INDIANAPOLIS -- Major federal changes to SNAP are driving Indiana's decision to opt out of a summer food program that provides grocery money to families with school-age children.
State officials say upcoming federal rules will sharply increase Indiana's share of SNAP administrative costs, making it financially and logistically impossible to run SUN Bucks, a program that gives $120 per child for groceries during the summer. While the federal government covers the benefit itself, states must pay half of the administrative costs, which Indiana estimates at $12 million to $15 million a year.
Those cost pressures are expected to worsen beginning in 2026, when Indiana's share of SNAP administrative expenses rises significantly under federal law. State officials say that shift, combined with staffing shortages, made opting out unavoidable.
SUN Bucks launched nationwide in 2024 and was used by about 669,000 Indiana children, distributing roughly $80 million. Indiana did not participate last summer and will opt out again this year, making it one of 12 states not taking part while most of the country continues the program.
Advocates say the program helps families when school meals end and SNAP benefits do not increase in the summer. State leaders say they will instead steer families toward summer meal sites, WIC, food banks and pantries, even as critics warn the loss of SUN Bucks will leave more Hoosier children at risk of going hungry.