A federal clash over food stamp data could cost Michigan taxpayers $300 million

The state of Michigan is refusing to share Supplemental Nutrition Assistance Program data with the federal government, a decision the U.S. Department of Agriculture says could cost state taxpayers around $300 million starting in fiscal year 2028.

For Flint residents who rely on SNAP to put food on the table, the dispute raises questions about program integrity, fraud prevention, and whether the state is doing enough to protect benefits meant for the most vulnerable.

Michigan stands alone with 21 other states

According to a report from Michigan Capitol Confidential, 28 states and the territory of Guam are currently sharing SNAP data with the USDA. Michigan is among the 21 states that have declined, alongside California, New York, and Minnesota.

The USDA's SNAP integrity team uses the data to identify fraud and abuse. The federal agency says it has already found about $3 billion worth of fraud and abuse across the states that submitted data.

"They choose to protect illegals, criminals, and bad actors over the American taxpayer," a USDA spokesperson told Michigan Capitol Confidential in an email. "Under Secretary Brooke Rollins' leadership, USDA remains committed to ensuring USDA upholds its nutrition programs with the highest levels of integrity, while protecting both participants and the American taxpayer."

Fraud numbers tell a mixed picture

Michigan reported $7.7 million in SNAP fraud in 2025, down from $14 million in 2024. But the report noted that SNAP fraud in Michigan jumped by nearly 400% from 2023 to 2024.

The state's payment error rate stands at 9.53%, a figure the report says could drive the $300 million cost to taxpayers if the state does not improve its accuracy.

The Michigan Department of Health and Human Services did not respond to a request for comment.

What this means for Flint

About 1.4 million people in Michigan rely on SNAP. Flint has one of the highest poverty rates in the state, meaning thousands of residents depend on nutrition assistance.

According to a document obtained by Michigan Capitol Confidential through a records request:

  • About 481,170 SNAP recipients in Michigan are ages 21 and over
  • About 297,670 are ages 21 to 41
  • About 237,834 are ages 42 to 61
  • The remaining 187,800 range in age from 62 to older than 104

The report also noted that criminals have targeted SNAP beneficiaries across the state. In 2023, three Detroiters allegedly stole $4 million in SNAP benefits. Earlier this year, a Detroit couple was charged with stealing another $1.1 million.

"By sharing data, Michigan can protect those most in need, get the criminals out, and save its hardworking taxpayers millions of dollars," the Department of Agriculture said.

The national context

The SNAP program costs about $100 billion annually and serves roughly 41 million people nationwide.

The dispute comes as federal policy shifts around SNAP eligibility. The One Big Beautiful Bill Act passed in July 2025 expanded work requirements and changed eligibility rules. According to a report in Governing, SNAP enrollment has dropped in every state since the law took effect, with nearly 3.5 million people losing benefits across the country.

Michigan's refusal to share data with the USDA means the state is not participating in the federal effort to identify fraud while also facing potential financial penalties for its high error rate.

The question for Flint families and Michigan taxpayers is simple. Will the state share the data and let the feds help root out abuse, or will it keep the data locked away and risk a $300 million hit to the budget?