From fiscal year 2028 a state pays a share set by its error rate
What the document says“Subject to clause (iii), beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is--”
The section adds a State quality control incentive to section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)). Beginning in fiscal year 2028, a State with a payment error rate under 6 percent has a federal share of 100 percent and a State share of zero; at 6 percent or more but under 8 percent the federal share is 95 percent and the State share 5 percent; at 8 percent or more but under 10 percent the federal share is 90 percent and the State share 10 percent; and at 10 percent or more the federal share is 85 percent and the State share 15 percent.
What the document actually says“Subject to clause (iii), beginning in fiscal year 2028, if the payment error rate of a State as determined under clause (ii) is--”
From fiscal year 2028 a state pays a share. How big a share turns on its error rate.
A rate under 6 percent means the state pays nothing. A rate of 10 percent or more means it pays 15 percent. Two steps sit in between.
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