At least New Mexico is honest about its approach to addressing issues in its food stamp program. Niki Kozlowski, the director of the Income Support Division at New Mexico’s Health Care Authority, acknowledged no meaningful attempts to tackle rampant waste, fraud, and abuse. Despite overseeing a major welfare reform by President Trump, many states continue to exploit loopholes to avoid accountability.
Under the One Big Beautiful Bill Act, a significant reform was introduced to combat misspending in the food stamp program. As it stands, states manage their own food-stamp rolls, but the federal government covers the full cost of the program, which stands at $100 billion annually. Starting in fiscal 2028, states that misspend a significant portion of benefits will shoulder up to 15% of the costs, depending on their error rates. This reform serves as a deterrent, urging states to curtail waste.
However, an exception exists. If states exceed a 13.34% error rate, they have a reprieve from penalties, providing them more time to address the issue. Senator Lisa Murkowski of Alaska advocated for this since her state’s error rate stood at 60.4% in 2023. Critics argue that this provision incentivizes states to maintain high error rates to avoid penalties.
New Mexico exemplifies this issue. In fiscal 2024, the state’s error rate was 14.6%, above the penalty threshold. As of 2025, the error rate rose to 16.8%. This trend indicates a lack of serious corrective action. Other states, including Alaska, Georgia, Oregon, Washington D.C., Delaware, and Illinois, also exhibit high error rates.
In contrast, states like New Jersey have shown progress. Dropping from a 14.3% error rate to 6.8%, New Jersey demonstrates that improvement is possible. Similarly, New York, Maryland, Massachusetts, and Florida have also reduced misspending below thresholds.
Despite improvement by some, there are concerns about upcoming penalties. Most states, even those serious about reducing misspending, seek to delay penalties. The Senate’s draft farm bill, pushed by Democrats, proposes a delay. This delay allows states to potentially increase misspending, expecting penalties to be repealed if political power shifts.
Republicans should resist such delays, urging stricter measures, and meaningful reforms. States should not be rewarded for tolerating waste at taxpayers’ expense. It’s imperative to hold these states accountable, ensuring efficient use of federal funds.