A powerful coalition of food industry groups, including the National Grocers Association, The Food Industry Association, and the National Association of Convenience Stores, pressed Congress to act on the Ensuring Fee-Free Benefit Transactions (EBT) Act. The legislation would prevent states and their contractors from imposing SNAP EBT fees on retailers.
Industry leaders warn that new costs would harm both grocers and the low-income families who rely on the program.
Stakeholders urged Congress to fold the measure into the multi-year Farm Bill expected later this year.
Over 1,000 Retailers Back the EBT Act
More than 1,000 food retailers, state associations, and national groups signed a letter supporting the EBT Act. Collectively, they represent tens of thousands of SNAP-authorized retailers serving millions of participants nationwide.
Retailers already absorb significant expenses to accept SNAP, including equipment upgrades, software, staff training, and existing transaction costs. Adding SNAP EBT fees from the state side, they argue, would double that burden.
“Retailers invest significant resources to participate in SNAP, and they should not be assessed additional processing fees,” said Christine Pollack, vice president of government relations at FMI — The Food Industry Association.
Independent Grocers Demand Long-Term Certainty
Independent supermarkets, many of them family-run, say fee uncertainty threatens their role in feeding vulnerable communities.
“For years, independent grocers have operated under only temporary assurances that fees on SNAP transactions wouldn’t burden them,” said Stephanie Johnson, group vice president of government relations at the National Grocers Association.
“Now is the time for a permanent solution,” Johnson said. “Community grocers are proud to serve their neighbors with fresh, healthy food, and with the EBT Act, they can continue doing so without the threat of burdensome fees.”
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SNAP EBT Fees Mean Higher Grocery Prices
Retailers warn that allowing SNAP EBT fees could indirectly raise food prices for families relying on the program.
“Processing fees on EBT transactions have long been prohibited, and reversing that protection would hand windfall profits to payment processors while driving up the cost of food,” said Margaret Mannion, director of government relations at the National Association of Convenience Stores.
Mannion added, “Congress must act quickly to pass the EBT Act and give retailers the certainty they need to keep serving SNAP families without added costs.”
Bipartisan Backing in Congress
The House bill, H.R. 4158, was introduced by Reps. Shontel Brown, D-Ohio, and Tony Wied, R-Wisconsin, both on the House Agriculture Committee.
With bipartisan sponsorship, advocates argue the EBT Act has strong momentum for inclusion in the Farm Bill or other legislative vehicles this year.
If passed, the act would permanently shield retailers from SNAP EBT fees, securing protections long considered essential to the program’s success.
Protecting Families and Local Grocers
SNAP retailers serve millions of participants each day, often in rural or underserved areas. By keeping transactions fee-free, advocates argue, stores can remain financially stable while families keep access to affordable, healthy groceries.
As Farm Bill talks advance, the fight over SNAP EBT fees will help determine how effectively grocers can serve their communities — and how far limited household budgets will stretch.