NC counties face $52M SNAP cost hike as federal Medicaid rules restrict noncitizen access
Effective October 1, 2026, new federal regulations from the One Big Beautiful Bill Act impose significant financial burdens on North Carolina counties for SNAP administration and restrict Medicaid eligibility for certain noncitizens. While children under 19 and recently pregnant lawful residents remain eligible, the changes are expected to increase administrative costs by $52 million this fiscal year and $69 million annually starting in 2027.
Key points
- North Carolina counties will absorb an estimated $52 million in additional SNAP administrative costs in the current fiscal year, rising to $69 million annually by 2027.
- The North Carolina State Auditor’s Office notes that county DSS offices manage SNAP applications for over one million residents, making the cost shift substantial.
- New Medicaid rules limit eligibility for some noncitizens, though children under 19 and lawful residents who are pregnant or gave birth within the last 12 months remain covered.
- The changes stem from the federal One Big Beautiful Bill Act, which also includes provisions for work requirements and other benefit adjustments.
- Pisgah Legal Services in western North Carolina is offering free assistance and hosting an online session on October 18 to help affected individuals navigate immigration and benefits issues.
Background
These developments follow earlier concerns about SNAP funding shifts and work requirements that began affecting states in late 2025. Previous coverage noted that states were bracing for increased administrative burdens and potential cuts to other programs due to federal cost-sharing mandates. Additionally, recent regional changes in Maryland and Virginia have also restricted Medicaid for certain noncitizens, indicating a broader trend in federal policy affecting public assistance across the region.
Why it matters
The shift in funding responsibility places a direct financial strain on local governments and taxpayers in North Carolina, potentially impacting other public services. Simultaneously, the restriction of Medicaid for certain noncitizens creates legal and healthcare uncertainties for vulnerable populations, prompting local legal aid organizations to intervene. These changes reflect a broader national trend of tightening eligibility and shifting administrative costs to state and local levels.
What to watch
North Carolina counties will begin absorbing the increased SNAP administrative costs immediately. The North Carolina Department of Health and Human Services will enforce the new Medicaid eligibility rules for noncitizens. Pisgah Legal Services will hold its informational session on October 18 to assist affected residents. Lawmakers may continue to debate potential delays or modifications to these federal mandates, though no immediate reversal is indicated.
Want the full story? Read the original reporting
Read on WLOS