ATLANTA — Dozens of states, including Georgia, could face millions of dollars in costs to fund Supplemental Nutrition Assistance Program, or SNAP, benefits due to payment errors.
Data released Wednesday by the U.S. Department of Agriculture provides the first look at these potential costs under a tax-and-spending law signed by President Donald Trump.
However, nine states will be exempt from this cost-sharing requirement, owing nothing because of their low error rates.
The new requirements are intended to increase accountability for participants and states within the federal food aid program.
SNAP provides monthly payments to help low-income residents buy food.
The error rate refers to the percentage of SNAP benefits paid either above or below what people should have received, primarily because of mistakes.
While low-error states are guaranteed to owe nothing when the annual cost-sharing requirement begins in October 2027, other states will have another year to try to reduce their errors.
Administrative costs for SNAP are currently split 50-50 between the federal government and states.
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However, federal law requires states to begin paying 75% of SNAP administrative costs starting this October.
Beginning in October 2027, states with SNAP error rates of 6% or greater could be required to pay a portion of benefit costs, which are currently fully covered by the federal government.
Chloe Green, assistant director for policy at the American Public Human Services Association, highlighted the significant financial implications for states.
“There are billions of dollars that are at stake that states will have to find the money to be able to pay if they want to continue to operate a SNAP program,” Green said.
The law signed by President Trump last July expanded requirements for many adult SNAP recipients to work, volunteer or participate in job training.
These new work and cost-share requirements are designed to provide federal savings that offset new tax cuts. Agriculture Secretary Brooke Rollins stated that the error rates demonstrate a lack of accountability.
“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Rollins said.
More than 37 million people nationwide received SNAP benefits in March, according to preliminary USDA figures.
This is a decrease of nearly 5 million people, or more than 11%, from a year earlier.
The error rates released Wednesday cover the 2025 fiscal year and are the first that will matter under the new law.
Federal law states that states can choose to use either their 2025 or 2026 error rates when determining what percentage of SNAP benefits they must pay starting in October 2027.
Nine states had error rates below 6% last year, securing their exemption from cost-sharing.
South Dakota had the lowest error rate at approximately 2.5%, while Nebraska’s error rate was 5.9%, just below the cutoff.
Other states with error rates below 6% were Idaho, Iowa, Ky., Vt., Utah, Wis. and Wyoming
Federal law also sets a sliding scale for states that must contribute to SNAP benefits. States with error rates between 6% and 8% will eventually pay 5% of the benefit costs.
Those with error rates between 8% and 10% will pay 10% of benefit costs and states with error rates more than 10% will have to pay 15% of benefit costs.
As an example, Mo. had an error rate of 8.7% last year. If this rate does not improve by next year, the state could be responsible for 10% of SNAP benefit costs starting in October 2027.
Missouri residents received about $1.5 billion in SNAP benefits in 2024. If that amount is consistent in the future, Mo. could have to cover $150 million, a sum greater than the total budgeted for several state prisons.
An exception in the federal law provides a delay for states with the highest error rates.
States with error rates of at least 13.34% last year will receive a delay in their cost-share requirements until at least the 2029 fiscal year.
Alaska, which had the highest error rate of more than 23%, will benefit from this delay. Other jurisdictions receiving a one-year cost-share delay include Delaware, Ga., Ill., N.M., Ore. and the District of Columbia.
States whose error rates are at least 13.34% in 2026 could have their cost-sharing requirements delayed until the 2030 fiscal year.
A recent survey of state agencies that manage SNAP found that most are analyzing the root causes of their payment errors.
The survey, released by the American Public Human Services Association, indicated that mistakes appear to be evenly attributable to SNAP recipients and program administrators.
Many states are planning to increase staff focused on eliminating errors.
However, some states are planning for cuts if they are forced to pay a portion of SNAP benefits.
More than a quarter of the states responding to the survey said they could consider narrowing eligibility policies.
Four states said they could consider withdrawing from SNAP entirely, though the report did not list their names.
Advocates for low-income residents are urging Congress to postpone the SNAP cost-share requirements for all states, which would necessitate a change in federal law.
Katie Bergh, a senior policy analyst at the Center on Budget and Policy Priorities, stated that the data highlights the need for congressional action.
“The error-rate data really underscore the urgent need for Congress to delay this massive cost shift to state budgets,” Bergh said. She also noted the challenging economic circumstances for many recipients. Bergh added, “This is coming at a time when millions of people have already lost food assistance.”
States with low error rates are guaranteed to owe nothing when the annual cost-sharing requirement begins in October 2027.
Other states will have until October 2027 to reduce their errors before a portion of benefit costs could be imposed.
A nationwide delay in the SNAP cost-share requirements would require a change in federal law by Congress.
Information from the Associated Press used for this article.
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