Oklahoma may lose some SNAP funding as USDA flags nation’s highest SNAP fraud rate

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Oklahoma is grappling with a significant financial burden as it leads the nation in SNAP fraud, according to the USDA.

State Auditor and Inspector Cindy Byrd revealed that by October, Oklahoma could be required to pay $270 million annually if the current situation persists.

The federal SNAP program, initiated in 1964 to prevent hunger, is now at the center of a financial crisis for Oklahoma taxpayers due to fraud issues.

“The Trump administration is demanding accountability for government spending, and Oklahoma is on track to fail that test,” Byrd said.

Gov. Kevin Stitt has expressed concerns about the misuse of SNAP funds, stating, “If you really have food insecurity, let’s make sure we’re using those funds for nutritional items, and not wasting that on cookies, and candy, and cokes.”

Senate President Pro Tem Lonnie Paxton emphasized the need for efficiency, saying, “We’ve got to start doing things to make our programs run more efficient so that the neediest people are still taken care of. If it’s somebody who can take care of themselves, they need to be out there working.”

Byrd warned, “Oklahoma taxpayers are staring down the barrel of spending money we do not have, which could result in consequences we do not want.”

The federal government currently covers 100% of SNAP benefits, but by October, states, including Oklahoma, will need to cover 75% of the administrative costs of $270 million annually.

Byrd noted that Oklahoma’s SNAP error rate stands at 10.9%, while the required threshold is below 6%.

Reducing the error rate below 10% by October could save the state $75 million annually.

“My office is standing by to assist in implementing controls to help reduce that error rate, but we can only do that if we are invited,” Byrd said.

By October 2027, Oklahoma could lose $235 million in SNAP funding.

SNAP benefits in the state surged from $820 million in 2019 to $1.9 billion in 2023, marking a more than 100% increase.

Despite the challenges, Byrd expressed optimism about recent changes, stating, “DHS is under new leadership, and I believe there are many positive changes taking place in that agency.”

In July 2024, Byrd’s office received over 70 SNAP fraud complaints, yet the state only tests 100 cases monthly.

Currently, one in six Oklahomans relies on SNAP benefits.