SNAP Payment Error Rates Raise Pressure on States as Farm Bill Debate Intensifies

New USDA data show most states exceed the threshold that could trigger future state cost-sharing, adding another flashpoint to the already contentious debate over SNAP reforms 

USDA’s newly released Fiscal Year 2025 Supplemental Nutrition Assistance Program (SNAP) payment error data underscore why SNAP remains one of the most politically divisive issues in the farm bill debate. The national payment error rate rose to 10.62%, meaning improper payments — both overpayments and underpayments — remain well above the 6% benchmark established under the recently enacted budget reconciliation law. Link to USDA release. 

Importantly, USDA stresses that these figures measure payment accuracy rather than fraud. Most payment errors stem from eligibility determination mistakes, incorrect benefit calculations, documentation issues, or administrative processing errors—not intentional misuse of benefits. The report shows the national overpayment rate at 9.28% and the underpayment rate at 1.33%.

The figures carry significant financial implications because the reconciliation law requires states with payment error rates of 6% or higher to begin sharing a portion of SNAP benefit costs beginning as early as Oct. 1, 2027. States with higher error rates will be responsible for covering 5%, 10%, or 15% of benefit costs, with FY2025 serving as the first year that can be used to calculate those percentages.

The state-by-state data illustrate the scope of the challenge. Alaska posted the nation’s highest payment error rate at 23.15%, followed by the District of Columbia at 18.66%, New Mexico at 16.81%, Delaware at 16.00%, Georgia at 15.21%, Illinois at 14.67%, and Oregon at 14.14%. At the other end of the spectrum, South Dakota recorded the nation’s lowest rate at 2.47%, followed by Idaho at 3.85% and Wyoming at 3.96%.

The accompanying USDA map (see below) highlights how widespread the issue has become. Only a relatively small number of states currently fall below the 6% threshold, while the majority would face some level of matching requirement if these FY2025 rates were used for implementation.

USDA map of FY2025 SNAP payment error rates by state. Blue indicates states below the 6% cost-sharing threshold; orange and red indicate states at or above it. Source: USDA Food and Nutrition Service.

Many of the nation’s largest SNAP states — including California (10.93%), Florida (12.97%), New York (13.18%), Illinois (14.67%) and Georgia (15.21%) — would qualify for higher state financial obligations under the law.

The timing of the report is politically significant. Senate Democrats have argued that shifting SNAP costs to states could strain state budgets and eventually reduce benefits or eligibility, while Republicans contend that requiring states to bear more financial responsibility will encourage greater program integrity and improved administrative performance. The USDA figures will likely reinforce both arguments: Republicans can point to persistently elevated payment error rates as evidence that reforms are warranted, while Democrats are likely to argue that many of the errors reflect administrative complexity rather than abuse and that states should not be penalized for honest mistakes.

For the farm bill, the report further complicates negotiations. Senate Ag Committee Chairman John Boozman (R-Ark.) has acknowledged broad bipartisan support for updating commodity and conservation programs, but SNAP financing remains the largest obstacle to assembling a coalition capable of passing a comprehensive farm bill. With most states exceeding the new threshold, the USDA data are likely to intensify pressure from governors and state agencies seeking modifications before the cost-sharing provisions take effect in 2027.

Appendix: FY 2025 SNAP Payment Error Rates by State/Territory

Source: USDA Food and Nutrition Administration. Tolerance threshold for FY2025 is $57. Dated June 24, 2026.