Raleigh -- September 1, 2026: Governor Josh Stein officially proclaimed September as Hunger Action Month across North Carolina, calling urgent attention to expanding food insecurity while sounding the alarm over sweeping federal cuts and cost shifts under H.R. 1 that threaten the state's nutrition safety net.
With more than 1.7 million North Carolinians facing hunger—including over 504,000 children—state and county taxpayers are now being forced to absorb hundreds of millions of dollars in expenses previously covered by the federal government.
“As grocery bills continue to rise, hunger affects more and more North Carolinians,” said Governor Stein. “Hunger Action Month reminds us to continue our work to not let anyone go hungry and to commend the essential work of the people who help folks put food on the table in North Carolina.”
The Growing Burden: North Carolina Pick Up Millions Due to Federal Cuts
Historically, the federal government funded 100% of Supplemental Nutrition Assistance Program (SNAP) food benefits. Under H.R. 1, unprecedented federal reductions and cost shifts are placing massive financial liabilities directly onto state and county budgets:
$85 Million Yearly Administrative Shift (Effective October 1, 2026): The federal government is permanently transferring an additional 25% of administrative operating expenses to North Carolina and its 100 counties, adding an estimated $85 million annual bill to run the program.
Up to $140+ Million Annual Benefit Penalty (Effective October 1, 2027): Ending decades of full benefit coverage, federal rules will require states to pay up to 15% of actual SNAP food benefits based on payment error rates. This could cost North Carolina taxpayers $140 million or more each year.
Risk of Complete Program Disruption: State officials warn these severe cost transfers create unprecedented fiscal strain, raising concerns that states may be pushed to drop out of SNAP during economic downturns when families need food assistance most.
Mitigation and Unfunded County Burdens: Intensive efforts by the North Carolina Department of Health and Human Services (NCDHHS) and county Departments of Social Services (DSS) successfully lowered the state's payment error rate, cutting the projected 2027 penalty by $280 million in a single year. However, while state lawmakers funded state-level automation, the General Assembly did not approve proposals to assist local county DSS offices facing soaring workloads and administrative costs created by federal changes.
Nearly 1.25 Million North Carolinians Rely on SNAP
The looming federal reductions directly jeopardize food access across every county:
Vulnerable Groups: Nearly 1.25 million North Carolinians depend on SNAP to offset high grocery prices, including working families, older adults, veterans, and individuals with disabilities.
Child Food Insecurity: One in five North Carolina children lives in a home without consistent access to food.
State Initiatives to Fill the Gap and Feed Communities
To help mitigate federal instability and protect food access, North Carolina has mobilized targeted funding and regional distribution partnerships:
Direct Support for Food Banks & Farmers: In July, Governor Stein signed a budget investing over $9 million directly into food banks—a measure specifically designed to simultaneously purchase from local North Carolina farmers.
Emergency Shutdown Relief: When a federal government shutdown disrupted SNAP benefits in November 2025, the Stein administration leveraged $22 million in public and private funding to keep food pantries stocked statewide.
250 Million Meals Delivered: The Feeding the Carolinas network distributed 250 million meals over the past year across seven regional food banks.
Summer SUN Bucks Secured: The state budget fully funds North Carolina's share of the SUN Bucks program for the summer of 2027. Operating with a 25:1 federal return on investment, each state dollar brings $25 in federal funds, delivering approximately $125 million in food support to more than 1 million children during summer break.