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USDA Reports $10.1 Billion in SNAP Improper Payments for FY2025

The finding triggers H.R. 1’s state cost-sharing rules, requires corrective action plans from states above 6%, and could force states to pay part of benefits beginning Oct. 1, 2027.

Overview

  • The USDA released FY2025 payment error rates on June 24, 2026, showing a national payment error rate of 10.62%, which the agency says equals $10.1 billion in improper SNAP payments.
  • Most improper payments were overpayments, about 9.28% of benefits, compared with roughly 1.33% for underpayments, according to the USDA data.
  • Because the national rate exceeds Congress’s 6% threshold, H.R. 1 requires states with PERs at or above 6% to submit Corrective Action Plans and imposes tiered cost-sharing of 5%, 10% or 15% based on how far a state’s rate exceeds the threshold.
  • State results vary widely with several states and territories above 15% — Alaska topped roughly 23% — while a few states posted rates near 2%; reporting differs on whether nine or ten states fell below the 6% threshold.
  • USDA leaders described the numbers as evidence of weak state accountability, noted a modest drop from FY2024, and warned that agencies failing to curb errors could face additional quality-control penalties and budget pressure that may affect how states run SNAP.