Speaking at the Oklahoma State Capitol, State Auditor Cindy Byrd warned that Oklahoma is facing a looming financial crisis tied to the Supplemental Nutrition Assistance Program, commonly known as SNAP.
Byrd pointed to a federal review launched last year by the U.S. Department of Agriculture, which found widespread payment errors and fraud nationwide and called for stricter enforcement of eligibility rules by states.
SNAP was created in 1964 to prevent hunger, Byrd said, but recent spending growth and what she described as weak oversight have placed the program under renewed scrutiny.
Federal changes raise stakes for states
Byrd said recent federal legislation, known as the One Big Beautiful Bill, tightened SNAP eligibility standards and added financial penalties for states that fail to enforce them.
Beginning in October 2027, states with a SNAP payment error rate of 6% or higher could see benefit reductions and be required to cover a portion of SNAP costs with state funds.
Oklahoma’s current payment error rate is 10.9%, according to federal data.
“If nothing changes, Oklahoma taxpayers could be forced to cover hundreds of millions of dollars,” Byrd said.
By the numbers
- SNAP spending in Oklahoma grew from $820 million in 2019 to $2 billion in 2023
- Spending declined but remains high at $1.6 billion in 2024 and 2025
- Oklahoma’s payment error rate rose to about 11% in 2024
- Potential annual funding loss starting in 2027: more than $235 million
- Estimated state administrative costs beginning October 2026: up to $270 million annually
Why costs surged
Byrd said the spike in SNAP spending during the COVID-19 pandemic was driven largely by increased benefit amounts, not a surge in new enrollments.
Federal pandemic policies allowed states to issue additional benefits to existing recipients, sometimes above standard income limits. Those changes pushed program costs up more than 100% between 2019 and 2023.
While overall spending began to decline in 2024, Byrd said payment error rates increased in Oklahoma and many other states.
Audit concerns and conflict of interest
Byrd said SNAP eligibility in Oklahoma is not independently audited.
She said SNAP is the only entitlement program in the state that does not undergo third-party eligibility audits, even though federal law requires audits for other large federal grants.
The Oklahoma Department of Human Services, which administers SNAP, currently reviews a sample of cases to calculate overpayment and underpayment rates. Federal officials then review a subset of that same sample.
“The agency tasked with determining eligibility is the only one testing eligibility,” Byrd said, calling it a conflict of interest. She said she is not alleging wrongdoing by DHS but argued current quality controls are ineffective.
Byrd applauded Gov. Kevin Stitt for directing a broader review of welfare programs and said cooperation between state and federal officials will be critical.
She said Oklahoma has roughly eight months to begin reducing its payment error rate before federal calculations used for future penalties are finalized.
If the error rate drops below 10%, Byrd said the state could save an estimated $75 million annually under the new cost-sharing system.
DHS is now under new leadership, and Byrd said she is encouraged by steps the agency says it is taking to improve enforcement, including addressing staffing shortages and office closures that she said contributed to rising error rates.
“It’s about making sure SNAP benefits remain available for the families who truly need them,” Byrd said.
Why it matters
If Oklahoma fails to meet new federal standards, Byrd said, taxpayers could be forced to backfill lost SNAP funding at a time when multiple state agencies are already facing budget pressures.
Without independent audits and stronger eligibility enforcement, she warned Oklahoma is “on track to fail” the federal government’s new accountability test.
This article was originally published by News on 6. You can see the original story here.