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Republican-backed proposals will shift some of the costs of food aid to states for the first time, attracting renewed attention from the party as critics believe the effort may lead to states cutting their own benefits.
Republicans are pushing for the adoption of the proposal, which can view states with higher payment error rates as a higher share of the higher welfare costs of the Supplementary Nutrition Assistance Program (SNAP), as part of a broader spending cuts and tax package in the coming days. But that doesn’t mean some Republicans don’t care about the measure.
“Our biggest thing is the data we want to use, the data we want to use for error rates,” Senator Dan Sullivan (R-Alaska.) told Hill on Friday. “So it’s important to make sure the data is accurate and reflective of the year you judge.”
USDA figures show that Alaska’s payment error rate (factors of overpayment and repayment error rate) hit more than 60% in fiscal 2023. The national average reached 11.68%.
Sullivan noted that the state had much lower payment error rates before the pandemic and was on the road to improving those numbers, noting that new numbers will soon be noticed. But he added: “It’s still higher than our traditional error rate, and as you know, the cost share is based in part on that basis.”
According to Alaska Lighthouse, the state’s error rate has increased after state officials said it was violated by federal rules so that people can continue to be fed after a large backlog in applications.
According to the initial plan developed by the Senate Agriculture Committee, Republicans are trying to ask states to pay a certain tax benefit fee if their payment error rate starts above 6% in fiscal 2028. MegaBill’s proposal will also allow states whose tax rates are below that level to continue to pay zero percent.
It also proposes states with higher payment error rates, covering a larger share of benefits costs. If the error rate is 6% or higher, states will be subject to sliding scale, which may increase their share of distribution to the 5% to 15%.
But Senate Republicans hope to pass in the coming days as part of Big Biel when facing setbacks’ “state cost share” proposals rejected by Chamber of Commerce’s rule referees.
The Agriculture Commission release said the updated plan will allow states to choose payment errors for fiscal year 2025 or fiscal year 2026 to “calculate their state game requirements that will begin in fiscal year 2028.”
In the following fiscal years, the committee said, “state competitions will be calculated using the payment error rate for the first three fiscal years.”
Asked about possible further changes to the plan, Sen. John Buzman, R-ARK, chairman of the Agricultural Commission, said Friday that negotiators “work very hard to try to make as many of us as possible effective, and I think we have achieved it.”
“Alaska is a unique state, a unique situation, so I know everyone is working hard to adapt to an inappropriate situation,” Boozman said Friday afternoon. “So I haven’t heard of any changes, and I’m sure (Senate Majority Leader John) Thune ((RS.D.)) will catch my words.”
“On the other hand, he is trying to make members take care of their particular concerns,” he said.
In a special process, Republicans used to pass the bill, they could transfer legislation to the chamber with a simple majority. But with a firm democratic opposition, given their 53-seat majority, they could only bear some Republican defection to pass the bill.
Asked briefly about the party’s subsequent proposal, Senator Lisa Murkowski (R-Alaska) told Hill, “We are still in trouble on Snap.”
“It is almost impossible for us to implement,” she said.
Republicans say states’ cost-sharing proposals will inspire states to increase their error rates. But Sullivan and Merkowski aren’t the only Republicans who have expressed concern about their efforts in recent weeks.
Initially, the House plan called on all states to cover 5% of allocation costs in their initial version of Trump’s megabill, which has a higher payment error rate and has to pay between 15% and 25%.
However, the proposal was dialed back after concerns from other Republicans, including those of Tommy Tuberville and Jim Justice (W. VA.).
When asked if he was meeting with Boozman or Thune about the matter, Sullivan also told Hill Friday night that he was “meeting everyone”.
“It’s important for me to get the data as the closeness of the date you judge,” Sullivan said, adding that he hopes Alaska sees a significant drop in its error rate in the upcoming reports.