Map Shows SNAP Benefit Error Rates in Each State

The Supplemental Nutrition Assistance Program (SNAP) faces potential funding challenges as states struggle to meet new federal cost-sharing requirements. Under the One Big Beautiful Bill Act (OBBBA), states with a SNAP payment error rate exceeding 6% must contribute towards the program's costs. In fiscal year 2025, 41 states and Washington, D.C. recorded error rates above the threshold, which is 10.62% nationally.

These errors include both overpayments, where recipients receive more than they are entitled to, and underpayments, where recipients receive less.

The discrepancy in payments, often due to administrative mistakes by state agencies or recipients, resulted in a total of $10.1 billion in incorrect benefits during the year. Agriculture Secretary Brooke Rollins emphasized the need for better state accountability, suggesting that states should face financial consequences for poor performance.

According to estimates, states could face substantial financial burdens to meet these requirements. For instance, Massachusetts could be required to contribute nearly $300 million, while New York faces a potential annual cost of over $1 billion. Virginia has set aside $135 million for a possible contribution in fiscal year 2028. Michigan estimates an additional $95 million annually, while New Mexico recorded the highest error rate at 16.81%.

New York, with a 13.18% error rate, could face an estimated $1.15 billion cost shift, while Illinois, despite having a higher rate of 14.67%, initially qualifies for a delay in compliance. Minnesota Senator Amy Klobuchar has criticized the arrangement, arguing that it rewards errors. The Food Research and Action Center (FRAC) shares this concern, suggesting that the structure could weaken the incentive for states to improve their performance.

Despite some states making progress, like New Jersey's improvement from 14.33% to 6.86% error rate, they still face potential costs if they don't further reduce their error rates before the new rules take effect. The issue highlights the need for better oversight, updated systems, and effective recordkeeping to minimize errors in SNAP benefit payments.