What the GAO discovered about SNAP overpayments

The Government Accountability Office (GAO) has documented that the SNAP program—formerly known as food stamps—has been making improper payments since at least 2014. "Improper" means the money went to people who did not meet the income or household rules, or the amount paid was wrong. The GAO found that states were not catching these errors before sending out benefits, and federal oversight was not catching them afterward either.

This matters to you because improper payments reduce the money available for people who do may have access to, and they can also affect how the program is run. If you receive SNAP or are thinking about it, understanding what improper payments are and how they happen helps you know what to expect when you report your household information.

Key Takeaways

  • The GAO found that SNAP has paid out billions in improper payments since 2014 because states did not verify income and household details before sending benefits.
  • Improper payments include money sent to households that earned too much, did not report a household member, or had assets above the limit.
  • States are responsible for checking that applicants tell the truth on their forms, but many states do not verify information before paying out benefits.
  • If you receive SNAP, you are required to report changes in income, household size, or living situation within a set timeframe, usually 10 days.

How improper payments happen in SNAP

Improper payments occur when a household receives benefits it should not have, or receives more than it should. The most common reasons are: someone in the household earned income that was not reported, a household member moved out but was still counted, or assets like savings or a vehicle were not disclosed. Some improper payments happen because the household made a mistake. Others happen because someone intentionally hid information.

The GAO's work showed that many states do not verify what applicants report before sending out the first payment. Instead, they rely on the applicant to tell the truth. Some states do spot-check cases after the fact, but by then the money is already gone. Federal rules require states to verify income through wage records or tax documents, but the GAO found that verification was not happening consistently across states.

The dollar amounts are significant. While the GAO reports vary by year, improper payments have represented a meaningful share of total SNAP spending. The problem is not new—it has been documented for over a decade—but it has not been fully solved.

What counts as an improper payment

An improper payment is any SNAP benefit that should not have been sent out, or that was sent in the wrong amount. This includes:

  • Payments to a household whose income was above the limit but was not reported correctly
  • Payments that included a household member who no longer lived there
  • Payments made after a household member started working but did not report the job
  • Payments made when a household had assets (like a car or savings account) that should have disqualified them
  • Overpayments when the benefit amount was calculated wrong because information was missing or false

Not every mistake is treated the same way. If you made an honest error—for example, you forgot to report that your child's father moved in—the state may ask you to repay the overpayment, but you usually will not face criminal charges. If the state finds that you intentionally hid information to get more benefits, that is fraud, and it can lead to penalties, repayment demands, or criminal prosecution.

Why states struggle to catch improper payments

States face real obstacles in preventing improper payments. Many state SNAP agencies are understaffed and do not have the technology to quickly cross-check what applicants report against wage records, tax returns, or other databases. Verifying income for every applicant takes time and money. Some states prioritize speed—getting people benefits quickly—over verification, especially during times when applications surge.

Federal rules require states to verify certain information, but enforcement has been inconsistent. The GAO has repeatedly recommended that the U.S. Department of Agriculture (USDA), which oversees SNAP nationally, do more to hold states accountable. The USDA has made some changes, but the problem has persisted.

Another challenge is that household circumstances change. Someone might report truthfully when they explore, but then get a job or have a household member move in and forget to report it. States are supposed to catch these changes when households recertify—usually every 12 months—but if someone does not report the change and the state does not verify, the improper payment continues.

What you need to report to avoid being part of the problem

If you receive SNAP, you have a legal obligation to report changes in your household. Most states require you to report within 10 days of a change. The changes that matter most are: someone in your household gets a job or loses a job, someone moves in or moves out, your income changes, or you receive money from somewhere else (like unemployment, child support, or a tax refund).

When you report a change, keep a record of when you reported it and how—by phone, online, or in person. If the state later says you owe money back because of an unreported change, you will want proof of when you told them. Some states have online portals where you can report changes and get a confirmation number. Others require you to call or visit in person.

If you do not report a change and the state finds out later, you may be asked to repay the overpayment. The state can take the money back by reducing your future SNAP payments, or by sending you a bill. If the state believes you intentionally hid information, they can also disqualify you from the program for a set period.

What happens when improper payments are discovered

When a state or the federal government finds an improper payment, the household is usually notified and asked to repay the money. The repayment process varies by state. Some states reduce your monthly SNAP benefit until the debt is paid off. Others send a bill. A few states may pursue the debt through a collection agency or small claims court, though this is less common for SNAP overpayments.

If you disagree with the state's finding that you were overpaid, you have the right to request a hearing. At the hearing, you can present evidence that you reported the change on time, or that the state made an error in calculating your benefits. Having documentation—like a letter you sent, a phone call confirmation, or a pay stub—helps your case.

The GAO's findings have led to some policy changes. States are now required to report improper payment rates to the federal government, and some states have invested in better technology to verify income. But the problem has not been eliminated, and households continue to receive overpayments that they later have to repay.

Frequently Asked Questions

If I get an overpayment notice, do I have to pay it back right away?

No. Most states allow you to repay over time through reduced monthly benefits, usually at a rate of 10 percent of your monthly benefit. You can request a hearing to dispute the overpayment before you start repaying. Ask your caseworker about the repayment schedule and your right to a hearing.

What if I reported a change but the state says I didn't?

Request a hearing and bring any proof you have: a confirmation number from an online report, a letter you mailed, a phone call record, or a witness who was with you when you reported it. The state has to prove you did not report the change. If you have documentation, you have a strong case.

Can I be charged with a crime for an improper payment?

Only if the state believes you intentionally lied to get more benefits. Honest mistakes are handled as overpayments you repay. Fraud is a criminal matter and is rare, but it can result in prosecution, jail time, and restitution. If you are unsure whether something you did counts as fraud, talk to a legal aid attorney.

How do I know if my state is verifying income before paying me?

You can ask your caseworker what verification your state does before sending out the first payment. Some states verify when ready; others verify later during recertification. Knowing your state's process helps you understand what documents to have ready and what to expect.

Does the GAO report mean SNAP is broken?

The GAO report means SNAP has a real problem with improper payments, but it does not mean the program is broken or that you should not explore if you need help. Millions of people receive SNAP correctly every month. The issue is that some people get benefits they should not, which takes resources away from those who do may have access to. The program is working to improve.