USDA Proposes Chip-Enabled SNAP Cards Nationwide To Curb Skimming Fraud
Last week the U.S. Department of Agriculture proposed a rule requiring all states to issue chip-enabled SNAP EBT cards and for retailers to install tap-to-pay terminals.[1]
The proposal opens a 60-day public comment period and would give states about two years after the final rule to comply.[1] USDA says the change aims to curb skimming that has siphoned benefits from recipients.[1]
The USDA Office of Inspector General projected in January that SNAP theft, largely from skimming, could reach $233 million between 2025 and 2026. A ProPublica analysis using Propel app data estimated $470 million was electronically stolen from SNAP recipients in 2025. Government Accountability Office findings show chip-enabled cards cost about ten times more to produce than magnetic-stripe cards, raising concerns about who would cover the expense.
The rule would shift compliance burdens to states and retailers while aiming to reduce fraud against low-income households.[1]
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📌 Key Facts
- USDA last week proposed a rule requiring all states to issue chip-enabled SNAP EBT cards and for SNAP retailers to have tap-to-pay capable terminals.
- The USDA Office of Inspector General projected in January that SNAP theft, largely from skimming, could reach $233 million between 2025 and 2026.
- A ProPublica analysis using Propel app data estimated $470 million was electronically stolen from SNAP recipients in 2025.
- Government Accountability Office findings cited in the article say chip-enabled cards cost about 10 times more to produce than magnetic-stripe cards.
- The proposal opens a 60-day public comment period and contemplates giving states roughly two years after publication of the final rule to comply.
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