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USDA Proposes EBT Security Upgrades Amid Funding Concerns

USDA Proposes EBT Security Upgrades Amid Funding Concerns

First seen 30 Oct 2026, 04:20 UTC • •
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ThreatCluster AI
ThreatCluster •October 30, 2026 at 09:46 UTC
  • •USDA's proposed rule mandates EBT card upgrades to chip-and-tap technology.
  • •States require federal funding to implement these security measures effectively.
  • •Only eight states have adopted the new EBT technology, leaving many vulnerable.

The USDA has proposed a rule requiring states to upgrade Electronic Benefit Transfer (EBT) cards to chip-and-tap technology to enhance security against theft. This initiative, driven by the Aspen Institute's report, highlights the need for federal funding to support these upgrades, as many states currently use less secure magnetic stripe cards. The proposed changes aim to protect Supplemental Nutrition Assistance Program (SNAP) benefits and improve access for recipients. However, states face financial challenges due to increased administrative costs from recent legislation, potentially hindering their ability to implement these security measures. The USDA estimates the transition will incur $283 million in one-time costs across various stakeholders. The report indicates that only eight states have adopted the new technology, leaving many recipients vulnerable to fraud. The USDA's public comment period for the proposed rule ends on December 22, 2026.

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Timeline

2026-10-22
USDA issues proposed rule for EBT upgrades
The USDA proposed changes to EBT regulations to align with industry standards and enhance security for SNAP benefits.
www.fna.usda.gov
2026-10-29
Aspen Institute report highlights funding needs
The Aspen Institute released a report urging Congress to provide funding for EBT security upgrades as states prepare for new requirements.
Statescoop

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Common questions

What are the proposed changes to EBT cards?
The USDA proposes upgrading EBT cards to chip-and-tap technology to enhance security and align with industry standards.
How will states fund these upgrades?
The Aspen Institute emphasizes the need for federal funding to assist states with the costs of implementing the new EBT security measures.
What is the deadline for public comments on the proposed rule?
The deadline for submitting comments on the USDA's proposed rule is December 22, 2026.