FNS Documents & Resources

The Nutrition Assistance Program in the Commonwealth of Puerto Rico provides a monthly benefit for food to low-income households that includes both cash and noncash portions. Three-fourths (75 percent) of the benefit must be redeemed for eligible food items through electronic benefit transfer (EBT) at certified retailers. The remaining 25 percent may be redeemed in cash. The entire benefit (both the noncash and cash portions) is to be used only for the purchase of eligible food items.

FNS is interested in identifying ways to stimulate increased competition in the Electronic Benefit Transfer marketplace and identify procurement or systems features that are barriers to new entrants.

The Food and Nutrition Service is adopting as a final rule, without change, a direct final rule that made changes to SNAP regulations to account for the replacement of the paper coupon issuance system with the Electronic Benefits Transfer system as the nationwide method of distributing benefits to program participants.

This direct final rule updates and reorganizes the Supplemental Nutrition Assistance Program to replace paper coupon issuance system with the Electronic Benefits Transfer system as the nationwide method of distributing benefits to program recipients.

FNS uses a set of EBT-based administrative tools and undercover investigations to identify and sanction trafficking retailers, and to estimate the extent of trafficking. The estimates of the amount of trafficking, the trafficking rate, and the store violation rate reported here are based on information from almost 33,000 stores subject to administrative or undercover investigation from late 2002 through 2005.

This final rule revises Food Stamp Program regulations pertaining to the standards for approval of Electronic Benefits Transfer systems, the participation of retail food stores and wholesale food concerns, and the state agency liabilities and Federal sanctions.

This action provides interim and final rulemaking for a proposed rule. It revises Food Stamp Program rules affecting the standards for approval and operation of Food Stamp Electronic Benefit Transfer systems.

Food stamps are intended for food. When individuals sell their benefits for cash it violates the spirit and intent of the Food Stamp Program as well as the law. This practice, known as trafficking, diverts food stamp benefits away from their purpose. It reduces intended nutritional assistance and undermines public perceptions of the integrity and utility of the program. To combat trafficking, the Food and Nutrition Service conducts undercover investigations of authorized food stores. In addition, the agency has developed powerful new EBT-based administrative tools to identify and sanction traffickers.

This rule finalizes revisions to the Food Stamp Program regulations to ensure that recipients can use their electronic food stamp benefits across state borders.

This action proposes to revise Food Stamp Program regulations pertaining to the standards for approval of Electronic Benefits Transfer systems, the participation of retail food stores and wholesale food concerns, and the state agency liabilities and federal sanctions.