More than one in every ten dollars spent on the Supplemental Nutrition Assistance Program (SNAP) in 2025 was paid in error, according to data from the U.S. Department of Agriculture (USDA). The USDA calculated an error rate of 10.62% for food stamp payments last year, a slight improvement from 10.93% in 2024. Overpayments were found to be about seven times more common than underpayments.

Only nine states—Idaho, Iowa, Kentucky, Nebraska, South Dakota, Utah, Vermont, Wisconsin, and Wyoming—maintained error rates below the 6% threshold in 2025. States with higher fraud rates are now facing substantial financial penalties, although the exact amounts will depend on 2026 data and be determined in 2027.

Despite concerns about these penalties, officials like Despite Cha told state lawmakers during a May budget hearing that efforts are underway to reduce error rates. These include implementing additional quality control protocols, expanding training, strengthening quality assurance, adopting new technology and data tools, and making significant operational investments to improve payment accuracy.

However, some experts remain skeptical. Budget policy analysts Romina Boccia and Tyler Turmin of the Cato Institute stated, "The report confirms what has long been true: SNAP is structurally prone to waste, fraud, and abuse, and the states running it have too little financial incentive to fix it."

The new penalty provisions have created uncertainty for both states and SNAP recipients. Only 11% of states indicated they might withdraw from SNAP due to the increased costs, and 5% suggested they could temporarily pause SNAP operations.

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