HR3700-119

What This Bill Does

The MEALS Act adds fraud prevention and replacement rules to the Summer EBT program. USDA must issue ongoing guidance to state agencies and covered Indian Tribal organizations describing cost-feasible security measures that detect and prevent theft of Summer EBT benefits through card skimming, card cloning, and similar methods and that align with debit and credit card industry standards. USDA must use notice-and-comment rulemaking to require participating agencies and Tribal organizations to take appropriate security measures, and within one year must issue regulations, including an interim final rule, requiring stolen-benefit replacement procedures. USDA must coordinate with HHS's Office of Family Assistance, the Attorney General, states, Tribal organizations, retailers, vendors, and EBT contractors to determine how benefits are stolen and used, where theft occurs, what equipment enhancements are needed for retailers and vendors, and how standard theft-reporting data should be shared. USDA must report to congressional committees within two years. Participating state and Tribal plans must include timely claims, signed household statements including electronic signatures, validation criteria, documentation, data reports, appeal rights, theft prevention measures, procedures for mixed accounts holding Summer EBT and other benefits such as SNAP, and limits so replacement does not exceed the lesser of stolen benefits or the household's immediately prior Summer EBT allotment. Existing participants must submit initial plans within 60 days. GAO must report within two years on payment-system security risks and USDA, state, Tribal, retailer, and other entity risk management.

Who Benefits and How

Families receiving Summer EBT benefit because stolen benefits can be replaced when card skimming, card cloning, or similar fraud occurs. Children relying on summer food assistance benefit if household food dollars are protected from electronic theft. Covered Indian Tribal organizations benefit from federal guidance and replacement procedures tailored to Summer EBT administration. Retail food stores benefit from coordinated equipment enhancements and clearer security standards.

Who Bears the Burden and How

USDA Food and Nutrition Service staff must issue guidance, rulemakings, reports, plan approvals, and security coordination. State Summer EBT agencies must implement anti-theft measures, replacement claims, appeals, data reporting, and mixed-account procedures. EBT contractors must help identify skimming and cloning methods and support payment-system security improvements. Retailers and vendors may need equipment enhancements and fraud reporting procedures. GAO must conduct a two-year review of Summer EBT payment-system security.

Key Provisions

• Requires USDA guidance and rulemaking on Summer EBT anti-skimming and anti-cloning security measures.
• Requires stolen Summer EBT benefit replacement procedures within one year.
• Requires coordination with HHS, DOJ, states, Tribal organizations, retailers, vendors, and EBT contractors.
• Requires state and Tribal plans for claims, validation, appeals, data reporting, and mixed-benefit accounts.
• Requires USDA and GAO reports to Congress within two years.