US HB762

Eliminates the tolerance level for excluding small SNAP payment errors from quality control calculations, reducing the threshold from the current amount to $0 starting in fiscal year 2025

Changes state agency liability for payment errors from discretionary ("may") to mandatory ("shall"), requiring USDA to hold states accountable for high error rates

Increases the threshold for triggering state liability from 10 percent to 25 percent above the national average payment error rate

Adjusts state liability calculations based on the percentage of overpayments that states fail to recoup, incentivizing states to recover improper payments from recipients

Requires all state agencies to actively seek recoupment of any overpayments made to SNAP benefit recipients