House GOP Targets Food Stamp Fraud with Bold New Funding Rules

House Republicans introduced a new proposal Monday that would tie federal funding for the Supplemental Nutrition Assistance Program (SNAP) to each state’s accuracy in administering the program, aiming to reduce payment errors and curb fraud.

The proposal, unveiled by the House Agriculture Committee, forms part of the broader legislative package President Donald Trump has referred to as his “one big, beautiful bill.”

The draft bill would significantly restructure how food stamp funds are distributed by requiring states with high error rates to cover a larger share of the program’s costs.

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Under the current system, SNAP benefits are entirely funded by the federal government but administered by individual states.

States are allowed broad discretion in setting eligibility rules, enforcement policies, and fraud prevention mechanisms — over 20 areas of program implementation fall under state control.

According to the new plan, all states would be required to contribute at least 5% of their food stamp expenditures.

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However, states with a payment error rate above 10% would be mandated to pay 25% of the program’s cost.

Error rates refer to benefits issued improperly, either due to administrative mistakes, fraud, or eligibility misjudgments.

U.S. Department of Agriculture (USDA) data from fiscal year 2023 shows that 28 states had error rates above the 10% threshold.

In 2023, more than $10 billion of taxpayer-funded SNAP benefits were erroneously sent out. Our portion of the One Big, Beautiful Bill holds states accountable for administering the SNAP program efficiently and transparently. pic.twitter.com/MiknORxo6j

— House Committee on Agriculture (@HouseAgGOP) May 13, 2025

Alaska topped the list with a 60% error rate, indicating that a majority of its food stamp payments were distributed in error.

New Jersey recorded a misallocation rate above 33%, while South Carolina’s error rate exceeded 20%.

The financial impact of these proposed changes would be significant for several large states.

California, with a 13.4% error rate, would be required to fund 25% of its $15 billion annual SNAP expenditure, totaling more than $3 billion.

New York, with a 12.68% error rate, would have to cover 25% of its $8 billion in food stamp spending, or approximately $2 billion.

Even states with lower error rates would face new financial responsibilities.

Wisconsin, for example, had a 5.15% error rate in 2023.

Under the plan, the state would be responsible for 5% of its $1.7 billion in SNAP benefits, or roughly $100 million.

The changes come amid broader Republican efforts to cut federal spending by $1 trillion.

Food stamp expenditures have more than doubled since 2019, according to data from the Congressional Budget Office.

The rise in costs was partly driven by emergency pandemic policies that temporarily boosted benefits.

A report from the Economic Policy Innovation Center (EPIC), citing federal data, states that SNAP spending has grown by more than $100 billion since 2001 when adjusted for inflation.

House Republicans have also floated additional measures to reduce costs, including strengthening work requirements and eliminating food stamp access for non-citizens.

🚨 Taxpayer-funded benefits like SNAP are intended for Americans in need, not foreigners who break the law to enter this country.

That’s why I fought to include my proposal in the Agriculture Committee’s reconciliation plan, saving taxpayers up to $8 billion over the next… pic.twitter.com/xFD2aBRcoJ

— Rep. Mary Miller (@RepMaryMiller) May 13, 2025

Rep. Glenn Thompson (R-PA), chairman of the House Agriculture Committee, said the proposed funding model reflects the principle that states must take financial responsibility if they want control over how SNAP is managed within their borders.

“If [states] want skin in the game, if they want to be able to control and manipulate the requirements that we set … they need to be paying part of the bill,” Thompson said in an interview with Politico.

The draft legislation is expected to advance as part of the broader spending negotiations underway in Congress.

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