Washington state is under pressure to improve its error rate in administering food stamp benefits under the Supplemental Nutrition Assistance Program (SNAP), or risk losing substantial federal funding.
Officials are exploring various strategies, including increasing case reviews and creating a specialized team aimed at minimizing errors.
The situation is exacerbated by the recent passage of a major bill by Congressional Republicans, which is expected to cut federal spending on nutrition programs by an estimated $186 billion over the next decade.
This legislation could result in over 130,000 Washington residents losing their food benefits due to new, stricter work requirements, as state officials indicate that administrative costs will shift from the federal government to the states.
Washington might face additional financial burdens, potentially amounting to tens of millions of dollars annually, if it does not adequately address its error rates.
While the federal government covers the SNAP benefits, the individual states are responsible for the program’s administration for low-income residents.
Currently, over 905,000 residents in Washington are receiving SNAP benefits, totaling $167 million as of May, the latest month for which data is available.
Under the new law, states with high error rates will be required to cover between 5% to 15% of food stamp benefits that are typically funded by the federal government.
For instance, if Washington’s error rate falls between 6% and 8%, the state could incur around $100 million in annual costs, while rates between 8% and 10% could push that figure up to $200 million.
Furthermore, an error rate exceeding 10% would result in a staggering $300 million penalty for the state.
As Claire Lane, director of the Seattle-based Anti-Hunger and Nutrition Coalition, stated, “This change is a completely fundamental shift in the responsibility of the federal government to the states.”
The new financial responsibilities for states will begin in October 2027, stemming from the Trump administration’s initiative to combat waste, fraud, and abuse within the SNAP program.
Such costs could compel some states to restrict enrollment or threaten the viability of their food stamp programs entirely.
“There are a lot of states concerned that this is not sustainable,” Lane added.
She emphasized that “making states pay enormously to feed fewer people is going to be tragic for many hungry people.”
Despite these challenges, Washington is currently performing better than many other states with an error rate of 6.06% for the 2024 federal fiscal year, just above the threshold.
Most errors have been categorized as overpayments, while the national average error rate hovers just under 11%.
Looking ahead to the 2025 federal fiscal year, Washington’s SNAP program, known as Basic Food, is trending toward an error rate above 8%, which would increase the state’s financial liability to approximately $200 million.
This comes after Washington successfully reduced its error rate from 9.33% in fiscal year 2022.
States have the option to select between their fiscal year 2025 and 2026 error rates to determine their financial obligations.
Federal fiscal years commence on October 1, and penalties for states will be calculated based on error rates from three years prior in subsequent years.
With significant changes to eligibility rules on the horizon, state officials are increasingly concerned about the potential for greater error rates.
To combat this, the Department of Social and Health Services (DSHS) aims to hire six new full-time employees dedicated to increasing case reviews and monitoring error trends.
In addition, they are looking to establish a data-driven team focused solely on reducing errors.
The agency has also proposed expanding reviews for cases managed by staff members with above-average error rates.
Investing in artificial intelligence tools to help automate parts of the SNAP administration process could also prove beneficial, the agency suggests.
In pursuit of these initiatives, the DSHS has requested nearly $1.7 million in supplemental funding from the governor’s office.
Governor Bob Ferguson is expected to propose budget adjustments to the two-year spending plan he signed in May during the upcoming December legislative session.
The DSHS described this funding request as the “bare minimum” while conveying that they are continuing to develop additional plans to address the challenges.
“We will continue to ensure accuracy while we work with Gov. Ferguson’s office and the Legislature to find solutions that avoid or reduce increased costs to an already strained state budget,” stated DSHS spokesperson Norah West via email.
As officials aim for better accuracy in benefit allocations, they are also taking measures to support DSHS employees and those Washingtonians relying on proper benefit distributions from the outset.
Other states, like Oregon, are taking similar steps with dedicated teams focused on reducing their respective high error rates of 14.06%.
Some states, especially those with severe error rates like Alaska, may receive extensions before having to assume cost liabilities—an amendment meant to secure key votes for the SNAP funding legislation.
The DSHS has also requested an additional $4.6 million for information technology upgrades to comply with the recent federal changes and $2.1 million to join a national clearinghouse system aimed at preventing duplicate benefits across state lines.
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