As federal protection dwindles, the spotlight now shifts to state governments to address the plight of low-income families who have been robbed of their grocery funds. In Massachusetts, the situation is particularly dire as many residents seek compensation for their stolen benefits.
In the summer of 2022, a surge in skimming scams targeted recipients of the Supplemental Nutrition Assistance Program (SNAP) both in Massachusetts and nationwide. These scams involve crime rings installing skimming devices on point-of-sale terminals at ATMs and grocery stores. Such devices effectively steal information from electronic benefit transfer (EBT) cards, which unfortunately possess fewer federal legal protections against theft compared to credit or debit cards.
Massachusetts Steps Up to Aid Families Hit by SNAP Theft
Initially, the federal government stepped in to reimburse families who could provide evidence that their EBT funds were illicitly swiped. However, as this protection wanes, the affected individuals find themselves turning to state resources for support in recovering their lost benefits.
In September, the Massachusetts Department of Transitional Assistance distributed around $9 million in federally funded replacement benefits to approximately 20,100 Bay State households that fell victim to SNAP theft. This relief was crucial for families who lost their benefits through no fault of their own.
The Need for Policy Renewal
As December approached, it became clear that Congress needed to renew the policy to continue reimbursing households for stolen benefits. The urgency of the situation was evident, as the support provided a lifeline for many affected families.
In response to this pressing issue, a bipartisan bill was presented in Congress, aiming to extend the reimbursement policy until 2028. This proposed extension was part of a larger omnibus bill intended to address various concerns.
Despite the initial promise, the omnibus bill faced significant challenges and ultimately collapsed. As a result, the extension for federal reimbursements of stolen benefits was removed, leaving families without the financial support they desperately needed.
Current Situation in Massachusetts
Today, Massachusetts finds itself in a difficult position. The most critical concern is that families who are actively experiencing SNAP theft are not receiving the necessary reimbursements. This situation is through no fault of their own, and the lack of support leaves them vulnerable.
The ongoing challenges highlight the importance of finding a solution to ensure affected families receive the support they need. We’re calling on the governor and Legislature to develop a plan to tackle this issue,” expressed Victoria Negus, a benefits policy advocate at the Massachusetts Law Reform Institute.
Addressing Reimbursement Gaps
Victoria Negus emphasized that the Massachusetts Law Reform Institute (MLRI) has been actively encouraging Governor Maura Healey to allocate $5 million in the fiscal year 2025 supplemental budget. This funding is crucial to bridging the reimbursement gap anticipated in fiscal year 2026.
The Department of Transitional Assistance (DTA), responsible for managing EBT cards, is considering the introduction of a new chip or tap pay system. This innovation is expected to debut in late 2025 or early 2026, significantly enhancing the security of these cards. The chip and tap technology is recognized for its robust defense against skimming schemes.
Governor Maura Healey is set to unveil her fiscal 2026 budget on Wednesday, alongside plans to submit a supplemental budget for fiscal 2025. This move is expected to align with efforts to address the impending changes.
In fiscal 2026, our plea to the governor and Legislature is to simply bridge the gap between the beginning of the year and the implementation of the new chip and tap card system by the department. For fiscal year 2025, we’re looking at an investment of roughly $1 million per month. While this might not seem like a substantial amount for the state, it is crucial for the families affected by theft,” said Negus.
State Budget Considerations
When questioned on Tuesday about whether Healey would include these reimbursement dollars in her upcoming budget filing, a spokesperson for Healey did not provide a response. Representative Sally Kerans and Senator Robyn Kennedy have taken proactive steps by filing bills (HD 2802 / SD 1741) aimed at ensuring the state steps in when the federal government does not cover stolen SNAP dollars.
According to these bills, the state is obligated to “promptly replace the full amount of financial assistance or nutrition benefits stolen through electronic benefit transfer card skimming, card cloning, or other fraudulent methods.”
Estimated Costs and Future Plans
Both Kerans and Kennedy have estimated that about $1 million will be necessary to replenish stolen funds until the Department of Transitional Assistance (DTA) implements the new chip/tap cards. This measure is seen as a vital step in safeguarding families from financial losses due to fraudulent activities.
The issue of food insecurity is a pressing concern in Massachusetts, and ensuring that all families have access to adequate nutrition is of paramount importance. As highlighted by Kennedy, it is essential that the Department of Transitional Assistance (DTA) not only addresses the root causes of food insecurity but also enhances their systems to prevent theft more effectively.
Hope for Legislative Support
Kerans expressed optimism about gaining legislative backing for the proposed policy changes. “There’s been a significant amount of progress in addressing food insecurity, such as the school lunch bill,” she noted. “Many people recognize the necessity of these benefits, although they might not fully grasp the impact of theft by criminal operators across all districts.”
In 2023, Massachusetts was chosen to join a federal pilot program with the USDA to test mobile and contactless payment options for EBT cards. The state has committed $2 million to roll out a new chip and tap payment system. Over the next two years, the department plans to explore chip-enabled EBT cards with a new vendor, as they are currently undergoing a vendor transition.
