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Lawmakers press for chip-enabled EBT cards and contingency funding for SNAP errors

Joint Senate–Assembly Budget Subcommittee on Human Services and Labor · March 18, 2026

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Summary

Members said the budgets include funding to replace skim-prone EBT cards and to address food insecurity; several lawmakers warned of an anticipated federal SNAP penalty and urged administrative fixes to avoid sanctions.

Lawmakers at the subcommittee hearing flagged EBT card skimming, food-insecurity appropriations and possible federal penalties tied to SNAP administration.

Assembly Member Davila said the Assembly one-house budget appropriated $75,000,000 for food insecurity and supported the governor's proposal to implement chip-enabled EBT cards to prevent skimming that has left seniors and other beneficiaries without funds at point of sale. "We have to make sure that people are not left without alternatives when their cards show zero," Davila said.

Assembly Member Molotor warned of an anticipated SNAP penalty of $70,000,000 tied to payment errors and urged fixes to SNAP administration and fair-hearing timelines to reduce county costs. Assemblyman Michael Novikov said EBT fraud has exceeded $50,000,000 over three years and supported modernizing EBT cards with microchip technology.

Legislators said the state is coordinating with OTDA and social-service districts to reduce error rates and to minimize federal penalties, but no final program rollout timeline was given at the hearing.

The committee did not take votes or issue binding directives in this session; members asked staff and agencies to continue work on implementation details.