Tennessee taxpayers could foot bill for some SNAP costs if state’s error rate doesn’t improve

Tennessee could face a financial penalty of up to $171 million for its 9.44% SNAP payment error rate under the One Big Beautiful Bill Act starting October 2027. The state’s overpayment rate was 7.84%, and underpayment rate was 1.60%, exceeding Congress’s 6% goal. States with error rates between 8% and 10% must cover 10% of SNAP costs, which are typically federally funded.