Millions in SNAP Overpayments: Alabama and Florida Required to Submit Corrective Action Plans

(WALA) – Alabama is performing better than most states when it comes to managing food assistance dollars – but the problem is getting worse.

The U.S. Department of Agriculture released its fiscal year 2025 Supplemental Nutrition Assistance Program payment error rates today, measuring how accurately states determine who qualifies for SNAP and how much they should receive. The national payment error rate for fiscal year 2025 is 10.62 percent.

Alabama’s error rate came in at 9.52 percent—up from 8.32 percent in 2024. That breaks down to 8.82 percent in overpayments and 0.70 percent in underpayments.

Florida’s situation is more dire. The state sits at 12.97 percent, more than double the federal threshold of six percent that Congress set as acceptable. Florida’s errors include 11.54 percent in overpayments and 1.43 percent in underpayments.

Nationally, these 2025 errors add up to 10.1 billion dollars in improper payments. That includes both overpayments to ineligible recipients and underpayments to those who qualify.

The Trump administration is now enforcing real consequences for states that exceed the six percent threshold. States with error rates at or above that benchmark will be forced to cover portions of their own SNAP benefits, with penalties kicking in for most states starting October 1, 2027.

Both Alabama and Florida are now required to submit corrective action plans to the USDA detailing exactly how they’ll fix the problem. We have reached out to the Alabama and Florida agencies responsible for distributing SNAP benefits for comment but have not yet heard back.

Agriculture Secretary Brooke Rollins said in a statement: “These payment error rates are further proof that state accountability is severely lacking in SNAP. USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics.”

The FY 2025 payment error rate is the first year that could be used to calculate those state penalties-making this the baseline for what’s coming next fiscal year.