Wyoming pilot—s front-end fraud checks credited with nearly $1 million in prevented improper SNAP issuances
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Summary
Wyoming officials described a USDA-funded pilot that added front-end eligibility investigations and asset verification; the state said the effort prevented close to $1 million in improper benefit issuances and that startup costs were covered by a USDA fraud framework grant.
Corinne Schmidt, director of the Wyoming Department of Family Services, told a House Agriculture subcommittee that Wyoming uses a front-end eligibility (FEE) fraud-detection approach that investigates suspicious applications before benefits are issued. "Front end eligibility allows us to investigate potential fraud before an application is approved and a benefit is issued, thereby avoiding the pay and chase model," Schmidt said.
Schmidt said the state secured an initial USDA Food and Nutrition Service fraud framework grant of about $750,000 to start the pilot and estimated ongoing costs of about $200,000 per year. She told members the pilot prevented almost $1 million in fraudulent benefit issuance over the last two years.
Why this matters: Traditional fraud control often recovers improper payments after benefits have been issued, a resource-intensive process states and counties describe as "pay and chase." Wyoming—s front-end approach aims to detect and resolve potential issues during application processing, a model state officials say is more efficient for small staffs.
Details from testimony: Schmidt said Wyoming—s program team learned about front-end eligibility techniques at a welfare-fraud conference, applied for a USDA FNS grant in August 2022, and extended the grant period when the grant—s rollout started late. She said the state used grant funds primarily for asset verification and for hiring investigators to review suspicious cases during intake.
Schmidt emphasized that not every front-end referral is fraud—some are paperwork errors or misunderstandings—and said the approach also improves staff training and reduces time spent recouping improper payments after the fact.
Context: Wyoming described the pilot as part of a broader state focus on quality control in a small-state administrative setting. Schmidt said Wyoming maintains a low payment error rate historically and views careful pilot testing and data-driven decisions as critical when evaluating new program options.
Ending: Wyoming officials urged Congress and USDA to consider transitional periods and clearer guidance when states increase their financial contribution or adopt new options, to allow error rates and practices to stabilize.
