States File Lawsuit to Maintain SNAP Benefits During Shutdown
A coalition of over two dozen states filed a lawsuit on October 28, 2025, against the Trump administration, seeking to compel the continuation of Supplemental Nutrition Assistance Program (SNAP) benefits during the ongoing federal government shutdown. The suit challenges the administration’s decision to halt food stamp payments to more than 40 million Americans starting November 1. The legal action comes four days after the U.S. Department of Agriculture (USDA) announced it would not deploy $6 billion of Congressionally-appropriated emergency funds to sustain SNAP benefits amid the shutdown. The USDA attributes the suspension to Senate Democrats’ refusal to end the shutdown.
“Because of USDA’s actions, SNAP benefits will be delayed for the first time since the program’s inception,” the lawsuit states, describing the suspension as “both contrary to law and arbitrary and capricious under the Administrative Procedure Act.”
Political Leaders Condemn SNAP Benefit Suspension
Representative Rosa DeLauro (D-CT), whose state is part of the lawsuit, condemned the administration’s stance at a press conference, accusing officials of disregarding the needs of vulnerable Americans.
“The money is there! Let us not let them get away with saying that they can’t do it,” DeLauro said. “Their political will isn’t there to feed the people who rely on the SNAP program, which is the most effective anti-hunger program in the United States of America.”
New York State Attorney General Letitia James also issued a statement criticizing the federal government for withholding legally obligated food assistance.
“Millions of Americans are about to go hungry because the federal government has chosen to withhold food assistance it is legally obligated to provide,” James said. “SNAP is one of our nation’s most effective tools to fight hunger, and the USDA has the money to keep it running.”
USDA Defends Position Amid Lawsuit
The USDA responded to inquiries about the lawsuit by reiterating that the responsibility lies with Senate Democrats to end the shutdown. A spokesperson stated, “We are approaching an inflection point for Senate Democrats. Continue to hold out for the Far-Left wing of the party or reopen the government so mothers, babies, and the most vulnerable among us can receive timely WIC and SNAP allotments.” Agriculture Secretary Brooke Rollins, in an interview on Fox News, confirmed that the USDA lacks the necessary funds to sustain SNAP benefits during the shutdown.
“100% unequivocally, USDA does not have the $9.2 billion that it would require,” Rollins said. “There’s not just pots of $9.2 billion sitting around.”
Rollins further criticized Democratic states filing the lawsuit, accusing their elected officials of supporting continued government closure.
“It’s their very friends, partners, colleagues, Democrat elected officials, that continue to vote over and over again to keep the government closed,” she said. “Again, shame on them. I cannot begin to understand what they’re thinking.”
Government Shutdown Persists Without Resolution
The federal government shutdown began on October 1, 2025, and shows no clear end in sight. On October 28, a Republican-backed bill to temporarily fund the government failed to pass the Senate for the 13th time. Nearly all Senate Democrats oppose the Republican bill because it does not extend enhanced tax credits under the Affordable Care Act, which currently assist about 20 million Americans with health insurance costs and are set to expire at year-end.
- The shutdown is the second longest in U.S. history.
- SNAP benefits suspension marks a historic first since the program’s inception.
- Political stalemate continues to delay government funding solutions.
FinOracleAI — Market View
The suspension of SNAP benefits amid the prolonged government shutdown introduces significant social and economic risks. Millions of low-income Americans face increased food insecurity, which could strain local support systems and increase public health challenges.
- Opportunities: Potential bipartisan resolution to restore funding could stabilize food assistance programs and reduce public anxiety.
- Risks: Prolonged suspension of SNAP benefits may exacerbate hunger, increase healthcare costs, and heighten political tensions.
- Market Impact: Consumer spending in lower-income demographics may contract, affecting retail and food sectors.
Impact: The SNAP funding dispute amid the shutdown represents a negative market and societal impact, underscoring the urgency for legislative compromise to protect vulnerable populations.
