Release No. 0230.05

Contact: Ed Loyd (202)720-4623
Susan Acker (703)305-2286

USDA Announces A Historic Payment Accuracy Rate and Awards
$30 Million to States for Exemplary Administration of the Food Stamp Program

WASHINGTON, June 24, 2005 --Agriculture Secretary Mike Johanns today announced that the Food Stamp Program has achieved a historic 94.12 percent overall payment accuracy rate and that USDA has awarded $30 million to 16 states for their exemplary administration of the program in fiscal year (FY) 2004.

"The Food Stamp Program is the foundation of our federal nutrition assistance safety net," said Johanns. "Ensuring access to all who are eligible while maintaining program integrity is a top priority. We are pleased to recognize and congratulate those states that have ensured efficient, accurate and effective administration of this critical program."

The rate of payment accuracy in the Food Stamp Program has improved 34 percent between FY2000 and FY2004 and is the highest rate achieved since the inception of the program. This improvement in payment accuracy is a result of strong partnerships with states administering the program as well as implementation of program simplifications and policy options provided in the 2002 Farm Bill.

As authorized by the 2002 Farm Bill, USDA provides awards to states with the best and most improved payment accuracy rates and lowest and most improved negative error rates. The payment accuracy rate measures both the rate of overpayment and underpayments to recipients to ensure households are receiving the right amount of nutrition assistance benefits. The negative error rate measures the frequency of improper denials or termination of benefits.

The seven states with the best payment accuracy rates and the three states with the most improved payment accuracy rates will divide $24 million. An additional $6 million will be divided between the four states with the lowest negative error rates and the two states with the most improved negative error rates.

The Food Stamp Program provides support to needy households and to those making the transition to self-sufficiency. The program serves as the first line of defense against hunger, with almost 25 million individuals in over 11 million households currently participating in the program. The program enables low-income families to buy nutritious food with Electronic Benefits Transfer (EBT) cards.

The following states will receive bonus awards:

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