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The U.S. Department of Agriculture (USDA) has announced that the national payment error rate for the Supplemental Nutrition Assistance Program (SNAP) in fiscal year (FY) 2025 has reached 10.62%, significantly exceeding the congressional threshold of 6%. This figure, released by the USDA, represents over $10.1 billion in improper payments across the country due to a combination of overpayments and underpayments.
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This elevated error rate indicates substantial waste at the state level, despite a slight decrease from the previous fiscal year. As a result, states with payment error rates at or above the 6% threshold will now face new financial responsibilities and corrective action requirements. These measures are part of a broader effort to ensure greater accountability in the administration of SNAP benefits and the responsible stewardship of taxpayer funds.
Under legislation enacted as part of H.R. 1, states that exceed the 6% payment error rate threshold will be required to contribute a portion of their states’ benefits to cover these improper payments. The percentage of this contribution will range from 5% to 15%, with higher error rates incurring greater financial responsibility. This new financial consequence is expected to take effect as early as October 1, 2027, with the FY 2025 error rates being the first to be used in calculating these penalties. In addition to financial penalties, states failing to meet the error rate threshold must submit a Corrective Action Plan to the USDA’s Food and Nutrition Administration. This plan must outline specific strategies for addressing the root causes of their payment errors. Furthermore, some states may also be subject to separate financial penalties as part of the SNAP quality control process.
Article by Mel Anara, based upon information from the USDA.
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