Texas SNAP Error Rate Exceeds Federal Threshold, Could Trigger Penalties

Texas recorded a Supplemental Nutrition Assistance Program (SNAP) payment error rate of 9.34% in fiscal year 2025, well above the new federal threshold of 6%, which could expose the state to financial penalties and corrective action requirements under recently enacted federal reforms.

How did Texas perform?

The U.S. Department of Agriculture (USDA) released its annual SNAP Payment Error Rate report, which measures how accurately states determine eligibility and benefit amounts for food assistance recipients.

According to the report, Texas posted a payment error rate of 9.34% in fiscal year 2025, consisting of a 6.99% overpayment rate and a 2.35% underpayment rate. The figure was below the national average of 10.62, but remained significantly above the federal benchmark of 6%

Why does it matter?

The payment error rate does not necessarily indicate fraud. Instead, it measures errors in eligibility determinations and benefit calculations, which can result in recipients receiving either too much or too little assistance.

Nationwide, USDA reported that improper SNAP payments totaled approximately $10.1 billion in fiscal year 2025. The national error rate exceeded the congressional threshold, prompting renewed scrutiny of state administration of the program.

What the USDA is saying

Agriculture Secretary Brooke Rollins: "These payment error rates are further proof that state accountability is severely lacking in SNAP."

Sec. Rollins added that USDA has taken steps to help states reduce waste and improve program administration.

What happens next for Texas?

Under provisions included in H.R. 1, states with payment error rates at or above 6% may face financial consequences beginning as early as October 2027. States exceeding the threshold must also submit corrective action plans outlining how they will address the causes of payment errors.

The Bottom Line

While Texas performed slightly better than the national average, its 9.34% SNAP payment error rate remains well above the federal standard. The state could face new financial penalties and oversight requirements if it fails to reduce errors in determining SNAP eligibility and benefit payments.