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North Carolina
Department of Health and Human Services
Above federal threshold
Payment error rate
7.36%
Data year
FY2025
FY2028 penalty exposure
$420M+
H.R.1 enrollment cut
19.6%
Legacy IT age
20+ yrs

Source: USDA FNS FY2025

30-minute call agenda
  1. 01Where North Carolina stands: 7.36% error rate (USDA FNS FY2025), #9 of 9 priority states.
  2. 02The gap: 1.36 points above the 6% H.R.1 threshold — which error categories drive it.
  3. 03Exposure: estimated $420M+ — confirm the model with NCDHHS's own spending data.
  4. 04Systems: 20+ yrs legacy eligibility stack — integration without replacement.
  5. 05Next step: scope a 90-day, zero-upfront-cost pilot in one North Carolina county.

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