DHS outlines costs and timeline for chip EBT transition; advocates push for stronger protections

The Committee on Human Services considered the Public Benefits Security Amendment Act of 2025 (B26-0367) on Oct. 30, a bill that would require the Department of Human Services to transition from magnetic-stripe electronic benefit transfer (EBT) cards to microchipped (EMV) EBT cards and provide statutory restoration for stolen benefits. Chair Matt Fruman opened the benefits-theft portion of the hearing by describing recent years' losses to card skimming and related fraud.

Nicole Dooley of Legal Aid told the committee that millions of dollars are stolen annually and said the bill "would bring DC's program in line with modern methods of theft prevention," urging adoption of EMV technology and longer windows for beneficiaries to discover and report theft. Rachel Pierre, Acting Director of DHS, described mitigation steps the agency has already taken (PIN removal, transaction blocking options) and presented DHS's cost estimate for a full EMV transition: approximately $3,600,000 in implementation costs (about $3,000,000 for technology upgrades and $600,000 for mass card replacements) and roughly $437,000 in ongoing annual costs. DHS also estimated chip cards would independently reduce stolen-benefits claims by at least 75% and said earlier federal reimbursement windows and mitigation strategies had helped but did not fully eliminate the problem.

Committee members asked about funding sources (a possible FY26 federal match and a $750,000 grant were discussed), timing (FNS approvals and planning steps could take months), and the department's approach to reviews and appeals for denied claims. DHS and witnesses noted trade-offs: longer statutory reporting windows help vulnerable beneficiaries but can make validation harder and increase risk of mistaken or fraudulent claims. Chair Fruman and DHS staff agreed to pursue follow-up budget conversations and requested more granular data on claim volumes and reimbursements.