New Jersey Could Face Millions in SNAP Penalties. What's the Plan?

Assemblyman Gerry Scharfenberger questioned Human Services Commissioner Dr. Stephen Cha about New Jersey's SNAP payment error rates, potential federal penalties, and the state's efforts to modernize eligibility systems during an Assembly Budget Committee hearing. The discussion centered on provisions in HR1 that could require states with high SNAP payment error rates to absorb a portion of program costs in the future. Scharfenberger repeatedly pressed department officials on a simple question: what is New Jersey doing now to reduce errors and avoid future financial penalties? Cha argued that the state's reported error rates are often misunderstood and said many so-called "payment errors" involve paperwork or administrative issues rather than fraud. Department officials described ongoing efforts to improve accuracy through staff training, county oversight, corrective action plans, software modernization, and new technology designed to streamline eligibility verification and reduce paperwork burdens. Scharfenberger also asked about lessons from other states, including new verification software and case management systems designed to reduce errors and improve customer service. The commissioner acknowledged that New Jersey's eligibility systems rely on aging technology and said the department is exploring modernization strategies while preparing for future federal requirements. The exchange concluded with questions about contingency planning and whether New Jersey has a strategy if federal penalties eventually take effect. Cha said the department continues to work on reducing error rates while advocating for changes to the federal policy. Watch the full exchange from the Assembly Budget Committee hearing.