H.R. 4158: Ensuring Fee-Free Benefit Transactions Act of 2025

This legislation, known as the Ensuring Fee-Free Benefit Transactions Act of 2025, aims to amend the existing Food and Nutrition Act of 2008 by making permanent a moratorium on transaction fees related to Supplemental Nutrition Assistance Program (SNAP) benefits. Here is a breakdown of the bill's key points:

Prohibition of Fees

• The bill explicitly prohibits states or any agents, contractors, or subcontractors acting on behalf of a state from charging fees to retailers authorized to accept SNAP benefits for Electronic Benefits Transfer (EBT) transactions. This includes fees for switching or routing benefits as defined within the law.
• There is an exception for costs associated with equipment rentals, which means retailers may still be charged fees for the use of certain equipment necessary to process these transactions.

Effective Date

The proposed amendments will take effect on October 1, 2025, ensuring that SNAP retailers do not incur transaction fees after this date.

Relation to Previous Legislation

The bill intends to override previous provisions found in the Consolidation Appropriations Act of 2023 or any actions taken by agencies that may provide for these fees.

Financial Impact

By prohibiting these fees, the legislation seeks to enhance the financial viability of retailers who serve low-income customers relying on SNAP benefits, thus improving their ability to operate and provide services to communities.

Goal of the Bill

The primary goal is to ensure that the benefits provided to SNAP recipients can be accessed without additional costs imposed on retailers, which may in turn support the overall aim of the SNAP program to provide nutritional assistance to those in need.

Relevant Companies

None found