USDA Reports 10.6% SNAP Payment Error Rate, Exceeding Federal Threshold

The Department of Agriculture stated on June 24 that the SNAP payment error rate reached 10.6 percent for fiscal year 2025. The figure exceeds the 6 percent threshold established under the OBBBA, which requires states to maintain error rates below that level. Under the law, states with error rates between 6 and 8 percent must cover 5 percent of benefit costs starting in late 2027.

Only 10 states currently fall below 6 percent, according to USDA data. South Dakota recorded the lowest rate at 2.5 percent, while Alaska recorded the highest at 23 percent.

Payment errors occur when households receive too much or too little in benefits, regardless of intent. A 2024 GAO report found these errors typically stem from over- or under-payment issues rather than deliberate fraud. Earlier GAO data showed the program lost about $1 billion a year to fraud, and a May USDA report flagged potential fraudulent activity that could reach roughly $3 billion annually.

The OBBBA also introduced a new work requirement for able-bodied adults aged 64 or younger. The prior rule applied only to those 54 or younger. Recipients now face a limit of three months of benefits every three years unless they work, volunteer, or train at least 80 hours per month.

As of March, 37 million people were enrolled in SNAP, down almost 5 million from a year earlier. An APHSA survey found that 11 percent of state SNAP agencies identified withdrawing from the program as a potential risk due to higher expected costs. Rep.

Tim Burchett spoke at a June 25 House subcommittee hearing on combating waste, fraud, and abuse in SNAP. Gina Plata-Nino, SNAP director for FRAC, also spoke at the hearing and said payment errors should not be confused with fraud. States have one additional year to reduce error rates before facing the full cost-sharing requirements.