State-federal legislation news and updates from NCSL.

June 30, 2026

In this edition: New SNAP error rates will determine state cost-sharing obligations for the low-income food program, and a federal court strikes SNAP food restriction waivers in five states. The nation’s grid operators may be required to justify or reform connection rules for large loads such as data centers, under a proposed Federal Energy Regulatory Commission rule. The U.S. Supreme Court rules on gun restrictions and product liability claims, among other things.

The Department of Agriculture has released fiscal year 2025 SNAP payment error rates, the first benchmark that may be used to determine the food program’s benefit cost-sharing under last year’s One Big Beautiful Bill Act. Under HR 1, states will have the choice to use either their FY 2025 or FY 2026 (which will be released next June) error rates. Based on FY 2025 rates, states collectively are facing an estimated $9.4 billion in annual SNAP benefit costs beginning in FY 2028, with total new state costs exceeding $12 billion when higher administrative cost-sharing requirements are included. Thirty-six states (and Guam) with payment error rates of 6% or higher will be required to contribute between 5% and 15% of SNAP benefit costs, while seven states and Washington, D.C., with the highest error rates will receive a delayed implementation period. Ten states and the U.S. Virgin Islands with error rates below 6% are exempt from the benefit cost-sharing requirement.

States continue to invest significant resources in eligibility system modernization, staff training, quality control reviews, and other initiatives aimed at improving payment accuracy while ensuring eligible households maintain access to benefits. “The FY 2025 rates largely reflect operations that occurred before many HR 1 provisions were implemented and do not fully capture the significant policy, systems and administrative changes now underway,” NCSL said in a statement. NCSL continues to advocate for delayed implementation for all states, allowing the time needed to implement meaningful and sustainable improvements in SNAP administration.

► USDA: Supplemental Nutrition Assistance Program: Payment Error Rates

► NCSL: NCSL Statement in Response to FY 2025 SNAP Payment Error Rates

► FFIS: FY 2025 SNAP Payment Error Rates Point to Increased Costs for States

► NCSL: SNAP Policy Navigator

The Federal Energy Regulatory Commission has proposed requiring the nation’s six regional grid operators to justify or reform their rules for connecting data centers and other large loads to the electric grid. Operators would have 60 days to defend their current tariffs or file changes addressing the commission’s concerns.

The order stops short of moving the governance of large-load interconnections from state to federal control, which was initially proposed in the Advance Notice of Proposed Rulemaking. In a response to that proposal, NCSL stated that such regulatory decisions should “only come after close, careful and deliberate consultation with states early and often throughout the process.”

► FERC: FERC Launches Aggressive Targeted Action to Speed Large Load Integration

► NCSL: NCSL Comments on FERC Docket RM26-4-000

NCSL Weighs In On Bridge Funding and EV Fees | In a letter to the House Transportation and Infrastructure Committee, NCSL praised significant new funding in the BUILD America 250 Act for repairing the nation’s bridges, while expressing concerns about the timelines, costs and penalties associated with the bill’s proposed electric vehicle and plug-in hybrid vehicle fees. The bill contains $9 billion per year to be distributed to states via formula funding for bridge improvements and a proposed $130—rising to $150 over four years—registration fee for electric vehicles and $35, rising to $50 for plug-in hybrids.

► NCSL Praises Bridge Funding, Raises Concerns Around Proposed EV Fees in Surface Transportation Bill (NCSL)
► BUILD America 250 Act (Congress)

Court Strikes Down SNAP Food Restriction Waivers in Five States | A federal court vacated Agriculture Department waivers allowing Colorado, Iowa, Nebraska, Tennessee and West Virginia to prohibit the purchase of certain foods and beverages with SNAP benefits, including soda and candy. The U.S. District Court for the District of Columbia held that the department exceeded its authority by approving waivers that amend the definition of “food” under a section of the statute limited to pilot programs that increase the administrative efficiency of SNAP. The court found the department violated its own regulations by failing to publish a Federal Register notice of the proposed waivers and noted that the Food and Nutrition Act’s legislative history points to nutrition-improvement tools such as point-of-sale incentives for healthier foods, rather than broad food restrictions. The ruling’s effect on the 18 other approved state food-restriction waivers remains unclear.

► Nieves Aragon, et al., v Brooke Rollins (US District Court)
► SNAP Food Restriction Waivers (USDA)

HHS Announces More Than $700M for Behavioral Health and Crisis Response Services | The funding will support crisis response, mental health and substance use services, tribal and state capacity, follow-up care, and services for high-risk populations. The funding includes $96 million for the STREETS (Safety Through Recovery, Engagement, and Evidence-based Treatment and Support) program and $238.6 million for the 988 & Suicide Crisis Lifeline. Additional funding includes $80 million for substance use prevention, treatment and recovery, and more than $70 million for mental health services, including trauma-informed care, mobile crisis response, early intervention and justice diversion programs.

► Safety Through Recovery, Engagement, and Evidence-Based Treatment and Support program (HHS)
► Certified Community Behavioral Health Clinic (CCBHC) Improvement and Advancement Grant (HHS)
► Certified Community Behavioral Health Clinics (CCBHCs) Planning, Development, and Implementation Grant (HHS) 

► Substance Use Disorder Treatment Legislation Database (NCSL)
► Maternal and Child Health Legislative Database (NCSL)
► Lifesaving Numbers: How 988 Helps Prevent Suicide (NCSL)

HRSA Launches Maternal Produce Prescription Program Grant Opportunity | The program aims to increase fruit and vegetable intake for pregnant and postpartum women, improve household food security, and support maternal and birth outcomes through coordinated community-based interventions. The funding includes a $13 million grant opportunity supporting approximately 26 awards of up to $500,000 each for community-based produce prescription programs and nutrition education for women experiencing nutrition insecurity. Eligible applicants include state and local governments, tribal entities, school districts, higher education institutions, and nonprofit and for-profit organizations.

► Maternal Produce Prescription Program (MP3) (Health Resources and Services Administration)

► Maternal and Child Health Legislative Database (NCSL)
► Ways to Ensure Newborns and Their Moms Have Bright Futures (NCSL)

DOJ Reexamines States’ Disability Integration Obligations | States are not required to provide services to people with disabilities in the “most integrated setting” possible in all circumstances, according to a recent Office of Legal Counsel memo. The opinion, which reexamines long-standing disability law, argues that federal regulations establishing an “integration mandate” exceed congressional authority and raise significant federalism and constitutional concerns. The memo does not carry the force of law, but if adopted as policy, it could affect future federal enforcement actions and litigation involving state behavioral health, disability services and community integration requirements.

► Memorandum Opinion for the Counsel to the President (DOJ)
► Trends in Users and Expenditures for Home and Community-Based Services as a Share of Total Medicaid Long-Term Services and Supports Users and Expenditures, 2023 (CMS)

Supreme Court Rejects Hawaii Gun Carry Restrictions | The justices struck down a Hawaii law that criminalized carrying guns onto private property open to the public, ruling in favor of Hawaiian concealed carry permit holders who argued the law violated the Second Amendment. The 6-3 decision in Wolford v. Lopez also overturned similar laws in California, Maryland, New York and New Jersey. 

► Wolford v. Lopez opinion (Supreme Court)

Ruling Narrows State Product Liability Claims | The Supreme Court ruled in favor of Monsanto in a case concerning cancer warnings on pesticide labels. In Monsanto v. Durnell, the justices ruled that state failure-to-warn product liability cases against Monsanto for negative health effects of using the company’s RoundUp pesticide are expressly preempted by federal law, which creates standards for package labels for pesticides. State courts are no longer able to adjudicate failure-to-warn product liability tort claims for similar pesticides, closing an avenue of recovery for individuals who claim to be harmed by the products.

► Monsanto v. Durnell decision (Supreme Court)

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Capitol to Capitol was established in 1994 to provide up-to-date information on important federal legislation. NCSL is committed to enhancing the role of states and state legislatures in the federal system.

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