USDA Proposes Chip-Enabled EBT Cards to Combat SNAP Benefits Theft

The U.S. Department of Agriculture (USDA) is proposing that states switch to chip-enabled EBT cards and contactless payment to combat the theft of SNAP benefits, also known as food stamps. On Friday, October 23, 2026, the Food and Nutrition Administration (FNA), a USDA agency, published a proposed rule in the Federal Register regarding EBT card security measures. This is a proposal and has not yet taken effect.

Why it matters: currently, EBT cards function with magnetic stripes protected only by a PIN, which is easy to copy. Additionally, the authorization to replenish stolen benefits with federal funds expired on December 20, 2024, making card protection crucial. According to the USDA, as of the second quarter of fiscal year 2025, 753,929 claims for replacement of stolen benefits were approved, totaling $360,441,561. In fiscal year 2025, approximately 42 million people received SNAP benefits in an average month.

What the USDA is proposing

According to the USDA, criminals use the same card cloning and "skimming" techniques (copying magnetic stripe data) against EBT cards that they previously used against debit and credit cards. The proposal requires states to switch to EBT cards with chips and NFC (contactless payment) technology and for authorized SNAP stores to accept chip and contactless payments.

The proposed deadline is two years after the final rule is published. The new cards will retain the magnetic stripe as a backup in case the chip does not work at some stores. The new card will need to be activated upon receipt, and states must notify households and stores in advance.

As of August 2026, seven states were already issuing chip-enabled EBT cards.

New tools to protect your account

States would be required to offer at least the following options, which currently vary significantly from state to state:

• Blocking purchases outside your state.
• Blocking online purchases.
• Blocking all transactions (freezing the card).
• Setting a maximum purchase amount.
• Receiving email or text alerts for purchases, including declined transactions, out-of-state purchases, and those exceeding the chosen limit.
• Receiving alerts for PIN changes, balance inquiries, or changes to address, email, or phone number.

Additionally, the available transaction history would increase from 2 months to 12 months, accessible online and through mobile apps, including date, time, amount, and store name.

What you can do

• Do not share your PIN and cover the keypad when entering it.
• Check your balance and purchases frequently.
• Activate alerts or blocks if your state already offers them.
• Immediately report any unrecognized purchases to your state's SNAP agency.
• Submit your comments on the proposal.

Comments will be accepted until Tuesday, December 22, 2026, at Regulations.gov or by email to SM.FN.SNAP.Issuance.Policy@usda.gov.

Sources: Federal Register, USDA proposed rule on EBT card security (October 23, 2026); Food and Nutrition Administration (USDA). Data accessed on October 26, 2026.