The Oversight Subcommittee on State and Local Public Assistance Programs convened on September 18, 2025, to discuss critical issues surrounding error rates in public assistance programs, particularly the Supplemental Nutrition Assistance Program (SNAP). The meeting featured a dialogue between committee members and expert witnesses, focusing on the implications of error rates and potential areas for improvement.

The session began with Representative Brock raising concerns about the long-standing 6% error rate established by the government. He questioned the adequacy of this figure, emphasizing the complexity of the program and the vast number of participants involved. Brock sought clarity on what an acceptable error rate should be, acknowledging that different sectors may have varying standards.

In response, the expert witness, Mr. Stacy, highlighted that while he could not provide a definitive answer, it was crucial for lawmakers to engage with the Department of Social Services and their constituents on this matter. He referenced a recent shift in focus by the federal government towards error rates, noting that Virginia's Department of Social Services had begun prioritizing this issue due to potential penalties under the Omnibus Budget Reconciliation Act (OBRA). Stacy clarified that the federal government has historically monitored error rates but is now seeking more effective incentives for states to minimize these rates.

The discussion then shifted to specific data from the fiscal year 2024, presented by Representative Carl, who pointed out that 8.03% of the total 9.53% error rate consisted of overpayment errors. He raised concerns about the potential for individuals involved in the underground economy, such as those selling drugs, to receive SNAP benefits while not reporting all sources of income. However, Mr. Stacy refrained from commenting on the implications of the underground economy on income eligibility for public assistance programs.

The meeting concluded with a reiteration of the importance of addressing error rates in public assistance programs and the need for ongoing dialogue among lawmakers, state departments, and the public. The subcommittee plans to continue exploring these issues in future sessions, aiming to enhance the integrity and effectiveness of assistance programs in Michigan.