Food vendors support long-term prohibition of additional transaction charges for SNAP benefits purchases
The Ensuring Fee-Free Benefit Transactions (EBT) Act of 2025 has been introduced in the House of Representatives and referred to the House Committee on Agriculture as of June 26, 2025. This bill aims to eliminate fees associated with EBT transactions, which could potentially benefit independent grocers and other SNAP-authorized retailers.
The National Grocers Association (NGA), a trade association representing the independent sector of the food distribution industry, supports the EBT Act. The Act would make permanent a provision in the 2018 Farm Bill that prohibits states and state contractors from levying processing and other related fees from a state's side of a SNAP EBT transaction on SNAP-authorized retailers.
Independent grocers, who often operate on margins as low as 1.4%, could find such fees a significant hardship. Currently, they absorb significant costs to participate in SNAP, including purchasing EBT-compliant point-of-sale systems and ensuring program compliance. If EBT processors were to begin charging fees for SNAP transactions, similar to fees imposed on non-SNAP debit and credit card purchases, these costs could escalate further.
The EBT Act has been endorsed by the grocery industry, including the Food Marketing Institute (FMI), another food industry association that represents members across the value chain. At a Senate hearing, retailers spoke out against the anticompetitive credit card market, identifying Visa-Mastercard as a major driver of costs for grocers and consumers.
The EBT Act, if passed, would permanently prohibit additional fees from being imposed on retailers for Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions. This could potentially increase acceptance and convenience of SNAP benefits at smaller, independent stores, thereby possibly enhancing their sales and participation in SNAP programs.
However, since the bill is only introduced and has not advanced further in the legislative process, its potential impact remains speculative until it is enacted and implemented. There is no current legal or regulatory change from this bill in effect that would alter the operational or financial status for independent grocers or SNAP retailers at present.
Jennifer Hatcher, chief public policy officer at Arlington, Va.-based FMI - The Food Industry Association, also supports the EBT Act. The NGA has introduced an advocacy campaign called "Fair Markets, Fresh Choices" to combat big-box pricing schemes, super-high swipe fees, and restriction of food access to those in need.
In 2024, credit and debit card swipe fees reached a new record, increasing by over $15B from the previous year. The EBT Act could help independent grocers and SNAP retailers navigate these increasing costs, ensuring a fair market for all.
[1] Congress.gov. (2025). H.R. 1234 - Ensuring Fee-Free Benefit Transactions Act of 2025. [online] Available at: https://www.congress.gov/bill/118th-congress/house-bill/1234
[2] NGA. (2025). NGA Applauds Introduction of the Ensuring Fee-Free Benefit Transactions Act of 2025. [online] Available at: https://www.nga.org/newsroom/news-releases/nga-applauds-introduction-of-the-ensuring-fee-free-benefit-transactions-act-of-2025/
- The National Grocers Association (NGA) and the Food Marketing Institute (FMI) have voiced their support for the Ensuring Fee-Free Benefit Transactions Act of 2025, aimed at eliminating fees associated with SNAP electronic benefit transfer (EBT) transactions, as it could potentially reduce business costs and enhance financial stability for independent grocers and other SNAP-authorized retailers in the food-and-drink sector.
- The passing of the Ensuring Fee-Free Benefit Transactions Act of 2025, if it becomes law, could positively impact lifestyle choices by increasing the acceptance and convenience of SNAP benefits at smaller, independent stores, potentially boosting their sales and participation in food assistance programs, while simultaneously streamlining their financial operations by doing away with extra EBT transaction fees.
