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Federal payment integrity -- USDA's compliance with the Payment Integrity Information Act

Failed the Law Meant to Catch $13.4B in Bad Payments

Summary

's own inspector general found the department noncompliant with the Payment Integrity Information Act for fiscal 2025, failing 5 of its 10 high-risk programs. Across those programs reported more than $13.4 billion in improper payments for the year. The failures came two ways: four reported error rates at or above the law's flat 10 percent ceiling -- one hit 55.50 percent -- and a fifth never published an estimate at all.

By Locusta · October 25, 2026

The Payment Integrity Information Act⧉ requires agencies to find, measure, and shrink improper payments in their riskiest programs. On July 24, 2026, USDA's Office of Inspector General⧉ found noncompliant: 5 of its 10 high-risk programs failed, and nine of the ten together reported more than $13.4 billion in improper payments⧉ on $148.3 billion in outlays -- a 9.05 percent error rate, barely moved from 9.11 percent the year before.

Two ways to fail one law

Four programs -- ECP-Disasters, SNAP, the Noninsured Crop Disaster Assistance Program, and the Child and Adult Care Food Program⧉ -- reported rates at or above the law's flat 10 percent ceiling. A fifth, the Summer Food Service Program⧉, published no estimate at all -- you can't exceed a threshold you never measured, so it failed a separate requirement (Criterion 3) by not producing a number.

's FY2025 improper payments
$13.4 billion
Across nine of 's 10 high-risk programs (the tenth never reported), equivalent to a 9.05% improper-payment rate on $148.3 billion in outlays -- down just 0.06 percentage points from FY2024's 9.11%.
High-risk programs that failed the law
5 of 10
Four reported improper-payment rates at or above the 10% statutory ceiling; a fifth, the Summer Food Service Program, never published an improper-payment estimate at all. was noncompliant with three of 's six requirements.
ECP-Disasters improper-payment rate
55.50%
More than five times the 10% legal ceiling and the worst rate of any high-risk program -- overpayments alone accounted for 46.47%. It exceeded its own reduction target by 15.09 points.
programs that broke the 10% ceiling, FY2025
Improper-and-unknown-payment rate against 's flat 10% statutory threshold
ECP-Disasters (FSA)
55.5%
SNAP (FNA)
10.9%
NAP (CCC)
10.6%
CACFP (FNA)
10.5%
Source: , Table 3 and Findings 25-03, Audit Report 50024-0017-11 (July 24, 2026)
View data as table
Four of 's 10 high-risk programs reported improper-payment rates at or above the flat 10% ceiling 's Criterion 6 enforces. Three of them -- , NAP, and CACFP -- cluster within a point of the line; ECP-Disasters, 's emergency farm-conservation disaster program, is the outlier at 55.50%. A fifth program, the Summer Food Service Program, is absent from this chart because never published an improper-payment estimate for it at all -- that non-publication is a separate failure (Criterion 3), and does not expect its first SFSP estimate until FY2029.
ECP-Disasters (FSA)55.5%More than five times the legal ceiling -- overpayments alone ran 46.47%
SNAP (FNA)10.9%Met its own reduction target and still cleared the ceiling
NAP (CCC)10.6%Missed its 10.46% target by 0.10 points
CACFP (FNA)10.5%Rate rose 1.67 points year over year

The 55 percent program

ECP-Disasters⧉, the Farm Service Agency's disaster-land-repair program, reported a 55.50 percent improper-and-unknown rate -- more than five times the ceiling. 's own reduction target was 40.41 percent, itself four times the legal ceiling, and it missed even that by 15.09 points⧉. The traced it to staff skipping eligibility checks and paperwork review before payments went out.

The biggest number is

By dollars, the failure is food assistance. SNAP reported a 10.93 percent error rate⧉ and $10.221 billion in loss -- over three-quarters of the combined loss across 's high-priority programs. cut its rate 0.75 points and met its own target, but the ceiling doesn't bend for effort: 10.93 isn't under 10, so it still failed. GAO put SNAP's FY2023 rate at 11.7 percent⧉ -- not a new problem.

Where 's improper-payment dollars concentrate
Annual reported monetary loss from improper payments, 's five high-priority programs, FY2025
SNAP
10,221
National School Lunch
1,390
Federal Crop Insurance
755
CACFP
446
School Breakfast
428
Source: , quarterly Payment Integrity Scorecard table, Audit Report 50024-0017-11 (July 24, 2026)
View data as table
Monetary loss -- the recoverable-overpayment slice of improper payments -- concentrates overwhelmingly in : its $10.221 billion is more than three-quarters of the combined monetary loss across 's five high-priority programs. Monetary loss is narrower than the $13.4 billion total, which also counts underpayments and payments that cannot be verified either way; these five figures are the high-priority-program monetary-loss amounts reported quarterly on PaymentAccuracy.gov.
SNAP10,221Food assistance -- more than three-quarters of the five programs' monetary loss
National School Lunch1,390School meals
Federal Crop Insurance755Crop insurance
CACFP446Child and adult care food
School Breakfast428School meals

The program with no number

The quietest failure is the Summer Food Service Program⧉: flagged it as high-risk, legally requiring an estimate, and never produced one. The Food and Nutrition Administration hasn't built a measurement method and doesn't expect a first estimate until FY2029. The legal effect is the same as ECP-Disasters' 55 percent -- noncompliance -- because a program with no published rate can't be shown to meet the ceiling.

The takeaway

  • Noncompliance is a range, not a verdict. failed the same law through a program running a 55.50 percent error rate and a program that reported no error rate whatsoever. Both count as failing Criterion 3 or 6; the audit's single 'noncompliant' label flattens a 45-point spread and a total blank into one word.
  • Hitting your own target is not the test. met the reduction target set for it and still failed, because the law enforces a flat 10 percent ceiling regardless of the target. Three of the five failing programs cleared the ceiling by a point or less -- close, but the statute draws a hard line, not a curve.
  • The rate barely moved. 's department-wide improper-payment rate fell 0.06 percentage points year over year, from 9.11 to 9.05 percent. The audit's remedy is a request that the two agencies describe what they will do to comply -- the same posture as prior years for the three programs that were already noncompliant in FY2024.

Report 50024-0017-11 was performed for the by contractor KPMG LLP; 's affected agencies concurred. The $13.4 billion total and 9.05 percent rate cover nine of ten high-risk programs -- SFSP is excluded since it reported no estimate, so true figures run marginally higher. 'Monetary loss' (second chart) is the narrower recoverable-overpayment slice, not the total improper-and-unknown estimate. figures are FY2023 context, not part of 's FY2025 finding.

Sources(2) ▾
  • U.S. Department of Agriculture Office of Inspector General, USDA's Compliance with Improper Payment Requirements for Fiscal Year 2025 (Audit Report 50024-0017-11) (2026-07-24) — 's annual audit of 's compliance with the Payment Integrity Information Act of 2019 for FY2025, performed for the by contractor KPMG LLP. Source for the overall noncompliance finding (three of six requirements unmet; 5 of 10 high-risk programs noncompliant), the $13.4 billion / 9.05 percent department-wide improper-payment total, the Table 3 program error rates (NAP, ECP-Disasters, CACFP, ), the SFSP non-publication finding, and the program monetary-loss figures. Fetched directly from oversight.gov and converted with pdftotext -layout. oversight.gov · original document
  • U.S. Government Accountability Office, Improper Payments: USDA's Oversight of the Supplemental Nutrition Assistance Program (GAO-24-107461) (2024-09-26) — 's review of oversight of improper payments. Context and corroboration only: source for 's FY2023 improper-payment estimate (11.7 percent, about $10.5 billion of $90.1 billion in outlays), the roughly $2.7 trillion cumulative government-wide improper-payment estimate since FY2003, and 's statement that found noncompliant with certain criteria as far back as FY2023 -- establishing that 's FY2025 failure is a multi-year pattern, not a one-off. gao.gov · original document
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