TAXPAYERS are slated to owe tens of millions of dollars under a new budget reconciliation bill in order to make up for federal cuts to SNAP benefits.
As the government aims to address states’ payment errors for the food security program, American taxpayers will bear the brunt of the costs.
GettyTaxpayers may be forced to pay tens of millions of dollars under a new bill[/caption] GettyStates’ payment errors regarding SNAP could come back to bite taxpayers[/caption]Republicans in Congress are pushing to pass new laws on taxes and government spending that may cost taxpayers tens of millions of dollars.
One of the changes that would roll out under the legislation, called the “One Big Beautiful Bill,” impacts the Supplemental Nutrition Assistance Program, or SNAP, which was formerly known as food stamps.
The bill aims to reduce the national deficit via a variety of tactics, including reducing spending through a state cost-share for SNAP benefits.
The cost-share would take into account a state’s payment error rate – a SNAP performance measure calculated using overpayments and underpayments.
It measures the accuracy of each state’s eligibility and benefit determinations, with an error rate under 6% considered ideal.
The “One Big Beautiful Bill” aims to create a state cost-share for SNAP benefits – a move that would be very costly for taxpayers.
States currently face no financial consequences for SNAP payment errors, but under the bill’s proposal, they would be forced to pay a certain percentage of the error.
Under the Senate plan, states with a SNAP error rate under 6% would not be required to pay anything.
States with an error rate from 6% to below 8% would incur a 5% cost-share, while a rate of 8% or more but less than 10% would result in a 10% cost-share.
A SNAP error rate at or above 10% would mean a 15% cost-share.
COUGH IT UP
Should the “One Big Beautiful Bill” pass along with the state cost-share for SNAP benefits, taxpayers will be forced to shell out tens of millions of dollars.
For example, Kansas had a 12.07% payment error rate in fiscal year 2023, according to USDA data.
The state received around $417 million in regular SNAP benefits that year.
Under the terms of the provision, this would equate to a 15% cost-share, meaning that Kansas taxpayers would be forced to cough up around $63 million.
What are SNAP benefits?
Over 41 million people in America receive Supplemental Nutrition Assistance Program benefits each month.
SNAP provides food benefits to low-income households to help people get groceries.
Recipients get money on a debit card that can be used at grocery stores and farmers markets.
The amount of money distributed depends on several factors including how much money you make, how much money you receive from other benefits, and how many people are in your household.
The electronic benefits can help people buy food including food and vegetables, meat, fish, dairy products, breads, cereals, and snacks.
You can’t use SNAP to buy alcohol, cigarettes, hot foods, or cooking utensils.
Source: USDA
The Kansas Department for Children and Families, which administers SNAP, still has time to improve the state’s payment error rate so taxpayers do not have to pay so much money.
If the state cost-share provision is passed into law, it would take effect starting in fiscal year 2028 and use the payment error rate from either this year or next year.
STATE STATS
The national error rate average in fiscal year 2023 was 11.68%.
The majority of US states had high enough payment error rates that they would be subject to the benefit cost-share.
Alaska had the highest error rate in the country, standing at a shocking 60.37%.
Other states also had high error rates in 2023, with Delaware, Washington DC, Hawaii, New Jersey, and South Carolina all above 20%.
Only seven states had error rates under 6% that year and would not have to pay the federal government:
Idaho Iowa South Dakota Utah Vermont Wisconsin WyomingWhen the USDA rolled out its fiscal year 2024 statistics on error rates, the national average improved, but only nine states states and territories had error rates under 6%.
While the “One Big Beautiful Bill” could cost taxpayers millions if benefit cost-share is implemented, the legislation may save you money in other ways.
For example, American families can get an instant $1,000 bonus – and you may have unknowingly qualified.
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