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USDA/FNS | RIN: 0584-AE99 | Publication ID: Fall 2024 |
Title: Enhancing Electronic Benefit Transfer (EBT) Card Security Measures | |
Abstract:
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 16 roundtable sessions with stakeholders and discussed the current and future 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. FNS continues to engage with these partners with additional weekly listening sessions facilitated through the EBT Card Industry Forum. |
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Agency: Department of Agriculture(USDA) | Priority: Other Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: Undetermined | Unfunded Mandates: No |
CFR Citation: Not Yet Determined (To search for a specific CFR, visit the Code of Federal Regulations.) | |
Legal Authority: Consolidated Appropriations Act, 2023 (Pub. L. No: 117-328) |
Legal Deadline:
None |
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Statement of Need: 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. |
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Summary of the Legal Basis: The legal authority can be found in the Consolidated Appropriations Act, 2023 (Pub. L. No. 117-328). |
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Alternatives: No reasonable alternative is known. |
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Anticipated Costs and Benefits: The anticipated costs and benefits will be discussed in the Regulatory Impact Analysis which will accompany the rule. |
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Risks: If there are any associated risks, those would be discussed in the proposed rule. |
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Timetable:
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Regulatory Flexibility Analysis Required: Undetermined | Government Levels Affected: State |
Federalism: Undetermined | |
Included in the Regulatory Plan: Yes | |
RIN Data Printed in the FR: No | |
Agency Contact: Michael DePiro Specialist Department of Agriculture Food and Nutrition Service 1320 Braddock Place, Alexandria, VA 22314 Phone:703 305-2876 Email: michael.depiro@usda.gov |