USDA previews rule requiring chip cards for SNAP benefits to curb skimming

The short version

• The Trump administration announced a forthcoming USDA proposal requiring SNAP benefit cards to add chips, tap-to-pay technology and new security features.[The Washington Sun]
• A Propel survey of EBT cardholders found 56% of SNAP theft victims skipped or reduced meals.[The Washington Sun]
• States would get two years to update cards at a USDA-estimated $283 million cost, and only 10 states have updated or are working to do so.[The Washington Sun]
• The proposal remains forthcoming, and its final requirements and timeline are not yet set.[The Washington Sun]

Key facts

• The Trump administration announced it is moving to require SNAP benefit cards to include new security features against skimming and card cloning.[The Washington Sun]
• The forthcoming proposal would give states two years to update cards with chips and tap-to-pay technology, at a USDA-estimated cost of $283 million.[The Washington Sun]
• USDA says only 10 states, including California, Maryland, Oklahoma and Alabama, have updated or are working to update their cards.[The Washington Sun]
• A USDA watchdog estimated in January that fraudsters would net $555 million in stolen SNAP funds from fall 2024 onward.[The Washington Sun]
• ProPublica reported that $470 million in SNAP benefits were stolen from recipients last year, in large part because the cards are technologically outdated.[ProPublica]
• Fifty-six percent of SNAP theft victims said they skipped or reduced meals, according to a Propel survey of EBT cardholders.[The Washington Sun]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Agriculture Department Finally Moves to Fix a Major Source of SNAP FraudThe Washington Sun
• After Millions in Stolen SNAP Benefits, Trump Administration Moves to Fight TheftProPublica