2. New Federal Law Puts SNAP Funding at Risk for 41 States

States could lose millions in federal funding if they fail to reduce errors in SNAP food stamp payments.

Under a new federal law, states must keep their error rates below 6% to avoid financial penalties.

As of fiscal year 2025, only nine states met that goal, while 41 remained at risk.

The national error rate is about 11%, with Alaska reporting the highest at 23%.

Error rates include both overpayments and underpayments caused by administrative mistakes.

SNAP winners and losers: Which states are facing possible funding cuts? | RochesterFirst