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HR7316119th CongressWALLET

SNAP Payment Security and Fraud Prevention Act of 2026

Sponsored By: Representative Malliotakis, Nicole [R-NY-11]

In Committee

Summary

Modernizes SNAP payment security by proposing chip-enabled EBT cards and expanded USDA Inspector General authority to hunt cyber-enabled benefit theft and cloning fraud.

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  • Households would get emergency replacement EBT cards within 3 business days when cards are lost, damaged, stolen, or frozen, and access at least 12 months of transaction history. They would also get online controls like virtual card numbers and the ability to freeze accounts.
  • States and retailers would face technical rules. Retailers seeking SNAP authorization would need a chip-enabled payment terminal at each location within 180 days after final regulations. States must offer mobile-friendly, accessible user interfaces with 99 percent uptime and provide free APIs for third-party account access.
  • Enforcement and system security would be beefed up. The USDA Inspector General would gain subpoena and warrant authority and coordinate with DOJ, FBI, DHS, Secret Service, and financial institutions. Civil penalties could equal twice the value of stolen benefits to reimburse households and offset enforcement, and the bill requires a Puerto Rico EBT security report within 1 year.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Safer EBT cards and SNAP accounts

This bill would require new cybersecurity and digital service rules for EBT cards and SNAP account interfaces. States would have to start issuing chip-enabled EBT cards within 2 years, stop issuing new magnetic-stripe cards within 4 years, and reissue existing magnetic-stripe cards within 5 years. You would be able to get a replacement EBT card by mail or in person within 3 business days when a card is lost, damaged, frozen for fraud, or stops working. SNAP websites and apps would need 99% uptime, offer at least 12 months of searchable transactions, let you freeze/unfreeze accounts, provide tokenized or virtual card options for online purchases, and at least one State UI would allow delegate access through a free API. Retailers seeking SNAP authorization would need chip-enabled terminals 180 days after the rules are final.

Stronger SNAP fraud enforcement and fines

This bill would expand the USDA Inspector General's authority to investigate multi-jurisdictional and cyber-enabled SNAP benefit theft. The IG could issue subpoenas and warrants, get data from State EBT processors and vendors, make civil or criminal referrals, and work with DOJ, FBI, Secret Service, DHS, and state law enforcement. Anyone who knowingly accesses, uses, or transfers SNAP benefits without authorization would face a civil penalty equal to twice the value of benefits lost, and recovered funds could reimburse affected households and offset investigation costs. The Secretary could issue rules and give funds to support these enforcement activities.

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.

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