USDA Proposes Mandatory Chip-Enabled EBT Cards to Curb SNAP Skimming
USDA's Food and Nutrition Service has released a proposed rule requiring all states to adopt chip-enabled EBT cards and mandating that SNAP-accepting retailers support tap-to-pay terminals, aiming to curb widespread card-skimming fraud. Fewer than a third of states currently use or are transitioning to chip cards, even as skimming losses reached an estimated $470 million last year according to a ProPublica analysis, with USDA's Inspector General projecting theft could hit $233 million in 2025-2026. The public comment period runs 60 days, and USDA is weighing a two-year implementation deadline after a final rule publishes, while seeking input on costs since chip cards run roughly ten times more expensive than magnetic-stripe cards. USDA says it will not offer new funding for the upgrade, citing past administrative funds states failed to use, a stance that lands as state SNAP agencies absorb new budget pressures from recent federal legislation.