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USDA Finds 10.62% SNAP Error Rate, Puts States on Hook Under New Cost-Sharing Law

The FY2025 error figures will trigger tiered state payments under the One Big Beautiful Bill Act and could create billions in new state liabilities.

Overview

  • The U.S. Department of Agriculture’s FY2025 review shows a national SNAP improper payment rate of 10.62 percent, driven mainly by overpayments rather than underpayments.
  • Under the One Big Beautiful Bill Act, states with error rates above 6 percent must share benefit costs with higher tiers at 10 percent for 8–10 percent errors and 15 percent for rates above 10 percent.
  • Florida recorded a 12.97 percent error rate and faces the largest exposure among states, with estimates that its liability could reach roughly $1 billion if it does not reduce errors.
  • Analysts using the FY2025 figures estimate aggregate state liabilities could total about $9 billion, while some states such as New Jersey report big year-over-year improvements after operational fixes.
  • States are responding by boosting staff, quality-assurance and IT work to lower error rates, but advocates warn tighter administration or budget trade-offs could slow access to benefits for households that rely on SNAP.