Fraud within the Supplemental Nutrition Assistance Program (SNAP) has provided funds to individuals connected with terrorist groups, foreign adversaries, and transnational criminal organizations, according to testimony from the U.S. Department of Agriculture's Inspector General.
John Walk, the USDA Inspector General, informed a House oversight subcommittee on Thursday that the abuse of the federal food assistance program extends beyond financial crimes, reaching entities that pose a threat to national security. The hearing, focused on government efficiency, highlighted concerns about the approximately $100 billion SNAP program and allegations of waste, fraud, and abuse.
"SNAP fraud is a reprehensible crime that squanders the compassion of American taxpayers who fund the program and robs from those low-income Americans who qualify for SNAP benefits to feed themselves and their families," Walk stated during his testimony.
According to Walk, organized criminal enterprises are exploiting SNAP through sophisticated schemes. These include electronic benefit transfer (EBT) card skimming, trafficking operations, and identity fraud. These criminal activities not only divert taxpayer funds but also leave legitimate, vulnerable recipients without the means to purchase food. Walk shared an account of a father of five in New York whose SNAP benefits were stolen after his EBT card was skimmed.
In one specific investigation in Southern California, SNAP benefits were allegedly exchanged for illicit substances and firearms, Walk testified. "SNAP dollars, federal tax dollars, used to buy drugs and guns," he emphasized.
House Republicans at the hearing argued that insufficient oversight and data sharing between states and federal agencies allow billions in taxpayer money to be lost. Rep. Tim Burchett, R-Tenn., chairman of the subcommittee, pointed to USDA findings of approximately $3 billion in potential fraud and waste. These findings included benefits allegedly being issued to deceased individuals, those with fraudulent Social Security numbers, and duplicate recipients.
Burchett also criticized 21 states for withholding requested SNAP data, asserting that this lack of cooperation hinders the federal government's ability to detect and prevent fraud. "If food stamp recipients' data stays in state-specific databases, individuals may apply for and receive benefits from multiple states," Burchett said.
Walk echoed these concerns, explaining that limited access to state-level recipient data makes it challenging to identify and stop fraud before funds are disbursed. "We cannot pay and chase our way to stopping SNAP fraud. We need to guard the front door," he stated.
Criminals can quickly install EBT card skimming devices, enabling them to clone benefit cards and drain accounts as soon as monthly benefits are deposited, Walk warned. He also noted that criminals can create fake EBT cards and sell them on the dark web.
Democrats at the hearing cautioned against conflating administrative errors with intentional fraud and emphasized SNAP's critical role in supporting low-income households. Gina Plata-Nino, Director of SNAP Policy and Advocacy at the Food Research and Action Center, testified that while organized theft is a serious issue, it should not overshadow the program's importance for food access. "Program integrity and food access are not competing goals," she said.