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Ward County HSZ director warns SNAP payment-error rates could trigger multimillion-dollar federal penalties
Summary
Ward County HSZ Director Kristi Frederick told the board the county is monitoring rising SNAP Quality Control Payment Error Rates (PER), warned federal rules require PER below 6% to avoid sanctions, and said the board is asking the federal government to delay penalties until 2027.
Kristi Frederick, Ward County Human Service Zone (HSZ) director, told the board on April 21 that SNAP Quality Control Payment Error Rates (PER) have increased and raised the prospect of federal sanctions if rates remain high.
Frederick said federal rules judge PER at the state level and require a PER below 6% to avoid penalties; she told the board the zone is requesting the federal government delay the effective date for penalties by one year to 2027. She described a "worst-case" scenario in which North Dakota could face an $8–10 million sanction and noted that if PER exceeds 10%, penalties can rise to 15% of benefit costs.
Frederick outlined the review process and turnaround-time concerns that affect how quickly errors can be identified and corrected. The discussion focused on statewide reporting (the federal evaluation is at the state level) and the timeline for potential sanctions, and the board considered formation of an EA Taskforce handout to guide local monitoring and response efforts.
The board did not take a formal vote on new policy at this meeting but recorded the request that the state seek a one-year extension before penalties begin. Next steps cited by the director include continued data review and coordination with state partners to reduce PER before the 2027 deadline.
