USDA Reports $10.1 Billion in SNAP Payment Errors, With 10.62% Rate Above 6% Limit
Updated
Updated · WJXT News4JAX · Jun 24
USDA Reports $10.1 Billion in SNAP Payment Errors, With 10.62% Rate Above 6% Limit
3 articles · Updated · WJXT News4JAX · Jun 24
Summary
$10.1 billion in improper SNAP payments were recorded in fiscal 2025, as the national payment error rate came in at 10.62%, above Congress's 6% threshold though slightly below fiscal 2024.
The USDA said the total reflects both overpayments and underpayments and argued persistent state-level mistakes show weak accountability in administering benefits.
States at or above the 6% mark must submit corrective action plans to the Food and Nutrition Administration detailing how they will fix the root causes of errors.
Under H.R. 1, fiscal 2025 is the first data year that can be used to set new state cost-sharing penalties of 5%, 10% or 15%, which can begin on Oct. 1, 2027.
The new law could leave dozens of states paying part of their own SNAP benefit costs, turning error-rate reporting into a direct budget issue for state governments.
Facing millions in new penalties, will some states be forced to withdraw from the federal food aid program entirely?
Can states fix payment errors to avoid massive costs while still recovering from last year's 'operational turmoil'?
SNAP Error Rates Hit 10.62%: New Federal Cost-Sharing Mandate Triggers State Budget Crisis and Threatens Food Assistance
Overview
The FY2025 release of SNAP payment error rates has sparked a renewed push for state accountability, driven by the Trump administration’s call to tie administrative mistakes to strict financial penalties. Agriculture Secretary Rollins highlighted the need for states to prioritize families and taxpayers, leading to a new federal mandate for cost-sharing under the One Big Beautiful Bill Act. This mandate links state financial contributions to their error rates, aiming to curb waste and improve program integrity. The changes mark a significant shift in SNAP policy, increasing pressure on states to reduce errors while managing greater financial responsibility.