Guam to bear 15% of SNAP costs due to high payment error rate

By Pacific Island Times News Staff

With an 11.7 percent error rate in payments for the Supplemental Nutrition Assistance Program benefits, Guam is at risk of shouldering 15 percent of the program's costs, in line with the Trump administration's sweeping reform.

Approximately 33,900 Guamanians were enrolled in the nutrition aid program, which is fully federally funded and administered by the Guam Department of Public Health and Social Services. In fiscal 2023, the department distributed $179 million to SNAP recipients.

Under President Trump's One Big Beautiful Bill, cost-shifting is one of the highlights of the SNAP reform, which seeks to "ensure state waste comes with consequences."

Beginning in October 2027, states with a payment error rate of 6 percent or higher must pay a percentage of benefit costs on a sliding scale: 5 percent for error rates between 6 percent and 8 percent, 10 percent for rates between 8 percent and 10 percent, and 15 percent for rates above 10 percent.

According to the U.S. Department of Agriculture, the national payment error rate for fiscal year 2025 is 10.62 percent, far surpassing the 6 percent threshold set by Congress.

The department noted that the 2025 payment error rate may show a modest decrease from FY 2024, but it still indicates significant waste at the state level.

Including both overpayments and underpayments, this year’s rate represents a collective $10.1 billion in improper payments nationwide, the USDA said.

“These payment error rates are further proof that state accountability is severely lacking in SNAP,” Agriculture Secretary Brooke L. Rollins said.

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The payment error rates measure the accuracy of each state's determination of eligibility for SNAP and the corresponding amount they should receive.

The USDA's recently released report showed only eight states had payment error rates below 6 percent.

“USDA has taken historic action to help interested states curb SNAP waste, and I hope other states, regardless of political leadership, prioritize needy families and the American taxpayer over politics," Rollins

Federal reimbursement for state SNAP administrative costs was also cut from 50 percent to 25 percent, effective October 2026.

"In addition to this matching fund requirement, states with PER at or above 6 percent threshold are required to submit a Corrective Action Plan to USDA’s Food and Nutrition Administration detailing how they will address the root cause of their errors," the USDA said.

Some of the states may also be liable for a separate financial penalty as part of the SNAP quality control process, the department added.

DPHSS has not responded to our request for comment.

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