The national payment error rate for the Supplemental Nutrition Assistance Program (SNAP) hit 10.62 percent for Fiscal Year (FY) 2025, far exceeding the 6 percent threshold set by Congress.
“While this is a modest decrease from FY 2024, the FY 2025 rate still shows significant waste at the state level,“ the U.S. Department of Agriculture (USDA) said in a June 24 statement.
”Including both overpayments and underpayments, this year’s rate represents a collective $10.1 billion in improper payments nationwide.”
The payment error rate measures how accurately states calculate SNAP eligibility and the amounts that beneficiaries receive.
The One Big Beautiful Bill Act, signed into law by President Donald Trump last year, established a State Quality Control Incentive provision under which states must pay a percentage of SNAP program bills if their payment error rate exceeds a certain limit.
A state with an error rate of 6 percent to 8 percent will be required to fund 5 percent of the benefits. This scales up as error rates get higher. States with error rates of 10 percent or more must fund 15 percent of benefits.
“[This has instituted] real financial consequences for states that mismanage taxpayer dollars,” the USDA stated, noting that these rules could come into effect as soon as Oct. 1, 2027.
States with error rates exceeding 6 percent are also required to submit a Corrective Action Plan to the USDA’s Food and Nutrition Service, explaining how they intend to address the root causes of the high error rates. Some states may end up getting financially penalized.
“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Agriculture Secretary Brooke Rollins said.
“USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”
Hellbound and Down 