H.R. 7316: SNAP Payment Security and Fraud Prevention Act of 2026

This bill, titled the SNAP Payment Security and Fraud Prevention Act of 2026, aims to enhance security measures related to the Supplemental Nutrition Assistance Program (SNAP) by improving the cybersecurity of Electronic Benefit Transfer (EBT) cards. Here are the key provisions and changes proposed by the bill:

1. Expanded Investigative Authority

The bill enhances the authority of the Inspector General of the Department of Agriculture, allowing them to:

• Investigate theft and fraud involving SNAP benefits, particularly through cyber-enabled methods.
• Issue subpoenas, execute warrants, and collaborate with various law enforcement agencies.
• Request data from state EBT processors for investigative purposes.

2. Civil Penalties for Theft

The bill introduces civil penalties for individuals who fraudulently access, use, or transfer SNAP benefits without authorization. The penalties would be set at twice the value of the benefits lost and could be enforced through administrative or civil actions.

3. Enhanced Cybersecurity for EBT Cards

It sets forth requirements for the implementation of chip-enabled EBT cards to protect against cloning and fraud:

• By the end of a specified timeline, states must issue chip-enabled cards and avoid using magnetic stripe cards.
• Establish cybersecurity regulations for EBT cards and mobile payments within two years, with updates every five years.

4. Reporting and Data Collection

The Secretary of Agriculture will be required to:

• Submit regular reports on trends in fraud, effectiveness of cybersecurity measures, and usability of EBT services.
• Publish data on the operation and security of user interfaces related to EBT accessibility.

5. Ensuring Access to Benefits

The bill mandates that states must expedite the process of replacing damaged or lost EBT cards, ensuring that households receive their replacement cards within three business days.

6. No Replacement Fees

It prohibits states from charging replacement fees for EBT cards in specific situations, such as malfunction, fraud, or expiration.

7. Retailer Participation Requirement

States will require retailers accepting SNAP benefits to have chip-enabled payment terminals as a condition of participation in the program.

8. Fraud Detection and User Interfaces

States will offer users accessible interfaces to manage their EBT accounts, report fraud, and view transaction history while ensuring a high level of uptime for these services.

9. Overall Goals

The primary objectives of this bill include:

• Reducing fraud and misuse of SNAP benefits.
• Enhancing the security of benefit transfers through improved technology.
• Ensuring that users have reliable access to their benefits and can manage them efficiently.

Relevant Companies

• MA (Mastercard Inc.): May be involved in the implementation of chip-enabled payment solutions and associated security measures for EBT cards.
• V (Visa Inc.): Similarly, Visa may play a role in enhancing payment security for EBT transactions through technology upgrades.