Food stamp overpayment rate was 9% last year

www.washingtontimes.com

The country’s food stamp overpayment rate topped 9% last year, the Agriculture Department announced Wednesday, as states continue to struggle with fraud and waste in the program.

Alaska had the worst overpayment rate at more than 20%, followed by New Mexico and the District of Columbia, both of which were above 15%.

Maryland and Virginia ranked 12th and 13th worst in overpayments, with rates above 10%.

Overpayments can include fraud, though they also can include errors on the part of the agency or the recipient.

The national underpayment rate stood at 1.33% in 2025 and, combined with the 9.28% overpayment rate, resulted in a total improper payment rate of 10.62%. That works out to $10.1 billion in bogus payments, the Agriculture Department said.

The rate is down slightly from the 2024 rate but still well above the 6% benchmark for success set in last year’s budget bill.

Forty-three of the 53 states and territories listed were also above the 6% level, meaning they could face financial penalties.

“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Agriculture Secretary Brooke Rollins said.

The Supplemental Nutrition Assistance Program is the formal name for food stamps, which are funded by the federal government and administered by states.

As recently as the Obama administration, the improper payment rate was between 3% and 4%, and hovered between 6% and 7% in the first Trump administration. 

The pandemic upended things, and by 2022 the improper payment rate neared 12%. It dipped below 11% in 2024, and remained relatively static in 2025.

Alaska has long led the pack for worst improper payment rate, peaking at 60% in 2023. Of that, 59.6% were overpayments and less than 1% were underpayments.

In 2025, it had an overpayment rate of 20.6% and an underpayment rate of 2.6%.

South Dakota had the lowest total improper payment rate at less than 2.5%. Most of that was overpayments.

Idaho, Wyoming, Kentucky and Iowa rounded out the top five performing states.

The Trump administration has focused attention on waste, fraud and abuse in government benefit programs, with food stamps drawing particular scrutiny.

Largely due to changes in President Trump’s One Big Beautiful Bill budget law last year, total food stamp enrollment has dropped by 4.7 million people over the last year, or 11%, according to the Center on Budget and Policy Priorities.

CBPP said with unemployment holding steady, it’s probably not the case that actual need is down, so the explanation must be that states are tightening their belts.

While improper payments can come from a number of sources, reports of fraud — particularly in immigrant communities — have drawn headlines.

The Trump administration has also sought to improve the quality of food available under the program.

But a federal judge this week blocked several state pilot programs that sought to halt food stamps from being used to purchase sodas or candy.

Last year’s budget bill requires states to get their error rates to 6% in 2025 or 2026, or else pay anywhere from 5% to 15% of their federal share of funding as a penalty.

The penalty is slated to kick in next year.