By Ethan Faverino |
Arizona taxpayers could face nearly $200 million in additional costs if the state fails to reduce its Supplemental Nutrition Assistance Program (SNAP) payment error rate in the coming years.
Data from the U.S. Department of Agriculture shows Arizona’s SNAP payment error rate reached 10.8% in Fiscal Year 2025, ranking 33rd nationally and rising from 8.84% in Fiscal Year 2024.
Under changes enacted through the One Big Beautiful Bill Act (H.R. 1), states with SNAP payment error rates below 6% by Fiscal Year 2028 will avoid cost-sharing requirements with the federal government.
States with error rates between 6-8% must provide a 5% match, those between 8-10% a 10% match, and states exceeding 10% a 15% match.
If Arizona’s error rate remains at 10.8% in Fiscal Year 2028, the state would be subject to the highest matching requirement.
Based on Fiscal Year 2025 figures, eight states recorded error rates below 6% (Idaho, Nebraska, Nevada, South Dakota, Utah, Vermont, Wisconsin, and Wyoming), while six fell between 6-8%. Another 16 states posted rates between 8-10%, and 20 states exceeded 10%.
Zach Milne, senior economist at Common Sense Institute Arizona said the state has a strong incentive to improve its performance.
Mile told The Center Square, “Improving program accuracy strengthens program integrity and helps the state avoid potentially significant federal cost-sharing penalties.”
He described Arizona’s elevated error rate as a relatively recent development, noting that the state’s rate stood at 5.2% in Fiscal Year 2019 — below the new federal threshold.
The Arizona Legislature passed several measures during the 2026 session aimed at lowering the state’s SNAP payment error rate, but they were vetoed by Governor Hobbs.
Senate Bill 1002 would have expanded eligibility verification tools for the Arizona Department of Economic Security, while Senate Bill 1331 proposed work requirements for SNAP recipients age 60 and younger.
Senate Bill 1334 would have barred the department from seeking work-requirement waivers for able-bodied adults without dependents. House Bill 2206 sought to require the state to reduce its SNAP payment error rate to below 3% by 2030.
In her veto messages, Hobbs argued that the legislation duplicated ongoing efforts by the Department of Economic Security to improve accuracy, including enhanced eligibility verification, additional staffing and training, and investments in technology.
“SNAP is the most robust and effective anti-hunger tool we have in Arizona-I know this firsthand,” Hobbs said in her veto letter of the three Senate Bills. “It’s also the most secure, thanks to strong anti-fraud measures and oversight. Instead of creating more needless frustration for Arizona families, I invite you to join me in actually lowering costs for them.”
She also criticized H.R. 1 for imposing unfunded mandates that she said have strained agency resources, noting that she allocated $7.5 million to increase the department’s capacity. Hobbs maintained that the vetoed bills would have added further unfunded requirements without providing resources for implementation or modernization.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
