Federal judge blocks Trump-backed changes to food stamps that could've cut over $400M to NC

North Carolina and other states have won a lawsuit against the U.S. Department of Agriculture over changes to the Supplemental Nutrition Assistance Program, known as SNAP, or food stamps. 

2026-09-22

It's one of multiple cases Attorney General Jeff Jackson has now brought and won against the USDA. The ruling, issued Friday in federal court, affects hundreds of millions of dollars for food assistance, his office said Tuesday.

"USDA threatened to withhold $425 million in SNAP funds for 1.4 million North Carolinians," Jackson's office wrote in a news release.

Jackson said North Carolina is experiencing a "worsening hunger crisis" and that children should not be going to bed hungry. One in six North Carolinians says they do not have enough food to eat.

The efforts to slash funding come as President Donald Trump has sought to cut government aid programs. A spokesperson for the USDA, which is part of Trump's administration, indicated that the agency has yet to determine if it will appeal the loss.

"The Department is conferring with [Department of Justice lawyers] on next steps and will continue to make sure taxpayer money is handled responsibly," the USDA spokesperson said.

The 2025 budget back by Trump and congressional Republicans, which they called the "One Big Beautiful Bill," changed food stamp eligibility. It would also require states to pay a portion of the program, which was previously fully federally funded, if certain error rates in applications were detected. 

The USDA gave states 24 hours to amend food benefit applications to adhere to new guidelines. After that deadline, the changes would be considered application errors, potentially resulting in financial penalties for state governments, according to the states that sued. 

Jackson's office said that timeline was impossible and sued the USDA, arguing that the policy violated SNAP recipients' right to access food. 

The court ruled for Jackson, saying the USDA put North Carolina in an "impossible situation." The ruling resulted in the distribution of the withheld SNAP funding. 

This is the second case Jackson has won against the USDA. Last year, he sued the USDA for withholding $230 million for food assistance.