USDA Proposes Nationwide Chip-Enabled Supplemental Nutrition Assistance Program (SNAP) EBT Cards to Reduce Fraud

On October 23, 2026, the Food and Nutrition Administration (FNA), the USDA agency that administers SNAP, published a proposed rule in the Federal Register that would require every state to issue SNAP Electronic Benefit Transfer (EBT) cards equipped with EMV chips and Near-Field Communication (NFC) tap-to-pay capability. The rule also mandates that SNAP-authorized retailers accept these payment methods.

GroceryDiveMundoNowUSDA Proposes Major SNAP EBT Card Security Changes to Combat Stolen Benefits

Current SNAP cards rely on a magnetic stripe protected only by a personal identification number (PIN). Criminals can copy stripe data with skimming devices, leading to benefit theft. The authorization to replenish stolen benefits with federal funds expired on December 20, 2024, heightening the need for stronger card protection. The proposal follows a broader USDA effort to modernize SNAP and aligns with the bipartisan Enhanced Cybersecurity for SNAP Act.

USDA Proposes Major SNAP EBT Card Security Changes to Combat Stolen Benefits

• In fiscal year 2025, about 42 million people received SNAP benefits in an average month.

NGA issues statement on USDA proposed rule requiring chip-enabled SNAP EBT cards

• The USDA reports 753,929 claims for replacement of stolen benefits were approved in the second quarter of FY 2025, totaling $360 million.

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• As of August 2026, seven states were already issuing chip-enabled EBT cards; a dozen states—including California, Oklahoma, Alabama, Michigan, Virginia, and Massachusetts—have issued such cards, with several more in the process.

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The USDA emphasizes that chip and tap-to-pay technology will make cards “harder to copy,” reducing skimming fraud. Retailers will need to ensure point-of-sale equipment can process the new cards. The agency is accepting public comments on the proposal through December 22, 2026.

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The National Grocers Association (NGA) welcomed the proposal.

NGA issues statement on USDA proposed rule requiring chip-enabled SNAP EBT cards

• “States that adopted SNAP EBT chip cards have seen a significant drop in skimming fraud,” — Stephanie Johnson, senior vice president, NGA

NGA issues statement on USDA proposed rule requiring chip-enabled SNAP EBT cards

• October 23, 2026 – USDA’s FNA publishes the proposed rule in the Federal Register.

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• December 22, 2026 – Deadline for public comments on the proposal.

USDA Proposes Major SNAP EBT Card Security Changes to Combat Stolen Benefits

If finalized, states would have two years after publication of the final rule to transition to chip-enabled, contactless EBT cards. The new cards would retain a magnetic stripe as a backup and require activation upon receipt. They would also allow states to block out-of-state or online purchases and set transaction limits. Recipients would gain online access to twelve months of transaction history to help identify suspicious activity.

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