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A top Agriculture Department watchdog warned Congress on Thursday that fraud in the Supplemental Nutrition Assistance Program (SNAP) has allowed individuals linked to terrorist groups, foreign adversaries and transnational criminal organizations to access and abuse food stamps.
The hearing marked the latest push by the Trump administration and House Republicans to crack down on these financial crimes and address the alleged waste, fraud and abuse in the bloated federal SNAP program.
“SNAP fraud is a reprehensible crime that squanders the compassion of American taxpayers who fund the program and robs from those low-income Americans who qualify for SNAP benefits to feed themselves and their families,” USDA Inspector General John Walk told the House Oversight Subcommittee on Delivering on Government Efficiency.
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“Proceeds of SNAP fraud have gone to individuals linked to terrorist groups, foreign adversary nations and transnational criminal organizations,” Walk testified.
Republicans argued that broader access to state eligibility data could uncover billions more in improper payments and organized criminal activity, while Democrats warned the effort could be used to justify cuts to food assistance for eligible Americans.
Walk, during Thursday’s hearing, seemed to further feed into Republicans’ concerns as he described increasingly sophisticated schemes targeting the roughly $100 billion federal food assistance program. He said organized criminals are stealing benefits from vulnerable Americans through electronic benefit transfer (EBT) card skimming, trafficking operations and identity fraud.
The inspector general said the crimes leave many legitimate vulnerable recipients without money to buy food.
He recounted speaking this week with a New York father of five whose SNAP benefits were stolen after criminals skimmed his EBT card.
“I have heard many stories from victims like these working moms and dads,” Walk said. “They’re why SNAP fraud matters.”
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Walk also highlighted a Southern California investigation in which SNAP benefits were allegedly exchanged for cash and crack cocaine.
According to his testimony, gang members then used proceeds from the fraud to purchase firearms.
“I’ll just repeat that,” Walk said. “SNAP dollars, federal tax dollars, used to buy drugs and guns.”
Walk’s testimony underscored the focus of Thursday’s hearing, where House Republicans argued that gaps in oversight and data sharing have allowed billions of taxpayer dollars to be lost to fraud and abuse within the nation’s food stamp program.
The subcommittee’s chairman, Rep. Tim Burchett, R-Tenn., claimed that Department of Agriculture (USDA) officials identified roughly $3 billion in potential fraud and waste using data submitted by participating states. Some examples included benefits allegedly being sent to 186,000 deceased individuals, 442,000 applicants with fraudulent Social Security numbers and hundreds of thousands of duplicate recipients in the system.
He also criticized 21 states for declining to provide requested SNAP data to the USDA, arguing the lack of participation prevents federal officials from identifying additional fraud.
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“If food stamp recipients’ data stays in state-specific databases, individuals may apply for and receive benefits from multiple states,” Burchett said.
Walk said investigators face the same challenge, arguing that limited access to state recipient data makes it difficult to detect fraud before taxpayer dollars are spent.
“We cannot pay and chase our way to stopping SNAP fraud,” he said. “We need to guard the front door.”
The inspector general also warned that criminals can install EBT card skimming devices in as little as seven seconds, allowing thieves to clone benefit cards and drain accounts as soon as monthly benefits are deposited.
While Republicans focused on fraud prevention and tighter oversight, Democrats argued the hearing risked portraying administrative errors as intentional fraud and defended SNAP’s role in feeding vulnerable Americans.
Food Research and Action Center Director of SNAP Policy and Advocacy Gina Plata-Nino said organized theft of EBT benefits poses a serious problem but cautioned lawmakers against confusing payment errors with fraud.
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“Program integrity and food access are not competing goals,” Plata-Nino testified.
The hearing comes as the Trump administration has prioritized rooting out fraud across federal benefit programs, with Burchett arguing additional state cooperation could uncover even more abuse within SNAP.
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