Ensuring Fee-Free Benefit Transactions Act of 2025
Summary
The "Ensuring Fee-Free Benefit Transactions Act of 2025" aims to make permanent the moratorium on transaction fees for SNAP (Supplemental Nutrition Assistance Program) benefits. This bill amends the Food and Nutrition Act of 2008 to prohibit states and their agents from imposing fees on SNAP authorized retailers for EBT (Electronic Benefit Transfer) transactions, excluding equipment rental costs. The act seeks to supersede conflicting provisions in the Consolidation Appropriations Act of 2023 and will take effect on October 1, 2025.
Expected Effects
The primary effect of this act will be to eliminate transaction fees for SNAP retailers, potentially reducing their operational costs. This could encourage more retailers to participate in the SNAP program. It also ensures consistent access to SNAP benefits without added costs imposed on retailers.
Potential Benefits
- Reduces financial burden on SNAP retailers by eliminating transaction fees.
- May encourage more retailers to accept SNAP benefits, increasing access for beneficiaries.
- Simplifies the administration of SNAP benefits by standardizing fee structures.
- Potentially lowers food costs for SNAP recipients if retailers pass savings on.
- Provides financial relief to small businesses that serve SNAP recipients.
Potential Disadvantages
- Potential loss of revenue for states or third-party administrators who currently collect these fees.
- Possible shift of costs to other areas of the SNAP program or state budgets.
- Limited impact on overall SNAP benefit amounts for recipients.
- Enforcement challenges in ensuring compliance by all states and vendors.
- Possible need for states to find alternative funding sources to cover administrative costs.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). Congress has the power to regulate interstate commerce (Article I, Section 8), which includes the administration and distribution of federal benefits like SNAP. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).