Congress Examines Fraud and Trafficking in SNAP

House subcommittee examined efforts that would give states greater control over fraud and trafficking in the Supplemental Nutrition Assistance Program.

June 13, 2016

WASHINGTON – Last week, the House Oversight and Government Reform Committee’s Subcommittee on Government Operations held a hearing examining federal and state efforts to combat fraud and trafficking of benefits in the Supplemental Nutrition Assistance Program (SNAP).

More than 46 million low-income individuals participate in SNAP and receive $69 billion in benefits to purchase nutrient-rich food. The Office of Management and Budget (OMB) designated SNAP a high-error program with $2.6 billion in improper payments. SNAP fraud occurs when recipients either falsify eligibility information to receive SNAP benefits, or when benefits are exchanged for cash or used to purchase ineligible items.

During the hearing, Republican lawmakers touted efforts several states have taken to combat fraud and pushed for states to have greater control in SNAP. Only USDA has the authority to shut down retailers participating in trafficking.

Subcommittee Chairman Mark Meadows (R-NC) told Agripulse in an interview, “It's really about making sure SNAP is supported and feeds the hungry in the way that it should. Bad actors—we've got to do a better job figuring out how to go after them and empower the states to allow them to go after them.”

Five witnesses testified before the House subcommittee including Kevin Concannon, undersecretary for the USDA’s Food and Nutrition Service (FNS). He disagreed with Republican sentiments and testified about the strides the FNS has made at reducing fraud.

According to Concannon, “FNS has succeeded in reducing trafficking from about 4% to 1.3% over the last 20 years. While the trafficking rate is low, and 98.7% of the benefits are used properly, we continue to focus on this vital area because, when almost $70 billion (in FY 2015) in taxpayer-supported benefits are involved, continuous attention, energy and diligence is required.” 

At the end of the hearing, Meadows concluded by directing Concannon to provide updated trafficking rates to Congress. Meadows urged Concannon to focus on fraud rates instead of what is being stocked on the grocery shelves, referring to the proposed SNAP rule affecting retailer eligibility requirements.

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