House Human Services Committee reports bill to add chip technology to EBT cards; amendment guarantees free replacement

The House Human Services Committee agreed to report House Bill 2540 as amended after adopting an amendment that guarantees recipients at least one free chip-enabled access card and directs the department to create emergency delivery procedures.

Dylan, a committee staff member, told the panel that "House Bill 2540 requires the department to upgrade access cards to include chip enabled technology no later than 01/01/2028," and that the department must apply for any federal funds available for the transition, provide resources to vendors, and file an initial report within six months of the bill's effective date and six-month updates thereafter.

Representative Kinkade, who offered Amendment A03392, said the change aims to protect recipients who could lose access to benefits. "Right now, folks who lose their EBT cards are charged for a replacement, so it's just kinda keeping that in line," Kinkade said, arguing the amendment also helps people who are unhoused or escaping domestic violence obtain benefits when they lack a stable mailing address.

The adopted amendment requires recipients receive one chip-enabled card at no cost, directs the department to provide education and resources to recipients and vendors during the transition, and instructs the department to establish procedures to deliver cards to individuals in emergency situations. Kinkade also said the amendment pushes the department to seek federal matching funds "up to 50%" and to pursue that match by Oct. 1 (the transcript does not specify a year).

Chairman Heffley framed the bill as a bipartisan security upgrade, saying the change would reduce card skimming and protect benefits. "We've heard, and seen reports about, you know, upwards of $20,000,000 had been stolen from folks that have these cards," Heffley said, urging an affirmative vote on the amendment.

Chairman Williams called for any opposition after the amendment debate and, seeing none, declared Amendment A03392 adopted. He then asked whether the committee would report HB 2540 as amended; with no recorded opposition, he announced that the bill "will be reported as amended." The transcript does not record a roll-call vote tally for the amendment or the final committee action.

If enacted, the bill would align Pennsylvania's EBT system with chip standards used by many payment cards and add protections supporters say will make it harder for criminals to skim or clone benefits cards. The department would be required to seek federal funding for the transition and to provide regular reports on progress until the upgrade is complete.

The committee adjourned with the bill reported to the full House.