USDA Reports $10.1 Billion in SNAP Improper Payments

The United States Department of Agriculture reported that the Supplemental Nutrition Assistance Program (SNAP) recorded $10.1 billion in improper payments during fiscal year 2025. The national payment error rate of 10.62% significantly exceeds the 6% congressional threshold, triggering financial penalties for 41 states under the One Big Beautiful Bill Act (H.R. 1) signed by Donald Trump.

Under the law, states with error rates of 6% or higher must cover between 5% and 15% of benefit costs starting in October 2027. Additionally, all states must increase their share of SNAP administrative costs from 50% to 75% starting this October. Nine states, including South Dakota—which had the lowest rate at 2.47%—and Idaho, are exempt from benefit cost-sharing. Conversely, states with error rates of at least 13.34%, such as Alaska and Georgia, received delays in their cost-share requirements until at least 2029.

Agriculture Secretary Brooke Rollins characterized the data as evidence that state accountability is severely lacking. State reactions vary: Illinois faces a potential $705 million annual penalty, with Governor J.B. Pritzker blaming federal efforts to push people off the program. Massachusetts Governor Maura Healey has refused to provide recipient data to the USDA, citing privacy concerns. Meanwhile, advocates and food banks warn that the financial burden may force states to narrow eligibility or withdraw from the program entirely, potentially increasing hunger.