MEALS Act Mandates Stolen Summer EBT Benefit Replacement, Targets Card Skimming Fraud

The Mitigating Electronic Access Losses for Students Act of 2025, or the MEALS Act, takes aim at the rising problem of benefit theft, specifically targeting the Summer EBT program. This bill makes a critical change: it requires the Secretary of Agriculture to set up a system where states and tribes must replace Summer EBT benefits that are stolen through electronic fraud methods like card skimming or cloning.

This isn't just about replacing lost money, though. The bill mandates a major security upgrade across the entire program. The Secretary must issue new guidance and formal rules requiring participating states and tribes to adopt security measures that match the standards used in the mainstream debit and credit card industry. Think of it this way: if your bank card is protected by certain chip and encryption standards, the government is now saying EBT cards need that same level of defense against digital thieves. This is a big deal for families who rely on these benefits when kids are out of school, as it offers a real safety net against sophisticated fraud.

Protecting the Summer Food Budget

Currently, if a thief skims your EBT card and drains the funds, getting those benefits back can be a bureaucratic nightmare, if it's even possible. This bill changes the game by requiring states and tribes to have a clear, approved operational plan for replacing stolen funds. For a parent who budgets those Summer EBT funds for groceries, knowing there’s a formal process for replacement means the difference between feeding their kids and facing a sudden, unexpected gap in their food budget.

However, there’s a cap on the replacement amount: you can only get back the lesser of what was actually stolen or the amount of one full benefit allotment issued right before the theft occurred. For example, if your monthly benefit is $100 and a thief steals $150, you'd only get $100 back. This provision (SEC. 2) ensures accountability while limiting the government's exposure to massive fraudulent claims.

The Cost of Better Security

To make this work, the Secretary must collaborate with law enforcement, retailers, and EBT contractors to figure out exactly how the theft is happening and what equipment upgrades are needed. This means the guidance must include specific security measures, which could require retailers and vendors who accept EBT to upgrade their point-of-sale systems. For small businesses, this could mean an upfront cost to comply with the new security requirements, although the bill requires the Secretary to consider the "cost and feasibility" for states and tribes when setting the new rules.

This balancing act between top-tier security and implementation cost is where the rubber meets the road. While the goal is to align EBT security with industry best practices, the Secretary’s decision on where to draw the line could determine how effective the new protections actually are. If the cheapest option is chosen over the most secure, the fraud problem might just shift instead of disappearing.

Accountability and Oversight

The bill builds in several layers of oversight to ensure the new system works. Within two years, the Secretary must report back to Congress, detailing the actual rates of theft, where it’s happening, and how well the new security measures are working. On top of that, the Government Accountability Office (GAO) is required to conduct an independent review of the entire Summer EBT payment system’s security risks. This kind of external audit is crucial because it compares the USDA's performance against leading private-sector security standards, giving Congress an unbiased look at whether the program is truly protected or just going through the motions. This focus on transparency and external review is a win for anyone who wants to see federal programs run efficiently and securely.