LFC review finds low SNAP fraud, persistent high error rate

A Legislative Finance Committee review presented preliminary findings to lawmakers showing intentional theft of Supplemental Nutrition Assistance Program benefits in New Mexico is relatively uncommon, but administrative errors are producing a persistent and costly error rate that affects recipients and taxpayers alike.

Analysts reported that 1.8% of SNAP recipients, roughly 4,600 households, received about $2.3 million in replacement federal funds after benefits were stolen between October 2022 and December 2024. The presentation said the thefts were driven primarily by the use of card skimmers affixed to grocery store card readers. By contrast, the state paid more than $1 billion in SNAP benefits over the same period, making the stolen amount a small fraction of overall benefits.

The LFC also examined the enforcement landscape and found only 12 court cases brought by police and prosecutors involving buying, selling or trading SNAP benefits over the last five and a half years. Analysts reviewed federal data and state court filings and used a working definition of fraud as “intentional activity intended to steal or improperly receive SNAP benefits.”

At the same time, the committee highlighted a high error rate in program administration. The report does not calculate the total dollar value of monthly overpayments, but notes that 12% of SNAP payments each month are overpayments. That share translates to roughly $11 million of about $90 million the state distributes monthly in SNAP benefits. Those overpayments reflect unintentional mistakes that can mean eligible households are undercounted or briefly cut off while errors are resolved.

The review stemmed from a $50,000 appropriation lawmakers added during a special legislative session in November when Republican lawmakers persuaded the Democratic majority to fund the LFC evaluation. The Legislature required the committee to present preliminary findings during the 30-day session that began this week. Analysts described the results as preliminary and invited additional questions from legislators ahead of a full report due by July.

Senator Michael Padilla said the findings underscore the need for both enforcement and improved administration, noting that if fraud “happens one time, it’s one time too many.” He added, “There’s a lot of money changing hands here,” and said, “Obviously we want to make sure it gets to the people who actually deserve it, need it, and so I think the department is implementing safeguards to make sure that that happens.”

For San Juan County residents who rely on SNAP, the report points toward two likely local consequences: more targeted anti-fraud measures at retailers and renewed efforts to tighten administrative accuracy so payments reach eligible households without delays. Lawmakers and the LFC now face decisions about whether new safeguards, technology investments or staffing changes will be recommended in the July report and how those changes will be funded and implemented statewide.

Expect the final LFC report in July to offer detailed recommendations and a fuller accounting of overpayments and corrective measures that could affect benefit delivery in Farmington and across San Juan County.