Snap Back Inaccurate SNAP Payments Act
3/20/2025, 6:35 PMSummary of Bill HR 762
Bill 119 hr 762, also known as the Improving Payment Accuracy in the Supplemental Nutrition Assistance Program (SNAP) Act of 2021, aims to amend the Food and Nutrition Act of 2008 in order to enhance the accuracy of payment calculations and reduce the cost of errors in the SNAP program. The bill seeks to address issues related to improper payments and fraud within the program, ultimately saving taxpayer dollars.The bill includes provisions that require the Secretary of Agriculture to establish a system for monitoring and reducing payment errors in SNAP. This system would involve conducting regular reviews of state agencies' administration of the program and implementing measures to improve accuracy in benefit calculations. Additionally, the bill calls for increased oversight and accountability in the program to prevent fraud and abuse.
Furthermore, the bill includes provisions to enhance data sharing between federal agencies to verify eligibility for SNAP benefits and prevent duplicate participation in other assistance programs. This would help ensure that benefits are being distributed to those who truly qualify for assistance. Overall, Bill 119 hr 762 aims to strengthen the integrity of the SNAP program by improving payment accuracy, reducing errors, and ultimately saving taxpayer dollars. It emphasizes the importance of accountability and oversight in administering federal nutrition assistance programs.
Congressional Summary of HR 762
Snap Back Inaccurate SNAP Payments Act
This bill requires states to recoup any overpayments of benefits made to Supplemental Nutrition Assistance Program (SNAP) recipients and adjusts the formula for determining a state's liability rate for overpayments.
As background, the SNAP quality control system measures how accurately SNAP state agencies determine a household’s eligibility and benefit amount and determines overpayments of benefits and underpayments. States that have comparatively high payment error rates for two consecutive years are assessed a penalty (i.e., liability amount). The Food and Nutrition Service (FNS) must use a statutory formula to determine the liability amount.
Under current law, FNS must set a tolerance level for excluding small payment errors in the calculation of payment error rates (e.g., $56 or less in FY2024). This bill reduces the tolerance level for excluding small errors to $0 for FY2025 and each succeeding fiscal year.
The bill also requires state agencies to recoup any overpayments of benefits made to SNAP beneficiaries.
The bill adjusts the liability rate formula to reduce the state payment error rate based on the percentage of overpayments recouped by the state. Further, the bill increases the multiplier used in the liability rate formula to 25% (from 10%).
