State officials warn HR1 SNAP changes could cost North Dakota millions if error rate stays high

Chairman Nelson and members of the committee: North Dakota could face a new, recurring state cost for food assistance benefits if the state's SNAP payment error rate remains above federal thresholds, Human Services Division staff told the Legislative interim committee.

Jessica Thomason, Human Services Division, said H.R.1 and subsequent USDA guidance make a state's payment error rate the basis for a partial state share of SNAP benefits starting in federal fiscal year 2028 if the state's rate exceeds 6 percent. "Our federal fiscal year '24 rate was 7.91%," Thomason said, citing the most-recent federal calculation. "That would put us in the 5% bucket. That would mean just over $5,900,000 per year would be the state's share of food assistance benefits."

The change reverses a long-standing structure under which 100 percent of SNAP benefits have been…