Episode Overview

Podcast: Priorities Podcast by StateScoop
Title: States are trying to reduce SNAP error rates to keep the program alive
Date: January 14, 2026
Host: Sophia Foxowell
Guest: Rebecca Piazza, Executive Director of SafetyNet Strategy, Code for America

This episode explores the profound changes coming to the administration of the Supplemental Nutrition Assistance Program (SNAP) due to new federal rules in HR1. The conversation centers on how states are bracing for increased administrative and financial responsibilities, and the urgent push to lower SNAP payment error rates. The discussion delves into the challenges of modernizing outdated IT systems, leveraging automation and AI, balancing program integrity with participant access, and the very real threat of states being forced to reconsider their participation in SNAP.

Key Discussion Points & Insights

1. Federal Changes and State-Level Impacts (HR1)

[02:31] – [05:10]

• Expanded Work Requirements: HR1 increases the number of SNAP recipients subject to work rules, including veterans and unhoused individuals previously exempt. This complicates program administration and increases the risk of eligible people losing benefits due to documentation hurdles.
• Shift in Administrative Costs: States will shoulder 75% of SNAP administrative costs (up from 50%).
• Potential Benefit Cost Sharing: For the first time, states may have to partially fund the actual benefits distributed to SNAP recipients, depending on their payment error rates—a potential financial burden amounting to hundreds of millions, even billions, for larger states.

Notable Quote:

"States have never been responsible for a portion of that benefit amount to date. But now HR1 is introducing new rules where states may be responsible for a portion...hundreds of millions to, in some states, even billions of dollars a year."
—Rebecca Piazza [04:25]

2. Legacy Technology and Administrative Burden

[05:55] – [07:05]

• Outdated Systems: Many states operate SNAP on "decades-old infrastructure" that's ill-equipped for added complexity.
• Double Bind: Expectation to improve accuracy and compliance while resources are more restricted, making investments in new technology a financial struggle.
• Perfect Storm: Simultaneous increase in administrative complexity and a decrease in federal support amplifies challenges for state administrators.

3. Payment Error Rates: Stakes and Strategies

[07:47] – [11:13]

• Defining Error Rates: Payment error rates reflect mistakes in calculating benefit amounts—not fraud, but administrative errors that can either overpay or underpay recipients.
• Financial Penalties: Error rates above 6% trigger state cost-sharing of SNAP benefit disbursements; higher errors mean greater state contributions.
  • 6–8% error: State pays 5% of benefits
  • 8–10% error: State pays 10%
  • Over 10% error: State pays 15%
• Short Timeline: Data that determines penalties in 2027 is being generated now, pressing states to act fast.

Notable Quote:

"Your payment error rate is not fraud...This is really you know, was that calculation correct in the amount that someone should receive in SNAP benefits?"
—Rebecca Piazza [08:09]

4. Balancing Program Integrity with Access

[11:13] – [14:31]

• Unintended Consequences: Crackdowns on error rates often mean more paperwork for recipients, complicating access and leading some eligible families to drop out.
• Skewed Incentives: The singular focus on error rates risks reducing program reach to the needy.
• Multi-pronged Solutions:
  • Use data to analyze high-impact areas for error rate reduction.
  • Automate repetitive tasks to free up caseworker time for complex cases.
  • Make notices more understandable and the process user-friendly.

Notable Quote:

"How do we make it easy to do the right thing? How do we make it easy to understand how to do the right thing?"
—Rebecca Piazza [13:48]

5. Systemic Patterns and Common Mistakes

[15:30] – [16:45]

• Participant Confusion: Many participants don’t know what information needs to be reported or how, leading to unintentional errors.
• Caseworker Tools: System prompts to double-check potential anomalies (e.g., expenses exceeding income) can help.
• Error Mitigation: Proactive identification of common administrative pitfalls is vital.

6. The Role of Automation and AI

[16:45] – [19:29]

• Mature and Low-risk AI: Used for document classification (e.g., discerning between pay stubs and leases), image quality checks, and auto-populating case files from submitted documents.
• Entity Resolution: AI helps merge duplicate cases for single participants and link SNAP cases with other benefits, aiding compliance checks and streamlining administration.
• Efficiency Gains: Proven AI applications can directly reduce error rates and staff workload.

Notable Quote:

“Those aren’t really the cutting edge things that maybe people think of with AI right now, but they’re all really effective and save a lot of time and improve accuracy.”
—Rebecca Piazza [18:19]

7. The Power of Data Integration

[19:29] – [20:55]

• Back-end Data Sharing: Breaking down data silos can substantially ease compliance for participants and reduce labor for agencies by reusing verified information across programs.
• Win-win for Accuracy and Administration: Data-driven processes support both compliance and access.

8. The Federal-State Relationship and the Threat to SNAP

[20:55] – [22:53]

• Potential Program Risk: HR1’s funding reforms might endanger the viability of state-run SNAP, with some states potentially opting out if costs soar.
• Extensive Budgetary Impact: Even if SNAP continues, states may have to reallocate funds from other core services.

Notable Quote:

"SNAP has been such a critical program in our country for so many decades that people just assume it will always be there.... if states have to pay hundreds of millions...they might not be able to afford to do that."
—Rebecca Piazza [21:53]

9. Looking Forward: Hope and Realism

[22:53] – [24:24]

• Incremental Progress Counts: States may not all reach the sub-6% error rate, but any reduction lowers financial penalties and sustains the program.
• Critical to Success: Ensuring improvements don't raise barriers for recipients is key.
• Optimism Amid Uncertainty: Piazza expresses hope, acknowledging the gravity and urgency of the challenge.

Notable Quote:

“I have to be hopeful. I believe in this program so much and it’s so critical... every inch of ground that a state is able to take is critical.”
—Rebecca Piazza [23:36]

Timestamps for Important Segments

• Overview of HR1 and impact on SNAP: [02:31] – [05:10]
• Legacy systems and funding challenge: [05:55] – [07:05]
• How payment error rates work and financial consequences: [07:47] – [11:13]
• Balancing error rate focus with participant access: [11:13] – [14:31]
• Common error sources in administration: [15:30] – [16:45]
• How AI/automation assist in error reduction: [16:45] – [19:29]
• Data integration and breaking down silos: [19:29] – [20:55]
• Risks to state and federal partnership on SNAP: [20:55] – [22:53]
• Prospects for states to adapt before 2027: [22:53] – [24:24]

Memorable Moments & Quotes

• On HR1’s stakes:
  “...It really creates sort of a perfect storm of challenges for states in meeting these new expectations.” —Rebecca Piazza [06:27]

• On misunderstood error rates:
  “Your payment error rate is not fraud... This is really... was that calculation correct in the amount that someone should receive in SNAP benefits?” —Rebecca Piazza [08:09]

• On AI’s practical use:
  “Those aren’t really the cutting edge things that maybe people think of with AI right now, but they’re all really effective and save a lot of time and improve accuracy.” —Rebecca Piazza [18:19]

• On future risks for SNAP:
  “...if states have to pay hundreds of millions of dollars to billions of dollars to continue to participate in SNAP, they might not be able to afford to do that.” —Rebecca Piazza [21:53]

• On progress and hope:
  “Every inch of ground that a state is able to take is critical.” —Rebecca Piazza [23:50]

Summary Takeaways

• HR1 is fundamentally changing how SNAP works, transferring more cost and administrative responsibility to states and creating unprecedented financial risks tied to payment error rates.
• States must rapidly modernize legacy systems, leveraging automation and proven AI to both lower error rates and maintain equitable access.
• There is a real and growing risk that, without major improvements, some states may be unable to continue offering SNAP.
• Balancing program integrity and participant accessibility is more critical than ever—overcorrecting for errors can lock out eligible families.
• Despite massive challenges, there is justified hope for incremental improvement and adaptation before full penalties take effect in 2027.