HR 4158119th CongressIn Committee

Ensuring Fee-Free Benefit Transactions Act of 2025

Introduced: Jun 26, 2025

Financial ServicesSocial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill, the Ensuring Fee-Free Benefit Transactions Act of 2025, would make permanent a moratorium prohibiting states and their agents, contractors, or subcontractors from charging SNAP-authorized retailers any fees for processing SNAP benefits via EBT transactions. The prohibition covers fees related to EBT switching or routing of benefits but allows charges tied to equipment rentals. The measure would supersede conflicting provisions from a 2023 appropriations act or related agency actions and would take effect on October 1, 2025. In short, it aims to ensure retailers do not pay transaction fees to participate in SNAP, shifting any related cost considerations away from retailers.

Key Points

1Prohibited fees: States and their agents/contractors may not impose fees on SNAP-authorized retailers for EBT transactions, including switching or routing benefits, for costs to implement specified SNAP-related subsections.
2Exception for equipment rentals: Fees related to equipment rentals may still be charged; the prohibition does not apply to those equipment-related costs.
3Supersedes prior actions: The amendment overrides provisions in title IV of division HH of the Consolidation Appropriations Act, 2023 or any agency actions taken under that authority.
4Effective date: The act becomes effective on October 1, 2025.
5Policy purpose: Permanently remove financial barriers on retailers from SNAP EBT transaction fees, with the intent to support retailer participation and reduce barriers to SNAP access for beneficiaries.

Impact Areas

Primary group/area affected: SNAP-authorized retailers (grocers, supermarkets, and other stores that process SNAP benefits via EBT) would no longer pay transaction fees to process SNAP purchases.Secondary group/area affected: State SNAP agencies and EBT network providers who would no longer collect such retailer fees; this could affect state budgets and the cost structure of administering SNAP at the retailer level.Additional impacts: The change could shift some processing or infrastructure costs onto federal funding or state programs, potentially influencing the economics of SNAP processing, including EBT switching/routing operations and equipment rental arrangements. It may also affect vendor pricing or negotiations for EBT service providers, who would need to absorb or accommodate these policies in pricing models.

Generated by gpt-5-nano on Oct 7, 2025