To amend sections 5101.54 and 5101.542 and to enact section 5101.5411 of the Revised Code to require Ohio's SNAP program to begin using chip-enabled EBT cards, to name this act the Enhanced Cybersecurity for SNAP Act of 2026, and to make an appropriation.
HB163 would change Ohio law governing the Supplemental Nutrition Assistance Program (SNAP) by adding a series of eligibility, verification, fraud-detection, and cybersecurity requirements, with a central focus on modernizing Electronic Benefit Transfer (EBT) cards. The bill requires the Ohio Department of Job and Family Services (ODJFS) to adopt rules on cybersecurity for EBT cards and mobile payments, to review those rules every five years, and to ensure safeguards comparable to private-sector and federal payment-card standards. It also directs the department to collect and analyze suspicious transaction data, create a website mechanism for reporting fraudulent transactions, and replace existing EBT cards with chip-enabled cards within two years.
Beyond card modernization, the bill expands and codifies administrative procedures for SNAP eligibility and recertification. It requires verification of a broad set of household information before certification, allows expedited certification in immediate-need cases, mandates quarterly review of changed circumstances, and directs the department to pursue interagency data sharing, vendor contracts, and multistate cooperation to identify potential duplicate enrollment or fraud. It also preserves existing expedited food-assistance protections and requires applicants to receive voter registration applications.
The bill includes a state appropriation of $10.6 million total, split between General Revenue Fund and federal funds, to support the transition to chip-enabled SNAP EBT cards. The appropriation language indicates the money is intended specifically for SNAP EBT modernization and may be reappropriated into the next fiscal year if unspent.
The bill’s impact on state law would be to amend sections 5101.54 and 5101.542 and add a new section establishing fraud-reporting functionality, while also repealing the prior versions of the amended sections. In practical terms, it would impose new administrative duties on ODJFS and county departments of job and family services, change how SNAP benefits are issued and replaced, and create a more detailed statutory framework for eligibility verification, fraud investigation, and cybersecurity standards for benefit delivery.
Because the bill was only introduced and no committee votes or transcripts are available, there is no recorded legislative debate to gauge sentiment directly. Based on the bill text and sponsorship, the measure appears framed positively as a cybersecurity and anti-fraud modernization effort, but it also contains more stringent verification and replacement-card rules that could raise concerns about administrative burden or access for recipients. Likely points of contention include the cost of the EBT conversion, the expanded verification requirements, and the rule allowing withholding of replacement cards after repeated losses, except where disability is involved.
HB163 would substantially revise Ohio’s SNAP administration statutes by adding mandatory cybersecurity standards for EBT and mobile payments, requiring chip-enabled cards statewide, and expanding fraud monitoring and reporting tools. It would also increase ODJFS’s authority and obligations to verify eligibility, share data across agencies, investigate suspicious transactions, and coordinate with county departments and outside vendors. The bill appropriates $10.6 million to implement the EBT modernization, making it both a policy and funding measure affecting ODJFS, county job and family services offices, SNAP recipients, and vendors involved in card issuance and payment security.
No committee transcript or vote record is available, so there is no documented floor or committee sentiment to summarize. The bill’s framing as the “Enhanced Cybersecurity for SNAP Act” suggests support from sponsors for stronger fraud prevention and payment security. At the same time, the bill’s more intensive verification and card-replacement restrictions indicate that any debate would likely balance anti-fraud goals against concerns about access, administrative complexity, and the effect on vulnerable SNAP households.
The main likely points of contention are the scope of new verification and fraud-detection requirements, the requirement to replace all EBT cards with chip-enabled cards within two years, and the rule allowing the department to withhold replacement cards after four or more requests in a year. Supporters would likely emphasize cybersecurity, fraud reduction, and alignment with modern payment-card standards, while critics may argue that the bill could create barriers for legitimate recipients, increase administrative workload for county agencies, and impose significant implementation costs. The bill’s expanded data-sharing and investigative provisions may also raise privacy and due-process concerns for some stakeholders.