Trump Administration to Require Chips on SNAP Cards

Key Points:

• The Trump administration announced a new USDA rule requiring all 50 states to upgrade food stamp EBT cards from magnetic stripes to chip-enabled cards with tap-to-pay technology, aiming to reduce the $470 million in annual SNAP benefit theft due to outdated card technology.
• The rule, delayed since 2023 due to USDA understaffing and regulatory backlogs, mandates a two-year timeline for states to transition, but concerns remain about funding shortages as Congress has not clearly committed federal money to support the $283 million estimated upgrade cost.
• Some states, like California, have already adopted chip cards, resulting in an 83% reduction in SNAP theft, but over 40 states have yet to implement the technology, leaving many low-income families vulnerable to fraud and benefit losses at grocery store checkouts.
• Vice President JD Vance, previously critical of SNAP recipients, recently shifted his rhetoric to emphasize the program’s importance in preventing hunger among American families and highlighted ongoing prosecutions of SNAP fraud rings exploiting card vulnerabilities.
• The USDA is seeking public comments over 60 days before finalizing the rule, with the goal of establishing ongoing federal standards to keep pace with credit card industry best practices and evolving fraud tactics targeting vulnerable populations.