Oregon faces $15.7M SNAP penalty due to persistent payment error rates

The Joint Committee on Ways and Means Subcommittee on Human Services convened on March 11, 2025, to address critical issues surrounding the Supplemental Nutrition Assistance Program (SNAP) in Oregon. A significant focus of the meeting was the state's response to a substantial penalty imposed due to high payment error rates.

Oregon was notified of a $15.7 million penalty for exceeding the national average SNAP payment error rate for two consecutive years. The state's error rate peaked at 22.99% in 2022 but has since improved to 13.4% in 2025. Officials emphasized that these errors are not indicative of fraud but rather reflect systemic challenges in eligibility and benefit calculations. To address these issues, Oregon has opted for a settlement option that allocates $7.8 million towards corrective actions and reserves the remaining funds for future liabilities.

The meeting also highlighted common causes of payment errors, including miscalculations related to deductions for shelter and utilities, incorrect wage reporting, and household composition errors. The complexity of SNAP eligibility requirements was noted as a contributing factor to these errors, prompting the state to enhance training and communication strategies to improve accuracy.

Additionally, the subcommittee discussed the challenges associated with the Able-Bodied Adults Without Dependents (ABOD) program, which has complex federal requirements. Oregon is actively working with community partners to provide necessary supports and job opportunities for participants.

Fraud prevention efforts regarding Electronic Benefit Transfer (EBT) cards were also a priority. Oregon has implemented measures to combat theft and fraud, including raising awareness among users and monitoring fraud trends. Recent data indicates a decrease in stolen benefit claims, suggesting that proactive security measures are having a positive impact.

The discussions underscored the importance of SNAP not only in addressing food insecurity but also in supporting local economies and job creation. The state remains committed to improving the SNAP program and ensuring that benefits are distributed accurately and securely. Further inquiries from committee members indicated ongoing interest in the effectiveness of these initiatives and their impact on the community.