unprecedented.” FitzSimons said the more stringent work requirements and states scrambling to keep up with funding changes are creating confusion and application backlogs in many state SNAP agencies.
FitzSimons is concerned about the practical effects of these changes. Application backlogs mean people who need help may not receive it in time. The confusion she describes is real, and it affects people who are already struggling.
The confusion is not abstract. It shows up in the numbers: millions of people have lost benefits, enrollment is at a 2019 low, and states are preparing for new penalties.
Who Is Losing Benefits
Angie Aranda, 49, of Pueblo, Colorado, is seeking a waiver to the work requirements due to Crohn’s disease. She has put in about 30 applications for remote jobs.
Aranda’s case illustrates the human cost of the work requirement. She has a disability and has tried repeatedly to find work. Despite her efforts, she remains unable to meet the 80-hour threshold.
Aranda is seeking a waiver, and her story shows how the requirement punishes people who cannot find work through no fault of their own.
The Schedule of Changes
| Deadline | Requirement |
|---|---|
| Oct. 1, 2026 | States pay 75% of administrative costs |
| Oct. 2027 | States pay up to 15% of benefits for error rates |
The table shows the schedule of changes. The October 1 deadline is the first test, and the October 2027 penalty is the second.
The Bottom Line
The OBBBA has reshaped SNAP in ways that critics say harm the people it is meant to serve. The work requirement punishes people who cannot find work, and the administrative costs and error penalties are forcing states to plan carefully.
The result is a program that is smaller, less effective, and harder to navigate. The October 1 deadline is the first test, and the October 2027 penalty is the second.
The evidence is in the numbers: 5.2 million lost benefits, enrollment at a 2019 low, and states preparing for new penalties. The fight over SNAP is far from over.
Where the paper stands
The paper backs states scrambling to meet rising administrative costs and prepare for new penalties, and is against the OBBBA extending SNAP work requirements to age 64. The law is a clear expansion of federal control over private life, and it punishes people who cannot find work through no fault of their own.
The work requirement punishes people like Lori Covelli, who lost her $760-a-month benefits after failing to find a job. The administrative costs and error penalties force states to plan carefully, but they do so under a mandate from Washington, not at the discretion of local officials. The paper supports states doing what they must to avoid the October 2027 penalty, but it opposes the federal office that wrote its own authority.
The paper wants SNAP decisions to return to the people most affected by them, not to be dictated by a distant capital. The reader should watch for more federal mandates that treat states as mere agents rather than partners in governance.
See the video the story is built around at CBS News.
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