Texas To Face $700 Million In Federal Penalties For SNAP Errors Through 2027

Authored by Sylvia Xu via The Epoch Times,

Texas is expected to pay $708 million more by 2027 to the federal government in penalties for erroneous distributions from the Supplemental Nutrition Assistance Program (SNAP).

The state officials released the cost in a presentation to the Senate Committee on Health and Human Services on April 8.

The state payment error rate was estimated to be nearly 9 percent in fiscal year 2025, totaling $627 million in erroneous payments.

Under the One Big Beautiful Bill Act, Texas will need to share an additional food stamps program cost of $708 million, 10 percent of the state’s total program benefits, based on its error rate, beginning October 2027.

Currently, the federal government fully funds the food stamps program, while states only need to pay half of the administrative expenses.

In fiscal year 2024, Texas received nearly $7 billion in federal funding and paid roughly $470 million for administrative costs.

Starting in October 2026, the states will need to share the administration costs at a rate of 75 percent. By 2027, Texas is expected to pay about $826 million more after adding in administrative fees of $117 million.

To avoid that result, Texas needs to bring its error rate down to 6 percent before the fiscal year ends this September.

In Texas, more than 3.2 million residents benefit from the food stamps program as of December 2025, according to U.S. Department of Agriculture data.

A family of four can receive a maximum of $994 per month on a Lone Star Card, which can be used like a debit card at any store that accepts SNAP.

Starting on April 1, SNAP recipients cannot buy candy or sweetened drinks in Texas with their Lone Star Cards.

Improper Payments

The federal government allocated nearly $100 billion to the food stamps program in fiscal year 2024; however, roughly $11 billion of that total was attributed to improper disbursement.

The food stamp error rate doesn’t come from fraud by people receiving the benefits, but from states making mistakes in determining who gets benefits and how much they receive.

Mistakes arise when beneficiaries forget to report changes in income or circumstances, or when government offices commit errors during case processing, according to the Texas Health and Human Services.

Food stamp errors accounted for 7 percent of the approximately $162 billion in improper payments recorded across 68 federal programs in fiscal year 2024, according to a report from the U.S. Government Accountability Office.

Since fiscal year 2003, cumulative federal improper payments have amounted to an estimated $2.8 trillion. The actual amount of improper payments may be significantly higher, according to the report.