ARLINGTON, Va. — More than 1,000 food retailers, wholesalers and trade associations have urged Congress to pass legislation that would permanently bar states and state contractors from charging processing fees on Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions.
In a joint letter sent Monday to the House and Senate Agriculture Committees, FMI – The Food Industry Association, the National Grocers Association (NGA), and the National Association of Convenience Stores (NACS) said the bipartisan “Ensuring Fee-Free Benefit Transactions (EBT) Act” should be enacted this year, either as part of the Farm Bill or another legislative package.
Letter to Congress – September 8, 2025
The signatories stressed that SNAP retailers already invest heavily in the program, including costs for equipment, software, staff training and existing processing fees on their side of transactions. Additional charges levied by states or their EBT contractors, they warned, would create unfair burdens and could push some stores out of the program.
“SNAP authorized retailers are committed to strengthening the integrity and viability of the program for millions of Americans in every community. Retailers invest significant resources to participate in SNAP, including bearing the cost of equipment updates, software, training for store associates, and processing fees and other costs from retailers’ side of a SNAP EBT transaction. SNAP retailers should not then be assessed processing fees on top of these costs from a state’s side of a SNAP EBT transaction,” said Christine Pollack, vice president of government relations, FMI - The Food Industry Association.
“For years, independent grocers have operated under only temporary assurances that they wouldn’t be burdened by fees on SNAP transactions,” remarked Stephanie Johnson, group vice president of government relations at the National Grocers Association. “Congress’s intent has always been clear: retailers should not be charged fees to accept SNAP payments in order to create the greatest possible access for families in need. Now is the time for a permanent solution. 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.”
“Congress must act quickly to pass the EBT Act and give retailers the certainty they need to keep serving SNAP families without added costs,” said Margaret Mannion, NACS Director of Government Relations. “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.”
The EBT Act (H.R. 4158) was introduced in the House by Reps. Shontel Brown (D-Ohio) and Tony Wied (R-Wis.), both members of the Agriculture Committee. Retail groups are pushing for its inclusion in a multi-year Farm Bill this year.
