SNAP Retailers Urge Congress to Ban EBT Processing Fees to Protect Retailers and Consumers

What's Happening?

The National Association of Convenience Stores (NACS), National Grocers Association (NGA), and other food industry groups have sent a letter to the U.S. Senate and House Agriculture Committees. The letter, signed by over 1,000 food retailers and associations, calls for the prohibition of additional fees on Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions. The bipartisan Ensuring Fee-Free Benefit Transactions (EBT) Act, introduced by Representatives Shontel Brown and Tony Wied, aims to prevent states and state contractors from imposing processing fees on SNAP transactions. Retailers argue that they already invest significantly in participating in SNAP, including costs for equipment, software, and training, and should not bear additional fees from the state's side of transactions.

Why It's Important?

The call to prohibit EBT processing fees is significant as it impacts millions of SNAP participants and the retailers serving them. By eliminating these fees, the legislation seeks to ensure that retailers can continue to provide access to fresh and healthy food without incurring additional costs that could be passed on to consumers. This move is crucial for maintaining the integrity and viability of the SNAP program, which supports low-income families across the U.S. The proposed legislation reflects Congress's intent to create the greatest possible access for families in need, ensuring that retailers are not financially burdened by participating in the program.

What's Next?

If the EBT Act is enacted, it would provide a permanent solution to the issue of processing fees, offering certainty to retailers and protecting them from potential financial burdens. The legislation is expected to be included in a multi-year farm bill or other legislative measures this year. The outcome will likely influence how retailers manage SNAP transactions and could set a precedent for future discussions on transaction fees in government assistance programs.