End of SNAP Benefits Looms on September 30th Without Action – Necessary Steps to Prevent Cutoff

Millions of low-income families in the U.S. depend on the Supplemental Nutrition Assistance Program (SNAP) to afford essential groceries. But with September 30 approaching, the threat of losing a key protection is raising concerns.

Congress must act before the deadline to prevent beneficiaries whose SNAP benefits are stolen through a method known as “skimming” from losing reimbursement coverage. Let’s look into what’s happening and why it matters for SNAP recipients.

Skimming

Skimming, an electronic theft method, targets SNAP beneficiaries who use Electronic Benefits Transfer (EBT) cards. These cards are often less secure than typical debit or credit cards, lacking modern chip technology. Thieves install skimming devices on card-swiping terminals to steal EBT card information and PINs, creating fake cards to drain funds. With no federal consumer protection akin to debit or credit cards, victims have little recourse without federal intervention.

The Urgency

A federal provision introduced in late 2022 allowed states to use federal funds to reimburse victims of SNAP skimming. However, this coverage is set to expire on September 30, 2024, leaving many families vulnerable. If Congress fails to act, most states won’t use their own resources to replace stolen benefits. The USDA estimates that around 125,000 households were impacted, but the true number of victims could be much higher.

Rep. C.A. Dutch Ruppersberger has been a key figure in advocating for continued protections, but with Congress primarily focused on avoiding a government shutdown, a stand-alone bill to extend these reimbursements seems unlikely before the September 30 deadline.

Federal Inaction

While the federal government debates the future of reimbursement, some states are taking independent action to address skimming. California and Oklahoma have announced plans to introduce chip-enabled EBT cards by 2025, a move that could dramatically reduce theft.

California, for instance, has already reimbursed over $120 million in stolen benefits since late 2021, but other states may not follow suit. According to the California Department of Social Services, this reimbursement program included both federal and state funds. Oklahoma, meanwhile, has already reinstated $1.4 million in stolen benefits and hopes that upgrading its EBT cards will protect recipients in the future.

However, until chip-enabled EBT cards are fully implemented nationwide, millions of families remain at risk of having their benefits stolen.

Cost of Inaction

For SNAP recipients, stolen benefits can have devastating consequences. Without food assistance, many families struggle to cover essential expenses like rent and utilities. Vicky Negus, a policy advocate with the Massachusetts Law Reform Institute, warns that even brief interruptions in benefits can create a ripple effect that puts families on the brink of financial disaster.

The Biden administration has taken notice of this issue. Recently, it criticized a proposed continuing resolution (CR) to fund the federal government, pointing out that it fails to address the problem of stolen SNAP benefits. While this is a positive step, a concrete solution still seems far off.

Future Safeguards

While Congress debates the next steps, some lawmakers are pushing for long-term solutions. Sen. Ron Wyden has introduced a bill that would require EBT cards to include anti-theft features like microchips. Although progress has been slow, if passed, such legislation could prevent future thefts and provide stronger consumer protections.

At the same time, the USDA is working on its own regulatory measures to combat skimming, as noted by Cindy Long, Deputy Undersecretary for Food, Nutrition, and Consumer Services. While these steps are encouraging, they won’t offer immediate relief for families currently at risk.

In the end, the solution will likely involve a combination of federal reimbursements, upgraded EBT card technology, and legislative changes. Until then, low-income families reliant on SNAP benefits remain in a precarious position, waiting for Congress to act before the September 30 deadline.

The looming expiration of skimming reimbursements underscores the vulnerability of many American families. With the federal government focused on other priorities, there’s no guarantee that Congress will extend the program in time. If they fail to act, thousands of low-income households could face catastrophic financial consequences, unable to recover stolen benefits or access the vital support they need to survive.

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