The U.S. Department of Agriculture released its annual Supplemental Nutrition Assistance Program payment error rate data for fiscal year 2025, showing a national rate of 10.62% — well above the congressional threshold of 6%.
The rate represents $10.1 billion in improper payments nationwide, accounting for both overpayments and underpayments. While the figure marks a modest decrease from fiscal year 2024, the USDA says significant waste at the state level persists.
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“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, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”
New financial consequences for states
The recently passed H.R. 1 introduced new guardrails for states whose payment error rates exceed the 6% threshold. Under the legislation, states will be required to cover a portion of their own benefits — 5%, 10% or 15% — depending on how far their error rate exceeds the threshold. Those financial consequences are set to take effect as soon as Oct. 1, 2027.
The fiscal year 2025 payment error rate is the first year of data that could be used to calculate those cost-sharing percentages.
Corrective action plans required
States with payment error rates at or above the 6% threshold are also required to submit a Corrective Action Plan to USDA’s Food and Nutrition Administration. The plans must detail how each state will address the root causes of its errors. Some states may also face a separate financial penalty as part of the SNAP quality control process.
More information is available on the USDA’s quality control webpage.