Authored by Naveen Athrappully via The Epoch Times,

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.”

Tackling Error Rates

A June report from the American Public Human Services Association detailed the results of a survey conducted among all 50 state SNAP agencies between May 19 and June 5, which was aimed at understanding how the agencies planned to improve their payment accuracy.

Out of the 39 states that responded to questions on state capacity and operational readiness, 92 percent said they had already completed a root cause analysis of the error rates or that such an effort was underway.

“States reported that payment errors stem from both participant and administrative factors, with responses suggesting errors are roughly evenly distributed between the two,” the report reads.

Many states have increased or are considering boosting their workforce, expanding training, adopting new technologies, and strengthening quality assurance functions to identify and avoid errors.

Commenting on the FY 2025 SNAP payment error rates, Senate Committee on Agriculture, Nutrition, and Forestry Chairman Sen. John Boozman (R-Ark.) said efforts must be taken to ensure that the program is administered in a fair, accurate, and responsible manner, according to a June 24 statement from the committee.

“It is clear that improvements were needed to ensure SNAP is administered as intended to support those truly in need while protecting taxpayer dollars,” Boozman said.

“I applaud the states that are implementing innovative solutions to decrease error rates and be good stewards of federal funds. The reforms included in the Working Families Tax Cuts were designed to promote accountability for significant mismanagement.”

Working Families Tax Cuts refer to the One Big Beautiful Bill Act.

SNAP Changes

States and federal officials are making SNAP food purchase rules more stringent to direct beneficiaries toward healthier choices.

Beginning this fall, SNAP-authorized retailers are required to stock more nutritious items across four food categories—produce, protein, dairy, and grains.

Almost a dozen states also plan to ban beneficiaries from buying energy drinks, candy, and soda using SNAP coupons over the coming months.

However, on June 22, a federal judge blocked the USDA from restricting SNAP beneficiaries in five states from buying sugary foods or drinks.

The states—Colorado, Iowa, West Virginia, Tennessee, and Nebraska—had previously received USDA approval to impose such restrictions. The judge ruled that the department lacked the authority to approve these food restriction waivers.

A USDA spokesperson defended the department’s actions.

“The idea that taxpayer funds should not be used to purchase junk food should not be controversial,” the spokesperson said.

“USDA will not be backing down from the fight to Make America Healthy Again, including for ​families and communities reliant on ​SNAP.”