EBT Chip Card Rule: What USDA's 2026 Proposal Would Change

Key facts

1What is an EBT chip card, and how is it different from today's EBT card?

An EBT chip card works like a chip debit card. It carries an electronic chip that you insert into the card reader, and many chip cards also work by tap (NFC, near field communication). USDA says "cards with chips are harder to copy and steal SNAP account information." (USDA FNA, SNAP EBT Modernization) Some people search for it as a chip EBT card. It is the same thing.

Most SNAP cards today still rely on the magnetic stripe. The proposed rule says all agencies operating SNAP "have continued to issue benefits via the same payment method used since the transition from paper coupons: EBT cards with magnetic stripes, secured using Personal Identification Numbers (PINs)." (Federal Register, FR Doc. 2026-21658) That stripe is what card skimmers copy. USDA explains that thieves "place an illegal device on an ATM or a retailer's card-swiping machine to copy EBT card information," then use the copied data to make fake cards. (USDA FNA, Addressing Stolen SNAP Benefits)

The current federal definition of an EBT card at 7 CFR 271.2 already allows "a chip card" and "a contactless digital wallet with a stored card." (eCFR, 7 CFR 271.2) So states may issue chip cards today, and some have. The proposed rule would make the upgrade a requirement and update that definition to name cards with chips that work by insert or by NFC. (Federal Register, FR Doc. 2026-21658)

How many states have chip cards? The proposed rule says: "As of August 2026, seven States have issued EBT chip cards to participants with additional States in progress." (Federal Register, FR Doc. 2026-21658) USDA's EBT modernization page, updated October 28, 2026, shows 8 states that have issued chip cards (Alabama, California, Maryland, Massachusetts, Michigan, New Jersey, Oklahoma, and Virginia) and 7 in progress (Arkansas, Iowa, Maine, New Mexico, New York, Oregon, and Pennsylvania). (USDA FNA, SNAP EBT Modernization) USDA also says SNAP participants with an EBT chip card "must be able to use their card at all SNAP authorized retailer locations throughout the nation." (USDA FNA, SNAP EBT Modernization)

For how today's card works, how to check a balance, and how to replace a lost card, see our guide on what an EBT card is and how it works. SNAP rules on what you can buy do not change with the card type; our guide on what you can buy with SNAP covers them.

2What would USDA's proposed EBT card security rule change?

USDA says the proposal would "modernize Electronic Benefit Transfer (EBT) technology and align EBT with consumer payment processing industry standards." (Federal Register, FR Doc. 2026-21658) The Consolidated Appropriations Act, 2023 requires USDA to issue rules setting security measures to identify and prevent SNAP benefit theft. (USDA FNA, Proposed Rule notice) The main pieces, in plain terms (Federal Register, FR Doc. 2026-21658) (USDA FNA, Proposed Rule notice):

• Chip and tap-to-pay cards. State SNAP agencies would have to issue EBT cards with chip and NFC technology, and SNAP retailers would have to accept chip and NFC EBT transactions, within two years from the date a final rule is published. USDA asks for comment on whether two years is enough.
• Activation. New cards would be issued in an inactive state, and households would have to activate them when they arrive. USDA says "households experiencing homelessness may need to travel to a local office to obtain their new card."
• Card security code and expiration date. Cards would carry a card security code (CSC) and an expiration date, used for online purchases the way a debit card's code is. Cards replaced because they expired would not count toward a state's excessive card replacement threshold.
• Account history and tools. Households would be able to see their transaction history and turn on alerts and blocks. States would have to block common PINs. Details are in the section on security features below.
• Training. The EBT training states give households, now set at 7 CFR 274.2(e), would cover security practices, along with rights and responsibilities and how to use benefits. (eCFR, 7 CFR part 274)
• SNAP EBT Operating Standards. USDA would set technical EBT requirements in a separate standards document it could update over time as payment technology changes.
• Other changes. Balance inquiries would require verification, receipts could be sent electronically, manual vouchers would end except in certain limited circumstances, the option of offline EBT systems would be removed, and interchange fees would not apply to any EBT transaction.

3Is the proposed rule in effect, and when would it start?

This is a proposed rule. It is not in effect. (Federal Register, FR Doc. 2026-21658) The Federal Register lists the document as a "Proposed rule" and gives no effective date. (Federal Register, FR Doc. 2026-21658) Nothing changes for SNAP households or retailers unless USDA issues a final rule and that rule takes effect.

If the rule is finalized as proposed, the two-year window for chip and NFC cards would run from the date the final rule is published. (Federal Register, FR Doc. 2026-21658) After the comment period, USDA may finalize the rule as proposed, change it, or withdraw it. We do not know which, and there is no start date to report.

4Would this rule replace SNAP benefits that were stolen or skimmed?

No. Federal replacement of stolen SNAP benefits ended December 20, 2024. USDA's stolen benefits page says the law required states to replace benefits stolen between October 1, 2022 and a deadline later moved to December 20, 2024, and that "The American Relief Act, 2025 did not extend this authority for benefits stolen beyond December 20, 2024." (USDA FNA, Addressing Stolen SNAP Benefits) The proposed rule says the same thing: "the authority provided by the Consolidated Appropriations Act, 2023 for replacement of stolen SNAP benefits with Federal funds expired on December 20, 2024." (Federal Register, FR Doc. 2026-21658)

This proposed rule is about card security going forward. It would not restart federal replacement of stolen benefits. (Federal Register, FR Doc. 2026-21658) If you think your benefits were taken, USDA says: "If you think you are the victim of card skimming and your SNAP benefits were stolen, contact your local SNAP office." (USDA FNA, Addressing Stolen SNAP Benefits) USDA's stolen benefits page also lists current tips, such as checking your account for charges you did not make and changing your PIN if you see any. (USDA FNA, Addressing Stolen SNAP Benefits)

Our guide on what an EBT card is covers what to do if benefits were skimmed or a card was lost, and the ended federal replacement window. If your balance is short because a deposit did not arrive, see why SNAP benefits were not deposited.

5What security features would states have to offer?

Under the proposal, every state would have to offer households these account options, which a household could turn on or off itself (Federal Register, FR Doc. 2026-21658):

• A block on out-of-state transactions.
• A block on online (card-not-present) transactions.
• A block on all transactions.
• Alerts by email or text message for purchases, including rejected purchases, out-of-state purchases, and purchases over a limit you choose.
• Alerts by email or text message for account activity such as PIN changes, balance inquiries, and changes to your address, email address, or phone number.
• A maximum transaction amount you choose, over which transactions are blocked.

Households would be able to choose these options through an EBT cardholder portal and a mobile app or mobile-first website, among other ways. (Federal Register, FR Doc. 2026-21658) Account history would show transaction dates, times, and amounts, the retailer name and location, balance inquiries, PIN changes, and changes to address, email address, or phone number. (USDA FNA, Proposed Rule notice)

States would also have to reject common PINs, such as one digit repeated (1111), digits in order (1234), alternating digits (1212), or PINs that start with 19 or 20, which can look like a birth year. (Federal Register, FR Doc. 2026-21658) New cards would arrive inactive and need to be activated, and they would carry a card security code and an expiration date. (Federal Register, FR Doc. 2026-21658) For how to protect a card under today's rules, see our guide on what an EBT card is.

6How do you comment on the proposed rule?

You can comment on the proposed rule. Written comments must be received on or before December 22, 2026 to be assured of consideration. (Federal Register, FR Doc. 2026-21658; USDA FNA, Proposed Rule notice) USDA lists three ways:

1. Online: the regulations.gov comment page for docket FNA-2026-0496. The full docket is on regulations.gov too. (regulations.gov, docket FNA-2026-0496)
2. Email: SM.FN.SNAP.Issuance.Policy@usda.gov. Put "Supplemental Nutrition Assistance Program: Electronic Benefits Transfer Card Security Measures" in the subject line. (USDA FNA, Proposed Rule notice)
3. Mail: Food and Nutrition Administration, SNAP Innovation Policy and Issuance Division, Issuance Support Branch, 5601 Sunnyside Ave., Beltsville, MD 20705. (USDA FNA, Proposed Rule notice)

The regulations.gov docket is FNA-2026-0496. The number printed in the Federal Register heading is FNS-2025-0137. (Federal Register, FR Doc. 2026-21658)

Comments are public. USDA says "the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure," and it posts comments on regulations.gov. (USDA FNA, Proposed Rule notice)

7Where do I apply for SNAP or ask about my case?

You apply in the state where you live, through your state SNAP agency. USDA says, "To apply for benefits or get information about SNAP, you must contact your local SNAP office," and "Each state has its own application form." (USDA FNA, SNAP State Directory) The USDA SNAP State Directory lists each state's contact and application information. (USDA FNA, SNAP State Directory)

For your current EBT card, PIN, balance, or a lost or stolen card, use your state's official EBT line or website. USDA's SNAP EBT page points to the same state directory. (USDA FNA, SNAP EBT) Our guide on what an EBT card is covers PINs, balances, and lost or stolen cards. For what happens after an application is in, see what actually happens when you apply for benefits. Your state SNAP agency decides who may qualify.

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