The GAO report on SNAP improper payments, explained
In 2014, the Government Accountability Office (GAO) began tracking how often the Supplemental Nutrition Assistance Program (SNAP) pays out money it shouldn't — either because someone received more than they were may have access to to, or because they received benefits they didn't may have access to for at all. The GAO's findings showed that improper payments have been a persistent problem, with states making mistakes in may be able to access determinations, income calculations, and household composition assessments. These errors result in both overpayments (money given out that should not have been) and underpayments (money withheld that should have been issued).
The report matters because it documents a real gap between what SNAP rules say should happen and what actually happens in practice across the country. States administer SNAP locally, which means error rates and the types of mistakes vary. Understanding what the GAO found helps explain why some people receive notices about overpayments years after the fact, and why the federal government and states have been working to tighten verification processes.
Key Takeaways
- The GAO found that SNAP improper payment rates have remained between roughly 2 and 4 percent of total benefits paid out since 2014, meaning billions of dollars in errors annually.
- The most common causes of overpayment are mistakes in calculating household income, failing to verify reported income changes, and errors in determining household size or composition.
- States are responsible for catching these errors during the application and recertification process, but staffing and system limitations mean many slip through.
- If you receive a notice that you were overpaid, you have the right to request a hearing and explain your circumstances before the state can recover the money.
- Underpayments also occur regularly — people denied benefits or given less than they may have access to for — but receive less attention because they do not trigger debt collection.
How the GAO measures improper payments
The GAO does not conduct its own SNAP reviews. Instead, it analyzes data from the USDA's Office of Inspector General, which runs a statistical sampling program called the Payment Error Rate Measurement (PERM). Each year, PERM reviews a random sample of SNAP cases across all states to determine whether the benefit amount paid was correct based on the rules in place at the time.
An improper payment is counted when the actual benefit amount differs from what the rules say it should have been. This includes cases where someone was paid too much, paid too little, or paid at all when they should have been denied. The GAO's role is to track these rates over time and identify trends — which states have higher error rates, whether errors are increasing or decreasing, and what the underlying causes are.
Since 2014, the improper payment rate has fluctuated but remained in the 2 to 4 percent range in most years. That may sound small, but applied to the roughly $150 billion in SNAP benefits distributed annually (the amount varies by year and economic conditions), it represents billions of dollars in errors.
The most common types of SNAP errors
Income calculation mistakes are the leading cause of overpayment. SNAP benefits are based on household gross income, and the rules for what counts as income are detailed. Errors occur when caseworkers fail to include all income sources, miscount hours worked, or do not properly account for deductions. A household might report self-employment income incorrectly, or a caseworker might miss that a household member started a job.
Failure to verify income changes is the second major category. SNAP rules require that households report changes in income within 10 days in most states. When a household member gets a job or loses one, the benefit amount should change. Many overpayments happen because the state did not verify that a reported change actually occurred, or did not process the change in time. Some states lack real-time access to wage data, making verification slow.
Household composition errors also drive improper payments. SNAP benefits depend on who lives in the household and their relationship to the applicant. Mistakes occur when someone moves in or out and the household does not report it, or when a caseworker incorrectly determines who should be counted. A household member turning 18 or leaving for college can change may be able to access, but these changes are often missed.
Citizenship and immigration status verification failures account for a smaller but significant share of errors. SNAP requires that applicants be U.S. citizens or may have access to immigrants. When states do not properly verify status through available databases, ineligible people may receive benefits.
Why states struggle to prevent these errors
States are responsible for administering SNAP and catching errors before they happen. In theory, caseworkers should verify every piece of information on an application and recertify households regularly. In practice, several barriers make this difficult.
Staffing shortages are widespread. Many state SNAP agencies are understaffed, meaning caseworkers carry large caseloads and have limited time to thoroughly review each case. During economic downturns or public health emergencies, caseloads spike and verification becomes even less thorough. Some states have reported caseworker vacancy rates above 20 percent.
System limitations also play a role. Many states still use older computer systems that do not communicate with each other or with federal databases. A caseworker in one state may not have real-time access to wage information, employment records, or even what another state agency knows about the same household. This means verification happens slowly or not at all.
Funding constraints affect training and quality control. States receive federal money to administer SNAP, but the amount does not always keep pace with caseload growth or the cost of modernizing systems. Some states have cut back on quality assurance reviews that would catch errors before benefits are issued.
What happens when the state finds an overpayment
When a state or the USDA identifies that someone was overpaid, the state sends a notice explaining the overpayment amount and the reason. The notice will state how much money needs to be repaid and may offer a repayment plan — typically deducting a percentage from future SNAP benefits each month.
You have the right to request a hearing before the state can begin collecting. This is called an overpayment hearing or recoupment hearing, depending on your state's terminology. At the hearing, you can present evidence that the overpayment was not your fault, that the state made an error, or that you have a hardship that should affect the repayment plan. If the hearing officer agrees that you were not at fault, the overpayment may be waived.
If you do not request a hearing or if the hearing upholds the overpayment, the state will begin collecting. Most states deduct 10 percent of your monthly SNAP benefit until the debt is paid. Some states allow you to request a different repayment rate if you can show financial hardship. The overpayment can also be referred to a collection agency or offset against other state benefits or tax refunds.
Underpayments and denied benefits
The GAO's report also documents underpayments — cases where someone received less than they were may have access to to, or was wrongly denied entirely. These errors are harder to track because they do not trigger debt collection notices. A person who was underpaid may never know it, or may only discover it years later if they request a case review.
Underpayments happen for the same reasons as overpayments: income miscalculations, failure to verify changes, and household composition errors. Someone might be denied because a caseworker incorrectly determined their income was too high, or because a citizenship verification failed even though the person was may be able to access. Unlike overpayments, underpayments do not create a financial obligation for the household — they simply mean less assistance was provided than the rules allowed.
If you believe you were underpaid or wrongly denied, you can request a hearing in your state. You will need to provide documentation of your household composition, income, and expenses to show that you should have received more or should have been approved.
What states are doing to reduce errors
Since the GAO began tracking improper payments, many states have invested in system upgrades and verification improvements. Some states now use automated income verification through wage databases, which catches changes faster. Others have expanded quality assurance programs that review a sample of cases each month to identify errors before they result in overpayments.
The federal government has also pushed for better data sharing. The USDA has worked with states to connect SNAP systems to employment databases, tax records, and other state agencies' information. This allows caseworkers to verify information without asking households to provide documents repeatedly.
However, progress is uneven. Wealthier states with more resources have modernized faster, while states with tighter budgets lag behind. The GAO has recommended that the USDA provide more funding and technical support to help all states improve verification processes, but implementation has been gradual.
Frequently Asked Questions
Can the state take back SNAP benefits from years ago?
Yes, but there are time limits. Most states can pursue overpayments for up to one year after the overpayment occurred, though some states have longer windows. If you receive a notice about an overpayment from several years back, check your state's rules — you may be able to challenge it as untimely. Request a hearing to dispute the overpayment amount or the state's authority to collect it.
What if I reported a change but the state did not process it?
If you can show that you reported an income change or household change within the required timeframe and the state failed to process it, you may not be at fault for the overpayment. Bring documentation of your report — a letter you sent, a phone call log, or a receipt from submitting documents in person — to your overpayment hearing. The hearing officer can waive the overpayment if the state's error is clear.
Does an overpayment affect my ability to get SNAP in the future?
An outstanding overpayment debt does not automatically disqualify you from SNAP, but it can complicate your case. Some states will offset new benefits against old debts. If you are reapplying, disclose the overpayment and ask whether it will affect your new case. You can also request a payment plan for the old debt separate from your current benefits.
How do I know if I was underpaid?
You will not receive a notice about underpayment the way you do for overpayment. If you suspect you received less than you should have, request a case review from your state SNAP office. Bring documentation of your household size, income, and expenses. The state will recalculate your benefit amount and issue back payments if an error is found, though the time period for back payments is usually limited to one year.
What should I do if I receive an overpayment notice?
Read the notice carefully to understand the reason for the overpayment and the amount. If you disagree, request a hearing within the timeframe stated in the notice — usually 10 to 30 days depending on your state. Gather any documents that support your case: pay stubs, letters from employers, proof of household composition, or evidence that you reported changes on time. At the hearing, explain your side and present your documents. Do not ignore the notice, as the state will begin collecting if you do not respond.