Section 10105: Matching Funds Requirement

📘 Section 10105: Matching Funds Requirements

🧠 What is this section about?


This part is about making states more responsible for keeping their SNAP (food stamp) programs accurate. If a state makes lots of mistakes when giving out benefits, the federal government will pay less, and the state will have to pay more.


This is called a “matching funds” system, where the state has to chip in money if they mess up.

✅ In 4th-Grade Language:


The government says:


“Hey, states! If you make too many mistakes giving out food stamps, you’ll have to help pay for the program.”


Here’s how it works:

💰 The Better a State Does, the More the Federal Government Pays:

  • If a state’s error rate is less than 6%, the federal government pays 100%. The state pays nothing.

  • If the error rate is 6–7.9%, the federal government pays 95%, and the state pays 5%.

  • If the error rate is 8–9.9%, the federal government pays 90%, and the state pays 10%.

  • If the error rate is 10% or more, the federal government pays 85%, and the state pays 15%.

📅 When does this start?

  • Starts in fiscal year 2028.

  • BUT if a state is doing really badly (error rate x 1.5 = 20% or more), it gets more time to fix its problems:

    • It gets a delay until 2029 or 2030.

🧮 What’s a “payment error rate”?


That’s how often a state makes mistakes—like giving food benefits to people who shouldn’t get them, or giving the wrong amount.

🧃 Quick Example:


Let’s say California makes very few mistakes. Then:


“The U.S. government pays the whole bill.”


But if another state is handing out benefits sloppily:


“That state will now have to help pay part of the cost out of its own pocket.”


This makes states double-check their work, because mistakes will cost them money.

💬 Why does this matter?


It encourages states to run the SNAP program carefully and fairly, and reduces waste or fraud. But critics say it could punish poor-performing states even when they’re trying their best.



Original Document:

SEC. 10105. MATCHING FUNDS REQUIREMENTS.

    (a) In General.--Section 4(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(a)) is amended--
            (1) by striking ``(a) Subject to'' and inserting the 
        following:
    ``(a) Program.--
            ``(1) Establishment.--Subject to''; and
            (2) by adding at the end the following:
            ``(2) State quality control incentive.--
                    ``(A) Definition of payment error rate.--In this 
                paragraph, the term `payment error rate' has the 
                meaning given the term in section 16(c)(2).
                    ``(B) State cost share.--
                            ``(i) In general.--Subject to clause (iii), 
                        beginning in fiscal year 2028, if the payment 
                        error rate of a State as determined under 
                        clause (ii) is--
                                    ``(I) less than 6 percent, the 
                                Federal share of the cost of the 
                                allotment described in paragraph (1) 
                                for that State in a fiscal year shall 
                                be 100 percent, and the State share 
                                shall be 0 percent;
                                    ``(II) equal to or greater than 6 
                                percent but less than 8 percent, the 
                                Federal share of the cost of the 
                                allotment described in paragraph (1) 
                                for that State in a fiscal year shall 
                                be 95 percent, and the State share 
                                shall be 5 percent;
                                    ``(III) equal to or greater than 8 
                                percent but less than 10 percent, the 
                                Federal share of the cost of the 
                                allotment described in paragraph (1) 
                                for that State in a fiscal year shall 
                                be 90 percent, and the State share 
                                shall be 10 percent; and
                                    ``(IV) equal to or greater than 10 
                                percent, the Federal share of the cost 
                                of the allotment described in paragraph 
                                (1) for that State in a fiscal year 
                                shall be 85 percent, and the State 
                                share shall be 15 percent.
                            ``(ii) Elections.--
                                    ``(I) Fiscal year 2028.--For fiscal 
                                year 2028, to calculate the applicable 
                                State share under clause (i), a State 
                                may elect to use the payment error rate 
                                of the State from fiscal year 2025 or 
                                2026.
                                    ``(II) Fiscal year 2029 and 
                                thereafter.--For fiscal year 2029 and 
                                each fiscal year thereafter, to 
                                calculate the applicable State share 
                                under clause (i), the Secretary shall 
                                use the payment error rate of the State 
                                for the third fiscal year preceding the 
                                fiscal year for which the State share 
                                is being calculated.
                            ``(iii) Delayed implementation.--
                                    ``(I) Fiscal year 2025.--If, for 
                                fiscal year 2025, the payment error 
                                rate of a State multiplied by 1.5 is 
                                equal to or above 20 percent, the 
                                implementation date under clause (i) 
                                for that State shall be fiscal year 
                                2029.
                                    ``(II) Fiscal year 2026.--If, for 
                                fiscal year 2026, the payment error 
                                rate of a State multiplied by 1.5 is 
                                equal to or above 20 percent, the 
                                implementation date under clause (i) 
                                for that State shall be fiscal year 
                                2030.
            ``(3) Maximum federal payment.--The Secretary may not pay 
        towards the cost of an allotment described in paragraph (1) an 
        amount that is greater than the applicable Federal share under 
        paragraph (2).''.
    (b) Limitation on Authority.--Section 13(a)(1) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the first 
sentence by inserting ``or the payment or disposition of a State share 
under section 4(a)(2)'' after ``16(c)(1)(D)(i)(II)''.

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