HR7316-119

What This Bill Does

The SNAP Payment Security and Fraud Prevention Act of 2026 rewrites SNAP electronic benefit transfer security. It gives the USDA Inspector General full authority to investigate and coordinate multi-jurisdictional efforts against theft, misuse, skimming, cloning, phishing, spoofing, and unauthorized access to EBT systems; issue subpoenas, execute warrants, make civil or criminal referrals, coordinate with DOJ, FBI, DHS, Secret Service, State and local law enforcement, and financial institutions; request data from State processors and vendors; and join cyber task forces. It creates a civil penalty equal to twice the value of stolen SNAP benefits for people who knowingly access, use, or transfer benefits without authorization, with recoveries used to reimburse households and support Inspector General activity. USDA must issue and update cybersecurity and digital-service regulations for EBT cards and mobile payments, require State user interfaces such as portals, mobile apps, APIs, text, voice, and nondigital options, require 99 percent availability, multilingual information, transaction notices, 12-month transaction histories, fraud reporting, online transaction tokenization, freeze and unfreeze controls, recertification status, chip-enabled card issuance, phaseout of magnetic stripes, NIST-compliant PIN and password rules, public data on system downtime and State cybersecurity measures, and biennial public reports. States must replace damaged, stolen, frozen, or malfunctioning EBT cards within three business days and cannot require in-person pickup. Certain replacement fees are barred. SNAP retailers and wholesalers seeking authorization or reauthorization must have chip-enabled payment terminals. USDA must report on Puerto Rico EBT card security within one year.

Who Benefits and How

SNAP households benefit from stronger protection against EBT skimming and cloning, transaction alerts, searchable account history, fraud reporting tools, freeze controls, tokenized online use, chip-enabled cards, faster replacement cards, and fee waivers for malfunctioning, fraud-related, expired, or required replacements. Households in Puerto Rico benefit from a dedicated security report on cloning resistance. USDA Inspector General investigators benefit from clearer authority, data access, subpoenas, warrants, referrals, and interagency coordination. Federal taxpayers and State SNAP agencies benefit if stronger security reduces benefit theft and reimbursement costs. Retail food stores with modern chip terminals benefit from a clearer standard for SNAP participation.

Who Bears the Burden and How

State SNAP agencies must build or operate required user interfaces, maintain 99 percent availability, support multilingual materials, provide 12-month transaction histories, issue transaction notices, accept fraud reports, implement freeze and tokenization controls, replace cards within three business days, phase out magnetic-stripe cards, comply with NIST PIN and password standards, publish cybersecurity data, and absorb limits on replacement fees. SNAP retailers and wholesale food concerns must install chip-enabled payment terminals for authorization or reauthorization. USDA, FNS, Treasury, NIST, and the USDA Inspector General must issue regulations, maintain lists, collect data, publish reports, and enforce the new requirements. Fraud perpetrators face civil penalties equal to twice the stolen benefit value plus other civil or criminal penalties.

Key Provisions

• Expands USDA Inspector General authority to investigate cyber-enabled SNAP benefit theft and coordinate with law enforcement, financial institutions, State processors, and vendors.
• Creates a civil penalty equal to twice the value of knowingly stolen or misused SNAP benefits.
• Requires chip-enabled EBT cards, mobile-friendly user interfaces, transaction notices, account histories, fraud reporting, tokenization, freeze controls, and NIST-compliant PIN and password rules.
• Requires replacement EBT cards within three business days and bans certain replacement fees.
• Requires SNAP retailers to use chip-enabled terminals and requires USDA public reports on EBT security, theft trends, usability, State cybersecurity, and Puerto Rico card cloning resistance.