After Millions in Stolen SNAP Benefits, Trump Administration Moves to Fight Theft

The Trump administration has unveiled plans to revamp the food stamp payment system in an effort to modernize benefit cards and safeguard families against electronic fraud. This announcement follows a ProPublica investigation revealing that $470 million in Supplemental Nutrition Assistance Program (SNAP) benefits were stolen from recipients last year, primarily due to outdated technology associated with these cards.

ProPublica's report shed light on the experiences of victims and the ongoing failures of Congress and the U.S. Department of Agriculture (USDA) to upgrade the Electronic Benefits Transfer (EBT) cards used for SNAP payments. The findings gained traction within the USDA, as confirmed by two officials from the department.

On Friday, the USDA's Food and Nutrition Administration officially released the proposed rule, which has been in development since 2023 but faced multiple delays. Factors contributing to these delays included a shortage of staff at the USDA following budget cuts from the Department of Government Efficiency last year and a backlog of other regulatory priorities set by the White House budget office. USDA and White House officials did not respond to inquiries regarding the recent change in direction.

The new regulations will require all states to replace current EBT cards, which only have a magnetic stripe that is susceptible to data skimming, with cards featuring digital microchips and tap-to-pay technology—features that have been standard in credit and debit cards for over a decade. Additionally, the USDA will establish new federal “SNAP EBT Operating Standards” that will be updated regularly to ensure that both federal and state agencies can adapt to best practices in the credit card sector and evolving fraud tactics.

Some states, including California, have already adopted chip technology, resulting in an 83% reduction in theft of SNAP and other public benefits over two years. However, over 40 states still use magnetic stripe cards, leaving many low-income individuals vulnerable to losing their benefits to thieves while shopping for groceries. NPR and other outlets have also reported on this ongoing crisis.

Members of the public, including state SNAP officials and grocery store owners with questions about the transition, will have 60 days to submit comments on the proposed USDA regulation, which will be considered by agency officials before the rule is finalized. States will then have a two-year period to implement the switch to chip cards, although their capacity to meet this deadline may be hindered by budget constraints. Many states are currently facing financial challenges, partly due to funding cuts imposed by President Donald Trump’s One Big Beautiful Bill Act, which reduced resources for managing state SNAP programs—funds that could have been allocated for upgrading EBT systems and issuing new cards.

Current and former officials from the Food and Nutrition Administration, as well as state program administrators, have expressed concerns that while the agency is mandating costly changes, Congress has not indicated it will provide federal funding to support the transition to chip cards. The Senate’s version of this year’s Farm Bill includes funding for this upgrade, but the House version does not, leaving both parties at an impasse over SNAP funding. The estimated cost for implementing these changes is $283 million, which pales in comparison to the more than $600 million lost to theft from existing EBT cards annually.

Justin King, a safety net advocate and policy director for Propel, an organization that assists SNAP recipients, emphasized that the requirement for all states to adopt chip EBT cards is significant for low-income families. He expressed surprise at the administration's decision, noting that fraud rings operate across state lines and a national standard would limit their opportunities to exploit weaknesses in the system.

Indications suggest a broader shift in the Trump administration’s approach to this issue. During a recent press conference in Ohio, Vice President JD Vance, who serves as the administration’s “fraud czar,” highlighted that low-income families are often the victims of SNAP fraud, a departure from his previous rhetoric suggesting that fraud was more prevalent among recipients themselves. In past statements, Vance had characterized SNAP recipients in a negative light, but this week he acknowledged the program's importance as a vital social service in the United States.

Vance's comments reflect a significant change in tone, as he recognized that the SNAP program plays a crucial role in supporting families and ensuring food security for those in need.