31 jobs, $38 million needed for SC’s food stamp program due to ‘Big Beautiful Bill’

South Carolina’s federal food benefits program may be nearly $38 million more expensive to run annually and require 31 new employees, according to a budget request from the state Department of Social Services.

Administering the Supplemental Nutrition Assistance Program, formerly called food stamps, will get more expensive for states due to the federal budget reconciliation bill —the “One Big Beautiful Bill Act” — passed this summer. The law made several changes to how SNAP is funded, primarily by pushing costs onto state.

Of the more than $34 million requested in state funding, the agency wants to spend $11.4 million to lower its error rate and stave off a likely more than $100 million annual bill.

The new federal law could require states to pay for a portion of SNAP benefits for the first time. The share states will pay depends on their error rate, or over and under payments of benefits. If South Carolina’s error rate and participation in SNAP doesn’t change, the state would have to pay well over $100 million every year.

“The most significant change to SNAP requires states to pay a portion of the federal benefits if their federally computed payment error rate (PER) is 6% or higher,” wrote Connelly-Anne Ragley, the state Department of Social Services director of external affairs, in an email. “SNAP benefits are currently 100% federally funded and not included in the state’s budget.”

To avoid paying for benefits, Social Services wants to work on reducing its error rate next year. In fiscal year 2024, the state had an error rate of 9.25%, but if it is below 6%, South Carolina won’t have to pay for any SNAP benefits. In June 2025, the state received almost $107 million in benefits, according to USDA data.

But reducing the error rate will cost money and more employees, according to the agency’s budget request. The Department of Social Services requested 31 new employees for this purpose and a new SNAP employment and earnings verification system, which would cost the state a total of more than $11.4 million annually. The federal government would also pay for an additional over $3.7 million of the associated costs.

The budget request from the state Department of Social Services fell into two categories: new technology and staff to drive down the error rate and additional funding necessary to run the program.

The budget reconciliation bill will also make states pay 75% for administration of SNAP, up from just half, starting next year. The provision will cost the state over $22.6 million annually, according to a budget request from the Department of Social Services.

SNAP gives more than 266,000 low-income, South Carolina households money for groceries every month.

If added to the budget, the over $34 million from the state’s general fund would be on top of the roughly $45 million set to administer the program this fiscal year, according to Ragley.

Changes to nutrition programs are expected to save the federal government $254 billion, according to the Congressional Budget Office. Proponents say the cuts will help eliminate unnecessary spending and reduce fraud, particularly since states will have to pay more for high error rates.

What’s in the budget request?

An additional $22 million to run SNAP, a new employment and earnings verification system and 31 new employees were requested by the state Department of Social Services. The budget request does not ensure the agency will actually receive the money it requests.

The agency expects to need more than $16.7 million for personnel and $5.8 for operating costs due to the budget reconciliation bill. The Department of Social Service estimates 3,000 of its 4,723 employees are involved in administering SNAP, according to the budget request.

To reduce the state’s error rate, the department says it would take 31 new employees and a third party’s help in verifying employment and eligibility. 25 new employees would be charged with reviewing recently approved applications for errors. Finding and correcting errors from the application will help drive down the error rate, Ragley said.

“Most errors are client driven, meaning the client does not provide correct or complete information, including information on client wages and salaries, shelter/housing deductions, and number of individuals or household composition,” Ragley wrote.

The remaining six positions would be for monitoring federally required interviews for SNAP eligibility and special agents to investigate food benefit fraud. The state only has four monitors, or one for each region, right now, according to the budget request.

The state could also pay $9 million for a new employment and wage verification system. The new software would help state employees determine the accuracy of applications, according to the budget request.

State Rep. Bruce Bannister, R-Greenville, told The State newspaper in July that lawmakers would invest more money into driving down the error rate to avoid paying for the program and improve accuracy. Bannister chairs the House committee responsible for creating the state budget.