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Snap Back Inaccurate SNAP Payments Act
2/5/2024, 11:45 AM
Summary of Bill HR 6501
The bill aims to improve the accuracy of SNAP payments by requiring the Department of Agriculture to establish a system for identifying and correcting errors in SNAP payments. This system would include regular reviews of SNAP payment accuracy, as well as measures to prevent and detect fraud and abuse in the program.
Additionally, the bill includes provisions to increase transparency and accountability in the SNAP program. It requires the Department of Agriculture to report to Congress on the accuracy of SNAP payments, as well as any actions taken to address errors and fraud in the program. Overall, the Snap Back Inaccurate SNAP Payments Act seeks to ensure that SNAP benefits are distributed accurately and efficiently, while also holding the program accountable for any errors or misuse of funds.
Congressional Summary of HR 6501
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 (e.g., $54 or less in FY2023). This bill reduces the tolerance level for excluding small errors to $0 for FY2024 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 formula to 25% (from 10%).
