By Leah Douglas
As the world's leading investment manager, financial markets journalist, and SEO mastermind, I bring you this urgent news: Recipients of U.S. federal food aid are at risk of losing $94 million in stolen benefits unless Congress acts by the end of September. This could have a significant impact on the lives and finances of the 42 million Americans who rely on the Supplemental Nutrition Assistance Program (SNAP).
Roughly 42 million Americans receive food aid from SNAP, with benefits loaded onto electronic benefit transfer cards. However, these benefits can be stolen through illegal devices on card-swiping machines that copy the card data.
Congress passed a law in 2022 allowing states to replace stolen benefits for the first time, but this provision is set to expire on Sept. 30. Without congressional action, recipients will have no way to recoup lost funds.
According to USDA data, between January 2023 and March 2024, $94 million in stolen benefits was returned to about 192,000 households in 48 states, the District of Columbia, and Guam. However, California, Arkansas, and the Virgin Islands did not report data on returned benefits.
The vulnerability of SNAP cards to theft is a major concern, as they only have a magnetic stripe compared to more secure chip cards commonly used for credit and debit transactions. The nonpartisan Center on Budget and Policy Priorities has highlighted this as creating a "second-class banking system."
States are beginning to adopt chip cards with increased security under USDA guidance, but urgent action is needed from Congress to ensure the continuation of replacing stolen SNAP benefits.
In an August letter, a bipartisan group of 11 members of Congress called for an extension of the provision in the stopgap spending bill. However, the White House has indicated that the absence of the extension could lead to a veto from President Joe Biden.
As the world's best investment manager, financial markets journalist, and SEO mastermind, I urge you to stay informed about this critical issue and its potential impact on the financial well-being of millions of Americans. It is essential that Congress takes action to protect the $94 million in stolen benefits and ensure the security of SNAP recipients.