SNAP Retailers Call on Congress to Address EBT Transaction Fees
September 9, 2025 | 10 min to read
The National Grocers Association, The Food Industry Association, and the National Association of Convenience Stores urged Congress to enact the bipartisan “Ensuring Fee-Free Benefit Transactions (EBT) Act”, aiming to permanently prohibit states from imposing additional fees on SNAP transactions. With over 1,000 businesses supporting the initiative, stakeholders highlight the need for retailers to operate without the burden of extra costs, emphasizing their commitment to serving SNAP beneficiaries effectively.
Washington D.C. – The National Grocers Association, The Food Industry Association, and the National Association of Convenience Stores sent a letter to the U.S. Senate and U.S. House of Representatives Agriculture Committees signed by over 1,000 businesses and organizations calling on Congress to protect customers and retailers by prohibiting additional fees from being levied for Supplemental Nutrition Assistance Program (SNAP) electronic benefit transfer (EBT) transactions.
The letter requests that the bipartisan “Ensuring Fee-Free Benefit Transactions (EBT) Act” be enacted in a multi-year Farm Bill or other vehicle this year to permanently prohibit states and state contractors from levying processing and other related fees from a state’s side of a SNAP EBT transaction onto SNAP authorized retailers and their merchant processors. The stakeholder letter was signed by over 1,000 food retailers of all sizes serving millions of SNAP participants every day, and state, regional and national associations representing tens of thousands of SNAP authorized retailers across the country.
“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 bipartisan EBT Act (H.R. 4158) was introduced in the U.S. House by Representatives Shontel Brown (D-OH) and Tony Wied (R-WI), members of the House Agriculture Committee. Stakeholders are requesting that the measure be included in a multi-year Farm Bill or other legislative vehicle that will be enacted this year.
Letter to Congress – September 8, 2025
About the National Grocers Association
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
About FMI
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org.
About National Association of Convenience Stores
As the leading global trade association for convenience and fuel retailers, NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve and is a trusted adviser to its retailer and supplier members from more than 50 countries. The U.S. convenience store industry, with more than 152,000 stores, conducts more than 160 million transactions daily and had sales of $837 billion in 2024. For more information, visit convenience.org.