Federal Court Permanently Blocks Rule Penalizing States Over SNAP Administration

A federal judge in Oregon has permanently enjoined the Department of Agriculture from levying hundreds of millions of dollars in fines against 22 states, ruling that the administration cannot penalize local governments for missing a compliance deadline that expired before the underlying rules were written. The order from the U.S. District Court for the District of Oregon formally ends a year-long standoff over the Supplemental Nutrition Assistance Program (SNAP) and restores food assistance eligibility for tens of thousands of humanitarian immigrants.[2][4]

The decision makes permanent a preliminary injunction first issued in December 2025. It strikes down a retroactive compliance clock that the federal government attempted to enforce on state agencies, while simultaneously invalidating guidance that had excluded former refugees and asylum seekers from receiving benefits.[1][6]

The conflict originated in late 2025 following changes to SNAP eligibility calculations under the Republican budget bill. The Department of Agriculture initiated a 120-day compliance window on July 4, 2025, but did not issue its initial instructions to states until late August.[2][7]

Federal officials waited until October 31 to explain the new immigrant-eligibility rules—exactly one day before the supposed grace period for states to implement them expired. When states inevitably failed to meet the retroactive deadline, the administration threatened them with steep financial penalties for non-compliance.[2][3]

In November 2025, a coalition of 22 attorneys general, co-led by Oregon and New York, filed suit to block the fines. They argued that the federal instructions would unlawfully withdraw assistance from eligible permanent residents and significantly increase the states' financial exposure.[2][5]

Facing the litigation, the administration reversed its position on the eligibility of lawful permanent residents in December 2025. However, federal officials continued to argue in court that states still owed the penalties because they had missed the implementation grace period, despite the fact that the period had elapsed before the final guidance was published.[3][7]

The court rejected that argument entirely, finding the administration's deadline both unlawful and arbitrary. The ruling explicitly states that the federal government cannot withhold instructions, backdate a deadline, and then punish state agencies for failing to comply with unwritten rules.[1][4]

Beyond the administrative fines, the ruling clarifies the status of humanitarian immigrants under federal law. The court affirmed that the standard five-year waiting period for SNAP benefits does not apply to lawful permanent residents who previously held status as refugees or asylees.[3][5]

State officials characterized the ruling as a necessary defense of their administrative authority and their vulnerable populations. "Since the beginning of Trump's second term, we've all watched his administration play games with emergency food assistance," said Oregon Attorney General Dan Rayfield. "This is about parents' ability to feed their kids, and partisan politics shouldn't have any part in it."[2]

While the permanent injunction shields states from the retroactive fines and protects humanitarian immigrants, it does not reverse the broader SNAP cuts or expanded work requirements enacted by Congress. The Department of Agriculture retains the authority to enforce the underlying law and demand accurate payments moving forward, provided it issues lawful guidance and feasible timelines.[2][4]