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DHS warns SNAP payment‑error rate could trigger state costs; House adds $6.2M for Gateway fixes

Senate Appropriations Health and Human Services Development Subcommittee · February 10, 2026
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Summary

Department of Human Services officials told the subcommittee Georgia’s SNAP payment error rate is around 14–15% and that federal changes could impose state cost‑sharing for error rates above 6%; the House added approximately $6.2 million for integrated‑eligibility improvements to reduce that risk.

Department of Human Services staff briefed the Senate subcommittee on budget adjustments and technical investments aimed at reducing the SNAP payment‑error rate and avoiding federal cost‑sharing penalties.

DHS staff explained how federal quality‑control sampling produces a payment‑error percentage that USDA Food and Nutrition Service extrapolates statewide; under recent federal legislation, states with payment‑error rates above specified thresholds may owe a share of benefits if corrective work is not implemented. DHS told the committee Georgia’s current QC‑based error rate is in the mid‑teens (about 14–15 percent) and said that, depending on the error rate and the extrapolated calculation, the state’s potential obligation could range from zero to “hundreds of millions” of dollars.

To address that risk, DHS and other officials described a package of operational and technical measures. The House added about $6.2 million for the integrated eligibility system (Georgia Gateway) to support measures such as increased verification for self‑employment income, improved tasking to reduce change‑of‑circumstance backlogs, intelligent optical character recognition to reduce data‑entry errors, and process fixes to prioritize cases that might later be pulled into QC samples.

DHS outlined that part of the problem stems from both client‑side reporting errors and agency data‑entry or processing issues; staff said the QC rate is calculated on a federal fiscal year cadence and is always somewhat delayed, which complicates real‑time remediation work. Committee members asked for timelines and further detail; DHS said work is already underway and that the added funds would expand verification and automation tools.

Officials said the Gateway investment is intended to reduce error causes (wages/income, household composition and periodic reporting) and to improve the state’s ability to detect intentional program violations early so those cases can be removed from QC samples and referred for enforcement where appropriate. DHS emphasized that exact fiscal exposure will depend on future QC rates and federal implementation details.