USDA Fines Alaska $11.9 Million for SNAP Program, don’t miss this update Low-income households can get food subsidies through the Alaska Food Stamp Program. The federal government is responsible for funding the entire food stamp benefit.
In Alaska, the State covers half of the costs associated with running the Food Stamp Program. Food stamp benefits are distributed by the Division of Public Assistance through the Alaska Quest card. The size of the household and its countable income determine how much a household receives each month. Eligible families purchase food items from authorised retailers across the state with their food stamp benefits.
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Causes of the High Error Rate
Alaska’s high error rate in SNAP benefits primarily resulted from misunderstandings and administrative issues. The state misinterpreted federal guidelines regarding the frequency of recipient recertifications, leading to incorrect benefit distributions. Efforts to manage a backlog of applications further exacerbated the problem.
Deb Etheridge, director of the Division of Public Assistance, noted that these errors were largely unintentional, arising from clerical mistakes and misunderstandings rather than fraud.
| Category | Details |
|---|---|
| Fine Amount | $11.9 million |
| Error Rate | 60% (highest in the nation) between October 2023and September 2024 |
| Causes of Errors | – Misinterpretation of federal recertification guidelines – Administrative backlog – Clerical errors and misunderstandings |
| USDA Actions | – Granted waiver for annual recertification – Relieved from interview requirement for applicants |
| Impact on Recipients | – May need to repay up to $360 – Can negotiate a repayment plan of $10 per month |
| State Response Options | – Appeal the fine – Invest half of the penalty in improving SNAP program |
| Current Challenges | – Ongoing issues with other assistance programs – Facing lawsuits related to slow processing of SNAP and Medicaid applications |
USDA Actions and Waivers
In response to the issues, the USDA has granted Alaska a waiver allowing recipients to recertify for SNAP benefits once a year instead of every six months. Additionally, the state has been relieved from the requirement to conduct interviews with all applicants, a measure that was previously paused to address the backlog.
Impact on Recipients
Recipients who received more benefits than they were eligible for may need to repay a portion of those benefits. Those overpaid can return up to $360 or negotiate a repayment plan of $10 per month.
Next Steps for Alaska
Alaska has the option to appeal the fine or agree to invest half of the penalty amount into improvements for its SNAP program. Despite catching up with the SNAP backlog, the state continues to face challenges with other assistance programs and is dealing with related lawsuits.
FAQs
Why did the USDA fine Alaska?
Alaska was fined $11.9 million due to a high error rate in determining SNAP eligibility, resulting in significant overpayments.
What caused the high error rate?
The error rate was mainly due to the state’s misunderstanding of federal recertification policies and administrative issues, including a backlog of applications.
How is the fine being handled?
Alaska can either appeal the fine or invest half of it in improving its SNAP program.
What happens to recipients who were overpaid?
Overpaid recipients may need to repay up to $360 or set up a repayment plan of $10 per month.
Have any changes been made to prevent future issues?
Yes, Alaska has received waivers to extend certification periods and pause applicant interviews to manage the backlog.
