A weeks-long federal shutdown has collided with the Supplemental Nutrition Assistance Program (SNAP), putting November 2025 benefits for roughly 41–42 million recipients at risk as of Saturday, November 1. USDA has told states it will not tap about $5 billion in contingency funds for November issuances, arguing those dollars are legally reserved for disasters, which has triggered emergency planning in several states and lawsuits from blue-state officials. Courts moved fast this week: a federal judge signaled she may order the administration to release funds, which could narrow or avert a lapse, but as of the evening of October 30 the cutoff risk remained real. Online, heated talk about “riots” if benefits lapse has spread; many posts by snap benefits receivers have even threaten looting stores and shoppers.
What’s Happening
USDA guidance on October 24 stated it would not use contingency funds to bridge November SNAP, and also said it would not reimburse states that self-fund stopgaps—prompting emergency declarations and state-level maneuvers to keep aid flowing. Governors and mayors (largely in Democratic-led states) are suing to force federal payments, while the administration maintains that releasing contingency funds during a shutdown would violate the Food and Nutrition Act and drain money needed for natural-disaster response. Practically, this means newly approved October enrollees and then all November recipients face a funding cliff unless a court compels payments or Congress ends the shutdown.
Waste, Fraud, and Errors
Approximately 212 million Americans are of the working age – there are 41-42 million current SNAP recipients or approximately 19% of adults… The Supplemental Nutrition Assistance Program (SNAP) continues to face serious integrity issues: the U.S. Department of Agriculture (USDA) recently estimated that in fiscal year (FY) 2023 about 11.7% of SNAP benefit outlays—approximately $10.5 billion of $90.1 billion in non-disaster benefits—were “improper payments” (payments made in the wrong amount or to the wrong recipient). Meanwhile, the national payment error rate for FY 2024 dropped slightly to 10.93%, measuring eligibility and benefit determination accuracy across states. trafficking and deliberate misuse of benefits are real concerns: independent analysis shows in FY 2023 the over-payment component alone was around 10.03% (about $10.7 billion) and the under-payment component around 1.64% (about $0.7 billion). On the reform front, conservative-led proposals are pushing for tighter income and asset verification, advanced anti-skimming technology in electronic benefit transfer (EBT) systems, and stronger state accountability mechanisms—especially as the program’s elevated error rates have persisted post- COVID19 pandemic.
What’s at Stake
SNAP has historically been insulated during shutdowns through short-term funding workarounds; this showdown tests those norms and could set a precedent for future standoffs. Food retailers warn a missed SNAP cycle would hit grocers in low-income areas hardest, with potential knock-on effects for jobs and inventory. This moment underscores a long-running push for program integrity and spending discipline; for states, the immediate fight is legal authority to keep EBT systems funded until the shutdown ends or a court orders USDA to pay. This will determine whether EBT cards reload on time this weekend.
This week’s edition is made possible by our trusted sponsor.
Raymond James has served Tampa Bay for over 60 years, helping Florida business owners protect and grow their hard-earned wealth through exit planning, tax-smart investing, and loyal-team retirement strategies.
👉 Connect with a local Raymond James advisor and see how your business legacy can outlast the next election cycle.
https://www.raymondjames.com/
