USDA Inspector General Tells Congress SNAP Fraud Funds Terror Groups and Criminals

USDA Inspector General John Walk told a House subcommittee on Thursday that fraud in the Supplemental Nutrition Assistance Program has sent proceeds to individuals linked to terrorist groups, foreign adversary nations and transnational criminal organizations.

Walk described organized criminals stealing benefits through electronic benefit transfer card skimming, trafficking operations and identity fraud. He said the crimes leave legitimate recipients without money for food and recounted speaking this week with a New York father of five whose benefits were stolen after his EBT card was skimmed.

Walk also cited a Southern California investigation in which SNAP benefits were allegedly exchanged for cash and crack cocaine, with proceeds used by gang members to purchase firearms. "SNAP dollars, federal tax dollars, used to buy drugs and guns," he said. The inspector general warned that criminals can install EBT skimming devices in as little as seven seconds.

He said investigators cannot detect fraud in time without broader access to state recipient data. "We cannot pay and chase our way to stopping SNAP fraud," Walk said. " Subcommittee chairman Rep. , said USDA officials identified roughly $3 billion in potential fraud and waste from data submitted by participating states.

Examples included benefits sent to 186,000 deceased individuals and 442,000 applicants with fraudulent Social Security numbers. Burchett said 21 states declined to provide requested SNAP data to the USDA. He argued that limited data sharing allows individuals to receive benefits from multiple states.

Gina Plata-Nino, director of SNAP policy and advocacy at the Food Research and Action Center, testified that program integrity and food access are not competing goals. She cautioned against conflating payment errors with fraud. The SNAP program is a roughly $100 billion federal food assistance program.