WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) has released its annual Supplemental Nutrition Assistance Program (SNAP) payment error rates for fiscal year 2025, revealing that Indiana is among the states failing to meet federal accuracy standards.
According to the data released Wednesday, Indiana recorded a total payment error rate of 9.77%, significantly exceeding the 6% maximum threshold established by Congress.
The payment error rate evaluates how accurately state agencies determine applicant eligibility and calculate monthly food assistance allotments. Indiana’s 9.77% total error rate is split into two categories of mismanagement:
- Overpayments (7.73%): Taxpayer dollars issued to individuals who were either entirely ineligible or given more monthly assistance than federal guidelines allow.
- Underpayments (2.04%): Instances where qualifying, needy families received less monthly assistance than they were legally entitled to collect.
National Waste Tops $10 Billion
Nationwide, the average SNAP payment error rate for FY 2025 landed at 10.62%. While federal officials noted this is a modest improvement from FY 2024, the widespread discrepancies translate to a staggering $10.1 billion in improper payments across the country.
The data release comes amid an aggressive push by the Trump administration to tie administrative negligence to strict financial penalties.
“These payment error rates are further proof that state accountability is severely lacking in SNAP,” said Agriculture Secretary Brooke L. Rollins. “USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”
New Financial Consequences Ahead for Hoosier Taxpayers
Under newly implemented guardrails passed in H.R. 1 (formally known as the One Big Beautiful Bill Act of 2025), states will no longer be able to mismanage SNAP funds without consequence.
The legislation introduces a graduated penalty system. Because Indiana’s error rate exceeds the 6% congressional ceiling, the state will be forced to use its own state revenue to cover a percentage of its total federal SNAP benefit funding. Depending on final calculations, states exceeding the limit will be responsible for matching 5%, 10%, or 15% of their benefits.
For most affected states, these financial penalties will take effect on October 1, 2027, utilizing these FY 2025 error rates as the baseline for the penalty structures.
Corrective Action Required
In addition to the upcoming financial clawbacks, Indiana and other non-compliant states must immediately submit a formal Corrective Action Plan to the USDA’s Food and Nutrition Administration. The plan must detail the root causes of the state’s technical and administrative issues and provide a roadmap for how local caseworkers will bring error rates back under the 6% limit.
State agencies could also face separate, independent quality control fines as the federal review continues.
