Billionaire Elon Musk and Vivek Ramaswamy propose rightsizing the inefficiencies in the Supplemental Nutrition Assistance Program (SNAP) from the said initiative for government efficiency. Discusses the envisaged Department for Government Efficiency (DOGE)—an advisory committee that will primarily be about streamlining costs and eliminating regulatory blocks under the administration of President-elect Donald Trump from January 2025. Ramaswamy will head this new department to be established with the above purpose.
The SNAP program aids low- and no-income households through the direct provision of funds for certain essential groceries, as administered at the state level by the U.S. Department of Agriculture (USDA). It is indeed a lifeline for almost every American household and has been a victim of allegations around mismanaged funds and fraud. An X (previously called Twitter) post by Ramaswamy on the matter brings it to the fore; according to him, around $1 billion is “wasted every month” in the VALBs “unqualified SNAP benefits.”.
“At states, benefits would continue for recipients qualifying in the past but that are now over income to qualify,” Ramaswamy said. He added that such frauds collect benefits in more than one state because of poor interstate coordination. Ramaswamy stated these inefficiencies could save billions of dollars every year—more or less referring to the “nonpartisan issue.”.
SNAP fraud and overpayments: A widespread issue
SNAP benefits nowadays function via electronic benefit transfer, or EBT cards, which operate relatively like debit or credit cards. However, unfortunately, this has become one of the most frequently defrauded systems, through cloning, phishing, and skimming. Meanwhile, from the second quarter of 2023, over 810,000 reported cases of fraud manifested over $150 million in stolen benefits replaced in that timeframe.
Another persistent problem aside from fraud is overpayment. The overpayment rate for the 2023 fiscal year by the USDA hung on a national average of 10.03 percent, with only 1.64 percent underpayment. However, these rates differ considerably from state to state. For example, while Alaska reported a disturbing payment error rate of 60.37 percent, on the other hand, South Dakota reported an incredibly smaller value of 3.27 percent.
The Food and Nutrition Service (FNS) at USDA has demanded “immediate state actions” to address these errors. Most errors have been blamed on mistakes made by state agencies or households unknowingly. The FNS has warned states of penalties for non-compliance, encouraging them to improve the determination of eligibility and benefit calculations.
Ramaswamy’s crusade against waste in SNAP accords with Trump’s broader agenda for improving government efficiency. However, Ramaswamy’s critics say cuts to benefits or narrowing of eligibility will fall hardest on the vulnerable communities that depend on SNAP for the most basic sustenance.
Broader goals for government efficiency
While SNAP is a key focus for Ramaswamy and DOGE, the advisory body may also explore opportunities to reduce fraud and waste within Social Security and Medicare. However, Ramaswamy has tempered expectations, noting that significant changes to these programs would require approval from Congress and should reflect voters’ sentiments. “Large, widespread cuts are unlikely,” Ramaswamy said, indicating that reforms will mostly be incremental in these areas. Instead, the focus will remain on identifying areas of inefficiency or fraud without putting core values into jeopardy.
This further creates DOGE, thus indicating a new federal approach to oversight and resource allocation. This way, SNAP, Social Security, and Medicare-inhabited inefficiencies will help Ramaswamy and Musk free up billions in savings from the taxpayer. Whether that will be by savings or backlash against diminished access to benefits is yet to be seen.
As Ramaswamy takes on this prominent role, the success of DOGE may depend on the balance between good budget management and the needs of millions of Americans who rely on these crucial programs. And with SNAP fraud and overpayments already under the microscope, the new year of 2025 will likely see the start of a radical shift for U.S. government programs.
