H.R. 7658: Enhanced Cybersecurity for SNAP Act of 2026

The Enhanced Cybersecurity for SNAP Act of 2026 is a proposed legislation aimed at improving the cybersecurity measures related to Electronic Benefit Transfer (EBT) cards used in the Supplemental Nutrition Assistance Program (SNAP). Here’s a breakdown of its main provisions in simpler terms:

Cybersecurity Measures

The bill requires the Secretary of Agriculture to develop new cybersecurity regulations for EBT cards and related mobile technologies. This process must happen within two years of the bill's enactment. These regulations must ensure that EBT card security measures keep pace with those in the private sector and other federal agencies. The Secretary will review and update these regulations every five years.

Chip-Enabled Cards

States are mandated to start issuing chip-enabled EBT cards within two years after the regulations are finalized. Furthermore:

• By four years post-regulations, states cannot issue new cards that use only magnetic stripes.
• By five years post-regulations, all existing magnetic stripe cards must be replaced with chip-enabled cards.

This shift aims to enhance security against card cloning and fraud.

User Interface Improvements

States will be required to provide user-friendly interfaces for managing EBT accounts, including:

• Web and mobile applications that are accessible and available 99% of the time.
• Support for multiple languages where necessary.
• Improved options for users to report fraud, check transaction histories, and manage their households' EBT accounts.

Transaction Notification

States must offer households timely electronic notification of any transactions made with their EBT accounts. This includes details such as the transaction amount, merchant name, and transaction location. Additionally, households should be able to report fraudulent transactions easily.

Protection Against Loss of Benefits

The bill stipulates that households must receive replacement EBT cards within three business days if their cards are damaged, lost, frozen, or subject to fraud. States are not required to charge fees for replacements in cases of fraud or malfunction.

Retailer Compliance

All retailers participating in SNAP must have chip-enabled payment terminals within 180 days of the final regulations. This ensures that benefits can only be redeemed at secure points of sale.

Grant Program for Upgrading Payment Terminals

A grant program will be established to help eligible entities upgrade to chip-compliant payment terminals. This aims to support retailers in areas with limited access to grocery stores and improve transaction security.

Data Collection and Reporting

The Secretary will collect and publish data on the security of EBT cards and document trends in benefit thefts. Regular public reports will be made available, detailing how benefits are being stolen and evaluating the effectiveness of cybersecurity measures.

Specific Regulations for Online Transactions

Regulations must include security measures for online transactions using EBT cards to prevent theft and protect sensitive data. The Secretary will also consult various stakeholders, including state agencies and retailers, to inform the development of these measures.

Impact on EBT Cards in Puerto Rico

A report will be compiled on the security of EBT cards issued in Puerto Rico, focusing on their resistance to cloning. Recommendations for improving security will be included if applicable.

Conforming Amendments

Changes will also be made to existing laws to align them with the new regulations under this bill.

Relevant Companies

• Visa Inc. (V) - As a major payment processing company, Visa may see increased transactions due to the upgrade of EBT systems to chip-enabled cards.
• Mastercard Incorporated (MA) - Similar to Visa, Mastercard could be impacted positively as states transition to more secure payment methods.
• Adobe Inc. (ADBE) - Providing software for secure online transaction processing, Adobe may influence and support the implementation of new security measures.