(The Center Square) – Payment errors for Arizona’s food stamps may soon cost the state’s taxpayers $200 million.
According to the U.S. Department of Agriculture, Arizona’s Supplemental Nutrition Assistance Program payment error rate for Fiscal Year 2025 was 10.8%, which ranked 33rd in the country.
Arizona’s SNAP payment error rate increased from 8.84% in FY 2024, according to USDA data.
The state’s high payment error rate could cost the state nearly $200 million if it does not bring it below 6% by FY 2028, according to Common Sense Institute Arizona, a nonpartisan research organization.
Changes made in federal law by H.R. 1, also known as the One Big Beautiful Bill Act, were designed to reduce the costs of federal programs such as SNAP.
New federal law regulations say states with a SNAP payment error rate below 6% will not be required to enter into a cost-sharing agreement with the federal government. However, if states have payment error rates between 6% and 8%, they will be required to do a 5% match.
Furthermore, states with payment error rates between 8% and 10% must perform a 10% match, and those with rates above 10% must perform a 15% match.
If Arizona has the same, 10.8% payment error rate in FY 2028, the state would have to make a 15% match.
Based on the FY 2025 payment error rate numbers, nine states are below 6%, while another six states are between 6% and 8%.
Additionally, 16 states are between 8% and 10%, and another 19 are above 10%.
According to Zach Milne, a senior economist for Common Sense Institute Arizona, the Grand Canyon State has “every incentive to reduce its SNAP payment error rate.”
“Improving program accuracy strengthens program integrity and helps the state avoid potentially significant federal cost-sharing penalties,” he told The Center Square, answering questions via email.
Milne described Arizona’s high SNAP payment error rate as a “relatively recent phenomenon.”
“In FY 2019, the state’s error rate was 5.2%, below the new 6% threshold. In the years since, it has remained well above that level. The objective should be to return to the level of administrative performance Arizona achieved prior to the pandemic,” the economist said.
“Doing so would improve the accuracy of benefit payments and help protect taxpayers from unnecessary costs,” Milne added.
During the 2026 Arizona legislative session, the state Legislature passed several bills aimed at reducing the state’s SNAP payment error rate, but Democratic Gov. Katie Hobbs vetoed them.
According to Hobbs, SB 1002, SB 1331, SB 1334 and HB 2206 all contained “yet more unfunded mandates and not a dollar to help our state agencies implement these changes now, or to modernize our systems for the future.”
“SNAP is the most robust and effective anti-hunger tool we have in Arizona. I know this firsthand. It’s also the most secure, thanks to strong anti-fraud measures and oversight,” Hobbs said. “Instead of creating more needless frustration for Arizona families, I invite you to join me in actually lowering costs for them.”
