INDIANAPOLIS, Ind. (WOWO) — Indiana is among dozens of states facing potential new costs for the Supplemental Nutrition Assistance Program as federal officials prepare to tie state funding responsibilities to payment error rates. According to reporting from The Hill, a federal law passed in 2025 r equires states to reduce their SNAP payment error rates below 6% or begin covering a portion of benefit costs previously paid by the federal government. SNAP, formerly known as food stamps, provides food assistance to millions of low-income Americans. Payment error rates measure the percentage of benefits issued incorrectly, including both overpayments and underpayments. These errors do not necessarily indicate fraud and can result from administrative mistakes or inaccurate information. During the 2025 fiscal year, only nine states met the new federal target: Idaho, Iowa, Kentucky, Nebraska, South Dakota, Utah, Vermont, Wisconsin, and Wyoming. Indiana was among the remaining states with error rates above 6%. The national average was approximately 11%. Under the new requirements, states with error rates exceeding the federal threshold could be responsible for paying between 5% and 15% of SNAP benefit costs beginning in October 2027. Most states can use either their 2025 or 2026 error rates to determine their financial responsibility, giving them additional time to improve accuracy before the changes take effect. The law does not directly reduce individual SNAP benefits. However, the Congressional Budget Office estimates the additional financial burden could lead some states to reduce or eliminate assistance for approximately 300,000 people nationwide. Funding for child nutrition programs could also be affected. Seven states and Washington, D.C., with particularly high error rates have been granted additional time to make improvements. The changes come as SNAP enrollment has already declined nationwide following stricter eligibility requirements enacted in 2025. Federal data show participation dropped from approximately 42.2 million people in May 2025 to 36.6 million in May 2026, a decrease of more than 13%. States now face pressure to improve payment accuracy while determining how to manage potential increases in their share of food assistance costs. The post Indiana among states facing potential SNAP funding costs under new federal rules appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less