EBT Changes in 2026: What SNAP Retailers and Small Businesses Need to Know

The EBT changes in 2025 aren’t one single policy update — they’re a bundle of shifts affecting who qualifies for SNAP, what can be purchased, and how EBT transactions work at the register, including long-awaited security modernization.

If you’re a retailer that accepts SNAP EBT — grocery, convenience, market, specialty food, or a mixed-use store — 2025 is a “check your setup now” year.

Below is a practical, merchant-focused breakdown of the most important EBT changes, what’s already happening, what’s coming next, and how to stay compliant while avoiding failed transactions, customer frustration, and disputes on the non-EBT side.

Where EBT Stands Right Now (End of 2026 Reality Check)

Despite recent headlines about shutdowns and delays, SNAP benefits are back on normal monthly schedules under the current federal budget.

• States are sending full distribution files

• EBT cards are loading on regular state calendars

• Most “my EBT didn’t load” complaints still come down to:

  • It’s not the deposit date yet

  • The balance was already used

For merchants, this matters because your terminal is rarely the problem. It’s simply reading what’s on the card.

1) New SNAP Purchase Restrictions Are Expanding in 2026 (State Waivers)

One of the most visible EBT changes in 2025 is the expansion of state waivers restricting certain SNAP-eligible purchases.

These waivers often target:

• Soda

• Candy

• Energy drinks

• Some dessert categories

USDA has been approving these waivers as part of broader nutrition-policy initiatives.

Why this matters at checkout

If your state adopts restrictions, POS item eligibility logic matters more than ever. Poor UPC or PLU mapping leads directly to:

• Confusing declines

• “Why won’t my card work?” moments

• Longer lines and frustrated customers

Operational steps

• Audit SNAP-eligible food mappings (PLUs, UPCs, departments)

• Confirm your POS handles mixed baskets correctly

• Train staff on split tender (EBT + debit/credit/cash)

2) EBT Security Modernization: Chip Cards Are Now Real

One of the most important EBT changes isn’t visible on receipts — but it’s huge.

Due to widespread skimming and benefit theft, USDA has moved EBT security modernization from planned to active.

What’s changing

• Chip-enabled EBT cards are rolling out

• Some states are testing contactless capabilities

• USDA has published technical guidance for retailers, processors, and acquirers

• A GAO report confirms EBT cards were targeted because they lacked chip protections common to debit/credit cards

What retailers should do now

• Confirm your terminal fleet fully supports EMV

• Ask your processor how EBT chip fallback will work during transition

• Train cashiers — chip flows behave differently than mag-stripe

If you want a deeper merchant walkthrough, VMS covers this here:
EBT chip cards & terminals: what to know

3) Mobile EBT Is Coming (Slowly, but It’s Coming)

Another major theme in the EBT changes in 2025 conversation: SNAP isn’t staying locked to plastic forever.

USDA’s SNAP Mobile Payment Pilot allows approved participants to use mobile technologies at POS — meaning the EBT card could be stored digitally rather than physically.

Important reality check:

• EBT cannot yet be broadly added to Apple Pay or Google Pay

• Pilots are state-specific and limited

Retailer implications

• Contactless-capable hardware becomes more valuable

• POS systems must handle new tender flows

• Expect more customer questions as pilots expand

4) Online SNAP Purchasing Keeps Expanding — But Rules Still Apply

Online SNAP purchasing remains a major part of EBT changes in 2025, especially for grocers and markets.

USDA continues expanding retailer participation through its Online Purchasing Program, but one rule still trips people up:

SNAP benefits cannot pay for delivery, service, or convenience fees.

Retailer implications

• Online carts must cleanly separate:

  • SNAP-eligible food

  • Non-eligible fees

• Not every e-commerce flow qualifies — approval matters

5) Benefit Theft Replacements Changed — and Customers Feel It

A painful but important EBT change:
Federal replacement authority for stolen SNAP benefits did not extend beyond late 2024.

• Benefits stolen on or after Dec. 21, 2024 are not eligible for federal replacement

• Some states may offer state-funded replacements

• Congress has introduced proposals (e.g., Fairness for Victims of SNAP Skimming Act of 2025), but nothing is guaranteed

Why retailers should care

Customers affected by theft often arrive:

• Stressed

• Suspicious

• Convinced “the system is broken”

Your staff needs a calm, consistent script that avoids guessing about eligibility or balances.

6) Restaurant Meals Program & “Hot Food” Rules Stay State-Specific

Most SNAP households still cannot use EBT for hot prepared foods.

The exception is the Restaurant Meals Program (RMP):

• State- and county-specific

• Limited to eligible recipients (often elderly, disabled, or homeless)

• Currently active in nine states, with pilots elsewhere

If you’re a restaurant seeking EBT acceptance, you must confirm:

• Your state/county participates

• Your restaurant is approved for RMP

7) Work Requirement & Eligibility Changes Will Shift Demand Patterns

Some of the most impactful EBT changes in 2025 don’t affect POS rules — they affect who keeps benefits.

What’s changing federally

Two laws drive the shift:

• Fiscal Responsibility Act of 2023

• One Big Beautiful Bill Act of 2025

Together, they tighten ABAWD (Able-Bodied Adults Without Dependents) rules.

What that means in practice

• Core group: adults 18–64 without dependents

• To keep SNAP beyond the 3-months-in-36 limit, many must document ~80 hours/month of:

  • Work

  • Job training

  • Approved activities

Key changes:

• Caregiver exemption is narrower (usually only children under 14)

• Some temporary exemptions were removed earlier than expected

• More people now fall into the “prove your hours” category

For merchants, this means:

• More interrupted benefits

• More split tender transactions

• More “I’m waiting on my caseworker” conversations at checkout

State-by-State ABAWD Snapshot (Why Stories Differ at the Register)

Group 1: States With No ABAWD Waiver

ABAWD time limits apply statewide.

Includes:
Alabama, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Vermont, West Virginia, Wyoming

Expect:

• More benefit interruptions

• More reapplications

• More time-limit complaints

Group 2: States With a Statewide ABAWD Waiver (Temporary)

As of April 2025:
California, District of Columbia, Guam, Illinois, Nevada, U.S. Virgin Islands

Example: Illinois

• Waiver: Feb 1, 2025 – Jan 31, 2025

• December 2025 = first countable month

• February 2025 = possible benefit loss for non-compliant ABAWDs

When waivers expire, these states shift into Group 1 rules unless renewed.

Group 3: States With Partial (County-Level) Waivers

Includes:
Alaska, Arizona, Colorado, Connecticut, Delaware, Hawaii, Kentucky, Massachusetts, Maine, Maryland, Michigan, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Virginia, Washington, Wisconsin

Here, county matters:

• One customer may be exempt

• Another may be fully time-limited

• Same state, different rules

What Actually Changes for Merchants at Checkout

Here’s the bottom line on EBT changes at the register:

• No new EBT button

• No secret firmware update

• Eligible items stay eligible

What does change:

• More split tender transactions

• More declines tied to timing or eligibility

• More customer questions (checkout becomes customer service)

Best-practice staff script

“EBT only covers eligible food items. If part of the basket isn’t eligible, we can split the payment so EBT covers what it can.”

If something looks off:

• Suggest checking the balance via the number on the back of the card or the state app

• Avoid guessing about someone’s case status

2026 EBT Changes Checklist for Retailers

1. POS & Terminal Readiness

• Confirm EMV (chip) support

• Test split tender and partial approvals

2. Item Eligibility Hygiene

• Clean up UPC and PLU mappings

• Keep SNAP-eligible signage clear

3. Online & Mobile Strategy

• Separate fees from SNAP-eligible items

• Monitor USDA mobile payment pilots

4. Staff Training

• Practice calm, consistent explanations

• Avoid speculating on benefit eligibility

A Note from VMS

If you accept EBT — or plan to — your merchant account, equipment, and eligibility setup must be correct.

VMS specializes in EBT merchant enablement and staying ahead of future EBT changes, including security modernization and state-level rule shifts.

Start here:

• Before accepting EBT payments

• EBT chip cards & terminals: what to know