The "Snap Back Inaccurate SNAP Payments Act" aims to improve the accuracy of SNAP payments and reduce taxpayer costs by setting the tolerance level for excluding small errors at $0, increasing the error threshold, and factoring in overpayment recoupment when determining payment error rates. This bill also requires state agencies to recoup overpayments made to benefit recipients.
Joni Ernst
Senator
IA
The "Snap Back Inaccurate SNAP Payments Act" amends the Food and Nutrition Act of 2008 to improve the calculation and reduce taxpayer costs of payment errors in the Supplemental Nutrition Assistance Program (SNAP). It sets the tolerance level for excluding small errors at $0 and increases the error threshold from 10% to 25%. The bill also introduces a payment error rate reduction based on the percentage of overpayments recouped and requires state agencies to recoup overpayments made to benefit recipients.
New SNAP Bill Tightens Error Rules, Pushes States to Recoup Overpayments Starting 2025
The "Snap Back Inaccurate SNAP Payments Act" is revamping how mistakes are handled in the Supplemental Nutrition Assistance Program (SNAP). Basically, it's changing the rules for when states get penalized for errors in benefit payments and putting more pressure on them to get misspent money back.
Zero Tolerance, Higher Stakes
This bill sets a "zero tolerance" policy for even small errors in SNAP payments starting in fiscal year 2025. Previously, there was some wiggle room for minor mistakes, but now, every dollar misallocated will technically count against a state. At the same time, the bill raises the threshold for when a state faces financial penalties for errors—from 10% to 25% of total payments. It's a bit of a mixed message: be perfect, but you also have more room before we really crack down. The bill also switches "may" to "shall" when talking about how much a state might owe for errors, which seems to take away some flexibility in those decisions. (SEC. 2)
The Recoup Game
Here's where it gets interesting. The bill introduces a new way to calculate a state's error rate: it's now tied directly to how much of the overpaid money they manage to get back. So, if a state has a high error rate but recovers a large percentage of those overpayments, their effective error rate (the one that determines penalties) goes down. This is a clear incentive for states to chase down those overpayments. Plus, the bill now requires state agencies to actively try to recoup any overpaid benefits. (SEC. 2)
Real-World Rollout
Imagine a single parent working part-time at a grocery store. If they accidentally receive an extra $50 in SNAP benefits one month due to an administrative error, the state is now required to try and get that $50 back. This could mean deductions from future benefits, creating a tighter budget for that family. On the flip side, if a state consistently overpays benefits and doesn't make a strong effort to recover the funds, they could face bigger penalties under the new 25% threshold.
This also means that if a local bakery owner has a month where their income dips, making them temporarily eligible for SNAP, they better make sure all their paperwork is perfect. Any mistake, even a small one, could lead to the state trying to recover those benefits later.
The Big Picture
This bill is trying to walk a fine line. It pushes for more accuracy and accountability in SNAP spending, which could save taxpayer money. But the "zero tolerance" for small errors, combined with mandatory recoupment, could create extra administrative work and potentially put more pressure on both state agencies and SNAP recipients. The increased error threshold before penalties kick in might seem like a relief, but it could also mean less oversight overall. The key will be in how states balance the pressure to recover funds with the need to avoid unfairly burdening people who rely on SNAP.