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State warns SNAP error rate could trigger federal cost‑sharing; DHS seeks Gateway modernization money
Summary
Department of Human Services told the Senate subcommittee Georgia's SNAP payment error rate is about 14–15%, which under recent federal changes could trigger substantial state cost‑sharing; DHS requested additional funds for Georgia Gateway modernization and outlined operational fixes to lower the error rate.
Department of Human Services officials told the Senate Appropriations Health and Human Services Development Subcommittee that Georgia's SNAP payment error‑rate — as measured by federal quality control (QC) sampling — is currently in the mid‑teens, and that the change in federal law could require states with higher error rates to assume a portion of SNAP benefit costs.
A DHS presenter explained the QC sampling process and said Georgia's recent measured error rate is "between 14, 15 is what we're looking at right now." Under the federal reform discussed in testimony (referred to in the hearing as HR1), states and territories with payment error rates above threshold levels could face cost‑sharing obligations beginning in federal fiscal year 2028; the share can range from 0% up to 15% of overall benefits depending on the state's error rate. DHS staff told senators the exposure on the high end could be "hundreds of millions" of dollars.
To mitigate that risk, DHS asked for funding changes in the amended budget. Highlights cited in testimony include $6,200,000 for modifications to the integrated eligibility system (Georgia Gateway) to reduce the SNAP payment error rate and improve technical interfaces, and a previously provided $35,000,000 (and a recommended additional $35,000,000) to modernize Gateway through the Georgia Technology Authority. DHS also described investments to address staffing, backlogs and accuracy — including a "find it, fix it" program, targeted follow‑up, and use of intelligent optical character recognition (IOCR) to reduce data‑entry errors.
Senators pressed DHS on what the state will owe if error rates remain high; DHS staff reiterated the uncertainty depended on the final federal calculation but emphasized that the combination of a high error rate and the federal formula could create significant fiscal exposure.
DHS also reviewed other House additions affecting child welfare (nearly $41.2M for out‑of‑home care), $2.6M for child support system maintenance, and special projects such as a $15M integrated child welfare reporting system. The committee asked for more detailed implementation timelines and technical details about Gateway changes; DHS offered to provide further documentation and analysis.
