The national error rate for the Supplemental Nutrition Assistance Program fell slightly from 2023, but remained higher than pre-pandemic levels.
USDA releases annual data for SNAP over and underpayments by state. The 2024 data comes as SNAP error rates have become a key tension point in the Republicans’ reconciliation bill.
Under the Senate reconciliation proposal, which was expected to get a final vote late Monday or early Tuesday, states would be required to cover some SNAP benefit costs for the first time based on their error rates. Currently, the federal government pays for all SNAP benefits, and splits administrative costs 50-50.
The latest Senate proposal would require states with error rates above 6% to share some costs. States with an error rate between 6% to 8% would be responsible for 5% of the costs. This would increase to 10% for states with error rates between 8% and 10%, while those with error rates above 10% would be responsible for 15% of the costs.
Those with error rates below 6% would be exempt. Alaska and Hawaii, which had some of the highest error rates in 2023, would also get the requirement waived under the draft released over the weekend.
All states would be responsible for 75% of the SNAP administrative costs beginning in fiscal year 2027. The SNAP benefit cost-share would kick in fiscal year 2028. But states will be able to base their total cost-share off 2025 or 2026 error rates for that initial year.
For fiscal 2024, the total national payment error rate was 10.93%, a small dip from 11.68% in 2023. National overpayments decreased from 10.03% to 9.26%, while underpayments slightly increased to 1.67% from 1.64% in 2023.
Alaska still had the highest error rate of the states at 24.66%, down from 60.37% in FY23. Hawaii’s error rate dropped from 20.94% in FY23 to 6.68%.
Overall error rates jumped in 2022 after the COVID-19 pandemic. USDA did not publish data for fiscal 2020 and 2021 because of the pandemic. The 2019 national error rate was 7.36%.
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Error rates are determined by how accurately the state administrators determine eligibility and payment amounts. States with high error rates two years in a row are assessed a financial penalty that goes to USDA. They also have the option of investing 50% of the penalty to improve the state’s SNAP administration.
Republican leaders of the House and Senate Agriculture committees criticized the latest error rates. In a joint statement, Sen. John Boozman, R-Ark., and Rep. Glenn Thompson, R-Pa., said it demonstrates the need for better accountability measures like those included in the OBBB.
“Its historic reforms will give states skin in the game on SNAP benefits and ensure they have a real incentive to improve oversight and stop improper payments before they happen,” they said.
Democrats and anti-hunger advocates have argued the state cost-share will do the opposite. The additional state or county costs for administering the program and covering some benefits will put a burden on state budgets, which could make it harder to improve SNAP administration.
Democratic governors have also repeatedly warned Congress that the proposal, along with other efforts to kick costs to states, could cause some states to scale back their SNAP offerings.
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