News Story

Overpayments in state food program spike 1,852% in one year

No explanation for nearly 20-fold increase from 2023 to 2024, while program participation shrank

A state health program that has served fewer residents in recent years saw a nearly 20-fold increase in overpayments from 2023 to 2024, according to records obtained by Michigan Capitol Confidential.

The Michigan Combined Application Project, or MiCAP, helps get food benefits to individuals who receive Supplemental Security Income payments from the Social Security Administration. It paid 15,059 residents more than $45 million in fiscal year 2022, but it also overpaid by nearly $87,000. Documents CapCon received through a records request show a spike in overpayments over the following two years.

  • Fiscal year 2022: 15,059 recipients were paid $45,685,525. There were 456 overpayments totaling $86,980.

  • Fiscal year 2023: 14,410 recipients were paid $38,878,154. There were 440 overpayments totaling $123,652.

  • Fiscal year 2024: 13,585 recipients who were paid $29,015,443. There were 8,588 overpayments totaling $441,083.

  • Fiscal year 2025: 12,386 recipients who were paid $27,487,237. There were 545 overpayments totaling $390,137.

The jump in MiCAP overpayments from fiscal year 2023 to 2024 — 440 to 8,588 — amounts to a 1,852% increase. In dollar terms, the overpayment spike — from $123,980 to $441,083 — comes to a 256% increase.

 

MICAP MDHHS by mcclallen

Participation in MiCAP is limited to individuals whose only income comes from SSI, who are at least 18 years old, reside in Michigan, are not institutionalized, and don’t buy and prepare food with others.

The Michigan Department of Health and Human Services says the program helps residents buy more groceries. It also, the department says, reduces the paperwork beneficiaries must complete by combining interviews with the federal Social Security Administration and state officials.

Michigan Capitol Confidential received information about MiCAP payments through a public records request filed Aug.19, 2025.

The state health department did not respond to a request for comment on the apparent anomaly in overpayments. It employs around 14,000 people.

Gov. Gretchen Whitmer’s newest budget proposal calls for $800 million in new taxes, with much of that going to fund the state health department. Whitmer wants $780.4 million in new or increased taxes on gambling, tobacco, vapes and non-tobacco nicotine products for Medicaid funding. She has targeted another $91.9 million to support changes to the Supplemental Nutrition Assistance Program.

Michigan faces higher costs in SNAP and Medicaid because it struggles to disburse benefits accurately. In one case, a state employee allegedly approved and denied benefit requests without interviewing residents.

Criminals stole at least $14 million through Michigan’s SNAP program in 2024, CapCon has reported. The health department plans to maintain its focus on diversity, equity, and inclusion objectives through 2030, according to documents obtained through a records request.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.