The U.S. Department of Agriculture (USDA) has instructed Alaska's Department of Health to repay $11.9 million in overpaid food stamp benefits from the previous fiscal year. Acting Under Secretary Kumar Chandran expressed concern about Alaska's high payment error rate in the Supplemental Nutrition Assistance Program (SNAP), warning of potential further penalties if improvements aren't made. Alaska's Division of Public Assistance reported errors in nearly 60% of SNAP applications in the fiscal year ending June 2023, well above the national average of 10%.

State officials attribute these overpayments to the decision to extend benefits during a backlog of food stamp applications, despite lacking federal authorization to do so. This decision, aimed at preventing hunger among residents, bypassed federal verification processes, classifying the extensions as errors. In response, Alaska has aligned its practices with federal guidelines, including extending the recertification period for SNAP eligibility to twelve months.

The state now faces options outlined by the USDA, including paying the penalty in full, appealing the federal assessment, or adopting a rehabilitative approach involving investment in system upgrades. Discussions with Alaska's Department of Law are ongoing to determine the best course of action. The USDA stressed the importance of accurate administration of food aid programs to ensure eligible participants receive timely benefits, even as Alaska works to address past errors and improve future compliance assessments.