SNAP benefits are at risk of ending on September 30th – Here’s what must happen to prevent it

If Congress fails to act before September 30, low-income families relying on Supplemental Nutrition Assistance Program (SNAP) benefits may lose the safety net of reimbursement for stolen funds. A wave of electronic theft, known as “skimming,” has targeted SNAP participants, disclosing the vulnerability of the program’s debit-style cards.

The SNAP program, which provides essential support to over 41 million Americans, helps cover costs for fresh produce and other essential goods. However, the reimbursement provision that protects families from skimming theft is set to expire, putting millions at risk.

Looming Deadline

At the end of 2022, Congress passed a provision allowing states to use federal funds to reimburse SNAP beneficiaries whose benefits were stolen through skimming. This safeguard provided much-needed relief to vulnerable families who found themselves without critical resources.

However, this federal reimbursement coverage will expire at the end of September 2023. While a bipartisan effort is underway to extend the reimbursement program, there is concern that Congress will not act in time, especially with the pressing issue of avoiding a government shutdown taking priority.

Rep. C.A. Dutch Ruppersberger, a staunch advocate for SNAP participants, has been vocal in pushing Congress to act. He warns that without immediate action, families could lose their benefits and face severe financial hardship. The frustration among lawmakers and advocates is palpable, as SNAP skimming continues to be a persistent issue.

Growing Problem

The U.S. Department of Agriculture (USDA) estimates that more than 125,000 households were victims of SNAP skimming, resulting in over $61.5 million stolen during fiscal years 2023 and early 2024. However, these numbers may understate the true scale of the issue. The Biden administration has also recognized the growing threat and recently criticized a proposed continuing resolution (CR) for not including provisions to protect SNAP beneficiaries from skimming.

Skimming Theft

Skimming is a sophisticated form of electronic theft where criminals place devices over card readers to steal information, including card numbers and PINs. Unfortunately, SNAP Electronic Benefit Transfer (EBT) cards are more vulnerable to these attacks because they lack embedded microchips, unlike most modern debit and credit cards. This allows thieves to create clone cards that drain victims’ benefits.

So far, no state has issued microchip-enabled EBT cards, though some are taking steps to do so. Both California and Oklahoma have announced plans to implement microchipped cards by 2025. California, one of the states hardest hit by skimming, has already reimbursed approximately $120 million to victims since 2021, combining state and federal funds.

Impact

The loss of SNAP benefits due to skimming can have devastating effects on low-income families, especially if those benefits are not reimbursed. Even a brief disruption in SNAP benefits can prevent families from covering essential expenses like rent, utilities, and food. According to Vicky Negus, a policy advocate at the Massachusetts Law Reform Institute, a lapse in benefits creates a ripple effect that threatens the financial stability of affected households.

If federal reimbursements are not extended, most states will not cover the cost of stolen benefits. Only a few, such as California and Washington, D.C., have committed to continuing reimbursements using state funds.

The USDA has acknowledged the seriousness of the situation and announced plans to introduce new regulations to prevent skimming theft. However, unless Congress acts quickly, many families could be left without essential financial support.

What’s at Stake

With more than 41 million people relying on SNAP benefits to make ends meet, the stakes are incredibly high. For many households, SNAP provides a lifeline to affordable groceries and fresh produce. Without federal reimbursement for skimming victims, these vulnerable individuals could lose vital assistance, leaving them struggling to meet their basic needs. States that lack the financial resources to cover stolen benefits would see an increase in food insecurity and financial instability among their low-income populations.

To protect these families, Congress must pass legislation that extends the reimbursement program beyond September 30. Additionally, efforts to improve the security of EBT cards must continue, with a focus on implementing chip-enabled cards that are far less vulnerable to theft.

In the meantime, advocacy groups, lawmakers, and the USDA are working tirelessly to push Congress to take action. While the battle against skimming is ongoing, securing federal reimbursement for victims is an immediate priority that cannot wait.

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