LANSING, Mich. (Michigan News Source) – A new report from the Michigan House Oversight Subcommittee on State & Local Assistance Programs suggests the state’s food stamp system might be a little too trusting for a program that hands out billions of taxpayer dollars every year.

Michigan spent more than $3.2 billion on food assistance in fiscal year 2024, with roughly one in seven Michiganders receiving benefits. But lawmakers investigating the system say weak safeguards are making it easier for fraudsters – and simple errors – to slip through the cracks. The report states: “The insecurity of current administration of benefits – whether the MiBridges Application Portal or physical Bridge Cards themselves – allows for fraud.”

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The committee, chaired by State Rep. Jason Woolford (R-Howell), voted to enter the report into the public record and refer their findings to the full state Oversight Committee for further review. In a press release, Woolford said, “Oversight in government is a critical check for the people, because it ensures they are well-served by transparent and efficient government services and programs. We need to root out any waste, fraud and abuse in these systems to help benefits get to those who truly need them. We have identified areas where the state has fallen short or is out of compliance, and now it’s critical to see through reforms.”

Systemic errors add to Michigan’s SNAP payment problems.

The report points to a 9.53% SNAP payment error rate in the state in FY 24, which includes both overpayments and underpayments. If that rate doesn’t fall below federal thresholds, Michigan could face a penalty of roughly $320 million beginning in 2027. Woolford said, “Under Gov. Whitmer’s administration, Michigan has a yearly average SNAP error rate above 10 percent. The rate must fall below 6 percent to not incur a penalty.”

Lawmakers identified several systemic errors that contribute to the program’s high payment error rate. These include heavy reliance on self-attestation by applicants, minimal required information to submit an application, and eligibility checks that often occur only after benefits are approved rather than before. Errors can also occur in situations when applicants submit incorrect information and when caseworkers make administrative mistakes due to complex eligibility rules or incomplete documentation. In addition, technology limitations in the MiBridges system and outdated Bridge Card security can contribute to payment errors and misuse of benefits.

Apply first, verify later.

The state’s benefits portal, MiBridges, came under heavy criticism during the investigation as well. According to the report, applicants can submit a food stamp application with only a first name, last name, and address, with most eligibility checks happening later on the “back end.” Lawmakers say that approach explains why the system is vulnerable to abuse. The portal itself reportedly cost taxpayers more than $16 million to update, yet investigators say it still lacks basic front-end verification tools.

Where does the funding come from?

Although Michigan administers the program, the food stamp benefits themselves are funded entirely by the federal government through the U.S. Department of Agriculture. Michigan mainly shares in the administrative costs of running the program – such as staffing, eligibility processing, fraud investigations, and maintaining systems like the MiBridges benefits portal.

Are non-citizens getting benefits?

And what about the alien number that is requested if the applicant self-attests to being a “non- citizen?” According to testimony during a subcommittee hearing, it was explained that certain “qualified immigrants” may be eligible for public assistance programs. This includes specific classes under federal law. Eligibility was amended by the “One Big Beautiful Bill Act of 2025” for SNAP eligibility to be limited to U.S. citizens/nationals, lawful permanent residents (LPRs/green card holders, subject to a 5-year waiting period with exceptions), Cuban and Haitian entrants, and Compact of Free Association (COFA) citizens. Many previously eligible groups, such as refugees, asylees, victims of trafficking, and certain other humanitarian immigrants, are no longer eligible unless they obtain LPR status and meet other requirements.

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The testimony also noted that because applications are processed on behalf of an entire “household,” one person can apply for benefits for everyone living there. That means an application could be approved even if some household members listed on it are not actually eligible for the program.

Fraud attempts in the hundreds of millions.

State investigators say fraud in the state’s food stamp program isn’t hypothetical. The Michigan Office of Inspector General reported it prevented about $305.9 million in attempted public assistance fraud in FY2024 through investigations and analytics. The schemes include identity fraud in four main areas: identity fraud; skimming machines; EBT cloning terminals; and misuse of benefits. In one example cited in testimony, analysts detected more than $16 million in skimmer-related fraud targeting Bridge Cards.

Proposed fixes.

Lawmakers are recommending several changes, including chip-enabled Bridge Cards, stronger ID verification, and tighter application requirements. In other words, a little more “verify” and a lot less “just take our word for it.” Because when billions of dollars are on the line, “trust us” might not be the best fraud prevention strategy.