Stock image/file photo: Person using a card to pay for items in a store.

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Aliss Higham

By Aliss Higham

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Lawmakers have introduced legislation to require chip-enabled Supplemental Nutrition Assistance Program (SNAP) benefit cards and stronger cybersecurity rules after a rise in theft of food benefits nationwide.

Democratic Senators Ron Wyden of Oregon and John Fetterman of Pennsylvania, along with Louisiana Republican Bill Cassidy, introduced the Enhanced Cybersecurity for SNAP Act to Congress this week. Representatives Dan Goldman, a New York Democrat, and Mike Lawler, a New York Republican, are leading the effort in the House.

Why It Matters

SNAP benefits are dispensed to recipients through electronic benefit transfer (EBT) cards, which can be used to buy groceries at participating stores nationwide. There are about 41 million SNAP beneficiaries across the country.

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Lawmakers cited growing SNAP theft by skimming and cloning of magnetic-stripe cards and pointed to an inspector general projection that hundreds of millions of dollars in benefits are potentially at risk without upgraded security.

What To Know

The bill would direct the U.S. Department of Agriculture (USDA), which oversees the program, to update security regulations so SNAP cards use anti-fraud technology that resists cloning and secures online transactions, bringing standards in line with credit and debit cards.

Under the proposal, with USDA funding, states would begin issuing chip-enabled SNAP cards within two years of the updated regulations, stop issuing new magnetic-stripe cards within four years and reissue all remaining magnetic-stripe cards as chip-only within five years.

Stock image/file photo: A customer using a card to pay for items in a store.

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The measure would also require states to provide no-fee replacement cards within three days for families whose cards were stolen, cloned or malfunctioning and to offer accessible account-management options such as a smartphone app or voice phone service.

The bill would also create a USDA grant program to help small grocery stores in food deserts, farmers markets and farm-to-consumer programs upgrade to chip-capable payment machines.

Sponsors said "tens of millions of dollars" in SNAP benefits had been stolen by criminals exploiting outdated magnetic-stripe cards. They noted a January report from the USDA's inspector general projected that $555 million in SNAP funds could be vulnerable in the coming years without action.

The proposal has endorsements from industry and anti-hunger groups such as the Oregon Food Bank, the National Grocers Association, the Food Industry Association, the National Association of Convenience Stores and Hunger Free America.

The National Grocers Association said the legislation took "important steps to strengthen program integrity," while Hunger Free America said, "SNAP skimming is the ultimate lose-lose."

What People Are Saying

Democratic Senator Ron Wyden of Oregon said in a news release: "Cybersecurity shouldn't depend on income or zip code. It’s time to overhaul this two-tier system that leaves families in need even more vulnerable with outdated technology. I'm all in to get this legislation across the finish line and ensure no hungry family has to lose sleep over their food assistance being stolen."

Republican Representative Mike Lawler of New York said in a news release: "SNAP benefits are a lifeline for thousands of families across the Hudson Valley, and we have a responsibility to ensure those benefits are protected from fraud and theft. By modernizing EBT cards with secure chip technology, the SNAP system will be brought up to the same security standards Americans expect from their banks. Protecting these benefits means protecting working families, seniors, and small businesses who rely on them every day**."**

What Happens Next

Congress is set to debate the Enhanced Cybersecurity for SNAP Act. If passed, USDA will issue updated regulations and timelines for states to begin issuing chip-enabled cards and phasing out magnetic stripes.

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