By Jie Jenny Zou | New York Focus
During a budget hearing on Wednesday, New York legislators questioned Governor Kathy Hochul’s administration about efforts to protect vulnerable families from food insecurity. The discussion comes as thefts from the Supplemental Nutrition Assistance Program (SNAP), previously known as food stamps, are on the rise.
Thieves are targeting SNAP by using hidden skimming devices at checkouts. New York is one of the states hit hardest by these thefts, having reimbursed $40 million in stolen benefits since 2022. Last year, nearly 3 million residents relied on SNAP, with an average household getting $376 monthly.
Things have taken a turn for the worse since December when Congress halted approvals for refunds. This left many families struggling with rising food costs and food insecurity. However, households can still apply for refunds on benefits stolen before December 20, 2024.
Lawmakers are particularly concerned about the state’s slow progress in adopting encrypted chip technology for EBT cards. Currently, New Yorkers are using magnetic-strip cards, which are less secure. Chip cards have been a standard for credit and debit transactions since 2015.
Assemblymember Jessica González-Rojas and Senate Committee Chair Roxanne Persaud have been pushing for legislation to switch to chip-enabled cards since 2023, but progress has stalled. The Office of Temporary and Disability Assistance (OTDA) mentioned last summer that it was in the early stages of transitioning to chip technology. However, the agency’s commissioner revealed that they currently lack the funding to make this change.
“We understand that moving to chip cards is essential,” said Commissioner Barbara Guinn, but the agency’s budget does not allow it at the moment. Meanwhile, Governor Hochul’s proposed budget does not include funding for this transition or reimbursements for stolen SNAP benefits.
During the hearing, several legislators held a press conference to express support for various SNAP-related bills. González-Rojas highlighted the plight of over 100,000 New Yorkers affected by skimming, stressing that SNAP is crucial for feeding families.
Guinn stated that transitioning to chip cards could cost up to $40 million, based on transitions in other states like California and Oklahoma, which also faced delays and difficulties. In contrast, other states are moving forward with their chip card plans amid stalled federal initiatives.
It’s worth noting that California has budgeted $76.5 million to transition its 3.2 million residents to chip cards, planning to roll them out soon. Challenges include significant changes to their transaction systems, which must be compatible with retail systems as well.
Experts caution that as states like California upgrade their systems, New York could become a more attractive target for skimmers. Currently, New York and California share the same contractor for benefit cards, making cooperation on this transition essential.
As urgency grows around implementing these secure measures, legislators and advocates hope that pressure will lead to meaningful changes that protect SNAP users and ensure they can access vital food resources safely.
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