USDA Says SNAP Error Rate Over 6% Triggers State Penalties

The U.S. Department of Agriculture announced that the national error rate for the Supplemental Nutrition Assistance Program (SNAP) reached 10.62 percent in fiscal year 2025, a figure that exceeds the 6 percent threshold set by Congress and triggers new financial penalties for most states. The error rate, which measures incorrect benefit payments due to administrative or reporting mistakes rather than fraud, represents a slight decline from the previous year but still translates to over $10 billion in improper payments.

Under the One Big Beautiful Bill Act signed into law last year, states with error rates at or above 6 percent will be required to cover a portion of their SNAP benefit costs starting October 1, 2027. The cost-sharing requirement operates on a sliding scale: states with rates between 6 and 8 percent will fund 5 percent of benefits, those between 8 and 10 percent will fund 10 percent, and states with error rates of 10 percent or higher could be responsible for up to 15 percent of benefit costs. Currently, the federal government covers the full cost of SNAP benefits.

Only nine states had error rates below the 6 percent threshold for fiscal 2025 and will owe nothing...