States are racing to reduce faulty payments to food stamp recipients, in a bid to avoid penalties included in the signature budget bill passed by Republicans last year.
Starting in October 2027, states with payment error rates of 6 percent or higher must cover 5, 10, or 15 percent of SNAP benefit costs, depending on the payment error rate.
Even though the deadline is more than a year out, enrollment in the program has dropped by more than 5 million recipients as a result of the stricter rules, according to Agriculture Secretary Brooke Rollins.
Forty-one states and the District of Columbia made improper payments of more than 6 percent in 2025, according to the Department of Agriculture. Nearly half of states will have to pay more than $100 million in penalties, according to publicly available federal data….