High SNAP error rate could cost North Dakota taxpayers nearly $10 million a year

New federal rules could cause North Dakota to pay nearly $10 million per year for SNAP benefits to balance a high distribution error rate.

Since its creation in 1964, the federal government has covered the full cost of SNAP (Supplemental Nutrition Assistance Program) benefits, also known as Food Stamps. States cover a share of administrative costs, which are usually a small fraction of total costs. However, this changes next year.

Signed into law in July 2025, the One Big Beautiful Bill Act (OBBBA) requires states to pay for a share of SNAP benefits starting in October 2027. States’ contributions toward benefits will depend on their respective error rates. Error rates include payments above and below what recipients are entitled to.

Penalties are tiered. For error rates under 6 percent, the federal government will continue to cover 100 percent of benefits. But for error rates above 6 percent, states would pay for between 5 and 15 percent of benefits.

How much could North Dakota pay?

According to data from the U.S. Department of Agriculture, North Dakota’s SNAP error rate in 2025 was 9.9 percent. This is up from 7.9 percent in 2024, but slightly below the national average rate of 10.2 percent.

With SNAP benefits averaging $8 million a month in early 2026, the state’s share under the new rules would hit $800,000 per month. That drags out to nearly $10 million a year, leaving fewer resources available for other state priorities.

Certainly, high error rates are not evidence of fraud. Nor are they entirely a reflection of administrative error, since even unintentional misrepresentation by recipients drives up these numbers.

Regardless of the cause, the scale of the issue varies wildly by state. North Dakota’s error rate in 2025, for instance, was nearly four times South Dakota’s. Clearly, more can be done to protect taxpayers’ money — and OBBBA is designed to accomplish just that. By forcing states to share the cost of lax administration, the legislation ensures that states finally implement stronger checks and balances.

Fortunately, for North Dakota taxpayers, the outcome is not set in stone. OBBBA lets states use either 2025 or 2026 error rates to determine cost-sharing. This gives the state a vital — albeit small — window of time to act and slash improper payments.