USDA Inspector General John Walk testified before Congress that fraud in the Supplemental Nutrition Assistance Program (SNAP) goes far beyond being a financial crime and extends to individuals linked to terrorist organizations and foreign adversary nations.
Speaking before the House Subcommittee on Government Efficiency, Walk said, "SNAP fraud is a heinous crime that exploits the compassion of American taxpayers who fund the program and steals from low-income Americans who qualify for assistance."
The inspector general confirmed that proceeds from SNAP fraud go to individuals connected to terror groups, adversary nation states, and transnational criminal organizations.
Organized crime networks targeting the system
Walk highlighted increasingly sophisticated fraud schemes targeting the roughly $100 billion federal food assistance program. He explained that organized criminals steal benefits from vulnerable Americans by cloning electronic benefit transfer (EBT) cards, trafficking benefits, and committing identity fraud.
Walk said he spoke this week with a New York father of five whose EBT card was cloned, adding, "I have heard many similar victim stories from working mothers and fathers. That is why SNAP fraud matters."
Tax revenues went to drugs and weapons
Walk emphasized that an investigation in Southern California alleges SNAP benefits were traded for cash and crack cocaine. He said gang members used proceeds from the fraud to buy firearms. "I repeat: SNAP dollars, federal tax dollars, were used to buy drugs and weapons," Walk stated.
Subcommittee Chairman Representative Tim Burchett, a Tennessee Republican, alleged that USDA officials identified approximately $3 billion in potential fraud and waste using data from states. Burchett cited examples of benefits being sent to 186,000 deceased individuals, 442,000 applicants with fake Social Security numbers, and hundreds of thousands of duplicate recipients in the system.
Burchett also criticized 21 states for refusing to provide requested SNAP data to the USDA, arguing that this lack of cooperation prevents federal authorities from detecting additional fraud.
Democrats object: Mistakes are being portrayed as intentional fraud
While Republicans focused on fraud prevention and stricter oversight, Democrats argued that the hearing risked portraying administrative errors as intentional fraud and emphasized SNAP's role in feeding vulnerable Americans.
Gina Plata-Nino, SNAP Policy and Advocacy Director at the Food Research and Action Center, acknowledged that organized theft of EBT benefits is a serious problem but warned lawmakers not to confuse payment errors with fraud. "Program integrity and food access are not competing goals," Plata-Nino said.
Inspector General Walk warned that criminals can install EBT card skimming devices in as little as seven seconds and drain accounts as soon as monthly benefits are deposited, adding, "We cannot stop SNAP fraud by chasing and paying. We need to guard the front door."
