SNAP theft reimbursements could end for many without congressional action by Friday

As lawmakers look to sort out government funding before it runs out on Friday, reimbursements for those whose federal food assistance is stolen are also on the table.

The Supplemental Nutrition Assistance Program, or SNAP, is still delivered on cards with magnetic stripes that are vulnerable to skimming, where criminals steal card data and PIN entries, make fake cards and spend the money. 

The 2023 appropriations law included a temporary authority for states to replace stolen benefits with federal funds. That provision was extended in the continuing resolution passed in September, but it is set to expire Friday with the end of the current stopgap.

Over $150 million in benefits have been replaced since states started refunding stolen money with federal funds in January 2023, according to USDA data.

“Unless Congress acts by Friday, funds used to reimburse people whose SNAP benefits were stolen by electronic skimming of their EBT cards will expire,” said Ashley Burnside, a senior policy analyst at the Center for Law and Social Policy, or CLASP. “It would be especially devastating for families to lose access to this protection this close to the holiday season, when food expenses and bills often rise for families.”

“Only Congress can extend the replacement of stolen benefits by extending the law that provides federal reimbursement to states for ​stolen benefit replacement​,” a USDA spokesperson told Nextgov/FCW in a statement. An administration official told Nextgov/FCW that the White House “strongly supports further extending this protection.”

“SNAP is a vital nutrition safety net for low-income Americans. When benefits are stolen, SNAP participants’ ability to feed their families is threatened,” they said. Over 40 million people get the benefit monthly. 

Agriculture is trying to move states to more secure cards with chips, but it doesn't have a timeline for doing so. It is still working on new rules around the electronic benefit transfer cards used to deliver the benefit — expected next year, according to the department — although USDA is encouraging states to go ahead and start moving to chip cards now.

Several senators released a letter to the department Tuesday urging Agriculture to release the rule, required in the 2023 appropriations law. 

“Long-term solutions are necessary to ensure the integrity and reliability of SNAP,” wrote the group, led by Sens. Ron Wyden, D-Ore., and John Fetterman, D-Pa. “Additionally, any potential extension of this temporary repayment authority is uncertain, further demonstrating the need for the USDA to prioritize immediate action to update the security requirements for EBT cards.”

“Replacing stolen benefits, while critical, is not a sustainable solution,” they continued.

For now though, as the department and states work to move the program to EBT cards, many recipients may still see their benefits stolen. 

If lawmakers were to not include the reimbursement provision using federal funds, states would have to look for funding in their own budgets, said Chloe Green, the manager of the Food and Nutrition Services portfolio at the American Public Human Services Association, a bipartisan national membership association for state, county and city human services agencies.

“But for many (most) states it just won't be financially feasible,” she told Nextgov/FCW over email. Most states have started talking about moving to more secure cards, but that will take time and also won’t end fraud instantly, either, she added.

One Democratic aide told Nextgov/FCW that they are cautiously optimistic about the prospects of getting the authority extended past the Friday deadline. 

Rep. Dutch Ruppersberger, D-Md., noted in a statement that “SNAP theft is a crime that is affecting every community in the country — with the most vulnerable of victims — and I can’t imagine why this isn’t a higher priority for my colleagues on the other side of the aisle.”

“Right now, we are doing everything we can, including praying for a Christmas miracle. We continue to work all vehicles, including our appropriations bills, the upcoming Farm Bill and, ideally, my standalone bill that makes reimbursement permanent and addresses the root cause of the problem,” he said. 

Ruppersburger and others have backed standalone bills to make the reimbursement provisions permanent, although they have not received much traction. Rep. Jennifer McClellan, D-Va., has also been urging appropriators to include the extension of the replacement authority in the fiscal 2025 appropriations package. 

“Each year, thousands of families and seniors across New York are at risk of not being able to put food on the table because of the millions of dollars lost to theft and fraud of SNAP benefits,” Rep. Dan Goldman, D-N.Y., told Nextgov/FCW in a statement. “Families across the country are relying on us to get this done.”