Understanding SNAP Error Rates: Challenges, Impacts, and Solutions for State Agencies
The Supplemental Nutrition Assistance Program (SNAP) plays a vital role in supporting food security for millions of Americans. In fiscal year 2023, the overpayment error rate for SNAP was 10.03 percent, while the underpayment rate stood at 1.64 percent. These figures highlight the complexities that states navigate in determining eligibility and benefit amounts accurately, particularly considering recent changes and challenges stemming from the pandemic.
Temporary Changes During the Pandemic: A Lifeline with Tradeoffs
During the COVID-19 pandemic, the United States Department of Agriculture (USDA) implemented several temporary changes to help SNAP mitigate rising food insecurity and support states as they transitioned to remote operations. States experienced unprecedented workload increases while also managing staffing shortages. To ease this burden, Congress and the USDA allowed states to:
Waive interview requirements during application and recertification
Extend certification periods to reduce reapplication frequency
Adopt telephone signatures to streamline remote application processing
These administrative flexibilities proved critical to lessen the impact of the pandemic on food insecurity. Nearly every state used one or more of these options to keep eligible households connected to SNAP during this challenging period. As a result, the national Program Access Index (PAI), which measures SNAP participation among low-income households, reached a record 77.1 percent in 2021 and rose further to 77.9 percent in 2022. This access helped prevent a surge in food insecurity, unlike the Great Recession, when food insecurity rose sharply from 11.1 percent in 2007 to 14.7 percent in 2009. In contrast, food insecurity held steady at just over 10 percent in both 2020 and 2021, with rates even improving for certain groups, including households with children and Black-led households.
However, these temporary changes, which continued into 2023, also contributed to increased error rates. With many households receiving the maximum allowable benefit under Emergency Allotments (EAs), eligibility workers focused less on precise income calculations, knowing most families would receive the highest benefit regardless of small discrepancies.
How SNAP Processing Error Rates Impact State Agencies
SNAP serves as a crucial lifeline for millions of households, providing essential food assistance. However, ensuring that benefits are distributed accurately is a major challenge for state agencies responsible for administering the program. Recent data for fiscal year 2023 shows that the overpayment error rate and underpayment error rate are consistent with the previous year. This consistency highlights the persistent challenges agencies face in determining eligibility and benefit amounts.
Payment errors—whether households receive more or fewer benefits than they qualify for—are not equivalent to fraud. Rather, they reflect unintentional mistakes made by either state agencies or applicants during the certification process. These errors can arise from several factors, including miscalculations, incomplete information, or misunderstandings regarding eligibility criteria.
The Importance of Accurate SNAP Payments
“SNAP is a cornerstone of our nation’s safety net, and accurate benefits are crucial for families in need and for public trust,” said Cindy Long, Administrator for the Food and Nutrition Service (FNS). When payment errors occur, the consequences extend beyond individual households to affect the overall trust and effectiveness of the program. Overpayments burden public resources, while underpayments leave vulnerable families with insufficient support.
With these high stakes in mind, the USDA has emphasized that states must improve their performance or face financial penalties. Under current regulations, states with high error rates for two consecutive years may be fined. To avoid penalties, states are required to submit corrective action plans that address the root causes of errors and propose specific strategies to improve payment accuracy.
Accurate SNAP payments are not just about compliance—they are about providing timely and reliable support to families in need. State agencies must take proactive steps to improve their administration of SNAP, ensuring the program remains a dependable resource for millions of Americans.
How SNAP Error Rates Are Calculated: A Complicated Picture
During the pandemic, the USDA adjusted SNAP operations by introducing Emergency Allotments (EAs). From April 2021 to February 2023, all households in states that issued EAs received at least $95 in additional monthly benefits. However, the quality control (QC) system used to monitor SNAP error rates reported discrepancies based on regular benefit calculations, excluding the additional EA benefits.
This approach resulted in overstated error rates for fiscal years 2022 and 2023. For example:
If a household of two was incorrectly certified to receive $350 in regular benefits instead of $250, the QC system would report a $100 overpayment, even though the correct EA-adjusted benefit was $459.
Similarly, a $100 underpayment would be recorded if a household should have received $100 more under regular rules, despite receiving the maximum allowable benefit with the EA adjustment.
The Biden Administration’s revised policy in 2022 added further complications. Under this policy, procedural errors—such as incomplete documentation—resulted in entire benefits being counted as overpayments, even if the household was eligible and had received the correct amount based on its income. These policy changes drove higher error rates and are expected to continue influencing them in the upcoming years.
Implications for State Agencies: Managing Performance and Avoiding Penalties
Although these temporary measures helped states maintain SNAP access during the pandemic, high error rates have placed agencies under scrutiny. States must demonstrate progress to avoid additional penalties.
States that fail to meet accuracy requirements must do one of the following:
Pay the full penalty amount directly to the USDA
Invest 50 percent of the penalty amount in system improvements designed to reduce future errors. The other 50 percent is held in reserve, and states must demonstrate improved performance to avoid paying the remainder.
These penalties place additional pressure on already resource-constrained agencies, forcing them to prioritize performance improvements to prevent further financial loss. The stakes are high for agencies struggling with persistent post-pandemic challenges. Errors in SNAP payments impact more than just agency operations—they also threaten public trust in the program.
A Path Forward: Leveraging Support and Technology for Improvement
FNS remains committed to helping states address SNAP performance challenges. To support agencies, the USDA has provided
Onsite and virtual training sessions to guide state workers
Technology grants to modernize application and eligibility systems
New tools and updated guidance for accurate eligibility determinations
The President’s FY25 budget includes further funding proposals to support state efforts, including enhanced quality control measures, improved computer systems, and the creation of an Office of Training and Development to assist agencies in resolving accuracy issues.
State agencies must take proactive steps to reduce error rates, not only to avoid financial penalties but also to ensure that families receive the right level of support. By analyzing the root causes of errors, investing in technology, and leveraging federal resources, states can improve the accuracy of SNAP payments and enhance program integrity.
Conclusion: Accurate SNAP Payments Build Public Trust
SNAP’s ability to adapt during the pandemic proved invaluable in preventing food insecurity. However, the temporary flexibilities and emergency benefits negatively impacted error rates, posing a new challenge for state agencies. As these temporary measures wind down, agencies must refocus on improving payment accuracy and reducing errors.
Through a combination of federal support, corrective actions, and system improvements, state agencies can strengthen their administration of SNAP. Accurate benefit delivery not only ensures that families receive the assistance they need but also safeguards public trust in one of the nation’s most critical safety net programs.
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