BATON ROUGE — Louisiana state health officials are attempting to fix errors in the state's food assistance program, which currently feeds one out of every five Louisiana families, in an attempt to avoid a $95 million federal penalty, according to a report by The Advocate.

The potential penalty came from changes to the federal food stamp program, SNAP, after President Donald Trump passed the "One Big Beautiful Bill" in July, reshaping how states are penalized for payment errors.

According to the paper, states with payment error rates higher than 6% must repay between 5 to 15% of the money to the federal government.

Executive Director for Economic Independence with the Office of Economic Stability, Camille Conaway, told the paper that Louisiana's current error rate is 7.61%, among the lowest in the country, with neighboring states like Texas reporting an error rate of 8.32% and Mississippi reporting a rate of 10.69%.

Other states, such as Alaska, reported error rates as high as 25%, with penalties amounting to as much as $1.8 billion in states like California. 

Errors in food stamp distribution come from both residents and agencies, with residents entering the wrong zip code, failing to update their benefits when a person moves in or out of the household or providing an incorrect number for their rent.

In an effort to lower error rates, the Louisiana Department of Health is expanding its wage verification system by automating certain checks and ending specific authorizations that were previously required to review cases. 

It is also introducing a performance pay incentive program, approved by the State Civil Service, where SNAP analysts with an error rate of 4% or lower during the first quarter of 2026 will receive a $1,500 bonus. 

In addition to fixing errors, the agency has created new ways to check the wages of people enrolled in the program.

The penalty is one of several recent changes at LDH, with the department attempting to reduce costs as the federal government shifts its focus from public health efforts, reining in food and medical assistance programs.

About 750,000 Louisiana SNAP recipients receive about $377 a month for groceries. According to state officials, any penalty would be covered with state general fund dollars. 

The pay incentives for SNAP analysts are expected to continue into the third quarter of 2026.