U.S. States to Pay More for SNAP After USDA Reports $10 B Error Costs

The U.S. Department of Agriculture released FY 2025 Supplemental Nutrition Assistance Program (SNAP) payment error rates on June 24‑25, 2026. The national error rate was 10.62 %, far above the 6 % congressional threshold, representing about $10.1 billion in improper payments.

Under the “One Big Beautiful Bill Act,” states with error rates of 6 %‑8 % will have to fund 5 % of their SNAP benefits, 8 %‑10 % error rates trigger a 10 % share, and rates above 10 % require a 15 % contribution, starting October 1, 2027. Affected states must also submit corrective action plans and may face additional quality‑control penalties. Low‑error states such as South Dakota (2.47 %), Idaho (3.85 %) and Wyoming (3.96 %) are exempt.

High‑error states include Alaska (23.15 %), the District of Columbia (18.66 %), New Mexico (16.81 %), Delaware (16 %), Georgia (15.21 %) and Minnesota, whose error rate rose 40 % to 12.58 % in FY 2025. More than 37 million people received SNAP in March 2026, down 11 % from the prior year. Agriculture Secretary Brooke Rollins said the data “further proof that state accountability is severely lacking in SNAP.”