The U.S. Department of Agriculture (USDA) released the annual Supplemental Nutrition Assistance Program (SNAP) payment error rates (PER), which measure how accurately states determine who is eligible for SNAP and how much they should receive.
The national payment error rate for fiscal year (FY) 2025 is 10.62%, far surpassing the congressional threshold of 6%.
While this is a modest decrease from FY 2024, the FY 2025 rate still shows significant waste at the state level. Including both overpayments and underpayments, this year’s rate represents a collective $10.1 billion in improper payments nationwide.
“These payment error rates are further proof that state accountability is severely lacking in SNAP,” said Agriculture Secretary Brooke L. Rollins. “USDA has taken historic action to help interested states curb SNAP waste.
H.R. 1 added new guardrails for states’ payment error rates, implementing real financial consequences for states that mismanage taxpayer dollars. States with error rates at or above the 6% threshold will be responsible for covering 5%, 10%, or 15% of their states’ benefits. The higher their PER, the higher the percentage as soon as Oct. 1, 2027. The FY 2025 PER is the first year that could be used to calculate those percentages.
In addition to this matching fund requirement, states with PER at or above 6% threshold are required to submit a Corrective Action Plan to USDA’s Food and Nutrition Administration detailing how they will address the root cause of their errors.
Some of these states may also be liable for a separate financial penalty as part of the SNAP quality control process.