US SNAP Error Rates Prompt Upcoming State Penalties

Data released by the U.S. Department of Agriculture shows that several states, including Illinois, have high error rates in the Supplemental Nutrition Assistance Program (SNAP). Illinois recorded a 14.7% error rate for fiscal year 2025, with 13.3% of payments overpaid, and faces a potential $700 million penalty when federal cost‑sharing rules take effect in October 2027. Under the new law, states with error rates above 10% must cover 15% of SNAP benefit costs, while those with rates between 6% and 10% will assume 5% to 10% of costs. Nine states with error rates below 6%—such as South Dakota and Nebraska—will owe nothing. The legislation also shifts SNAP administrative expenses from a 50‑50 split to 75% state funding starting in October 2026. Overall SNAP enrollment has fallen by more than 11% from the previous year, leaving over 37 million participants nationwide. States must decide whether to cut program spending or reduce errors to avoid additional financial burdens.