Ensuring Fee-Free Benefit Transactions Act of 2025

Bill Number

H.R. 4158

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Agriculture and Food

Status

Introduced

Latest Action

2025-06-26: Referred to the House Committee on Agriculture.

Last Updated

2025-11-20T09:06:33Z

AI-Generated Summary

Purpose

The Ensuring Fee-Free Benefit Transactions Act of 2025 aims to permanently prohibit fees on transactions involving Supplemental Nutrition Assistance Program (SNAP) benefits, which help low-income individuals and families buy food. This builds on a temporary moratorium by making it a lasting rule to ensure smoother access to these benefits without added costs to retailers.

Key Provisions

• Prohibition on Fees: Amends the Food and Nutrition Act of 2008 to bar states, or any of their agents, contractors, or subcontractors, from charging fees to SNAP-authorized retailers (stores approved to accept SNAP benefits) for Electronic Benefits Transfer (EBT) transactions. This includes fees for "switching" (transferring benefit data between systems) or routing benefits, as well as costs related to implementing certain program requirements like benefit issuance and fraud prevention.
• Exception: The fee ban does not apply to costs for renting equipment used in EBT systems.
• Superseding Prior Law: The new rule overrides temporary provisions in the Consolidated Appropriations Act, 2023 (a law that funds government operations and includes short-term restrictions on such fees), along with any related actions by federal agencies.
• Effective Date: Takes effect on October 1, 2025.

Significant Changes to Existing Law

• Converts a temporary moratorium on SNAP transaction fees (from the 2023 appropriations act, which likely expired or was set to end) into a permanent prohibition under the core Food and Nutrition Act of 2008.
• Expands the scope by explicitly covering fees for implementation costs, which were not as clearly addressed before, while allowing a narrow exception for equipment rentals to balance fiscal needs.

Potential Impacts

• On Government Agencies: The U.S. Department of Agriculture (USDA), which oversees SNAP, may see streamlined program administration with fewer disputes over fees. States could face challenges in recovering certain costs but gain clarity on prohibited charges, potentially reducing administrative burdens.
• On Citizens: SNAP beneficiaries (primarily low-income families) benefit indirectly through easier access to groceries at retailers, as stores are less likely to pass on hidden costs or limit participation due to fees. This supports food security without creating new barriers.
• On International Relations: No direct impacts, as this is a domestic nutrition program.

Main Stakeholders Affected

• SNAP-Authorized Retailers: Gain relief from transaction fees, potentially lowering operational costs and encouraging more stores to participate in the program.
• States and Their Contractors: Restricted from imposing fees, which may require adjustments in how they manage EBT systems and recover expenses.
• SNAP Beneficiaries: Low-income individuals and families who rely on SNAP for food purchases, as the law helps maintain affordable access to benefits.
• Federal Government (USDA): Responsible for enforcing the rules, ensuring compliance, and possibly providing guidance to states on implementation.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens federal oversight of SNAP by embedding the fee prohibition in the foundational Food and Nutrition Act, reducing reliance on temporary funding laws. It could lead to fewer lawsuits over fee disputes between states and retailers.
• Constitutional: No apparent challenges; aligns with Congress's authority to regulate interstate commerce and welfare programs under the Spending Clause of the U.S. Constitution.
• Political: Promotes equity in nutrition assistance by prioritizing access over cost recovery, potentially appealing to advocates for poverty reduction. It may influence future appropriations debates by setting a permanent standard, limiting states' flexibility in program funding.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Brown, Shontel M. [D-OH-11]

Cosponsors (7)

Rep. Wied, Tony [R-WI-8], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Jacobs, Sara [D-CA-51], Rep. Tokuda, Jill N. [D-HI-2], Rep. Davids, Sharice [D-KS-3], Rep. Figures, Shomari [D-AL-2], Rep. Budzinski, Nikki [D-IL-13]

Recent Actions

• 2025-06-26: Referred to the House Committee on Agriculture.
• 2025-06-26: Introduced in House
• 2025-06-26: Introduced in House

Bill Versions

• Ensuring Fee-Free Benefit Transactions Act of 2025 — issued 2025-06-26 — PDF (2 pages)