SNAP Payment Security and Fraud Prevention Act of 2026
Sponsored By: Representative Malliotakis, Nicole [R-NY-11]
Introduced
Summary
Strengthen SNAP EBT security and prevent benefit theft. This bill would expand investigative power, create stronger penalties, and require a multi-year shift to EMV chip cards plus upgraded digital protections for Electronic Benefit Transfer accounts.
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- Families and beneficiaries would get faster help and more control. The bill would require replacement EBT cards within 3 business days, prohibit certain replacement fees, let users opt in to transaction notices, keep 12 months of transaction history, and allow account freezes and virtual-card limits for online purchases.
- Retail locations that accept SNAP would face a new hardware rule. Each store location seeking authorization or reauthorization would need chip-enabled payment terminals and must meet a phased timeline for card and terminal changes within 2 to 5 years.
- USDA, state EBT systems, and law enforcement would gain new tools. The bill would expand the USDA Office of Inspector General's authority to subpoena data, coordinate with federal and local agencies and financial institutions, and collect regular public reports on fraud trends and cybersecurity progress.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Twice-value penalty for stolen SNAP benefits
If enacted, someone who knowingly uses or transfers SNAP benefits without permission would owe a civil penalty equal to two times the value of the benefits lost. The Secretary could collect this through an administrative proceeding or by suing in federal court. Money recovered would be used first to reimburse households for lost benefits and then to pay for enhanced USDA Inspector General investigations. The penalty would be in addition to any criminal or other civil penalties.
More USDA investigations of SNAP fraud
If enacted, the USDA Office of Inspector General would get broader authority to investigate cyber and multi-jurisdictional SNAP benefit theft. The IG could issue subpoenas, execute warrants, make civil and criminal referrals, and get data from State EBT processors and vendors. The IG could also coordinate with DOJ, FBI, DHS, the Secret Service, state and local law enforcement, and financial institutions. The Secretary could issue rules and allocate funds to support these activities.
Stronger EBT protections for SNAP families
If enacted, the Agriculture Secretary would write new EBT cybersecurity and digital-access rules within 2 years and update them regularly. States would have staged deadlines to issue chip-enabled cards (start within 2 years) and stop magnetic-stripe cards (no-new mag-stripe within 4 years, full reissue within 5 years). States would have to run mobile-friendly account portals that work 99% of the time, offer 12 months of searchable transactions, let households freeze accounts and report fraud, and provide an API so approved third-party apps can access accounts at no charge. If a card is lost, stolen, damaged, or frozen for fraud, households would get a replacement card by mail or in person within 3 business days; many replacement fees would be barred starting 60 days after the rule takes effect. Retail locations seeking SNAP authorization would need chip-enabled payment terminals 180 days after the rules are final, which could reduce acceptance at some stores while reducing in-person fraud.
Sponsors & CoSponsors
Sponsor
Malliotakis, Nicole [R-NY-11]
NY • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov