Politics
USDA proposal would require chip-enabled SNAP cards nationwide
A proposed federal rule would require states to issue chip-enabled SNAP cards and retailers to accept tap-to-pay transactions, aiming to curb theft through card skimming. States would have 60 days to comment, and the USDA is considering a two-year implementation window.
The U.S. Department of Agriculture is proposing new security requirements for food assistance cards, including chip-enabled cards for all states and payment terminals capable of accepting tap-to-pay at retailers that take Supplemental Nutrition Assistance Program benefits.
The proposal, released last week, is intended to reduce card skimming, a form of theft in which criminals capture payment-card information and use it to drain recipients’ accounts. Most SNAP cards still rely on magnetic stripes, which are more vulnerable to this type of fraud than chip-based and contactless payments.
Fewer than a third of states have adopted chip-enabled EBT cards or are in the process of doing so, according to USDA. The department estimates the proposed changes could prevent at least $1.5 billion in stolen benefits over the next decade.
The financial toll of theft is substantial. A January estimate from the USDA’s Office of Inspector General projected that SNAP theft could reach $233 million across 2025 and 2026, largely because of skimming. A separate investigation calculated that $470 million was stolen electronically from recipients last year, using data from benefits-management app Propel.
In most states, stolen benefits are not replaced. That can leave families scrambling to cover groceries, including by borrowing money or turning to food pantries. The USDA said the proposed changes would protect benefits and help ensure they reach eligible households.
The transition could be costly for states. Chip-enabled cards cost about 10 times more to produce than magnetic-stripe cards, according to the Government Accountability Office. The proposed rule acknowledges those expenses and asks state agencies for input on the burden. The USDA said states have had access to administrative funds to address benefit theft, but few have acted.
The proposal comes as state SNAP agencies face new budget pressures following President Donald Trump’s One Big Beautiful Bill Act. The USDA has not committed to providing additional funding for the upgrades.
The public has 60 days to comment before the USDA issues a final rule. The department is considering giving states two years after publication of the final rule to comply and is seeking feedback on whether that timeline is sufficient.
The administration’s effort follows years of calls from state officials, federal watchdogs and lawmakers in both parties for stronger EBT security. The Justice Department also announced last week that its fraud division helped uncover nearly $42 million in schemes involving SNAP, including identity theft and retailers illegally exchanging cash for benefits.