Sponsors
The bill strengthens fraud detection, reimbursement, and modernization of SNAP payment systems—improving security and access for many beneficiaries—while shifting costs and administrative burdens to states, retailers, and taxpayers and increasing privacy and enforcement risks for recipients.
Low-income SNAP households will get stronger protection and recovery when benefits are stolen or misused: expanded federal investigations, reimbursement authority, and targeted protections (including Puerto Rico) increase the chance victims regain lost benefits and deter fraud.
Modernizing SNAP payment systems (chip-enabled cards, tokenized/mobile payments, upgraded retailer terminals, and updated authentication standards) reduces card fraud and aligns EBT security with private-sector standards.
SNAP beneficiaries will face fewer access barriers day-to-day: faster replacement cards (3 business days), mandatory in-person pickup options for those without reliable mail, and elimination of most replacement fees improve timely access to benefits.
Broader data-sharing, expanded subpoena/warrant authorities, and wider interagency/private cooperation increase privacy risks for SNAP recipients by exposing EBT transaction data to more actors and creating uneven protections across states and contractors.
Significant upfront and ongoing costs to states, territories, and small retailers to issue chip-enabled cards, reissue replacements, and upgrade point-of-sale terminals may be borne by state budgets, local taxpayers, or passed to consumers.
Some small or rural retailers may stop participating in SNAP rather than pay upgrade costs, reducing local access to benefits for SNAP recipients and potentially creating 'food deserts' in affected areas.
Based on analysis of 9 sections of legislative text.
Strengthens USDA fraud authority, creates civil penalties for unauthorized SNAP access, mandates chip-enabled EBT/payment standards, faster replacement cards, fee bans, and retailer terminal upgrades.
Introduced February 2, 2026 by Nicole Malliotakis · Last progress February 2, 2026
Expands USDA investigative authority and strengthens technical and operational rules to prevent theft and fraud of SNAP benefits. It creates a civil-penalty regime for unauthorized access or transfer of benefits, requires upgraded chip-enabled EBT and payment standards, mandates faster replacement cards and limits replacement fees, and requires retailers to have chip-enabled terminals; it also directs reports on EBT security (including Puerto Rico).