collection address for an online trans-
action. 
‘‘(cc) Each State shall offer 
households the ability, through each 
user interface offered under subclause 
(I), to report a fraudulent transaction 
to the State. 
‘‘(dd) A State shall not require a 
household to respond to or acknowl-
edge a notice of transaction delivered 
pursuant to item (aa)(AA). 
‘‘(ee) A State shall notify a 
household that has received reim-
bursement for EBT card fraud pursu-
ant to section 501(b)(2) of division 
HH of the Consolidated Appropria-
tions 
Act, 
2023 
(7 
U.S.C. 
2016a(b)(2)), of the ability of the 
household to opt in to restricting the 
use of the EBT card as described in 
subclause (III) and of the remaining 
funds that may be reimbursed if the 
household experiences fraud again. 
‘‘(III) Each State shall provide 
households issued an EBT card the 
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ability, through each user interface of-
fered under subclause (I)— 
‘‘(aa) to make the use of 
that EBT card for online trans-
actions workable only through 
virtual card numbers or other 
tokenization technology, such as 
through a mobile payment serv-
ice, which shall require a dif-
ferent virtual card number for 
each individual online merchant; 
‘‘(bb) to freeze and unfreeze 
the EBT account of the house-
hold for transactions in which the 
card number printed on the EBT 
card is manually entered, either 
for an in-person transaction or 
an online transaction; and 
‘‘(cc) to check the enroll-
ment status of the household, in-
cluding the date on which the 
household is required to apply for 
recertification. 
‘‘(IV) 
The 
requirements 
de-
scribed in items (aa) and (bb) of sub-
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clause (III) shall terminate 5 years 
after the date on which the regulation 
promulgated pursuant to that sub-
clause becomes final, unless the Sec-
retary extends that period. 
‘‘(V) A State may opt to make 
ineffective the use of the card number 
printed on the EBT card to complete 
an online transaction, and require on-
line transactions to occur only in ac-
cordance with subclause (III)(aa). 
‘‘(VI) Not later than 2 years 
after the date on which the regula-
tions promulgated pursuant to clause 
(i) become final, States shall begin 
issuing chip-enabled EBT cards. 
‘‘(VII) Not later than 4 years 
after the date on which the regula-
tions promulgated pursuant to clause 
(i) become final, States may not issue 
new EBT cards with magnetic stripes. 
‘‘(VIII) Not later than 5 years 
after the date on which the regula-
tions promulgated pursuant to clause 
(i) become final, States shall be re-
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quired to reissue any existing valid 
EBT cards with magnetic stripes as 
chip-enabled EBT cards without mag-
netic stripes. 
‘‘(IX) In the case of a chip-en-
abled EBT card reissued pursuant to 
any of subclauses (VI) through (VIII), 
absent suspicion of fraud, as applica-
ble, a State shall— 
‘‘(aa) reissue a new chip-en-
abled EBT card; and 
‘‘(bb) deactivate the current 
chip-enabled EBT card on the 
date that is the earlier of— 
‘‘(AA) 
the 
date 
on 
which the new chip-enabled 
EBT card is activated; and 
‘‘(BB) 30 days after 
the date on which the new 
chip-enabled EBT card is 
sent to the household. 
‘‘(iii) SUNSET FOR REQUIREMENT TO 
USE
CHIP
TECHNOLOGY.—Under the cy-
bersecurity regulations described in clause 
(i), all EBT cards issued during the 5-year 
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out clause (ii)(VIII) shall be chip-enabled, 
unless the Secretary extends that period. 
‘‘(C) REIMBURSEMENTS.—Each State up-
grading EBT cards to comply with the regula-
tions promulgated under subparagraph (B)(i) 
shall receive reimbursement from the Secretary 
in an amount determined by the Secretary to 
cover all reasonable costs incurred by the State, 
including— 
‘‘(i) the 1-time up-front costs paid by 
the State to card vendors; 
‘‘(ii) the additional annual fees associ-
ated with chip-enabled cards paid by 
States to card vendors; and 
‘‘(iii) postage or other delivery-related 
costs. 
‘‘(D) PROHIBITION ON PASSWORD AND PIN 
REQUIREMENTS INCONSISTENT WITH FEDERAL 
CYBERSECURITY
STANDARDS.—Beginning 60 
days after the date of enactment of this para-
graph, a State agency may not require, with re-
spect to a PIN for use of an EBT card or a 
password for access to an online account or mo-
bile application managing the EBT card— 
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‘‘(i) that the PIN or password be peri-
odically changed in circumstances that are 
prohibited by the NIST PIN and password 
standards; or 
‘‘(ii) that the password meet com-
plexity requirements that are prohibited by 
the NIST PIN and password standards. 
‘‘(E) GRANT PROGRAM FOR CHIP-ENABLED 
EBT CARDS.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) ADMINISTERING
ENTITY.— 
The term ‘administering entity’ means 
an entity awarded a grant under 
clause (ii) to provide subgrants to eli-
gible entities. 
‘‘(II) ELIGIBLE
ENTITY.—The 
term ‘eligible entity’ means— 
‘‘(aa) an entity described in 
paragraph (1) or (3) of section 
3(o) that— 
‘‘(AA) is authorized to 
participate in the supple-
mental nutrition assistance 
program under section 9; 
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‘‘(BB) does not have 
payment terminals that ac-
cept 
chip-enabled 
EBT 
cards; and 
‘‘(CC) is located in an 
area with limited grocery ac-
cess, as determined by the 
Secretary; and 
‘‘(bb) an entity described in 
paragraph (2), (4), or (5) of sec-
tion 3(o) that meets the require-
ments 
described 
in 
subitems 
(AA) and (BB) of item (aa). 
‘‘(ii) GRANTS.—The Secretary shall 
establish a grant program to award a 
grant to an administering entity to provide 
subgrants to eligible entities to upgrade to 
chip-compatible payment terminals that 
support contact and contactless payment 
card technology. 
‘‘(F) DATA COLLECTION.—The Secretary 
shall— 
‘‘(i) collect, and publish on the website 
of the Department of Agriculture, data 
on— 
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‘‘(I) the length of time each user 
interface offered by each State pursu-
ant to subparagraph (B)(ii)(I) was 
unavailable for use, including due to 
technical problems or maintenance 
needs; and 
‘‘(II) 
cybersecurity 
measures 
adopted for EBT cards in each State; 
and 
‘‘(ii) maintain and annually update 
the data collected under clause (i) to sup-
port States in implementing any regula-
tions promulgated pursuant to subpara-
graph (B)(i). 
‘‘(G) PUBLIC REPORT.— 
‘‘(i) IN GENERAL.—Not later than 1 
year after the date of enactment of this 
paragraph, and every 2 years thereafter, 
the Secretary shall submit to the Commit-
tees on Appropriations and Agriculture, 
Nutrition, and Forestry of the Senate and 
the Committees on Appropriations and Ag-
riculture of the House of Representatives, 
and make publicly available on the website 
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of the Department of Agriculture, a report 
that— 
‘‘(I) identifies trends relating to 
the theft of benefits, including the fre-
quency of theft of benefits and the lo-
cation of those thefts; 
‘‘(II) evaluates the effectiveness 
of existing cybersecurity regulations 
for the supplemental nutrition assist-
ance program, including identifying 
ineffective measures and the compli-
ance burden borne by individual ben-
efit recipients; 
‘‘(III) describes the efforts of 
States— 
‘‘(aa) to update cybersecu-
rity measures for EBT cards; 
and 
‘‘(bb) to reimburse stolen 
benefits; and 
‘‘(IV) examines usability issues of 
EBT cards, including issues that 
present barriers to households using 
benefits or affect fraud prevention 
goals. 
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‘‘(ii) RESTRICTED
ANNEX.—The re-
port under clause (i) may include a non-
publicly available annex containing classi-
fied or law enforcement-sensitive informa-
tion.’’. 
SEC. 3. ENSURING NO LOSS OF ACCESS TO BENEFITS DUE 
TO EBT CARD DAMAGE, LOSS, OR FRAUD. 
Section 7(h)(7) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2016(h)(7)) is amended— 
(1) by striking ‘‘Regulations’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Regulations’’; and 
(2) by adding at the end the following: 
‘‘(B) ENSURING NO LOSS OF ACCESS TO 
BENEFITS DUE TO EBT CARD DAMAGE, LOSS, 
OR FRAUD.—Not later than 180 days after the 
date of enactment of the Enhanced Cybersecu-
rity for SNAP Act of 2024, the Secretary shall 
promulgate regulations requiring the following: 
‘‘(i) If an EBT card is damaged, no 
longer functions properly, is stolen, or is 
frozen due to fraud, the applicable State 
shall take the necessary steps to ensure 
that the household receives a replacement 
card, either by mail or in person, as se-
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lected by the household, not later than 3 
business days after the household submits 
to the State a request for a replacement 
EBT card. 
‘‘(ii) A State shall not require, but 
shall offer as an option, in-person collec-
tion of a new or replacement EBT card.’’. 
SEC. 4. NO REPLACEMENT FEES FOR CERTAIN EBT CARDS. 
Section 7(h)(8)(A) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2016(h)(8)(A)) is amended— 
(1) by striking ‘‘A State agency’’ and inserting 
the following: 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a State agency’’; and 
(2) by adding at the end the following: 
‘‘(ii) 
EXCEPTIONS.—Beginning 
days after the date of enactment of the 
Enhanced Cybersecurity for SNAP Act of 
2024, a State agency may not collect a 
charge under clause (i) if the replacement 
of the EBT card is due to— 
‘‘(I) the EBT card malfunc-
tioning; 
‘‘(II) suspected or reported fraud 
relating to that EBT card by an indi-
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vidual outside of the household to 
which the EBT card belongs; 
‘‘(III) the expiration of the EBT 
card; or 
‘‘(IV) required replacement of the 
EBT card in compliance with regula-
tions promulgated pursuant to para-
graph (15)(B).’’. 
SEC. 5. REQUIREMENT FOR RETAILER USE OF CHIP-EN-
ABLED PAYMENT TERMINALS AS A CONDI-
TION OF SNAP PARTICIPATION. 
Section 9(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2018(a)) is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘(2) The Secretary’’ and 
inserting the following: 
‘‘(2) REGULATIONS.—The Secretary’’; and 
(B) by indenting the margins of subpara-
graphs (A) and (B) appropriately; 
(2) by indenting the margin of paragraph (3) 
appropriately; and 
(3) by adding at the end the following: 
‘‘(5) CHIP-ENABLED
PAYMENT
TERMINALS.— 
Beginning not later than 180 days after the date on 
which the regulations promulgated pursuant to sec-
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tion 7(h)(15)(B)(i) become final, the Secretary shall 
require retail food stores and wholesale food con-
cerns seeking authorization or reauthorization to ac-
cept and redeem benefits under the supplemental 
nutrition assistance program to have a chip-enabled 
(as defined in section 7(h)(15)(A)) payment terminal 
at each retail location of the retail food store or 
wholesale food concern.’’. 
SEC. 6. REPORT. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of Agriculture 
shall submit to the Committees on Appropriations and Ag-
riculture, Nutrition, and Forestry of the Senate and the 
Committees on Appropriations and Agriculture of the 
House of Representatives, and make publicly available on 
the website of the Department of Agriculture, a report on 
the security of EBT cards (as defined in section 3 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2012)) issued 
in the Commonwealth of Puerto Rico, including— 
(1) the resistance of those EBT cards to 
cloning; and 
(2) if appropriate, recommendations for improv-
ing the security of the electronic benefit transfer sys-
tem against EBT card cloning-based fraud. 
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(b) RESTRICTED ANNEX.—The report under sub-
section (a) may include a nonpublicly available annex con-
taining classified or law enforcement-sensitive informa-
tion. 
SEC. 7. CONFORMING AMENDMENTS. 
Section 501 of division HH of the Consolidated Ap-
propriations Act, 2023 (7 U.S.C. 2016a), is amended— 
(1) in subsection (a)— 
(A) by striking paragraphs (1) and (2); 
(B) 
by 
redesignating 
paragraphs 
(3) 
through (5) as paragraphs (1) through (3), re-
spectively; and 
(C) in paragraph (3) (as so redesig-
nated)— 
(i) in subparagraph (B), by adding 
‘‘and’’ at the end; 
(ii) by striking subparagraph (C); and 
(iii) by redesignating subparagraph 
(D) as subparagraph (C); and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)(vi), by strik-
ing ‘‘measures’’ and all that follows 
through ‘‘(a)(1)’’ and inserting ‘‘meas-
ures’’; 
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(ii) in subparagraph (B), by adding 
‘‘and’’ at the end; 
(iii) in subparagraph (C), by striking 
‘‘and’’ at the end; and 
(iv) by striking subparagraph (D); 
and 
(B) in paragraph (3), by striking ‘‘sub-
section 
(a)(3)’’ 
and 
inserting 
‘‘subsection 
(a)(1)’’. 
Æ 
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