FNS conducted a study of the first two years of this demonstration to describe the implementation process and explore the effects on certification, participation, federal reimbursements, and state administrative costs. This report presents the findings from the first year of the demonstration evaluation, school year 2016–17.

The Federal Government fully funds SNAP benefits, but FNS and state agencies share administrative expenses, with each paying about 50 percent. State administrative costs per case varies widely by state. This study explores a number of factors, including state economic conditions, SNAP caseload characteristics, state SNAP policies, to try to explain the variation by state.