Federal Rule Would Upgrade Food Stamp Cards to Thwart Scammers
The USDA proposed a rule requiring all states to replace magnetic-stripe SNAP cards with chip-enabled cards and tap-to-pay technology. The change follows reporting that roughly $470 million in benefits were stolen last year, largely because the cards lacked modern security. The rule had been delayed since 2023 and is now moving forward.
The USDA's proposed regulation would require every state to move SNAP EBT cards from magnetic-stripe-only technology to microchip and contactless payment features. It follows reporting that about $470 million in benefits were stolen in one year, with outdated cards a major factor.
The proposal had been pending since 2023 and faced delays tied to staffing shortages, efficiency-related cutbacks, and competing regulatory priorities. California's chip rollout cut theft of public benefits by 83% over two years, while more than 40 states still lack chips. Comments are open for 60 days; states would then have two years to comply.
The change could reduce losses for SNAP recipients, who may be less vulnerable to skimming and card draining, and could ease stress for grocers and state agencies handling disputes. Because states face funding and logistical constraints, rollout may vary, potentially leaving some recipients with older cards longer. Faster adoption could restore confidence in benefit delivery, while delays may prolong financial harm for households with limited resources.