California could face nearly two billion dollars in new SNAP costs under federal accountability rules after posting a payment error rate of nearly 11 percent last year, according to newly released USDA data.
More than $10 billion in SNAP benefits were paid incorrectly nationwide last year, according to new figures released by the U.S. Department of Agriculture.
The agency reports a national payment error rate of 10.62% for fiscal year 2025, meaning mistakes in determining eligibility or benefit amounts accounted for an estimated $10.1 billion in improper payments. The figure includes both overpayments and underpayments and remains well above the 6% threshold established by Congress.
California’s payment error rate was even higher, at 10.93%, placing the state in the highest penalty tier under new federal accountability rules. As a result, California could be required to absorb an estimated $1.9 billion in SNAP costs beginning in fiscal year 2028 if those figures stand.
Federal officials say the numbers highlight concerns about how taxpayer dollars are being managed through the Supplemental Nutrition Assistance Program, commonly known as SNAP. USDA notes that payment errors do not necessarily indicate fraud, but rather mistakes in determining eligibility or calculating benefit amounts.
Under a law passed by Congress, states with error rates above the 6% benchmark could soon face financial consequences. States with the highest error rates may be required to cover up to 15% of certain SNAP benefit costs, creating new incentives to reduce mistakes and improve oversight.
Agriculture Secretary Brooke Rollins says the error rates demonstrate a need for greater state accountability and stronger safeguards to protect taxpayer funds.
States exceeding the federal threshold will also be required to submit corrective action plans detailing how they intend to reduce payment errors and improve program accuracy.
