Matching funds requirements

(a) In general Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended— (1) by striking (a) Subject to and inserting the following: (a) Program (1) Establishment Subject to; and (2) by adding at the end the following: (2) Matching funds requirements (A) In general (i) Federal share Subject to subparagraph (B), the Federal share of the cost of allotments described in paragraph (1) in a fiscal year shall be— (I) for each of fiscal years 2026 and 2027, 100 percent; and (II) for fiscal year 2028 and each fiscal year thereafter, 95 percent. (ii) State share Subject to subparagraph (B), the State share of the cost of allotments described in paragraph (1) in a fiscal year shall be— (I) for each of fiscal years 2026 and 2027, 0 percent; and (II) for fiscal year 2028 and each fiscal year thereafter, 5 percent. (B) State quality control incentive Beginning in fiscal year 2028, any State that has a payment error rate, as defined in section 16, for the most recent complete fiscal year for which data is available, of— (i) equal to or greater than 6 percent but less than 8 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 85 percent, and its State share equal 15 percent; (ii) equal to or greater than 8 percent but less than 10 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 80 percent, and its State share equal 20 percent; and (iii) equal to or greater than 10 percent, shall have its Federal share of the cost of allotments described in paragraph (1) for the current fiscal year equal 75 percent, and its State share equal 25 percent.. (b) Rule of construction The Secretary of Agriculture may not pay towards the cost of allotments described in paragraph (1) of section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)), as designated by subsection (a), an amount greater than the applicable Federal share described in paragraph (2) of such section 4(a), as added by subsection (a).