Virginia Governor Declares Emergency Over Looming Loss Of SNAP Benefits; USDA Warns Funds Running Out
USDA Warns It Can't Use Contingency Funds To Cover SNAP In November
The federal government shutdown entered Day 25 on Saturday, with cryptocurrency-based prediction market Polymarket showing odds in the single digits that Democrats and Republicans will reach a resolution before November 3. The market currently assigns a 15% probability that the shutdown will end between November 12 and 15.
We have warned readers of the potential for major disruptions to the Supplemental Nutrition Assistance Program (SNAP) if the federal government remains closed. Betting odds markets and limited political chatter in the Capitol Beltway this weekend (so far) suggest a resolution to the shutdown remains muted for next week.
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In 2025, around 42 million people relied on SNAP benefits, which accounted for 12% of the population. This is more than enough people to create chaos should SNAP funds run dry in the coming weeks.
On Friday, the U.S. Department of Agriculture (USDA) warned:
Due to Congressional Democrats' refusal to pass a clean continuing resolution (CR), approximately 42 million individuals will not receive their SNAP benefits come November 1
The USDA states that SNAP's contingency fund cannot legally be used for regular monthly benefits during a lapse in appropriations. That fund is intended for emergencies such as Disaster SNAP after hurricanes or floods, not to replace missing federal funding. The agency also warned that shifting money from other food programs would undermine school meals and WIC (infant formula and nutrition support), adding that states cannot step in to front the money, because SNAP benefits are fully federally funded and there is no legal way for states to be reimbursed.
Recall from our note citing Goldman analysts over the summer: here is the SNAP exposure for discount chains Dollar General and Dollar Tree.
SNAP exposure for DG stores
SNAP exposure for DLTR stores
It's a helpful way to visualize where clusters of SNAP benefits are primarily used geographically.
And now, as Jill McLaughlin details below for The Epoch Times, Gov. Glenn Youngkin declared a state of emergency in Virginia on Oct. 23 to provide relief for residents at risk of losing federal food benefits next month.
The ongoing government shutdown will cause low-income residents in the state to lose Supplemental Nutrition Assistance Program (SNAP) benefits starting Nov. 1 if lawmakers are unable to reach an agreement to pass a budget bill and reopen the government.
Over 850,000 residents in the state could lose benefits, according to the governor, a Republican, who blamed Democrats for the ongoing government shutdown.
“This is an extraordinary action and is only necessary because of the shamelessness of congressional Democrats,” Youngkin said in a statement.
The declaration allows Youngkin to spend state emergency funds to protect the “health, welfare, and safety of Virginians,” according to the governor.
Virginia’s poverty rate is about 10 percent, according to the latest census. The national rate is 12.4 percent.
The federal nutrition program provides monthly payments to eligible low-income households, allowing them to buy food. The average monthly payment is about $332 per household, with most living at or below the poverty level. Households with children receive an average of $574 per month, according to the U.S. Department of Agriculture.
Four out of five households that receive SNAP payments include either a child, an elderly person, or someone with a disability, the USDA reported.
Other states have also taken emergency action over the looming loss of SNAP funds.
California announced Wednesday that the state was fast-tracking up to $80 million in state funds and deploying the National Guard and state volunteers to support food banks during the shutdown. About 5.5 million Californians are expected to lose SNAP benefits in November.
"This is serious, this is urgent—and requires immediate action,” Gov. Gavin Newsom said in a statement.
Colorado Gov. Jared Polis said on Oct. 22 that he has requested that state lawmakers consider using up to $10 million of the state’s general fund to support food banks and pantries.
Multiple states have also warned SNAP holders they need to prepare to lose benefits next month.
In Washington on Thursday, the Senate failed to pass a bill to pay U.S. troops and active federal workers during the shutdown. The Republican-led “Shutdown Fairness Act” failed on a cloture vote of 54–45, falling short of the 60 votes needed to advance.
The SNAP program is set to change Nov. 1. Under the One Big Beautiful Bill Act passed in July, recipient work requirements will apply to adults 18 to 65, unless they are unable to work due to a physical or mental limitation. Other changes to exemptions will also apply.
Tyler Durden
Sat, 10/25/2025 – 16:55