SNAP Payment Error Rate Falls to 10.62 Percent in Fiscal Year 2025, Still Above 6 Percent Threshold

The U.S. Department of Agriculture reported a national payment error rate of 10.62 percent for the Supplemental Nutrition Assistance Program in fiscal year 2025. The figure exceeds the 6 percent threshold set by Congress and accounts for $10.1 billion in improper payments nationwide, including both overpayments and underpayments.

ZeroHedge reported that the One Big Beautiful Bill Act, signed into law by President Donald Trump last year, created a State Quality Control Incentive provision. Under the rule, states with error rates between 6 percent and 8 percent must fund 5 percent of benefits, while states at 10 percent or higher must cover 15 percent. These requirements could take effect as soon as October 1, 2027.

States exceeding the 6 percent threshold must also submit a Corrective Action Plan to the USDA’s Food and Nutrition Service. Agriculture Secretary Brooke Rollins stated that the rates demonstrate state accountability is severely lacking in SNAP. A June survey by the American Public Human Services Association found that 92 percent of 39 responding state agencies had completed or were conducting root cause analyses of their error rates.

States indicated that payment errors arose roughly evenly from participant and administrative factors. Beginning this fall, SNAP-authorized retailers must stock more nutritious items in produce, protein, dairy, and grains categories. Almost a dozen states plan to prohibit purchases of energy drinks, candy, and soda with SNAP benefits.

On June 22 a federal judge blocked the USDA from enforcing food restriction waivers in Colorado, Iowa, West Virginia, Tennessee, and Nebraska, ruling that the department lacked authority to approve them. A USDA spokesperson said the idea that taxpayer funds should not purchase junk food should not be controversial.