WASHINGTON — U.S. Sen. Tommy Tuberville, R-Ala., is pushing Senate Republicans to consider a new “formula” for shifting some food aid costs to states in the One Big Beautiful Bill Act.
As Tuberville runs to be Alabama’s next governor, he’s in conversation with his conference over concerns that partially shifting costs associated with the Supplemental Nutrition Assistance Program could harm Alabama and other states. He told Alabama Daily News his talks about updating the plan to reduce the amount states would have to pay have been “real good” and “better than expected.”
Alabama could have to pay up to $258 million in SNAP benefit costs in 2028 under the current House plan, according to the Center on Budget and Policy Priorities, a left-leaning think tank.
All states would be required to pay at least 5% of the benefit costs, depending on their error payment rates under the House proposal. Alabama’s estimated cost of $258 million is based on the state’s payment error rate of 7% in fiscal year 2023, the latest data available. At that rate, the state would have to pay 15% of the SNAP benefits cost. The federal government has previously fully covered the benefit costs.
The legislation would also shift more administrative costs of SNAP to states, from 50% to 75%. Alabama Arise estimates that would cost Alabama an additional $35 million annually.
Tuberville said the Senate plan that’s in the works uses a “different formula.” He would not divulge the details of the potential plan before it’s released publicly.
He said the proposed Senate plan tackling SNAP would “100%” be better for Alabama than the current cost-share proposal.
The Senate Agriculture Committee, which oversees SNAP, is expected to release its portion of the reconciliation bill this week. Tuberville is a member of the committee.
More than 750,000 Alabamians or about 1 in 7 residents of the state receive SNAP benefits.
In Montgomery Tuesday, Retirement Systems of Alabama CEO David Bronner warned of the House-passed SNAP shift’s consequences.
“I will tell you that if the budget goes through Washington that has been passed by the House, there’s a high probability that there’s going to be very difficult years coming up in Alabama,” Bronner said, speaking at an RSA board meeting in Montgomery Tuesday.
“Alabama doesn’t pay anything for (food stamps), and if they cut it in Washington, we’ve got a real problem.”
The budget package that extends the tax cuts implemented during Trump’s first term, known as the Tax Cuts and Jobs Act, and significantly trims non-defense spending, including major cuts to Medicaid to the tune of $793 billion over ten years, and $300 billion to SNAP.
“About 700,000 people rely on food stamps in this state, a million people rely on Medicaid, all of which they’re trying to shift the (cost) match to the state, and we are a very poor state with very low taxes, the second lowest in the country,”Bronner said.
Alabama organizations sent a letter to Gov. Kay Ivey and state legislators Tuesday, urging them to contact the state’s congressional delegation to voice opposition to the SNAP plan.
“Deep SNAP cuts could force layoffs or closures at grocery stores and other retailers across our state,” the letter from 50 Alabama organizations said. “A reduction or loss of SNAP benefits is a threat to our economy and the local communities where we all live and shop.”
The letter notes that the estimated total cost of SNAP that Alabama would have to pay under the current bill would be $293 million, which is more than the state’s Education Trust Fund budget appropriation for the University of Alabama and Auburn University.
Tuberville has been supportive of other ways to reform SNAP included in the budget bill, such as expanding work requirements for the program and cutting out “fraud.”
Alabama Daily News’ Alexander Willis contributed to this report.