H.R. 762 — Snap Back Inaccurate SNAP Payments Act

This section modifies the quality control system under the Supplemental Nutrition Assistance Program (SNAP), which measures state agencies' accuracy in certifying eligibility and benefit amounts and imposes financial penalties for excessive payment errors. Specifically, it (1) sets the tolerance level for excluding small errors at $0 for FY2025 and each fiscal year thereafter (previously applicable through FY2024); (2) requires the Secretary to impose a financial claim on any state agency with a payment error rate exceeding the national average (previously at the Secretary's discretion); (3) increases the payment error rate threshold triggering full liability to 25% (from 10%); (4) for FY2025 and each fiscal year thereafter, adjusts a state agency's payment error rate for penalty calculation by multiplying it by the percentage of total overpayments to recipients not recouped by the state agency; and (5) requires each state agency to seek recoupment of overpayments to benefit recipients. (Thus, states face stricter accuracy standards and incentives to recover overissued benefits to mitigate penalties.)