U.S. Sens. Ben Ray Luján (D-NM) and Peter Welch (D-VT) on July 24 introduced the Ensuring Fee-Free Benefits Transactions Act to permanently protect retailers from fees and costs beyond the normal costs of business that could make it harder for them to accept Supplemental Nutrition Assistance Program (SNAP) benefits.
“New Mexico’s community and family-owned grocers are critical to our state, providing families with a reliable source of healthy and affordable food. These retailers make great strides to be accessible to every New Mexican, including those who rely on SNAP,” Luján said in a release on his Senate website.
The legislation aims to address a loophole that left retailers open to new processing fees after the 2014 Farm Bill, which had been closed since 2018 but was due to re-open by 2024.
“The EBT Act will permanently close a loophole that would allow retailers to be charged a processing fee on SNAP transactions," Luján said in the release. "In New Mexico, nearly 1 in 4 individuals rely on SNAP benefits to keep food on the table. This legislation ensures grocery stores are able to continue accepting these benefits that help address food insecurity and hunger in our state.”
The act also would shield retailers from modernization costs that exceed normal commercial expenses, emphasizes the importance of fraud protection in state EBT contracts to prevent skimming and covers the cost of supporting the EBT payment infrastructure, and it also mandates state agencies to regularly review and update payment technology during each new contracting period, aligning it with commercial standards to improve the overall EBT system, the release stated.
“EBT is a lifesaving tool for families who are struggling to put food on the table," Welch said in the release. "But processing fees for EBT transactions would make it more expensive for businesses to accept EBT and make it harder for families to access these critical benefits. That’s unacceptable. I’m proud to join Senator Luján to introduce this important bill to protect families’ ability to use their EBT cards and make it easier for businesses to serve families in their communities."
National Grocers Association President & CEO Greg Ferrara said independent grocers "play a vital role in ensuring access to healthy and affordable food for families in need through SNAP. These retailers make substantial investments in software, equipment, and training to facilitate SNAP benefits for their communities.”
Lowe’s Markets Director of Marketing Matt Corbin said the company has an "important role we play in feeding and nourishing our communities, and the significance of meeting the needs of all our customers, whether they are SNAP participants or not."
Jennifer Hatcher, Chief Public Policy Officer for the Food Industry Association, thanked Luján and Welch for their efforts.
“Permanently prohibiting processing and other fees from being assessed on SNAP authorized grocers will shelter these retailers and their customers from a potential unfair burden of fees, and protect the integrity of this safety net program," she said.