AN ACT to appropriate funds to the Department of Health and Human services and counties to cover the loss of federal receipts for the administrative costs of the federal supplemental nutrition assistance program (SNAP), as a result of public law 119‑21; and to provide funding for a grant process to reduce the payment error rate for snap.

The General Assembly of North Carolina enacts:

SNAP ADMINISTRATIVE COSTS FUNDING

SECTION 1.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Central Management and Support, the sum of sixteen million dollars ($16,000,000) in recurring funds beginning in the 2026‑2027 fiscal year. These funds shall be used to cover the loss in federal receipts for the administrative costs of the federal Supplemental Nutrition Assistance Program (SNAP), as a result of Public Law 119‑21. The Department may allocate a portion of these appropriated funds to any division within the Department that incurs a loss of federal receipts for the administrative costs of SNAP as a result of Public Law 119‑21. The Department shall only spend the portion of these appropriated funds up to the actual amount of lost federal receipts.

SECTION 1.(b)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Social Services, the sum of sixty‑nine million dollars ($69,000,000) in recurring funds beginning in the 2026‑2027 fiscal year to cover the loss of federal receipts for the administrative costs of the federal Supplemental Nutrition Assistance Program (SNAP), as a result of Public Law 119‑21. The Division of Social Services shall distribute these funds to counties proportional to each county's loss of federal receipts. The Division of Social Services shall only spend the portion of these appropriated funds up to the actual amount of lost federal receipts.

FUNDS TO EXAMINE ERROR RATE/SNAP

SECTION 2.  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Social Services (Division), the sum of ten million dollars ($10,000,000) in nonrecurring funds for the 2026‑2027 fiscal year to develop and implement a request for proposal (RFP) process that provides grants to entities that have innovative proposals or projects to examine ways to reduce the payment error rate regarding the food and nutrition services program. The Division shall establish criteria for grant awards and the maximum amounts for each grant.

EFFECTIVE DATE

SECTION 3.  This act becomes effective July 1, 2026.