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← Signal: State & Power

Trump Administration Announces National EBT Card Upgrade to Combat SNAP Fraud

Confirmed1 source · Oct 23, 2026

The USDA has mandated that all 50 states transition to chip-enabled Electronic Benefits Transfer cards within two years, following a ProPublica investigation revealing $470 million in annual SNAP theft.

Trump Administration Announces National EBT Card Upgrade to Combat SNAP Fraud
Image via ProPublica

What happened

The Trump administration's USDA Food and Nutrition Administration issued a new proposed rule on Friday requiring all states to transition from magnetic-stripe EBT cards to chip cards with tap-to-pay technology within two years. The rule also establishes new federal SNAP EBT Operating Standards to be updated regularly. The announcement follows ProPublica's investigation published the previous week documenting $470 million in stolen SNAP benefits in the prior year, largely due to outdated card technology. According to USDA officials, ProPublica's reporting was shared throughout the department. The proposed rule has been in development since 2023 but faced repeated delays attributed to USDA understaffing following government efficiency cuts and backlog of prioritized regulations. Public comment on the rule will be accepted for 60 days before formal enactment.

Context

California reduced SNAP and public benefits theft by 83% within two years after adopting chip cards, yet more than 40 states have not made the upgrade, leaving hundreds of thousands of lower-income Americans vulnerable to fraud. The estimated total cost to implement nationwide changes is $283 million, compared to over $600 million in annual benefits currently stolen. However, states already face budget constraints from the administration's One Big Beautiful Bill Act, which reduced SNAP program administration funding, and there is no clear commitment to federal funding for the transition. The Senate's Farm Bill version includes money for the upgrade while the House version does not, with Democrats and Republicans at odds over SNAP spending. Advocates argue that a national standard prevents criminals from concentrating fraud in states with older technology; without federal mandates, individual state upgrades would be insufficient deterrent.

What's disputed

Whether Congress will provide federal funding to support states' implementation costs; the House and Senate Farm Bill versions differ on this provision.