How can we consistently reduce our SNAP error rate below 6%?

The North Carolina Department of Health and Human Services (NCDHHS) is working to reduce North Carolina's Supplemental Nutrition Assistance Program (SNAP) payment error rate below 6%. We are not currently seeking additional research partners, but we are still seeking philanthropic funding to support and sustain this work, protect food access for more than 1.4 million North Carolinians, and reduce fiscal risk to the state and counties.

NCDHHS manages North Carolina Food and Nutrition Services (FNS), the state implementation of the federal Supplemental Nutrition Assistance Program (SNAP), which provides critical nutrition support to more than 1.4 million North Carolinians each month.

On July 4, 2025, President Trump signed H.R. 1, which changed SNAP eligibility and SNAP financing. Starting in October 2026, the federal administrative match for SNAP drops from 50% to 25%, with an estimated annual cost increase of $16 million for the state and $69 million for counties.

Beginning October 2027, states with SNAP payment error rates above 6% may be required to cover up to 15% of benefit costs. For North Carolina, that potential risk is estimated as high as $420 million annually.

A SNAP payment error rate measures how accurately eligibility and benefit amounts are determined, based on state and federal quality control reviews of a random sample of active cases. Errors can include both overpayments and underpayments. These errors are generally unintentional and can come from case processing mistakes or beneficiary reporting issues. If a payment error is found, overpayments are recouped from beneficiaries or underpayments of benefits are restored.

NCDHHS is actively working with county Departments of Social Services (DSS) to reduce and maintain NC’s PER to under 6%. Our focus on improvements includes improving policy and training; providing technical assistance and continuous quality improvement at the county DSS and state levels; and enhancing our information technology.

Funding would be used to:

• Strengthen state policy and guidance.
• Train county staff to prevent common payment errors.
• Support county DSS operational and systems improvements.
• Improve beneficiary communications to reduce client-caused errors.
• Implement technology that lowers workload and payment errors.
• Execute solutions over the next three years to sustain lower error rates.

Fund this project.

Project results will inform practical improvements in policy, training, technical assistance, continuous quality improvement, and supporting technology so NCDHHS and county Departments of Social Services can reduce and sustain the SNAP payment error rate below 6%.

NCDHHS currently measures SNAP payment error rates through a two-step state and federal quality control review process of randomly sampled active cases.