Harmful Cost Shifts Tied to Fundamentally Flawed Payment Error Rates 

TRENTON – Governor Mikie Sherrill and Department of Human Services Commissioner Stephen Cha are calling for Congress and the Trump Administration to eliminate or delay harmful Supplemental Nutrition Assistance Program (SNAP) cost shift provisions tied to USDA’s fundamentally flawed Payment Error Rate (PER). If these changes are not at least delayed until FFY2030, the cost burden could jeopardize the State’s progress in combating food insecurity and create unnecessary barriers for residents accessing food assistance. 

“Because of the Trump Administration’s policies – namely H.R. 1 – our progress in driving down food insecurity is at risk. In New Jersey, our priority is feeding our families. Rather than creating unnecessary red tape and barriers to benefits, we prioritize real payment accuracy and streamlining,” said Governor Sherrill. 

The Sherrill Administration argued that the cost shift provisions place increased burdens on New Jersey without adding significant value to the SNAP program. Under the Trump Administration’s H.R. 1, utilizing the PER – which is an inappropriate and flawed metric for this purpose – to calculate the State's contributions to the cost of SNAP benefits could force New Jersey taxpayers to absorb hundreds of millions of dollars. 

“The H.R.1 PER-based cost shift provisions do not improve payment accuracy nor address waste, fraud, and/or abuse, and create a substantial burden on our State and County administrations that threatens our ability to address the critical needs of low-income families across our State. While we urge the elimination of cost shift provisions entirely, we recommend at minimum postponing the implementation of the SNAP cost shift to allow sufficient time to address the many concerns and inconsistencies in its implementation,” wrote Human Services Commissioner Cha. 

For a copy of the letters sent by Governor Sherrill and Commissioner Cha to each member of New Jersey’s congressional delegation, click here.