WASHINGTON, D.C. — States improperly distributed an estimated $10.1 billion in Supplemental Nutrition Assistance Program benefits in fiscal 2025, with the national payment error rate reaching 10.62% and surpassing the 6% threshold that now triggers financial penalties for state governments.
The U.S. Department of Agriculture released its annual SNAP payment error rates this week, showing a modest improvement from fiscal 2024 but continuing concerns about eligibility determinations and benefit calculations administered by state agencies.
The payment error rate measures how accurately states determine whether households qualify for SNAP benefits and the amount they should receive. It includes both overpayments and underpayments and does not necessarily indicate fraud.
The national rate consisted of a 9.28% overpayment rate and a 1.33% underpayment rate.
Under changes enacted through H.R. 1, states with payment error rates at or above 6% will be required to cover between 5% and 15% of their SNAP benefit costs, depending on the severity of their errors. In most cases, those financial consequences could begin as early as Oct. 1, 2027.
Agriculture Secretary Brooke Rollins characterized the figures as evidence that states need greater accountability in administering the program.
“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Rollins stated.
States exceeding the 6% threshold also must submit corrective action plans to USDA’s Food and Nutrition Administration detailing how they intend to address the underlying causes of their errors. Some states may also face separate financial penalties under the program’s quality control process.
Among the states with the highest error rates, Alaska recorded a payment error rate of 23.15%, followed by the District of Columbia at 18.66%, New Mexico at 16.81% and Delaware at 16.00%.
Several states remained below the 6% threshold, including South Dakota at 2.47%, Idaho at 3.85%, Wyoming at 3.96% and Kentucky at 4.70%.
Pennsylvania posted a payment error rate of 9.21%, consisting of an 8.03% overpayment rate and a 1.18% underpayment rate, placing it above the federal threshold for corrective action and potential financial liability.
The payment error rates were calculated using a fiscal 2025 quality control tolerance threshold of $57, which is adjusted annually under the Food and Nutrition Act.
The figures underscore the operational challenges states face in administering one of the nation’s largest anti-hunger programs while increasing pressure on state agencies to improve payment accuracy as new fiscal penalties take effect.
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