Tennessee addresses $155M SNAP benefits theft amid calls for improved technology

The Finance, Ways, and Means Committee of the Tennessee State Legislature convened on March 5, 2025, to address several pressing issues, primarily focusing on the theft of Supplemental Nutrition Assistance Program (SNAP) benefits and childcare funding initiatives.

The meeting began with a discussion on the alarming trend of SNAP benefit theft, which has affected numerous recipients across the state. Committee members expressed concern over reports of individuals losing their benefits before they even receive their EBT cards. The conversation highlighted the vulnerability of recipients, particularly those who rely on smaller grocery stores that may lack updated technology to prevent fraud. Officials noted that the absence of chip technology on EBT cards makes them susceptible to skimming, allowing criminals to quickly drain funds.

In response to these issues, state representatives inquired about federal efforts to address the problem. Officials confirmed that the federal government has recognized the issue and has allowed for a reimbursement period for stolen benefits, amounting to approximately $155 million reported during this timeframe. However, the reimbursement process has faced challenges, with only $8 million successfully reimbursed due to strict eligibility requirements set by federal guidelines.

The committee also discussed ongoing efforts to enhance technology and security measures to protect SNAP benefits, including potential partnerships with tech companies to implement safer payment methods. The conversation underscored the need for continued collaboration with federal partners to improve systems and mitigate fraud.

Following the discussion on SNAP, the committee shifted focus to childcare funding. A significant allocation of $19.4 million was designated to expand childcare capacity through partnerships with organizations like the YMCA and Boys and Girls Club. However, as of the end of 2024, only 6% of these funds had been utilized, raising questions about the effectiveness of the rollout. Officials assured the committee that efforts were underway to meet federal deadlines and expand childcare slots, with an estimated 9,500 new slots anticipated.

Additionally, the committee reviewed a proposed $7.2 million recurring budget aimed at increasing wages for early childhood educators to improve retention rates. The program provides annual salary supplements to educators pursuing further education, although it does not directly increase hourly wages.

In conclusion, the meeting highlighted critical issues surrounding SNAP benefit theft and childcare funding in Tennessee. The committee emphasized the importance of addressing these challenges through improved technology, federal collaboration, and effective allocation of resources to support vulnerable populations in the state. Further follow-up on these initiatives is expected in upcoming sessions.