USDA released state SNAP payment error rates which will determine if states have to pay a portion of federal nutrition assistance benefits. (Photo by Spencer Platt/Getty Images)
The majority of U.S. states will soon have to pay 5% to 15% of federal nutrition assistance benefits in their state, according to the U.S. Department of Agriculture’s release Wednesday of Supplemental Nutrition Assistance Program payment error rates.
House Resolution 1, commonly known as the One Big Beautiful Bill Act that was enacted in 2025, stipulated that states with SNAP payment error rates greater than 6% would be required to foot 5%, 10% or 15% of SNAP benefits costs in their state.
Iowa, with a payment error rate of 5.34% in 2025, is just one of nine states with an error rate below 6% and that won’t have to match a portion of the SNAP benefits it pays out, starting in October 2027.
According to USDA, SNAP payment error rates measure the accuracy of states in determining who is eligible for SNAP and how much they receive. The rate is calculated via a series of reviews from state and federal agencies where instances of overpayments and underpayments are identified.
USDA’s SNAP quality control page says errors are “largely unintentional” and might be the fault of a state agency or a SNAP household.
Eighteen states had payment error rates above the national average of 10.62%. Per the quality control process, these states will have to either pay USDA a determined amount, or invest 50% of that amount into activities that will fix the root causes of the payment errors.
USDA said that while the 2025 average payment error rate is a “modest” decrease from the 2024 average error rate of 10.93%, it represents $10.1 billion in improper payments.
Secretary of Agriculture Brooke Rollins said the latest payment error rates show that “state accountability is severely lacking” in SNAP.
“USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics,” Rollins said in a news release.
An analysis of H.R. 1 from the Congressional Budget Office estimated that the law, which included several changes to SNAP benefits in addition to the error rate cost share, would reduce federal spending on the SNAP benefits by $255 billion between 2025 and 2034. CBO also estimated that state spending on SNAP benefits would increase during the same period by $85 billion.
State lab, kinship care and more: What KY’s health cabinet is asking the legislature to fund
Critics of the bill said the cost shift to states would endanger the SNAP program and stress state budgets.
According to the 2025 error rates from USDA, 41 states had payment error rates above the 6% threshold set by the 2025 law. South Dakota had the lowest error rate at 2.47%. Idaho, Kentucky, Nebraska, Utah, Vermont, Wisconsin and Wyoming were the other states with rates below 6%. Alaska had the highest error rate of 23.15%.
The higher the error rate, the greater the share, up to 15%, the state will have to pay of its SNAP benefits, which are otherwise 100% footed by the federal government.
In addition to the cost share, states with a payment error rate in excess of 6% are required to submit a corrective action plan to the Food and Nutrition Administration, formerly known as the Food and Nutrition Service, to explain the root cause of the payment errors and how the state plans to correct the errors.
This story was originally produced by Iowa Capital Dispatch, which is part of States Newsroom, a nonprofit news network which includes Kentucky Lantern, and is supported by grants and a coalition of donors as a 501c(3) public charity.
