SNAP penalties blocked after the federal government started a 120-day compliance clock before giving states guidance on new rules, a federal judge ruled Thursday.
State officials said they waited months for instructions on how to carry out changes to the Supplemental Nutrition Assistance Program, then learned the countdown to comply had quietly begun nearly four months earlier. U.S. District Judge Mustafa Kasubhai sided with 22 states and the District of Columbia, finding the U.S. Department of Agriculture’s timeline unlawful.
Kasubhai wrote that federal officials put states in an “impossible situation” by offering contradictory or missing information while insisting on timely implementation of Congress’ changes in H.R. 1, known as the One Big Beautiful Bill Act. Passed on July 4, 2025, the law narrows eligibility for certain noncitizens and creates penalties for states with high error rates in determining SNAP eligibility and benefit amounts.
SNAP penalties blocked over 120-day clock
Under federal rules, states generally have 120 days to implement changes before errors begin to count against them. The USDA asserted the clock started when the law took effect. But the agency did not announce that interpretation until late August and did not release guidance on the new noncitizen provisions until Oct. 31, one day before the 120-day window would have closed.
Kasubhai, a Biden appointee in the District of Oregon, ruled that approach unlawful. He said USDA regulations tie the exclusionary period to the required implementation date, not simply to the law’s effective date. He also noted the agency had handled similar deadlines differently in the past and shifted course without explanation. Oregon and Massachusetts reported they were told to await federal guidance, only to face potential financial penalties for doing so.
“Defendants may not mask their conduct with attenuated inferences drawn from H.R. 1’s effective date,” Kasubhai wrote, concluding the exclusionary period violated the Administrative Procedure Act.
High stakes for states and families
The financial implications are significant. North Carolina told the court that if its SNAP error rate remains above 10 percent, it could owe up to $420 million annually by 2028, a burden officials said might force the state to end SNAP, which serves roughly 1.4 million residents. Maryland reported a 25 percent increase in calls from people affected by the new noncitizen rules.
Guidance on noncitizen eligibility also faulted
A separate portion of the USDA guidance, covering which noncitizens qualify, also drew a ruling against the agency. Court findings showed USDA charts omitted refugees, asylees, and certain Afghan and Ukrainian parolees from lists of individuals eligible for benefits after becoming lawful permanent residents, and from a list of those exempt from a five-year waiting period. The court determined these humanitarian groups qualify for both exemptions and rejected the government’s claim that the charts were only quick reference tools.
“Humanitarian Immigrant Groups should be listed as both eligible for SNAP if they are an LPR and exempt from the five-year waiting period,” Kasubhai wrote, finding the guidance contrary to federal law.
Kasubhai had temporarily blocked enforcement of both sets of guidance in December while the case proceeded. Thursday’s decision makes those protections permanent.
Oregon Attorney General Dan Rayfield, who helped lead the multistate challenge, said the ruling protects families who rely on the program. “This is about parents’ ability to feed their kids, and partisan politics shouldn’t have any part in it,” he said in a written statement.
The USDA did not immediately respond to a request for comment. Legal advocates for immigrants noted the decision could influence ongoing litigation, including cases such as Supreme Court dismisses immigration case set for October. Organizations representing refugees and parolees, including those from Afghanistan and Ukraine, are expected to update their public guidance in light of the ruling, alongside resources from the U.S. Citizenship and Immigration Services and USA.gov.
