OBBB: 2026 & Beyond

On July 4, 2025, the “One Big Beautiful Bill Act” (OBBB) was signed into law. As reported by Foodstream, it introduced sweeping changes to federal food policy, moving toward a decentralized model that shifts financial and administrative burdens from the federal government to individual states. While the law aims to save the federal government $206 billion over ten years, it is projected to increase the federal deficit by $3.4 trillion to $4.1 trillion due to other provisions and shift billions in costs to local governments. Since the bill originally went into law, six months have passed and a new fiscal year has started. This is an exploration of what we originally reported when the bill was passed and a timeline for what is ahead for 2026 and beyond.

OBBB & The Food System Findings

1. Major Structural Changes to SNAP

The legislation fundamentally alters the Supplemental Nutrition Assistance Program (SNAP), historically a federally funded safety net:

State Cost-Sharing: Beginning in FY 2028, states must co-fund SNAP benefits (up to 15%) and cover 75% of administrative costs (up from 50%), forcing states to bridge a significant funding gap.
Elimination of SNAP-Ed: The bill eliminates SNAP-Ed, a $530 million federal nutrition education program, shutting down critical initiatives that teach healthy shopping and cooking habits.
Stricter Work Requirements:
- The age for work requirements for “Able-Bodied Adults Without Dependents” (ABAWDs) is raised from 55 to 65.
- Exemptions for homeless individuals, veterans, and foster care individuals are removed; they must now work to qualify.
- Parents with children over age 14 (previously 18) must now meet work requirements.
Restricted Eligibility: Access is narrowed for non-citizens, removing eligibility for many immigrant families, asylum seekers, and those with Temporary Protected Status (TPS).

2. Economic and Food Security Impacts

Rising Food Costs: Tariffs included in the bill are projected to raise food costs by 3-7%, with fresh produce prices potentially jumping 7% initially.
Loss of Economic Multiplier: Every $1 in SNAP benefits generates $1.54 to $1.80 in local economic activity. The reduction in benefits threatens to remove billions from local economies, particularly harming farmers and small retailers.
Rising Hunger: With over 47 million Americans already food insecure, these cuts are expected to increase hunger among children, seniors, and people with disabilities.

3. Regional Impact: New York State & City

The impact will be acute in New York, where nearly 3 million residents rely on SNAP.

Financial Burden: New York State faces an estimated $1.4 billion in new annual costs starting in 2027 to maintain current service levels.
Loss of Benefits:
- 300,000 NYS households are projected to lose some or all benefits.
- 130,000 NYC residents are projected to be stripped of access completely.
The Bronx Crisis: The Bronx, with a food insecurity rate of 40% (triple the national average), will be disproportionately affected. The elimination of SNAP-Ed has already forced the closure of “CookShop,” a major nutrition education program serving 13,000 students.

4. Policy Shifts at the USDA

Under incoming Secretary Brooke Rollins, the USDA is implementing a vision focused on “work for benefits” and fraud reduction. Recent administrative actions include:

Terminating Diversity, Equity, and Inclusion (DEI) awards ($148.6 million cut).
Closing Regional Food Business Centers and ending Local Food Purchase Assistance programs.
Prohibiting future increases to the Thrifty Food Program cost, the basis for SNAP calculations) beyond standard inflation adjustments.

Timeline of Implementation for One Big Beautiful Bill

Immediate Changes (Since Passing in July 2025): These provisions went into effect shortly after the bill was signed or have already impacted operations as of early 2026.

Elimination of SNAP-Ed: The federal grant program for nutrition education was eliminated nationwide, leading to the immediate closure of programs like “CookShop” in NYC.
Narrowed Non-Citizen Eligibility: Eligibility for SNAP was restricted to U.S. citizens, nationals, and specific lawful permanent residents, removing access for many other non-citizens including those with refugee or asylum status.
Program Terminations:
- DEI Awards: On June 17, 2025, the USDA terminated over 145 Diversity, Equity, and Inclusion awards, cutting roughly $148.6 million in funding.
- Local Food Programs: Funding for “Local Food Purchase Assistance” and “Local Food for Schools” was canceled in Spring 2025.
- Regional Food Business Centers: Four centers closed immediately in July 2025, with the rest winding down operations.

Changes Going Into Effect in 2026: The year 2026 marks the beginning of significant administrative and budgetary shifts, particularly towards the end of the calendar year (the start of the federal Fiscal Year 2027).

Wind-Down of Business Centers (May 2026): The remaining eight Regional Food Business Centers will finish winding down operations and managing existing grants by May 2026.
Administrative Cost Shift (Starts Oct 1, 2026 / FY 2027): Beginning in Fiscal Year 2027 (which starts October 1, 2026), the USDA will reduce its coverage of SNAP administrative costs from 50% to 25%.
- Budget Impact: States must cover the remaining 75%. New York State estimates this will cost the state roughly $36 million annually and local counties/NYC roughly $168 million annually.
Local Budget Adjustments (Fall 2026): Counties are expected to begin incorporating these new fiscal requirements into their 2026 budgets, which are due in the fall.

Changes Effective in 2027 and Following Years: The most severe structural changes to benefits and eligibility are scheduled for late 2027 (Fiscal Year 2028).

Thrifty Food Program Freeze (Oct 1, 2027): The USDA is prohibited from increasing the cost of the Thrifty Food Program (used to calculate SNAP benefits) beyond standard inflation adjustments, effectively freezing the real value of benefits.
Stricter Work Requirements (Oct 1, 2027):
- The age for “Able-Bodied Adults Without Dependents” (ABAWDs) to be exempt from work requirements is raised from 55 to 65.
- Homeless individuals, veterans, and foster care alumni lose their previous exemptions and must now meet work requirements.
- Households with dependent children must meet work requirements if the child is over 14 (previously 18).
- States lose the ability to request waivers for areas with high unemployment (over 10%).
State Benefit Co-Funding (FY 2028): Starting in Fiscal Year 2028, states must pay up to 15% of the actual SNAP benefit costs, a responsibility that was previously 100% federal.
Eligibility Calculation Changes: Energy assistance programs (like LIHEAP) and internet service fees can no longer be used to calculate housing/utility deductions for SNAP eligibility, potentially reducing benefit amounts for many households.

At Foodstream our mission is to serve as the intelligence layer of food security. We continue to analyze and report on food policy and legislation that impacts our members. Follow us for more at Foodstream. If you have any questions about changes to food programs impacting you or your organization, email us at support@foodstreamnetwork.com. We are happy to assist.