OKLAHOMA COUNCIL OF PUBLIC AFFAIRS / From the desk of Jonathan Small
Is the food-stamp program in Oklahoma plagued by a significant level of fraud? There’s reason to believe that may be the case.
Public data shows 11.6% of Oklahomans live in poverty, but the share on the Supplemental Nutrition Assistance Program (SNAP, or “food stamps”) is around 17%.
That means the share of Oklahomans on food stamps is nearly 50% higher than the poverty rate.
The 5.4 percentage-point gap between Oklahoma’s poverty rate and SNAP-participation rate is larger than the gap in all but two other states. In most states, the share of those receiving SNAP benefits is comparable to those living in poverty, and in many cases the SNAP rate is actually lower.
That makes sense, since SNAP benefits are supposed to help pay for food for the poor, and that’s the pattern for most states in our immediate region as well as nationwide.
In Texas, 14.3% of people live in poverty but just 10% receive SNAP subsidies.
In Arkansas, 13.6% live in poverty but only 8% are on SNAP.
In Louisiana, the poverty rate is 17.7% and 18% receive food stamps. In Missouri, 10% of people live in poverty and 11% are on SNAP. In Kansas, 9.1% live in poverty, but just 6% are on SNAP. Those figures prompt a reasonable question: Why does Oklahoma’s rate for SNAP participation far outpace our poverty rate? It’s reasonable to wonder if fraud or sloppy income-validation issues are to blame. Potential fraud could take several forms. The most obvious would involve people being allowed into the food-stamp program without verifying that they qualify. But it can also occur when people initially qualify but remain on the rolls after their income increases.
There are monetary reasons some individuals may seek food-stamp benefits other than a desire for free food. Nationally, individuals have been caught selling their benefit cards to others, receiving perhaps $1 to $2 in cash for every $4 in benefits sold, for example.
Nationally, the U.S. Department of Agriculture estimated that 11.7% of SNAP benefits, amounting to approximately $10.5 billion, were paid out improperly in fiscal year 2023.
Under new federal law, states with significant improper food-stamp payments are financially penalized. Oklahoma’s current error rate could translate into an increased state cost of nearly $226 million annually.
That’s why Oklahoma policy makers should initiate a thorough investigation into our state’s SNAP program to ensure the program is benefiting the truly needy. Any dollar that goes to someone who does not qualify makes it harder to serve those who honestly need the program. And given the need to stretch dollars during the government shutdown, this is an ideal time to launch a serious review.
( EDITOR’S NOTE: According to the Oklahoma Policy Institute, “Data from the U.S. Census Bureau’s 2024 American Community Survey, released September 11, show that Oklahoma’s poverty rate was 14.9 percent.” Doing the math, this data indicates that Oklahoma’s poverty rate and SNAP recipient numbers are closer than Mr. Small indicates.)
