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State Cost-Sharing and Oversight Will Reduce SNAP Fraud, Protect Taxpayers

June 24, 2026

The Honorable Tim Burchett
Chairman
U.S. House Oversight Subcommittee on Delivering on Government Efficiency
Washington, DC 20515

The Honorable Melanie Stansbury
Ranking Member
U.S. House Oversight Subcommittee on Delivering on Government Efficiency
Washington, DC 20515

Dear Chairman Burchett, Ranking Member Stansbury, and Members of the Subcommittee,

National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, commends the Subcommittee for examining how fraud and improper payments weaken the integrity of the Supplemental Nutrition Assistance Program (SNAP). Millions of people across the country depend on this important lifeline, and every dollar lost to waste, fraud, or abuse undermines the well-being of American families and erodes public trust in government.

Fraud and improper payments remain persistent challenges across the federal government. Since 2003, federal programs have made approximately $2.8 trillion in improper payments. In Fiscal Year 2023 alone, 14 federal agencies reported a total of $236 billion in improper payments across 71 government programs. Moreover, the Government Accountability Office (GAO) estimates the federal government loses between $233 billion and $521 billion annually to fraud.

The GAO has repeatedly highlighted deficiencies in the administration of SNAP that leave the program vulnerable to waste, fraud, and abuse. In particular, the government watchdog has singled out failures by state agencies to thoroughly verify recipient eligibility as a primary driver of improper and fraudulent payments.

Given SNAP’s funding structure, the concerns outlined by the GAO come as little surprise. Traditionally, the federal government funded the full cost of food stamp benefits. However, since states actually administer payments, this funding structure created a moral hazard whereby states faced no financial ramifications for making mistakes such as overpayments. It’s no surprise that, from 2003 to 2022, improper payments totaled more than $45 billion.

Giving states a stake in SNAP’s funding is exactly the kind of practical, good-government measure that incentivizes the prudent stewardship of taxpayer dollars, which is why the Working Families Tax Cut introduced state cost-sharing to this program. States will now have to cover a share of benefits costs based on their improper payment rate. For example, if a state’s error rate exceeds 10%, it will be liable for 15% of the total cost of benefits.

We urge the Subcommittee to closely monitor the implementation of state cost-sharing and evaluate how the shift in incentives leads to measurable improvements in program integrity. We appreciate the Subcommittee’s leadership on this issue and stand ready to assist in developing solutions that put taxpayers first.

Sincerely,

Alexander Ciccone
Policy and Government Affairs Manager
National Taxpayers Union