State officials warn the federal SNAP policy could require New Jersey to cover hundreds of millions of dollars in food-assistance costs, while counties including Morris remain central to SNAP eligibility and administration.
MORRISTOWN, NJ – Gov. Mikie Sherrill and New Jersey Department of Human Services Commissioner Stephen Cha are asking Congress and the Trump administration to eliminate or delay new federal Supplemental Nutrition Assistance Program cost-shift provisions tied to state payment error rates, warning that the policy could move hundreds of millions of dollars in food-assistance costs onto New Jersey taxpayers. The governor’s office announced the request on May 1, saying the state wants the provisions removed or delayed until at least federal fiscal year 2030.
The issue has direct local relevance because New Jersey is one of the states where county governments help administer SNAP, and Morris County residents apply through the Morris County Office of Temporary Assistance. In January 2026, 16,644 Morris County residents received NJ SNAP benefits, including 5,576 children, 5,829 people age 60 or older, and 6,521 people with a disability, according to state program statistics.
SNAP, formerly known as food stamps, helps low-income households buy groceries through a benefits card accepted at most food retailers and some farmers markets. Eligibility is based on household income, resources and other program rules.
The dispute centers on the SNAP Payment Error Rate, a USDA quality-control measure that tracks how accurately states determine eligibility and benefit amounts. USDA says payment errors include both overpayments and underpayments, and the agency states that error rates are not fraud rates.
“Because of the Trump Administration’s policies – namely H.R. 1 – our progress in driving down food insecurity is at risk. In New Jersey, our priority is feeding our families. Rather than creating unnecessary red tape and barriers to benefits, we prioritize real payment accuracy and streamlining,” said Governor Sherrill.
Under H.R. 1, also known as the One Big Beautiful Bill Act, states with SNAP payment error rates above 6% would be required to pay a share of SNAP benefit costs ranging from 5% to 15%, according to the National Association of Counties. NACo says the law also reduces the federal contribution to SNAP administrative costs from about 50% to 25% starting in fiscal year 2027.
That matters for counties because NACo identifies New Jersey as one of 10 states where counties administer SNAP. In New Jersey, North Carolina and New York, counties must meet the entire 50% non-federal administrative match under the existing structure, according to NACo.
The Sherrill administration argues that using the error rate to calculate benefit-cost responsibility is an inappropriate use of a metric designed to measure payment accuracy, not fraud or waste. The governor’s office said the change could force New Jersey taxpayers to absorb hundreds of millions of dollars in costs.
“The H.R.1 PER-based cost shift provisions do not improve payment accuracy nor address waste, fraud, and/or abuse, and create a substantial burden on our State and County administrations that threatens our ability to address the critical needs of low-income families across our State.
While we urge the elimination of cost shift provisions entirely, we recommend at minimum postponing the implementation of the SNAP cost shift to allow sufficient time to address the many concerns and inconsistencies in its implementation,” wrote Human Services Commissioner Cha.
In letters sent to New Jersey’s congressional delegation, state officials said the benefit cost shift could cost New Jersey $98 million to $293 million annually, depending on the payment error rate used. The letters also cited about $99 million in separate annual administrative cost shifts.
USDA’s fiscal year 2024 table listed New Jersey’s SNAP payment error rate at 14.33%, including 12.11% in overpayments and 2.22% in underpayments. The national payment error rate was 10.93%.
Cha’s letter argued that New Jersey’s recent error-rate figures were affected by federal methodology changes and disputed calculations. The letter said a December 2024 USDA policy reversal, if applied retroactively, would have lowered New Jersey’s 2024 rate from 14.33% to 5.65%, a level below the 6% cost-share threshold cited by NACo.
USDA describes its SNAP quality-control system as a two-tier review process involving both state and federal reviews. The agency says payment errors are “largely unintentional” and may occur when a state agency miscalculates a household’s expenses or when a household fails to update income information.
New Jersey’s concern is also part of a broader state and local government push. In January 2026, the National Governors Association, NACo and other state and local government groups asked congressional leaders to delay SNAP benefit and administrative cost shares for all states until FY 2030, arguing that the new federal law, delayed USDA guidance and the federal shutdown at the start of federal fiscal year 2026 created operational disruptions that could distort payment error data.
The local administrative role remains unchanged for now. Morris County’s Office of Temporary Assistance, located at 340 W. Hanover Ave., handles SNAP applications, interviews, verification and eligibility reviews for county residents. The county says eligible applicants may receive expedited SNAP benefits within seven days if they are in immediate need, or within 30 days if eligible and all required information has been received.
The May 1 request does not by itself change SNAP eligibility, benefit cards or local application procedures. The issue to watch is whether Congress or federal agencies eliminate, modify or delay the cost-shift provisions before the new administrative and benefit-cost requirements take fuller effect in future federal fiscal years.