USDA Error Rates Put States on Hook for Billions in SNAP Improper Payments

Overview

• The U.S. Department of Agriculture’s June 24 release found roughly $10 billion in improper SNAP payments and a national error rate near 10.6 percent, triggering new state liability calculations.
• Georgia recorded a 15.21 percent error rate and has set aside $5.9 million for fiscal 2027 while upgrading the Gateway eligibility system and seeking waivers to automate processes to reduce errors.
• Missouri’s 8.67 percent error rate could require the state to pay about 10 percent of benefits in 2027, roughly $150 million, and the legislature approved $29.3 million for increased SNAP administrative costs.
• State agencies are responding with system modernizations, tougher case reviews, staff hires and market surveys for technology, but legal‑aid groups warn added documentation and verification could make it harder for eligible people to get or keep benefits.
• The cost shift stems from the One Big Beautiful Bill Act passed in July 2025 that makes states share 5–15 percent of benefits if error rates exceed 6 percent and allows limited delays for very high rates while farm‑bill talks continue.