Key facts
- Dozens of states may face new financial burdens due to high error rates in the Supplemental Nutrition Assistance Program (SNAP).
- Nine states achieved exemption from cost-sharing requirements due to low error rates.
- The new cost-sharing requirements, stemming from a law signed by President Donald Trump, begin in October 2027.
- States with error rates of 6% or greater could be required to pay a portion of SNAP benefit costs.
- Error rates are defined as the percentage of SNAP benefits paid incorrectly, either too high or too low.
- States with the highest error rates may receive a delay in cost-sharing requirements until at least fiscal year 2029.
Dozens of states may face significant financial penalties if they fail to reduce errors in the Supplemental Nutrition Assistance Program (SNAP), according to new data from the U.S. Department of Agriculture. A law signed by President Donald Trump mandates that states with high SNAP payment error rates will have to contribute financially to the program starting in October 2027.
The error rate measures the percentage of SNAP benefits disbursed incorrectly, either above or below the correct amount due to mistakes. States that maintain error rates below 6% will be exempt from this new cost-sharing requirement. Nine states, including South Dakota with the lowest rate at approximately 2.5%, have already secured this exemption.
States with error rates between 6% and 10% will face a sliding scale of financial responsibility, potentially paying 5% to 10% of benefit costs. Those with rates exceeding 10% could be liable for 15% of the benefits. For example, Missouri, with an 8.7% error rate, could owe $150 million annually if it does not improve its performance, a sum comparable to its prison budget.
An exception exists for states with the highest error rates, defined as at least 13.34% in the 2025 fiscal year. These states will receive a delay in cost-sharing requirements until at least fiscal year 2029, with Alaska being a notable example of a state with a very high error rate. States have the option to use either their 2025 or 2026 error rates to determine their obligations.
A survey by the American Public Human Services Association indicates that states are actively analyzing the causes of payment errors, which are attributed to both recipients and administrators. While many plan to increase staff to address these issues, some states are also preparing for potential cuts to SNAP eligibility or benefits if forced to bear a portion of the costs.