Quality control system tolerance level for excluding small errors

Section 16(c) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)) is amended— (1) in paragraph (1)— (A) in subparagraph (A)(ii)— (i) in subclause (I), by striking and at the end; (ii) in subclause (II)— (I) by inserting through fiscal year 2024 after thereafter; and (II) by striking the period at the end and inserting; and; and (iii) by adding at the end the following: (III) for fiscal year 2025 and each fiscal year thereafter, $0.; (B) in subparagraph (C)— (i) in the matter preceding clause (i), by striking may and inserting shall; (ii) in clause (ii)(I), by inserting, as adjusted under subparagraph (H), if applicable after agency; and (iii) in clause (iii), by striking 10 and inserting 25; and (C) by adding at the end the following: (H) Reduction of payment error rate based on percentage of overpayments recouped In determining the liability amount of a State agency under subparagraph (C) for fiscal year 2025 and each fiscal year thereafter, the payment error rate described in clause (ii)(I) of that subparagraph shall be equal to the product obtained by multiplying— (i) the payment error rate of the State agency for that fiscal year; and (ii) the percentage of the total amount of overpayments of benefits made by the State agency that are not recouped by the State agency under paragraph (9) for that fiscal year.; (2) by redesignating paragraph (9) as paragraph (10); and (3) by inserting after paragraph (8) the following: (9) Recoupment of overpayments Each State agency shall seek to recoup any overpayments of benefits made to benefit recipients..