---
kind: "section"
citation: "7 U.S.C. § 2016a"
title: "7"
title_heading: "Agriculture"
number: "2016a"
heading: "EBT benefit fraud prevention"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2016a"
units:
  - "Chapter 51 — Supplemental Nutrition Assistance Program"
---

# §2016a. EBT benefit fraud prevention

- (a) **Guidance; rulemaking—** The [Secretary](/usc/7/2012.md?p=p) shall—
  - (1) issue guidance to [State agencies](/usc/7/2012.md?p=s), on an ongoing basis, as informed by the process outlined in [paragraph (4)](#a-4), that describes [security](/usc/7/24.md?p=b) measures that—
    - (A) are effective, as determined by the [Secretary](/usc/7/2012.md?p=p), in detecting and preventing theft of [benefits](/usc/7/2012.md?p=d), including through card skimming, card cloning, and other similar fraudulent methods;
    - (B) are consistent with industry standards for detecting, identifying, and preventing debit and credit card skimming, card cloning, and other similar fraudulent methods; and
    - (C) consider the feasibility of cost, availability, and implementation for [States](/usc/7/2012.md?p=r);
  - (2) promulgate regulations through notice-and-comment rulemaking to require [State agencies](/usc/7/2012.md?p=s) to take the [security](/usc/7/24.md?p=b) measures described in the guidance issued under [paragraph (1)](#a-1);
  - (3) not later than December 1, 2023, promulgate regulations (including an interim final rule) to require [State agencies](/usc/7/2012.md?p=s) to implement procedures for the replacement of [benefits](/usc/7/2012.md?p=d) consistent with [subsection (b)](#b);
  - (4) coordinate with the Administrator of the Administration for Children and Families of the Department of Health and Human Services, the Attorney General of the United States, [State agencies](/usc/7/2012.md?p=s), [retail food stores](/usc/7/2012.md?p=o), and EBT contractors—
    - (A) to determine—
      - (i) how [benefits](/usc/7/2012.md?p=d) are being stolen through card skimming, card cloning, and other similar fraudulent methods;
      - (ii) how those stolen [benefits](/usc/7/2012.md?p=d) are used; and
      - (iii) the locations where card skimming, card cloning, and other similar fraudulent methods are taking place;
    - (B) to establish measures, including equipment enhancements for [retail food stores](/usc/7/2012.md?p=o), to prevent [benefits](/usc/7/2012.md?p=d) from being stolen through card skimming, card cloning, and other similar fraudulent methods; and
    - (C) to establish standard reporting methods for [States](/usc/7/2012.md?p=r) to collect and share data with the [Secretary](/usc/7/2012.md?p=p) on the scope of [benefits](/usc/7/2012.md?p=d) being stolen through card skimming, card cloning, and other similar fraudulent methods; and
  - (5) not later than December 1, 2024, submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that includes—
    - (A) information on the frequency of theft of [benefits](/usc/7/2012.md?p=d) and the location of those thefts, including [benefits](/usc/7/2012.md?p=d) stolen through card skimming, card cloning, and other similar fraudulent methods;
    - (B) a description of the determinations made under [paragraph (4)(A)](#a-4-A), the measures established under [paragraph (4)(B)](#a-4-B), and methods established in [paragraph (4)(C)](#a-4-C);
    - (C) a description of the industry standards described in [paragraph (1)(B)](#a-1-B);
    - (D) a comparison of [State](/usc/7/2012.md?p=r) plans related to reimbursement, prevention, and other relevant procedures approved in accordance with [subsection (b)(1)(A)](#b-1-A); and
    - (E) recommendations on how to consistently and proactively detect, track, report, and prevent theft of [benefits](/usc/7/2012.md?p=d), including [benefits](/usc/7/2012.md?p=d) stolen through card skimming, card cloning, and other similar fraudulent methods.
- (b) **Replacement of benefits—** The [Secretary](/usc/7/2012.md?p=p) shall use funds appropriated under [section 2027 of this title](/usc/7/2027.md) to require [States](/usc/7/2012.md?p=r) to replace [benefits](/usc/7/2012.md?p=d) that are determined by the [State agency](/usc/7/2012.md?p=s) to have been stolen through card skimming, card cloning, or similar fraudulent methods, subject to the conditions that—
  - (1) the [State agency](/usc/7/2012.md?p=s) shall submit to the [Secretary](/usc/7/2012.md?p=p) not later than 60 days after December 29, 2022, for prior approval a plan for the replacement of stolen [benefits](/usc/7/2012.md?p=d) that—
    - (A) includes appropriate procedures, as determined by the [Secretary](/usc/7/2012.md?p=p), for the timely submission of claims to, timely validation of claims by, and replacement issuance by the [State agency](/usc/7/2012.md?p=s) that includes—
      - (i) a signed statement by the affected [household](/usc/7/2012.md?p=m-1) on the [benefit](/usc/7/2012.md?p=d) theft, consistent with the signature requirements and options provided by [section 2020(e)(2)(C) of this title](/usc/7/2020.md?p=e-2-C);
      - (ii) criteria to determine if a submitted claim is valid;
      - (iii) procedures for the documentation of replacement issuances, including the submitted claims and findings from the validation;
      - (iv) the submission of data reports on [benefit](/usc/7/2012.md?p=d) theft and replacement activity to the [Secretary](/usc/7/2012.md?p=p);
      - (v) procedures to inform [households](/usc/7/2012.md?p=m-1) of their right to a fair hearing, consistent with those already established by [section 2020(e) of this title](/usc/7/2020.md?p=e) and corresponding regulations concerning replacement issuances; and
      - (vi) the [State agency](/usc/7/2012.md?p=s)’s use and planned use of [benefit](/usc/7/2012.md?p=d) theft prevention measures, including any additional guidance that may be issued under [subsection (a)(1)](#a-1);
    - (B) includes appropriate procedures, as determined by the [Secretary](/usc/7/2012.md?p=p), for reporting the scope and frequency of card skimming affecting [households](/usc/7/2012.md?p=m-1) within the [State](/usc/7/2012.md?p=r) to the [Secretary](/usc/7/2012.md?p=p);
    - (C) upon approval shall be incorporated into the [State](/usc/7/2012.md?p=r) plan of operation required under [section 2020(e) of this title](/usc/7/2020.md?p=e); and
    - (D) the [Secretary](/usc/7/2012.md?p=p) may approve after the date on which guidance is issued under [subsection (a)(1)](#a-1);
  - (2) the replacement of stolen [benefits](/usc/7/2012.md?p=d) for a [household](/usc/7/2012.md?p=m-1)—
    - (A) shall not exceed the lesser of—
      - (i) the amount of [benefits](/usc/7/2012.md?p=d) stolen from the [household](/usc/7/2012.md?p=m-1); or
      - (ii) the amount equal to 2 months of the monthly [allotment](/usc/7/2012.md?p=b) of the [household](/usc/7/2012.md?p=m-1) immediately prior to the date on which the [benefits](/usc/7/2012.md?p=d) were stolen;
    - (B) shall not occur more than 2 times per Federal fiscal year per [household](/usc/7/2012.md?p=m-1) by a single [State agency](/usc/7/2012.md?p=s); and
    - (C) shall only apply to [benefits](/usc/7/2012.md?p=d) stolen during the period beginning on October 1, 2022, and ending on December 20, 2024;
  - (3) plans approved under [paragraph (1)](#b-1) will remain in effect until the effective date of the rule promulgated pursuant to [subsection (a)(3)](#a-3); and
  - (4) replacements of [benefits](/usc/7/2012.md?p=d) under this section shall not be regarded as losses for the purpose of [section 2016(e) of this title](/usc/7/2016.md?p=e) to the extent such replacements are made in accordance with an approved plan that complies with this subsection.
- (c) **Definitions—** In this section, the terms “[allotment](/usc/7/2012.md?p=b)”, “[benefit](/usc/7/2012.md?p=d)”, “[household](/usc/7/2012.md?p=m-1)”, “[retail food store](/usc/7/2012.md?p=o)”, and “[State agency](/usc/7/2012.md?p=s)” have the meaning given those terms in [section 2012 of this title](/usc/7/2012.md).
- (d) **Rescission—** Of the unobligated balances made available for the [Supplemental Nutrition Assistance Program](/usc/7/2012.md?p=t) as authorized by section 1101(b)(1) of the American Rescue Plan Act of 2021 (Public Law 117–2), $8,000,000 is hereby rescinded.
- (e) **Comptroller General—**
  - (1) **In general—** Not later than 1 year after September 26, 2024, the Comptroller General of the United States shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that examines risks related to [supplemental nutrition assistance program](/usc/7/2012.md?p=t) electronic [benefit](/usc/7/2012.md?p=d) transfer payment system [security](/usc/7/24.md?p=b), including the risk of stolen [benefits](/usc/7/2012.md?p=d) through card skimming, card cloning, and other similar methods.
  - (2) **Contents—** The report under [paragraph (1)](#e-1) shall include an assessment of—
    - (A) the extent to which the Department of Agriculture manages payment system [security](/usc/7/24.md?p=b), including risks related to stolen [benefits](/usc/7/2012.md?p=d), compared to leading industry practices;
    - (B) the manner in which [States](/usc/7/2012.md?p=r), [retailers](/usc/7/499a.md?p=b-11), and other relevant entities manage risks related to stolen [benefits](/usc/7/2012.md?p=d);
    - (C) the oversight of and guidance provided by the [Secretary](/usc/7/2012.md?p=p) to [States](/usc/7/2012.md?p=r) regarding stolen [benefits](/usc/7/2012.md?p=d); and
    - (D) recommendations and policy options for—
      - (i) improving how the Department of Agriculture and other relevant entities manage payment system [security](/usc/7/24.md?p=b) risks, including those related to stolen [benefits](/usc/7/2012.md?p=d); and
      - (ii) how the Department of Agriculture may best share those improvements with [States](/usc/7/2012.md?p=r), [retailers](/usc/7/499a.md?p=b-11), and other relevant entities.

## Source credit

(Pub. L. 117–328, div. HH, title IV, § 501, Dec. 29, 2022, 136 Stat. 5985; Pub. L. 118–83, div. B, title I, § 105, Sept. 26, 2024, 138 Stat. 1534.)

## Notes

### Editorial Notes

### References in Text

Section 1101(b)(1) of the American Rescue Plan Act of 2021, referred to in subsec. (d), is section 1101(b)(1) of Pub. L. 117–2, title I, Mar. 11, 2021, 135 Stat. 15, which is not classified to the Code.

### Codification

Section was enacted as part of the Consolidated Appropriations Act, 2023, and not as part of the Food and Nutrition Act of 2008 which comprises this chapter.

### Amendments

2024—Subsec. (a)(4)(A)(iii). Pub. L. 118–83, § 105(1)(A), struck out at beginning “to the maximum extent practicable,”.

Subsec. (a)(5). Pub. L. 118–83, § 105(1)(B)(i), substituted “December” for “October” in introductory provisions.

Subsec. (a)(5)(A). Pub. L. 118–83, § 105(1)(B)(ii), struck out at beginning “to the maximum extent practicable,”.

Subsec. (a)(5)(D). Pub. L. 118–83, § 105(1)(B)(iii), (v), added subpar. (D). Former subpar. (D) redesignated (E).

Subsec. (a)(5)(E). Pub. L. 118–83, § 105(1)(B)(iv), (vi), redesignated subpar. (D) as (E) and inserted “and proactively” after “consistently”.

Subsec. (b)(2)(C). Pub. L. 118–83, § 105(2), substituted “December 20, 2024” for “September 30, 2024”.

Subsec. (e). Pub. L. 118–83, § 105(3), added subsec. (e).

### Statutory Notes and Related Subsidiaries

### Definition of “Secretary”

Pub. L. 117–328, div. HH, § 101, Dec. 29, 2022, 136 Stat. 5970, provided that: “In this division [see Tables for classification], the term ‘Secretary’ means the Secretary of Agriculture.”