Enhanced Cybersecurity for SNAP

Summary#

This bill would change the Food and Nutrition Act of 2008 to require new cybersecurity and digital service rules for electronic benefits transfer (EBT) cards used in the Supplemental Nutrition Assistance Program (SNAP). The Secretary of Agriculture must write these rules within 2 years and review them every 5 years. The bill defines terms like “chip-enabled” and requires states to offer specified user interfaces (web portal, mobile app, text, voice, and a nondigital option) and an API for third-party access.

The rules would require states to begin issuing chip-enabled EBT cards within 2 years of the final rule, stop issuing new magnetic-stripe cards within 4 years, and reissue existing magnetic-stripe cards as chip-enabled within 5 years. States upgrading cards would receive reimbursement for reasonable costs. The bill also creates a grant program to help stores in limited-access areas upgrade to chip-compatible payment terminals.

Other requirements include: opt-in electronic transaction notices, 12 months of searchable transaction history, the ability to report fraudulent transactions, NIST-aligned PIN and password rules, public data collection and regular reports on benefit theft and cybersecurity, rules to ensure replacement cards are provided quickly, and a prohibition on certain replacement fees. Retailers seeking SNAP authorization would need a chip-enabled terminal at each location. The bill also requires a report on the security of EBT cards in Puerto Rico.

What it means for you#

• SNAP households: Can opt in to electronic transaction notices, view at least 12 months of transaction history, report fraud through user interfaces, check enrollment and recertification dates, and receive replacement cards by mail or in person within 3 business days after request. Certain replacement fees would be prohibited.
• States: Must operate required user interfaces, follow timelines for issuing chip-enabled cards, and may get federal reimbursement for upgrade costs. They must collect and share data required by the Department of Agriculture.
• Retailers: Stores seeking SNAP authorization or reauthorization must have chip-enabled payment terminals at each location within the timeline tied to the final regulations. Stores in areas with limited grocery access may be eligible for grants to upgrade terminals.
• General public and agencies: The Department of Agriculture will publish data and regular reports on EBT cybersecurity, online transaction theft, and usability issues.

Expenses#

The bill requires the Department of Agriculture to reimburse states for reasonable costs of upgrading EBT cards (including one-time vendor costs, additional annual fees, and postage) and establishes grants to help retailers upgrade terminals. The text does not list dollar amounts or total cost estimates. No publicly available information on total cost.

Proponents' View#

The bill’s text sets out objectives to make EBT cards harder to clone or steal, to reduce theft of benefits in online and in-person transactions, to modernize user interfaces and access to transaction information, to speed replacement of damaged or stolen cards, and to support states and retailers in upgrading technology.

Opponents' View#

No publicly available information.