House Oversight subcommittee: Michigan SNAP error rate at 9.53%; report urges stronger front-end checks and chip-enabled bridge cards

Representative Jason Wolford, chair of the Oversight Subcommittee on State and Local Assistance Programs, told the House Committee on Oversight on Feb. 24 that Michigan’s food-assistance system shows ‘‘massive amounts’’ of error and vulnerability and urged immediate reforms to protect both taxpayers and eligible households.

Wolford said Michigan’s most recent SNAP payment error rate was 9.53%, above the federal 6% threshold used to trigger state cost-sharing or penalties. ‘‘If this continues, Michigan will face a $320 million federal penalty,’’ he said, summarizing the subcommittee’s nine-month investigation and slide materials.

The report, and Wolford’s testimony, focused on three central vulnerabilities: the Michigan Bridges online portal’s limited front-end verification, reliance on applicant self-attestation, and Bridge cards that lack EMV chip technology. Wolford told the committee a $16 million upgrade to the portal still allows guest applications that can be completed without Social Security or alien-registration numbers, and that in committee testing he was able to start an application using a governor’s address and a fake name.

‘‘Can you imagine how many clients, claims that would be fraudulent would be stopped by simply…having to put in your Social Security number?’’ Wolford asked the committee, arguing that stronger front-end authentication would reduce both overpayments and the administrative burden on eligibility specialists who must verify applications on the back end.

Wolford also cited the Michigan Office of the Inspector General’s work, saying the OIG ‘‘managed to stop over $305 million in attempted fraud last year alone’’ and said the subcommittee’s recommendations include requiring photo ID and signature verification on Bridge cards and transitioning to EMV chip-enabled cards.

The report lists legislative proposals tied to those reforms: House Bill 5145 (to strengthen application verification requirements), House Bill 4515 (to require photo identification on Bridge cards) and House Bill 4746 (to convert Bridge cards to chip-enabled cards). Wolford repeated a recommendation that Michigan join the SNAP National Accuracy Clearinghouse to enable cross-state transaction checks.

Scott Centorino, a visiting fellow with FGA Action, testified in support of the committee’s work and urged a combination of measures. ‘‘This is a moment of opportunity,’’ Centorino said, praising the committee’s report and pointing to other states that have used regular automated cross-checks, more frequent sampling and targeted retailer inspections to reduce fraud and program error. He cited Indiana’s recent SB2 as an example of legislation that banned self-attestation and instituted broad data cross-checks.

Centorino warned the committee that not all problems stem from intentional criminal fraud. He described ‘‘fraud by design’’ or systemic errors—policy choices such as broad-based categorical eligibility that eliminate asset checks—that can drive a large portion of payment errors. ‘‘You can have unlimited assets and enroll in food stamps,’’ Centorino said, describing Michigan’s current policy choices and arguing an asset check would address a major driver of errors.

Committee members pressed for detail about how much of the error rate stems from overpayments versus underpayments and from administrative timing versus intentional misrepresentation. Representative Rigas asked whether most errors were overpayments; Wolford replied the majority are overpayments. Other members noted the federal measurement relies on post-hoc sampling and raised concerns about whether some figures cited (for example, the OIG’s $305 million) represent potential exposure rather than confirmed, finalized fraud recoveries.

Committee discussion also focused on legal and practical limits. Members asked whether additional front-end verification could conflict with federal SNAP rules that set minimum application fields. Centorino and others replied that federal requirements typically establish a floor, not a ceiling, and that multiple states have enacted additional verification without federal noncompliance. The committee repeatedly requested MDHHS provide the back-end verification data the department has told the federal government it uses; Wolford said the committee had not yet received those records.

The committee approved the meeting minutes by unanimous consent earlier in the session and ended by asking staff to consider inviting MDHHS back to answer outstanding questions before adjourning. Representative Wolford said the reforms are intended to restore trust and ensure benefits reach those who qualify.

What happens next: the committee’s report accompanies introduced bills that would change verification and card security; members asked staff to pursue MDHHS responses and additional documentation. No final policy votes on the listed bills occurred at this meeting.

Sources: committee testimony and slides presented by Representative Jason Wolford; testimony from Scott Centorino, visiting fellow, FGA Action.