Summer EBT programs would replace some stolen food benefits

The Agriculture Secretary would set security rules for participating state agencies and covered tribal organizations. The rules would apply to state agencies and covered tribal organizations that choose to run the Summer EBT program. The Secretary would issue guidance on measures to detect and prevent theft, considering industry standards and whether measures are practical in cost, availability, and implementation. Participating agencies and organizations would have to follow the measures selected by the Secretary. The Secretary would issue guidance on an ongoing basis and adopt the security rules through a public rulemaking process.

The Secretary would require participating agencies and organizations to replace qualifying stolen Summer EBT benefits using funds appropriated for the program. The process would cover eligible households whose Summer EBT benefits are stolen through the listed methods while their state or tribal program participates. Replacement would apply when an agency or organization determines benefits were stolen through card skimming, card cloning, or similar fraud. Plans would need claim, validation, documentation, reporting, prevention, and appeal procedures. A household would provide a signed statement about the theft. For accounts holding Summer EBT and other benefits, plans would explain how to identify the Summer EBT share as far as possible. Replacement would be limited to the lesser of eligible unreplaced thefts reported that calendar year or the household's most recent Summer EBT allotment. New operating plans submitted after enactment would include replacement procedures. Current participants would submit an initial plan within 60 days after enactment and use it once the Secretary approves it.

The Agriculture Secretary and Comptroller General would report to Congress on Summer EBT theft and payment security. The reports would address Summer EBT benefit theft and payment system security. The Secretary's report would cover theft patterns, prevention work, state and tribal plans, industry standards, and actions taken or planned. The Comptroller General's report would examine security risks, how agencies manage them, federal oversight, and possible improvements. Both reports would be due within two years after enactment.