ARLINGTON, Va. — FMI – The Food Industry Association today announced its endorsement of the Ensuring Fee-Free Benefit Transactions (EBT) Act, bipartisan legislation introduced by Rep. Shontel Brown (D-OH) and Rep. Tony Wied (R-WI). The bill aims to permanently prohibit states and their contractors from imposing additional processing fees on Supplemental Nutrition Assistance Program (SNAP) transactions for retailers.
The legislation reinforces provisions established initially in the 2018 Farm Bill and ensures that SNAP-authorized grocers will not be subject to transaction-related fees beyond their control.
“As private sector partners with the federal government serving as critical access points for SNAP participants, FMI and its grocery members are committed to strengthening the integrity and efficiency of SNAP for millions of customers in every community,” said Jennifer Hatcher, Chief Public Policy Officer at FMI. “We are grateful for the bipartisan leadership of Representatives Brown and Wied in introducing the EBT Act to permanently protect SNAP authorized retailers from incurring processing or other related fees outside of their control for EBT transactions. Imposing these fees would create an unfair burden on both grocers and consumers.”
Under the current law, a permanent ban on interchange or “swipe“ fees for SNAP transactions already exists. The new legislation would extend that protection to prohibit states or third-party contractors from shifting their side of the EBT processing costs onto retailers.
Rep. Brown, Vice Ranking Member of the House Agriculture Committee, and Rep. Wied, a committee member and former retailer, emphasized the importance of keeping SNAP operations fair and efficient for both businesses and recipients.
If passed, the EBT Act will preserve retailer participation in SNAP by eliminating potential cost barriers and ensuring the long-term viability of access to food assistance in communities across the nation.
