As federal protection dwindles, the attention now moves to state governments to solve the situation of low-income families who have been defrauded of grocery funds. In Massachusetts, the situation is especially grave, with many residents seeking reimbursement for stolen benefits.
In the summer of 2022, a rise in skimming frauds targeted SNAP users in Massachusetts and around the country. These frauds involve criminals putting skimming devices on ATMs and grocery shop POS systems.
Such devices efficiently steal information from Electronic Benefit Transfer (EBT) cards, which have less federal legal protections against theft than credit or debit cards.
Massachusetts Steps Up to Aid Families Hit by SNAP Theft
Initially, the federal government intervened to reimburse families who could give proof that their EBT funds had been illegally taken. However, when this protection dwindles, affected persons resort to governmental resources for assistance in reclaiming their lost entitlements.
In September, the Massachusetts Department of Transitional Assistance distributed roughly $9 million in federally sponsored replacement benefits to approximately 20,100 Bay State households that were victims of SNAP theft. This assistance was critical for families who had lost their benefits for no fault of their own.
The Need for Policy Renewal
As December approached, it became evident that Congress needed to renew the provision so that households could continue to be reimbursed for stolen benefits. The severity of the situation was clear, as the assistance provided a lifeline to many afflicted families.
In response to this critical issue, a bipartisan bill was introduced in Congress that seeks to prolong the reimbursement scheme through 2028. This proposed extension was part of a wider omnibus package designed to address a variety of issues.
Despite its initial promise, the omnibus measure encountered numerous difficulties and eventually failed. As a result, the extension for government reimbursements for stolen benefits was revoked, leaving families without the financial assistance they sorely required.
Current Situation in Massachusetts
Today, Massachusetts finds itself in a difficult situation. The most pressing worry is that families who are actively involved in SNAP theft are not receiving adequate reparations. This is not their fault, and the absence of support makes them susceptible.
The persistent issues underline the need of finding a way to ensure that affected families receive the assistance they require. We’re urging the governor and the Legislature to devise a strategy to address this issue,” said Victoria Negus, a benefits policy advocate at the Massachusetts Law Reform Institute.
Addressing Reimbursement Gaps
Victoria Negus stated that the Massachusetts Law Reform Institute (MLRI) has actively encouraged Governor Maura Healey to include $5 million in the fiscal year 2025 supplemental budget. This financing is critical for bridging the reimbursement shortfall expected in fiscal year 2026.
The Department of Transitional Assistance (DTA), which manages EBT cards, is considering implementing a new chip or tap payment mechanism. This innovation is planned to be introduced in late 2025 or early 2026, considerably improving the security of these cards. Chip and tap technology is known for its strong resistance against skimming methods.
Governor Maura Healey will release her fiscal 2026 budget on Wednesday, along with plans to submit a supplementary budget for fiscal 2025. This step is intended to be consistent with attempts to address the upcoming changes.
In fiscal 2026, we ask the governor and legislature to simply bridge the gap between the beginning of the year and the department’s adoption of the new chip and tap card system. For fiscal year 2025, we expect to invest approximately $1 million every month. “While this may not appear to be a significant amount for the state, it is critical for the families affected by theft,” Negus stated.
State Budget Considerations
When asked on Tuesday if Healey would include these reimbursement money in her future budget proposal, a representative for Healey declined to comment. Representative Sally Kerans and Senator Robyn Kennedy have taken proactive efforts by introducing laws (HD 2802 / SD 1741) to ensure that the state steps in when the federal government does not reimburse stolen SNAP funds.
According to the proposals, the state must “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 anticipate that approximately $1 million will be required to refill stolen monies until the Department of Transitional Assistance (DTA) adopts the new chip/tap cards. This policy is viewed as a critical step in protecting families from financial losses caused by fraudulent operations.
Food insecurity is a major challenge in Massachusetts, and it is critical that all families have access to adequate nourishment. As Kennedy stated, it is critical that the Department of Transitional Assistance (DTA) not only addresses the core causes of food insecurity, but also improves its mechanisms to prevent theft more effectively.
Hope for Legislative Support
Kerans expressed confidence in getting legislative support for the proposed policy reforms. “There’s been a significant amount of progress in addressing food insecurity, such as the school lunch bill,” she told me.
“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 selected to participate in a federal pilot program with the USDA to evaluate mobile and contactless payment methods for EBT cards. The state has allocated $2 million to implement a new chip and tap payment system.
The department intends to investigate chip-enabled EBT cards with a new vendor within the next two years, as they are currently in the process of switching vendors.
