Congress mandates stolen EBT benefits be replaced, tightens fraud prevention
H.R. 3700 — MEALS Act of 2025 · Filed by Suzanne Bonamici (D-OR) · 1 cosponsor · Introduced Jun 4, 2025 · Referred to committee
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What it does
This bill requires states and tribal organizations running the summer EBT program to replace benefits that are stolen through card fraud (skimming, cloning, etc.), and directs the USDA to issue guidance on fraud prevention, conduct rulemaking on security measures, and coordinate with retailers and payment processors to detect and prevent theft. The bill funds these replacement benefits and requires states to submit plans for handling stolen-benefit claims within 60 days.
Why we flagged it
The bill's core mechanism is a federal mandate to replace stolen EBT benefits and establish fraud-prevention standards. While titled the MEALS Act, the operative text focuses entirely on summer EBT fraud detection, prevention, and reimbursement—not meal provision itself.
What the text implies
- The bill requires states to absorb administrative costs of claims processing, validation, and appeals procedures, which may strain state budgets unless federal funding is generous.
- Retailers and EBT contractors gain leverage to demand equipment upgrades (card readers, fraud-detection systems) at state/federal expense, potentially benefiting payment-processing vendors.
The full analysis lists 4 implications of this text.
Who stands to gain
EBT payment processors and contractors; Retailers and vendors (equipment upgrade costs borne by states/federal funds); Card-fraud detection technology vendors