The U.S. Department of Agriculture on Wednesday released fiscal 2025 payment error rates for the Supplemental Nutrition Assistance Program, showing a national error rate of 10.62%, well above the federal threshold of 6%, with $10.1 billion in improper payments nationwide.
SNAP, commonly known as food stamps, provides monthly food assistance to low-income households. Payment errors refer to cases where benefits were paid either above or below the correct amount, largely due to administrative mistakes rather than fraud.
The data offers the clearest picture yet of which states could face new financial burdens under President Donald Trump's tax-and-spending law. Beginning in October 2027, states with SNAP error rates of 6% or higher may be required to pay part of the benefit costs. States with error rates between 6% and 8% could pay 5% of benefit costs, those between 8% and 10% could pay 10%, and states above 10% could pay 15%.
"These payment error rates are further proof that state accountability is severely lacking in SNAP," Agriculture Secretary Brooke Rollins said.
Trump's SNAP Cost Shift Raises Pressure On States
Nine states, including South Dakota and Nebraska, posted error rates below 6%, allowing them to avoid the new cost-sharing requirement.
For other states, the financial impact could be substantial. Missouri, which recorded an 8.7% error rate, could face roughly $150 million in annual SNAP costs if benefit levels remain unchanged, according to calculations cited by the Associated Press.
"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," Chloe Green, assistant director for policy at the American Public Human Services Association, told the Associated Press.
The added pressure comes as SNAP rules have already tightened nationwide under Trump's broader welfare overhaul. The law expanded work requirements, raised the eligible work-age threshold to 64 and removed several exemptions, contributing to a decline in participation. Preliminary USDA data showed SNAP enrollment fell from about 42.8 million recipients in January 2025 to roughly 38.6 million by January 2026.
States Face Tough Budget Choices
States are also spending millions upgrading eligibility systems to comply with the new rules. Contractors such as Deloitte, Accenture PLC (ACN) and Vermont's Optum have been helping states update SNAP and Medicaid systems to track work requirements, exemptions and documentation.
Some states may respond to the new cost-sharing rules by tightening eligibility further or cutting spending elsewhere, including education, law enforcement or mental health programs. More than a quarter of states surveyed by the American Public Human Services Association said they could consider narrowing eligibility policies, while four said they may consider withdrawing from SNAP entirely, according to the Associated Press.
Katie Bergh, senior policy analyst at the Center on Budget and Policy Priorities, said the new error-rate data underscores the need to delay the cost shift to states.
The changes come as millions of Americans have already lost food assistance amid stricter eligibility and work requirements.
