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USDA Error Rate Pushes Minnesota Toward $250 Million SNAP Bill

A higher SNAP payment error rate increases Minnesota's share of benefits and raises administrative costs pending the USDA's 2026 rate.

Overview

  • The U.S. Department of Agriculture reported on June 24, 2026 that Minnesota’s SNAP payment error rate rose from about 9% in 2024 to more than 12% in 2025, a jump that triggers larger state obligations under the new federal law.
  • The One Big Beautiful Bill Act ties state liability to error-rate bands and requires states with high error rates to cover a share of benefits while increasing the state portion of administrative costs to 75%.
  • Minnesota now projects roughly $250 million in new SNAP-related costs over the next two years and expects additional tens of millions in higher administrative spending because counties will shoulder more of the program work.
  • The Minnesota Legislature has approved $75 million for county computer upgrades and training to reduce mistakes, and county officials say new reporting rules have increased paperwork and disrupted case processing.
  • Final state obligations could change because Minnesota may use the lower of the 2025 or 2026 error rate to calculate liability and the USDA will not release the 2026 rate until after the 2027 legislative session, with federal cost-share changes taking effect around October 1, 2027.