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More than 40 U.S. states could soon face higher costs to run the Supplemental Nutrition Assistance Program (SNAP) after new Trump administration rules tied to payment accuracy come into force, with the latest federal data showing only a handful currently meet the required benchmark.

Starting next year, states with higher payment error rates will be required to shoulder a share of SNAP benefit costs unless they improve, raising concerns that some could ultimately reduce food assistance if they cannot absorb the added expense.

SNAP, formerly known as food stamps, is federally funded but administered by states, with administrative costs split 50-50 between the states and the federal government. Benefits are loaded onto electronic benefit transfer (EBT) cards each month to help low- and no-income households buy groceries. While the federal government pays for benefits under the current system, that is set to change under provisions included in the One Big Beautiful Bill Act.

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The latest figures released by the U.S. Department of Agriculture (USDA) show the national SNAP payment error rate was 10.62 percent in Fiscal Year 2025, down slightly from 10.93 percent the previous year. The error rate measures benefits paid either above or below the correct amount, primarily because of administrative and recipients mistakes.

The data also showed improper SNAP payments exceeded $10 billion last year, underscoring the scale of payment errors as the Trump administration continues its wider effort to reduce what it describes as waste, fraud and abuse across public assistance programs serving tens of millions of Americans.

Which States Have the Highest SNAP Error Rates?

The state-by-state figures show that 41 states and Washington DC have error rates higher than 6 percent, and could be unable to avoid financial penalties under the new law when it comes into effect.

Only a few states reported payment error rates below the new 6 percent threshold: Idaho (3.85 percent), Iowa (5.34 percent), Wyoming (3.96 percent), Kentucky (4.70 percent), Nebraska (5.90 percent), South Dakota (2.47 percent), Utah (5.54 percent), Vermont (5.38 percent) and Wisconsin (5.72 percent). Every other state exceeded the benchmark, although Nevada came close with a 6.22 percent error rate.

Alaska recorded by far the nation's highest payment error rate at 23.15 percent, nearly four times the new threshold. New Mexico followed with 16.81 percent, while Delaware reported 16.00 percent. Georgia (15.21 percent), Illinois (14.67 percent) and Oregon (14.14 percent) also ranked among the states with the highest rates.

Several of the country's most populous states also posted figures well above the target, including New York (13.18 percent), Florida (12.97 percent), Massachusetts (12.49 percent), and Virginia (12.32 percent). California, which administers one of the nation's largest SNAP programs, reported an error rate of 10.93 percent, slightly above the national average.

At the other end of the scale, South Dakota's 2.47 percent was the lowest in the country, followed by Idaho at 3.85 percent and Wyoming at 3.96 percent.

Because the benchmark is set at 6 percent, nearly every state currently risks having to contribute toward SNAP benefit costs unless it improves its payment accuracy before the new rules take effect.

States currently above the 6 percent threshold include:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Illinois
• Indiana
• Kansas
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas
• Virginia
• Washington
• West Virginia

Pressure on State Budgets

The policy has also drawn criticism. Earlier this year, in a letter to Congress leaders, a group of organizations including the National Governors Association, National Association of Counties and National Conference of State Legislatures asked for the cost sharing requirement to be delayed to allow states more time to reduce error rates.

In an April 17 report, the Center for Budget and Policy Priorities, a left-leaning think tank, argued that requiring states to contribute toward SNAP benefits for the first time could also create major budget pressures.

"From October 1, 2027, most states will be required to pay a share of SNAP food benefit costs for the first time, potentially totaling hundreds of millions or even billions of dollars in new costs each year for the largest states. States, who must balance their budgets, will soon face painful trade-offs that would likely hurt struggling families: if they can't fully cover these costs by raising taxes or cutting other services, they'll need to further cut SNAP or potentially even withdraw from the program, terminating food assistance for all low-income people in the state."

States Face New Financial Responsibility

As part of President Donald Trump's One Big Beautiful Bill Act, states with payment error rates at or above 6 percent will begin paying a share of SNAP benefit costs from October 1, 2027. For those with the highest error rates, current law allows states with a payment error rate above 13.33 percent in FY 2025 or FY 2026 to delay benefit cost sharing until 2030.

The amount each state must contribute will vary depending on how high its payment error rate is, with states responsible for covering 5 percent, 10 percent or 15 percent of benefits. Fiscal Year 2025 is the first year of data that can be used to determine those payment levels, according to the USDA.

States that exceed the threshold will also have to submit corrective action plans explaining how they intend to reduce payment errors, while additional financial penalties may also apply.

The USDA described the policy as a major shift in oversight of the program, telling Newsweek that the legislation holds "states accountable to issuing accurate benefits to eligible households."

"To date, states are issuing more than $27 million per day in erroneous food stamp benefits—this is program waste and a slap in the face to the taxpayer," the department continued. "Congress rightfully attached accountability to this egregious behavior."

The administration argues that making states financially responsible for a portion of benefits will encourage more accurate eligibility decisions and payment calculations, helping reduce improper payments.

With only a small number of states currently meeting the required benchmark, the latest USDA figures suggest most will need to significantly improve payment accuracy if they want to avoid assuming part of the cost of one of the nation's largest food assistance programs.

Contact Newsweek editors on this story: John Fitzpatrick and Cristina Diciu.

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