This proposed rule implements Division HH, Title IV, section 501(a)(2) of the Consolidated Appropriations Act, 2023. Under section 501(a)(2), the Department of Agriculture, Food and Nutrition Service (FNS) is instructed to promulgate regulations through the notice and comment process that require State agencies to implement new card security measures to protect against card skimming, card cloning, and other similar fraudulent means. In 2023, FNS hosted 12 roundtable sessions with stakeholders and discussed the current and futures states for EBT operations, with a focus on adding a micro-processing chip to an EBT card. Attendees included State agencies, EBT processors, retailers, advocates, and financial payment processors. FNS anticipates this rule having a substantial impact on State agencies, EBT processors, and retailers, because they will largely be responsible for the development and implementation of new security measures.  Stakeholders agreed that the benefits of a more secure payment transaction outweigh the work needed to implement the change. Stakeholders said that chip card implementation should be implemented as soon as feasible, through an intentional and strategic national initiative that is sustainable over time.