Keep Factually independent
Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.
What policy or technology changes were proposed or implemented in 2023–2024 to reduce SNAP fraud and errors?
Executive summary
In 2023–2024 federal and state actors proposed and implemented a mix of policy and technology measures to reduce SNAP fraud and errors, including temporary federal reimbursement of stolen EBT benefits, federal grants for fraud-detection technology and recipient education, and state legislative proposals to harden EBT security (e.g., automatic card cancellation or felony penalties) [1] [2] [3] [4]. At the same time oversight reports flagged a high improper payment rate—USDA estimated 11.7% improper payments (~$10.5 billion) for FY2023—and GAO has outstanding recommendations to strengthen analytics and oversight [5] [6].
1. Federal stopgap: reimbursing victims of EBT theft (temporary and then ended)
Congress created a limited, temporary authority to replace SNAP benefits stolen via card skimming, cloning, and like methods, allowing federal funds to reimburse victims for benefits stolen between Oct. 1, 2022, and a revised statutory end date in late 2024; that reimbursement authority was extended by a continuing resolution but expired on December 20, 2024, leaving states no longer able to use that federal backstop [1] [7]. Federal dashboards show tens of millions in replacement benefits were paid under the program through FY2023–FY2024 [8] [9].
2. Federal grants to states for tech upgrades and recipient outreach
USDA’s Food and Nutrition Service awarded FY2024 SNAP Fraud Framework Implementation Grants—about $4.9 million in awards—to help states expand detection and prevention efforts, funding projects such as EBT enhancements to increase recipient fraud awareness and participation, fraud-alerting systems to flag possibly false application information, IP-address capture to track suspicious online activity, and case-management software for investigators [3] [2]. These grants explicitly fund analytics, data management, and “recipient integrity education” to prevent fraud before it happens [2].
3. State-level proposals and tougher criminal penalties
States with high incidence of benefit theft pursued legislative and administrative fixes. New York lawmakers proposed measures including automatic cancellation of compromised EBT cards, reclassifying card theft as a felony, and commissioning studies to map the problem—proposals framed as protecting families and taxpayer dollars [4] [10]. These state proposals reflect a policy trend favoring both preventive technology (auto-cancel, card security) and stronger criminal deterrence [4] [10].
4. Calls for modernization and analytics from watchdogs and vendors
GAO and USDA OIG reporting highlighted the scope of improper payments—11.7% of SNAP outlays in FY2023, about $10.5 billion—and recommended stronger oversight, data analytics capability, and designations to better identify improper payments and fraud; GAO noted issues remain open as of September 2024 [5]. Private-sector studies argue agencies face rising costs per dollar lost and that modernized integrated eligibility systems and analytics can reduce fraud detection time and downstream impacts [11].
5. Operational realities: trafficking, identity theft, and retailer problems
Reporting and studies indicate multiple fraud vectors: retailer trafficking, EBT card skimming/cloning, identity theft, and duplicate enrollment; trafficking is typically measured separately from recipient error rates, complicating single-number comparisons [12] [11]. News outlets and USDA data cited nearly 177,000 reported incidents in Q1 2024 across many states, with hotspots like New York prompting focused responses [4] [6].
6. Trade-offs and limitations of the 2023–24 responses
Policy measures in 2023–24 reflect trade-offs: temporary federal reimbursements provided short-term relief but were time-limited and ended Dec. 20, 2024, shifting political and financial burdens to states [1] [7]. Grants and analytics investments aim to improve detection but vendors and GAO note aging systems, manual processes, and understaffing slow modernization and can increase delays or errors for applicants [11] [5]. Proposed tougher penalties and automatic card actions raise questions—reported proposals emphasize deterrence [4] [10]—but available sources do not discuss evaluations of impacts on eligible recipients or civil‑liberties tradeoffs.
7. What remains unsettled and where reporting is thin
Available sources document many 2023–24 proposals and pilot investments (reimbursements, grants, state bills, analytics), but they do not provide comprehensive, nationwide evaluations of which technology changes actually reduced fraud rates, nor do they quantify net benefits after accounting for administrative delays or errors (not found in current reporting). GAO’s open recommendations and private-sector studies underscore that implementation and modernization remain works in progress [5] [11].
Conclusion: In 2023–24 policymakers combined stopgap financial relief, targeted grant-funded tech upgrades, analytics and investigator tools, and state legislative pushes to harden EBT systems; oversight reports warn improper payments remain substantial and that system modernization, staffing, and careful evaluation of reforms are still required [1] [3] [2] [5] [11].