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flag U.S. states face higher costs for Medicaid and SNAP starting in 2026 due to a new federal law shifting responsibilities and funding.

flag In 2026, U.S. states must decide how to manage increased costs for Medicaid and SNAP due to a 2025 federal law shifting responsibilities to them. flag States will cover three-fourths of SNAP administrative costs starting October 1, with potential future liability for benefits if error rates exceed 6%. flag Medicaid work requirements for some adults take effect by January 2027, requiring budget adjustments. flag Federal funding cuts could total up to $36 billion over ten years for some states. flag Lawmakers are weighing tax increases, cuts, or program reductions to maintain safety net services, with Michigan opting in to federal tax breaks on tips and overtime, and Arizona preparing to follow.

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