US federal court blocks SNAP funding cuts over states’ refusal to share recipient data News
Joe Gratz, CC0, via Wikimedia Commons
US federal court blocks SNAP funding cuts over states’ refusal to share recipient data

A US federal judge on Thursday issued a preliminary injunction blocking the US Department of Agriculture (USDA) from withholding Supplemental Nutrition Assistance Program (SNAP) funding from 21 states and the District of Columbia based on their refusal to turn over personal data on SNAP applicants and recipients. Writing for the US District Court for the Northern District of California, Judge Maxine Chesney found that the plaintiff states had demonstrated a likelihood of success on their Administrative Procedure Act (APA) claims, and faced a likelihood of irreparable harm if USDA’s threatened funding cuts were allowed to proceed.

The ruling noted that 7 U.S.C. § 2020(a)(3), the provision that the USDA cited as authority for its demand, requires that any disclosure of records be made “subject to data and security protocols agreed to by the State agency and Secretary.” The court held that this language established a procedural bar in favor of the plaintiff states. The court further found that the USDA’s proposed data-sharing protocols would likely allow it to distribute the collected data to entities beyond those permitted under 7 U.S.C. § 2020(e)(8), a separate provision that requires states to maintain strict safeguards on applicant information. The USDA previously argued that the two statutory provisions operate independently and that states were improperly using protocol negotiations as a pretext to avoid compliance. The court held that treating the two provisions as disconnected would allow states to circumvent the disclosure limitations that Congress built into the statute.

With respect to the likelihood of irreparable harm, Thursday’s ruling pointed to the scale of potential funding losses, including up to $338 million per quarter for California alone, and evidence that such cuts would force states to reduce administrative staffing, in turn impairing their ability to fulfill their own statutory obligations under the program.

Thursday’s ruling means that the 21 plaintiff states cannot have their SNAP funding withheld for refusing to hand over recipient data while the case is being litigated. The court rejected USDA’s request to pause the ruling pending appeal, finding that the agency had not made a strong enough showing that it was likely to succeed on the merits. The court also waived the typical requirement that the states post a security bond, reasoning that if USDA ultimately prevails, it maintains the ability to impose the funding penalties at that time.

The dispute traces back to an executive order signed by President Donald Trump last March, which directed federal agencies to obtain “unfettered access” to data from state programs receiving federal funding. In response, the USDA sent letters to state agencies demanding comprehensive SNAP records, including names, social security numbers, dates of birth, residential addresses, and household financial information, and threatening significant funding cuts to states that refused to comply. 21 states and the District of Columbia then filed a federal lawsuit challenging the demands as unlawful under both the SNAP Act and the APA.

The decision comes amid ongoing litigation concerning suspensions of and cuts to SNAP benefits.

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