Mississippi Faces Potential $75 Million SNAP Cost Due to Federal Rule Changes and Error Rates
Mississippi is facing a potential annual cost of $75 million for its Supplemental Nutrition Assistance Program (SNAP) benefits due to new federal requirements and the state's payment error rate. Starting October 1, states will be responsible for 75% of SNAP administrative costs, an increase from the previous 50%. Furthermore, beginning in fiscal year 2028, states may be required to contribute directly to SNAP benefit costs based on their payment error rates. Mississippi's payment error rate for fiscal year 2025 was 9.51%, which, according to the Center on Budget and Policy Priorities, would place the state in the 10% cost-share tier, equating to approximately $75 million annually. Governor Tate Reeves has stated that reducing this error rate is a priority, aiming to get it below 8% to lower the state's share to 5%, which would cost an estimated $40 million annually. The USDA defines payment error rates as a measure of accuracy in determining eligibility and benefit amounts, including overpayments and under...