States Receiving Additional SNAP Funding to Combat Fraud: What You Need To Know

In a new effort to combat SNAP benefit fraud, the U.S. Department of Agriculture (USDA) has awarded funding grants to ten states.

These funds will be used to bolster security measures for the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance to low-income households.

This initiative is a response to the increasing number of fraud cases involving Electronic Benefit Transfer (EBT) cards, the system used to distribute SNAP benefits.

EBT cards function like debit cards, allowing beneficiaries to purchase groceries. Unfortunately, they have become targets for fraud, including cloning, phishing, and skimming scams.

In just the second quarter of 2024, over 67,000 stolen benefit claims were approved, representing more than $32 million in lost payments. The USDA’s funding will help prevent such incidents and protect SNAP recipients.

SNAP Fraud Prevention: A Three-Part Strategy

The USDA is addressing the issue of fraud through a comprehensive strategy involving three key components:

• Fraud Technology: Investing in advanced systems to detect fraudulent activities before they occur.
• Prevention: Implementing strategies to protect recipients from scams.
• Education: Raising awareness among SNAP recipients on how to safeguard their benefits.

This funding initiative will allow states to enhance their fraud detection systems, educate recipients on the risks, and take proactive measures to prevent future losses.

States Receiving Additional Funding

A total of $4.9 million in grants has been distributed to ten states. These states will use the funding to enhance security, raise fraud awareness, and improve fraud detection measures. Here’s the list of states that have received these grants:

State	Agency
Illinois	Department of Human Services
Florida	Department of Children and Families
Kentucky	Cabinet for Health and Family Services
Maine	Department of Health and Human Services
Michigan	Health and Human Services
Minnesota	Department of Human Services
Mississippi	Department of Human Services
Montana	Department of Public Health and Human Services
Texas	Health and Human Services Commission
West Virginia	Department of Human Services

How States Are Using the Funds

Each state has the flexibility to use the funding in various ways to tackle SNAP fraud. For example:

• Minnesota will invest in advanced card technology to better protect benefit recipients.
• Kentucky plans to focus on education efforts, training SNAP recipients, retailers, and local offices about fraud risks and preventive measures.

Some states will also use their funds for media campaigns to raise awareness of fraud tactics, while others will focus on staff training to prevent fraud at the application stage.

Restrictions on Fund Usage

It’s important to note that these funds cannot be used to reimburse beneficiaries whose SNAP benefits have already been stolen.

Separate funding is allocated for that purpose. However, under federal law, states must replace any stolen benefits, ensuring that victims of fraud are not left without assistance.

USDA’s Commitment to SNAP Integrity

According to Cindy Long, deputy undersecretary for USDA Food, Nutrition, and Consumer Services, the Biden-Harris administration is deeply committed to enhancing SNAP’s integrity while continuing to support vulnerable families.

The funding awards are vital in giving states the resources they need to better serve their residents and reduce fraud risks.

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