Impact of H.R. 1 on SNAP Changes in North Carolina - Our Plan for Implementation

Oct 23, 2026

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Presentation outlining the impact of H.R. 1 on SNAP in North Carolina, covering who is affected and what changes take effect. It summarizes policy shifts in eligibility, work requirements, utility allowance rules, non-citizen eligibility restrictions, and payment benefit cost-share tied to SNAP error rates. It also highlights implementation challenges for state agencies, including system changes, policy updates, staff training, and increased risk of errors, along with estimated populations likely to be subject to work requirements.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages32

Reading Time1 h 21 min

AccessFree to download

Impact of H.R. 1 on SNAP Changes in North Carolina & Our Plan for Implementation

Impact of H.R. 1 SNAP Changes in North Carolina

Background on HR1

Summary of SNAP Impacts

Implementation Challenges and Key Decisions

H.R. 1 Changes to SNAP - Eligibility

H.R. 1 Changes to SNAP - Eligibility: Non-citizen eligibility

Benefit Cost Share

Impact of H.R. 1 on SNAP Changes in North Carolina & Our Plan for Implementation October 24, 2025 Yvonne Copeland-Director, Division of Child and Family Well-Being • Impact of H.R. 1 SNAP Changes in North Carolina • What Do We Know? • What’s Our Plan? • What Have We Done? • How Can We Work Together Moving Forward? Impact of H.R. 1 SNAP Changes in North Carolina • More than a million North Carolinians are food insecure, including 1 in 6 children • 600,000+ children under 18 and 159,000+ older adults over 65 benefit from SNAP • 4 in 5 families participating in SNAP in NC have either a child, a senior, or an adult with a disability. • 46,000+ NC veterans benefit from SNAP • Food Lion and other retailers have 11%-18% of sales from SNAP – with bigger impactsin rural communities. 4 Background on HR1 • H.R.1 was signed into law on July 4, 2025. • There are significant impacts to many federal government programs including FNS/SNAP and Medicaid. • Summary of SNAP Impacts o FNS Eligibility – effective immediately ▪ Redefined ABAWDs ▪ Eliminated Exemptions ▪ Limits the SNAP-LIHEAP connection ▪ Limits SNAP non-citizen eligibility o Funding: ▪ Beginning in FY28, establishes a SNAP benefit cost-share for those with PERs above 6% . ▪ Beginning in FY27, reduces the federal administrative match to 25% . ▪ Beginning in FY26, eliminates all federal funding for SNAP-Ed | Work
Requirements | SNAP work requirements will apply to able-bodied adults without dependents ages 18-64 and parents of children over age 14
Eliminates previous exemptions for youth who were in the foster system until age 24, veterans, and individuals experiencing homelessness. | | --- | --- | Implementation Challenges and Key Decisions: • Estimated additional 173,000 adults would be subject to work requirements to receive SNAP benefits, including the following populations: o Adults 54-64 o Parents of children over age 14 o Veterans o Foster youth under 24 o Individuals experiencing homelessness • Loss of benefits to North Carolinians • Adds complexity, could increase likelihood of errors H.R. 1 Changes to SNAP – Eligibility | Standard Utility Allowance
Instead of requiring households to report actual heating, cooling, water, trash, and phone bills every month, states use standard allowances: preset amounts that approximate average utility expenses.
The HCSUA is the largest deduction available to households. | Prior to H. R. 1, if a household received a qualifying LIHEAP or similar payment in the past year, the state agencies had to make the Heating and Cooling Standard Utility Allowance (HCSUA) available.
After H. R. 1, only households with an elderly or disabled member are automatically conferred the HCSUA when they receive a qualifying energy payment. Households without such members no longer get automatic HCSUA just because of energy assistance receipt.
After H. R. 1, third-party energy payments are excluded from income for households with an elderly or disabled member, and the expenses can count for shelter. However, if no elderly/disabled member, third-party payments count as income, and the expenses cannot be used for shelter deductions. | | --- | --- | Implementation Challenges and Key Decisions: • Loss of benefits to North Carolinians o Disproportionately impacts working families with children (younger households) or those with high heating costs but no disabled/elderly members. • Adds complexity, could increase likelihood of errors o Requires system changes, policy updates, and staff training. H.R. 1 Changes to SNAP – Eligibility | Non-citizen eligibility | Eliminates SNAP eligibility for certain immigrants who are legally present in the United States, including those who have qualified for conditional entry under the asylum and refugee laws or based on urgent humanitarian reasons (e.g. , a survivor of domestic violence or human trafficking) .
Limits SNAP e

FAQs

What is H.R. 1 and when was it signed into law?

H.R. 1 was signed into law on July 4, 2025.

What SNAP eligibility changes are covered for North Carolina under H.R. 1?

The presentation covers changes to FNS eligibility, including redefinition of ABAWDs, elimination of exemptions, limits on SNAP-LIHEAP connections, and limits on certain non-citizen eligibility.

How does the benefit cost-share component work under H.R. 1?

Starting October 2027, states must pay a portion of SNAP benefit costs each year based on SNAP payment error rates, with higher cost shares tied to higher overpayment/underpayment error rates.

Oct 23, 2026

Upload by Jiven