Under new guidelines, states with a high SNAP error rate will be required to pay part of their SNAP benefit costs.
Ohio officials have been fighting fraud within the Supplemental Nutrition Assistance Program (SNAP). The state’s payment error rate was down to 6.76% last year, according to new federal data.
“We’ve made significant progress over the past year and remain committed to becoming even more efficient stewards of these critical public resources,” said Matt Damschroder, Ohio Department of Job and Family Services Director, in a recent statement.
The federal government has set a 6% error rate threshold. Starting in October 2027, states with higher error rates will be required to pay part of their SNAP benefit costs.
The requirement was enacted in President Trump’s One Big Beautiful Bill Act to encourage states to reduce overpayments and reduce systemic fraud in the program.
If Ohio’s payment error rate does not drop below 6% before the deadline, the state will have to start paying 5% of the costs for SNAP benefits. That share would increase with a higher error rate.
Using data from last year, Ohio would be required to foot the bill for $161 million per year towards its SNAP benefits.
From fiscal years 2024 to 2025, the state’s payment error rate dropped from 9.01% to 6.76% as a result of anti-fraud measures being taken by state officials.
In June, the U.S. Department of Agriculture (USDA) and the Ohio Department of Public Safety’s Ohio Investigative Unit (OIU) announced their partnership to take down fraudulent SNAP retailers across Ohio.
The USDA and OIU issued formal violation notices to 19 SNAP retailers across Cincinnati, Cleveland, and Columbus.
“These retailers are charged with committing blatant SNAP fraud, including exchanging benefits for cash, alcohol, tobacco and other illegal items,” said a press release issued by USDA last month.
This joint operation was vital in disrupting these illicit schemes. Not only will these retailers face repercussions from the Food and Nutrition Administration, but OIU has taken further action as well, both administratively and criminally,” said OIU Senior Enforcement Commander Greg Croft. “Because several of these businesses also held liquor permits, it allowed us to hold them accountable on multiple fronts by issuing administrative citations against their permits for the illegal use of benefits.”
The Ohio Department of Job and Family Services has maintained a strong focus on reducing SNAP fraud within the state.
According to a recent release, the Department identified nearly $6.3 million in suspicious transactions across a period of six months.