States would be forced to recover staggering $11B in food stamp overpayments under proposed law

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States would be forced to recover staggering $11B in food stamp overpayments under proposed law

The proposed legislation would force the state to recover billions of dollars in waste and fraud in the federal food stamp program that was neglected during the COVID-19 pandemic.

A staggering $11 billion in overpayments was sent to recipients in the Supplemental Nutrition Assistance Program (SNAP), also known as the food stamp program, according to 2022 federal data — up from $3.4 billion in 2019.

Almost 80% of improper payments are the result of mistakes made by government agencies.

But the US Department of Agriculture and state that administers food stamp assistance to recipients all but abandoned to withdraw funds since 2019 — before the outbreak of COVID-19, said Sen. Joni Ernst (R-Iowa).

The Fed exempted states from reporting data on overpayments and error rates in 2020 and 2021 during the outbreak.

The overpayment rate increased nationally from 6.18% in 2018 to 9.84% in fiscal year 2022.

In New York, the overpayment rate is even higher — jumping from 5.9% in 2019 to 10.35% in 2022.

Ernst said the true cost is unknown because overpayment errors amounting to $54 or less per recipient are excluded from collection.

In New York, the overpayment rate increases from 5.9% in 2019 to 10.35% in 2022.Christopher Sadowski

The senator’s bill requires states to recover all overpayments to recipients and pay the federal government what is owed.

The bill also requires that all SNAP payment errors be reported, regardless of the amount.

Ernst even suggested the state might pocket some of the funds.

“Families across the country are going hungry while bureaucrats leap forward to gobble up SNAP dollars, whether as meal tickets to boost state budgets or benefit buffets for themselves or others who don’t qualify,” Ernst said. Position.

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“I snapped back! It’s time for the guilty states to pay for the pipes and eat the waste of their taxpayers. Instead of over-serving bureaucrats, let’s stop the waste and make a place at the table for hungry families.”

Food stamp spending and enrollment exploded amid the pandemic.

Ernst said that it’s time for “guilty states to pay for the pipes and eat the waste of their taxpayers.” REUTERS/Evelyn Hockstein

In 2022, there will be more than 41 million Americans on food stamps, compared to about 35 million in 2019.

During the same four-year period, spending on food stamps rose to a record high of $119.5 billion, up from $60 billion in 2019.

Food stamp spending nearly doubled, despite only 6 million additional enrollments, said an analysis by the Foundation for Government Accountability.

Monthly food stamp benefits in New York are a maximum of $740 for a family of three, $939 for a family of four, $1,116 for a family of five and $1,339 for a family of six.

“Food stamp fraud costs taxpayers millions and diverts resources from those who truly need it. Congress should pass basic program integrity measures to prevent fraud before it happens,” the FGA said.

New York has had its share of people ripping off the food stamp program, including government workers.

Legislation proposed by Senator Joni Ernst would require states to restore $11 billion left in federal food stamp programs that were neglected during the COVID-19 pandemic.Christopher Sadowski

A city Human Resources Administration employee was arrested in 2017 for using insider knowledge to create fake accounts and steal more than $225,000 in food stamps and other benefits over a seven-year period, the state’s chief reported.

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Two city HRA employees were also busted in 2015 after exploiting a loophole in the city’s welfare system to swipe $2.1 million in food stamps and rent subsidies — and then spend $120,000 on Red Bull, authorities said at the time.

The Department of Agriculture declined to comment on Ernst’s SNAP accountability bill.

But in a June statement, it acknowledged that the state would not have to issue overpayments or error rates in the food stamp program in 2020 and 2021 during the pandemic.

“USDA is committed to supporting states in improving the accuracy of payments in SNAP to ensure that the program effectively and efficiently serves those who need it and promotes good stewardship of taxpayer dollars,” the agency said.

“We are redoubling efforts to work with state partners to find ways to reduce payment errors and aggressively address issues at their root causes. Together, we will continue to move toward a stronger, more efficient, more modern future for SNAP and those it serves.”

New York Governor Kathy Hochul’s office had no immediate comment.

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Source: thtrangdai.edu.vn/en/