In a move to avert a potential government shutdown, President Joe Biden signed a short-term funding package into law on Thursday, extending the prohibition on Electronic Benefit Transfer (EBT) processing fees for Supplemental Nutrition Assistance Program (SNAP) purchases.
The legislation, a one-year extension of the farm bill, grants agricultural negotiators until September 30, 2024, to finalize a comprehensive farm bill.
Temporary Reprieve
While providing temporary relief, the law does not offer a permanent solution, leaving industry stakeholders, particularly the National Grocers Association (NGA), poised for continued advocacy.
The NGA, a prominent trade group representing independent grocers, expressed appreciation for the extension of the EBT processing fees prohibition.
In a press release last week, the association underscored the potential ramifications of allowing such fees, emphasizing that stores of all sizes would be burdened with additional costs on EBT transactions.
The NGA argued that this scenario could reduce the number of participating retailers in the SNAP program, impacting stores serving urban, rural, and high-need areas where residents heavily rely on SNAP benefits.
Read more: Inflation And SNAP Benefit Reductions Drive Hunger Relief Demand
Extention Ban on EBT Processing Fees for SNAP Purchases
The extension comes at a critical time, as grocers and SNAP consumers have been grappling with the conclusion of SNAP emergency allotments earlier this year.
The NGA had previously urged Congress at the beginning of the year to permanently ban EBT processing fees, outlining this as a key priority for independent grocers in the 2023 farm bill.
This sentiment was reiterated by the trade group last week, as it affirmed its commitment to fighting for a permanent ban on EBT processing fees in the upcoming farm bill.
The NGA’s stance aligns with the broader industry sentiment, with both the NGA and FMI — The Food Industry Association — expressing support for legislation introduced earlier this year by Representative Shontel Brown (D-Ohio) in the House and Senators Ben Ray Luján (D-N.M.) and Peter Welch (D-V.T.).
The proposed legislation seeks, in part, to permanently prohibit EBT processing fees.
Despite the temporary reprieve provided by the one-year farm bill extension, the issue remains far from resolved.
In August, USDA data revealed that 22.1 million households received SNAP benefits, marking a 2.5% increase compared to the same month the previous year. This underscores the continued importance of SNAP in supporting vulnerable populations.
While the extension is a welcome relief for grocers and SNAP consumers, it highlights the need for a more lasting solution.
The NGA and other industry groups are poised to persist in their advocacy efforts, pushing for a permanent ban on EBT processing fees in the next farm bill.
As the September 30, 2024 deadline approaches, the agricultural community and its stakeholders will closely monitor developments, emphasizing the crucial role of SNAP in addressing food insecurity across diverse communities.
Read more: Texas SNAP Benefits Update: Eligibility Criteria And Deposit Amounts
