Headline
USA - California saw $1.4
billion in Supplemental Nutrition Assistance Program errors for Fiscal Year
2025. That accounts for $3.8 million every single day. That’s part of a trend
of Southwestern states having to repay the federal government for SNAP
benefits.
A payment error rate refers to
instances of overpayment or underpayment to households. It is not inherently
indicative of fraud, according to the U.S. Department of Agriculture, which
oversees SNAP for the federal government. Rather, according to the department,
it often stems from households providing incomplete information or state data
processing errors.
Because of the high volume of
error, California is subjecting itself to having to repay the federal
government.
States that manage to stay below
a federally mandated threshold of 6% for mistakes are safe. But consecutive
years above the threshold force states into USDA-approved corrective action
plans and financial liabilities. Under federal rules, liabilities can either be
repaid in full, or states can reinvest half of the penalty into improving state
operations to prevent future errors.
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