Snap Back Inaccurate SNAP Payments ActThis bill requires states to recoup any overpayments of benefits made to Supplemental Nutrition Assistance Program (SNAP) recipients and adjusts the formula for determining a state's liability rate for overpayments.As background, the SNAP quality control system measures how accurately SNAP state agencies determine a household’s eligibility and benefit amount and determines overpayments of benefits and underpayments. States that have comparatively high payment error rates for two consecutive years are assessed a penalty (i.e., liability amount). The Food and Nutrition Service (FNS) must use a statutory formula to determine the liability amount.Under current law, FNS must set a tolerance level for excluding small payment errors in the calculation of payment error rates (e.g., $56 or less in FY2024). This bill reduces the tolerance level for excluding small errors to $0 for FY2025 and each succeeding fiscal year.The bill also requires state agencies to recoup any overpayments of benefits made to SNAP beneficiaries.The bill adjusts the liability rate formula to reduce the state payment error rate based on the percentage of overpayments recouped by the state. Further, the bill increases the multiplier used in the liability rate formula to 25% (from 10%).
The bill's measures are likely to have significant implications on how state agencies manage SNAP payments. If enacted, it would require these agencies to adopt a more rigorous quality control system that prioritizes the swift recoupment of any overpayments. By mandating that state agencies actively pursue and recover overpayments, the bill aims to mitigate the financial burden on taxpayers who cover the costs associated with SNAP funding.
SB302, known as the Snap Back Inaccurate SNAP Payments Act, proposes amendments to the Food and Nutrition Act of 2008 with the primary goal of improving the accuracy of payment calculations under the Supplemental Nutrition Assistance Program (SNAP). The bill intends to reduce taxpayer costs associated with payment errors, which can occur when beneficiaries receive more benefits than they are entitled to. This legislation seeks to rectify these issues by establishing clearer guidelines for payment calculations and enhancing the processes involved in recouping overpayments made to recipients.
While the bill is primarily aimed at addressing payment accuracy, it may face opposition regarding its approach to payment errors and the burden placed on beneficiaries. Critics may argue that increased recoupment efforts could adversely affect low-income families who rely on SNAP benefits, especially if they receive notices to repay funds that they may not realize were overpayments. Additionally, there may be concerns about how these amendments would affect the administrative workload of state agencies tasked with implementing the new requirements, potentially diverting resources from other essential services.