Bipartisan bill would enhance cybersecurity for SNAP cards to protect critical food assistance for millions of families
Washington, D.C. – U.S. Senators Ron Wyden, D-Ore., Bill Cassidy, R-La., and John Fetterman, D-Pa., today introduced their bipartisan, bicameral Enhanced Cybersecurity for SNAP Act to boost security of electronic SNAP benefit cards amid a sharp rise in theft by hackers and scammers.
Representatives Dan Goldman, D-N.Y., and Mike Lawler, R-N.Y. are leading the legislation in the House.
Tens of millions of dollars in Supplemental Nutrition Assistance Program (SNAP) benefits have been stolen by criminals exploiting lax cybersecurity of electronic SNAP benefit cards. Congress has spent years pressing the U.S. Department of Agriculture (USDA) to require states to issue cards with secure chips rather than magnetic strips that criminals can easily clone. Despite those requests, and a growing trend of SNAP card theft, USDA has failed to update security regulations for benefit cards. In January, the U.S. Department of Agriculture Inspector General issued a report projecting that $555 million in SNAP funds are vulnerable to theft in the coming years if action is not taken to boost cybersecurity.
“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 It’s time to overhaul this two-tier system that leaves families in need even more vulnerable with outdated technology.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,” Wyden said.
“SNAP is a critical lifeline for nearly 2 million Pennsylvanians. We should be delivering help to those who need it, and that includes protecting them from criminals,” Fetterman said. “I’m proud to join my colleagues in reintroducing this bill to protect our most vulnerable and the food assistance they depend on.”
“Each year, tens of millions of dollars in essential food benefits are stolen from New Yorkers—benefits that families rely on to put food on the table,” Goldman said. “That’s why I’m proud to introduce this bipartisan, bicameral legislation to update SNAP’s long-outdated cybersecurity regulations and require chip-enabled cards for SNAP benefits. This bill will ensure federal support for New York as it begins to upgrade its EBT cards and prevent SNAP theft. We must act now to ensure our working families, children, and seniors do not go hungry.”
“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,” Lawler said.
The Enhanced Cybersecurity for SNAP Act effectively addresses fraud by directing USDA to update its cybersecurity regulations to ensure criminals cannot easily steal SNAP benefits. Specifically, this bill will require:
- USDA to issue updated regulations requiring SNAP cards to feature anti-fraud technology capable of resisting cloning, as well as securing online SNAP transactions. These regulations will be updated every five years and must keep pace with the security of credit and debit cards.
- With USDA funding, states will begin issuing chip-enabled SNAP cards within two years of the adoption of the new regulations. Within four years, states will no longer be able to issue new SNAP cards containing a magnetic stripe. Within five years, states will have to reissue all existing SNAP cards containing a magnetic stripe as chip-only cards.
- USDA to operate a grant program providing funds for upgraded chip-capable payment machines to small grocery stores in food deserts, farmers markets, and farm-to-consumer programs.
- States to provide families with no-fee replacements of SNAP cards in three days or less, if their card is stolen, cloned by fraudsters, or malfunctioning.
- States to offer multiple accessible and reliable user interfaces, such as a smartphone app or voice telephone service, for families to manage their EBT account.
The bill is endorsed by: the Oregon Food Bank, the National Grocers Association, Food Marketing Institute, National Association of Convenience Stores, SNAC International, Food Research and Action Center, Hunger Free America, R Street, American Heart Association, Bread for the World, Share Our Strength, Today’s Students Coalition, California Welfare Fraud Investigators Association, City Harvest, Rethink Food, and National Taxpayers Union.
“Independent grocers have served as trusted stewards of this successful public-private partnership for decades, and we remain committed to rooting out waste, fraud, and abuse wherever it appears. This legislation takes important steps to strengthen program integrity by directly addressing EBT skimming and enhancing safeguards that protect both SNAP recipients and taxpayer dollars. Securing our food assistance programs is not a partisan issue, and we commend Senators Wyden, Cassidy, and Fetterman for their close collaboration with NGA while working across party lines to fortify SNAP and modernize EBT payments for the long term,” said Stephanie Johnson, RDN, Vice President of the National Grocers Association.
“As private sector partners with the federal government serving as critical access points for SNAP participants, FMI and its grocery members are committed to strengthening the integrity of SNAP for millions of customers in every community. FMI applauds Senators Wyden, Fetterman and Cassidy, and Representatives Lawler and Goldman for their leadership in establishing a framework for migration to SNAP EBT chip cards in all states that is safe and operationally viable for SNAP participants and retailers. Ensuring secure EBT shopping experiences for SNAP participants is of the utmost importance to grocers and the communities they serve and FMI is pleased to support this bipartisan legislation,” said Jennifer Hatcher, Chief Public Policy Officer for The Food Industry Association.
“SNAP skimming is the ultimate lose-lose: taking groceries away from the most vulnerable Americans while losing tax funds to criminal syndicates. We thank Senator Wyden for introducing a bill that would significantly reduce such fraud and make sure SNAP funds go to the low-income Americans who need them,” said Joel Berg, CEO of Hunger Free America.
“SNAP makes the difference for millions of families across the country who are trying to put food on the table, but due to outdated technology and inadequate security standards for EBT cards, many households have had their grocery benefits stolen by bad actors through no fault of their own. The legislation introduced today by Senators Wyden and Fetterman includes crucial common-sense improvements to modernize EBT card security and provide states the resources needed to prevent SNAP skimming, ensure program integrity, and make sure SNAP is supporting families as intended,” said Claire Borzner, Director of Federal Government Relations for Share Our Strength and its No Kid Hungry Campaign.
The full bill text is here.
A one-pager of the bill is here.
A section-by-section summary of the bill can be found here.
A web version of this release is here.
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