Details matter – even when trying to be concise!
Reader BR shot an email in response to Saturday’s column regarding changes to the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program, specifically the fact that Illinois could have to pay $700 million in penalties starting in October 2027 if it doesn’t cut the error rate below 10% (or under 6% to avoid any penalties altogether).
I noted the federal standard for an erroneous payment is anything too high or too low by more than $57. But that left some questions unanswered.
“When stating ‘error,’ what does that mean?” BR asked. “Is it people not qualified to receive benefits (e.g., income too high; deceased, other reason)? Is the USDA examining tax records to arrive at a decision? If not, what is their basis?”
A lot of good information is available from a September 2024 document that the U.S. Government Accountability Office produced in response to the U.S. House of Representatives’ Appropriations Committee (specifically its legislative branch subcommittee). Access the 17-page question-and-answer document at tinyurl.com/SNAPqanda.
Of initial note is the report pointing to PaymentAccuracy.gov, an official site that “compiles and synthesizes agency-reported information on improper payments to help taxpayers, policymakers and oversight bodies track progress and identify risks across agencies and programs.” That site stems from the 2019 Payment Integrity Information Act, and although it singles out the Biden administration, the numbers do carry into fiscal 2025.
According to the GAO report, when states make improper payments, the main reason is failing to verify eligibility, which incorporates several factors (citizenship, education, employment, finances, household size, identity and residency). It further explains the USDA’s Food and Nutrition Services’ methodology: each state develops a sampling and estimation framework for FNS approval, then conducts “monthly quality control reviews of a statistical sample of households participating in SNAP.”
Those samples generate the rates at which households get too much or too little. States select and review about 50,000 households nationwide, then FNS regional officials select subsamples, reviewing about 25,000 for compliance with certification and quality control processes and procedures.
According to the GAO report, 42 million people got SNAP benefits in fiscal 2023. With an average of five people per home, that’s 8.4 million households. So it’s understandable the government uses mathematically appropriate methods and statistical models to reach its conclusions, but two other things are true:
One, that these numbers come from established principles doesn’t change the arbitrary nature of the $57 error figure; and two, it’s no wonder I couldn’t jam all these details into one 450-word column!
Thanks to BR for the question. Anyone interested should consider pursuing a deeper dive. Even better: Ask your elected officials to discuss their familiarity with the process and how they feel about our performance.
• Scott T. Holland writes about state government issues for Shaw Local News Network. He can be reached at sholland@shawmedia.com.
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