The Supplemental Nutrition Assistance Program (SNAP) is facing its first-ever funding crisis on November 1, as the ongoing government shutdown persists, raising concerns about systemic fraud and misuse.
As the shutdown drags on, Democrats are blocking short-term funding resolutions. This could make SNAP benefits more costly for around 42 million Americans—roughly 12.5% of the population. There’s a growing debate on whether the program effectively assists the neediest or has become a target for exploitation.
“About one in ten dollars spent on food stamps in the country is mishandled,” noted Hayden DuBlois, a data analysis director at the Government Accountability Foundation. “This means that while policymakers are trying to manage dwindling food stamp resources due to the shutdown, the funds lost to improper spending this year might actually cover the legitimate food stamp needs for the entire month of November.”
SNAP, a federally funded initiative managed by the U.S. Department of Agriculture (USDA) through its Food and Nutrition Service, has seen a significant increase in participation over the last twenty years. Monthly participants skyrocketed from 17.2 million in 2000 to 41.7 million in 2024, according to USDA data.
While the federal government sets certain benefit levels and rules, states play a crucial role in determining eligibility, issuing Electronic Benefits Transfer (EBT) cards, and tackling fraud. In 2023, approximately $10.5 billion, or about 11.7% of SNAP benefits, were lost to fraud. This misappropriation stems from issues involving both recipients and retailers.
The states with the highest error rates include Alaska, New Jersey, and South Carolina, among others, with error rates ranging from 20% to over 60%. The national error rate, although relatively small, is projected to rise by 10.9% in 2024.
Issues like identity fraud, account takeovers, and misrepresentation are significant contributors to the fraud. These losses, estimated at $1.3 billion annually, could have been used to support struggling families. “Every dollar lost to fraud is a dollar that should have gone to vulnerable Americans, particularly children,” DuBlois remarked. “The scope of SNAP fraud reaches far beyond mere errors.”
Additionally, SNAP eligibility is currently under scrutiny. About 11% of participants come from foreign backgrounds, including 6% who are naturalized citizens and others who are non-citizens. Recent data links roughly $15 billion in food stamp expenditures to the increase in foreign nationals in the U.S. since the Biden administration took office.
The One Big Beautiful Bill Act, which was enacted under President Trump, aimed at reducing fraud and abuse in SNAP. It introduced work requirements, which could potentially limit benefits if the error rate exceeds 6%. Furthermore, it restricts eligibility to U.S. citizens and permanent residents, cutting off assistance for other immigrant categories.
DuBlois emphasized that bipartisan efforts to address issues surrounding food stamp distribution are crucial, especially now. Critics frequently express concerns about how SNAP benefits are utilized, noting that a significant portion of the benefits is spent on unhealthy food items.
USDA has announced that SNAP benefits would not be distributed on November 1, yet a federal judge recently ordered that funding for the program should continue through a $5 billion emergency fund. However, the Agriculture Secretary, Brooke Rollins, explained that even if these funds could be used, they would fall short of covering even half of the expected benefits for November.
