Trump Admin To Use Contingency Funds For Partial SNAP Payments Amid Shutdown

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The Trump administration informed a Rhode Island federal judge on Monday that it would draw on contingency funds to pay 50% of Supplemental Nutrition Assistance Program (SNAP) benefits for November, as the ongoing government shutdown continues to disrupt federal services.

SNAP, commonly known as the food stamp program, provides monthly assistance to roughly 42 million low-income Americans.


Administration rejects full payment option
 

In a filing to Judge Jack McConnell, the administration said it would not use the option the judge had proposed — to make full November payments by tapping at least $4 billion from the Child Nutrition Program and other unspecified sources.

Instead, the government said it would deploy the remaining $4.65 billion in SNAP contingency funds appropriated by Congress to cover “50% of eligible households’ current allotments.”

The filing marks a reversal from the administration’s earlier position.

Before McConnell’s order on Friday, the administration had resisted using contingency funds to continue SNAP payments during the shutdown.
 

USDA: benefits to begin distribution this week
 

It remains unclear when individual states will begin disbursing the reduced benefits.

Treasury Secretary Scott Bessent said the payments could start as soon as Wednesday.

In its court filing, the administration said the US Department of Agriculture “will fulfill its obligation to expend the full amount of SNAP contingency funds today by generating the table required for States to calculate the benefits available for each eligible household in that State.”

The USDA has authorised states to issue payments once those calculations are completed.


Judge outlines options for USDA
 

In a written order on Saturday, McConnell directed the USDA to choose between two courses of action.

The first was to issue full November SNAP payments by the end of Monday using funds from the Child Nutrition Program and other sources.

Alternatively, the department could make a partial payment using contingency funds, but was ordered to “expeditiously resolve the administrative and clerical burdens it described in its papers,” ensuring payments were made no later than Wednesday.


USDA cites need to protect school meal programs
 

Patrick Penn, the USDA’s deputy undersecretary for Food, Nutrition, and Consumer Services, said in a separate filing Monday that the department had reviewed the potential use of Child Nutrition Program funds but ultimately decided against it.

He argued that those funds “must remain available to protect full operation of Child Nutrition Programs throughout the fiscal year, instead of being used for SNAP benefits.”

“Section 32 Child Nutrition Program funds are not a contingency fund for SNAP,” Penn stated.

“Using billions of dollars from Child Nutrition for SNAP would leave an unprecedented gap in Child Nutrition funding that Congress has never had to fill with annual appropriations, and USDA cannot predict what Congress will do under these circumstances.”

Penn noted that the Child Nutrition Program includes essential initiatives such as school lunch and summer food service programs for children.


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Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...

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