U.S. SNAP error rate hits 10.6% as Arizona faces $208 M penalty

The U.S. Department of Agriculture reported that the Supplemental Nutrition Assistance Program (SNAP) payment error rate for fiscal year 2025 rose to 10.62%, well above the 6% threshold set by Congress. The combined over‑ and under‑payments amount to roughly $10.1 billion in improper payments nationwide. Under the One Big Beautiful Bill Act, states with error rates above 6% must begin paying a share of program costs: 5% of benefits for rates 6–8%, 10% for rates up to 10%, and 15% for rates exceeding 10%.

Arizona’s error rate for the most recent budget year was 10.8%, with more than 8.6% in overpayments and about 2.2% in under‑payments. This places the state above the national average of 10.6% and could trigger a federal penalty of approximately $208 million beginning in the 2027‑28 budget year, based on the same penalty schedule. USDA officials emphasized the need for improved state accountability and corrective action plans to reduce waste.

The reports also note upcoming SNAP policy changes that will require retailers to stock healthier food options across four categories—produce, protein, dairy, and grains—aimed at directing beneficiaries toward more nutritious choices.