Failure to fund SNAP benefits will remove $640 million from state economy
October 28, 2025 |
With the federal shutdown entering its 28th day, it is now expected that federal funding for SNAP benefits (food stamps) will run out by the end of October. The 3 million New Yorkers — including 1 million children — who rely on SNAP for food security will collectively lose the $640 million per month that they receive in benefits, triggering an immediate hunger crisis throughout the state. What’s more, 16,000 retailers that serve SNAP recipients will also lose out on $640 million in aggregate monthly revenue, a huge loss that could put strain on the businesses.
Governor Hochul has proposed a meager $41 million plan to support food banks statewide in order to mitigate the effects of this funding loss – but this commitment pales in comparison to the $640 million per month cost of ensuring food security. Further, without replacing benefits on SNAP EBT cards, the 16,000 SNAP retailers around the state will not receive their typical monthly revenue.
New York should instead commit to replacing the $640 million of lost federal funding out of the State’s $4.1 billion current-year revenue surplus and $29 billion in fiscal reserves. New York’s Congressional delegation should secure reimbursement of these funds from the federal government as part of a deal to end the shutdown. If New York State does not step up, millions will go without their essential food assistance and food providers will lose much-needed revenue.

Table 1. SNAP participants and funding, based on 2019–2023 ACS data and OTDA July 2025 benefits report

Failure to fund SNAP benefits will remove $640 million from state economy
October 28, 2025 |
With the federal shutdown entering its 28th day, it is now expected that federal funding for SNAP benefits (food stamps) will run out by the end of October. The 3 million New Yorkers — including 1 million children — who rely on SNAP for food security will collectively lose the $640 million per month that they receive in benefits, triggering an immediate hunger crisis throughout the state. What’s more, 16,000 retailers that serve SNAP recipients will also lose out on $640 million in aggregate monthly revenue, a huge loss that could put strain on the businesses.
Governor Hochul has proposed a meager $41 million plan to support food banks statewide in order to mitigate the effects of this funding loss – but this commitment pales in comparison to the $640 million per month cost of ensuring food security. Further, without replacing benefits on SNAP EBT cards, the 16,000 SNAP retailers around the state will not receive their typical monthly revenue.
New York should instead commit to replacing the $640 million of lost federal funding out of the State’s $4.1 billion current-year revenue surplus and $29 billion in fiscal reserves. New York’s Congressional delegation should secure reimbursement of these funds from the federal government as part of a deal to end the shutdown. If New York State does not step up, millions will go without their essential food assistance and food providers will lose much-needed revenue.

Table 1. SNAP participants and funding, based on 2019–2023 ACS data and OTDA July 2025 benefits report
