The Pennsylvania Food Merchants Association (PFMA) is praising several provisions included in the state’s newly approved 2026-27 budget, highlighting investments aimed at strengthening SNAP security, combating organized retail crime and expanding access to healthy food.
Among the measures is authorization for the Pennsylvania Department of Human Services to transition Electronic Benefit Transfer (EBT) cards from magnetic stripe technology to encrypted chip cards by the start of 2028. The move is intended to help prevent benefit theft through card-skimming schemes that have targeted SNAP recipients across the country.
Pennsylvania joins neighboring Maryland and New Jersey in adopting chip-enabled EBT cards. As part of the rollout, DHS will work with retailers and technology providers on any required system upgrades.
“This is an important change not just for SNAP recipients but food retailers as well,” said PFMA President and CEO Alex Baloga. “Not only will transitioning to chip cards strengthen the integrity of the program, but it will improve the grocery shopping experience for SNAP and non-SNAP recipients alike.”
The budget also increases funding for the Pennsylvania Attorney General’s Organized Retail Crime Unit, which PFMA helped establish through legislation signed into law in 2023. The association said the additional funding reflects growing recognition of the economic and community impacts of organized retail theft.
PFMA also welcomed the continuation of the state’s $2 million Fresh Food Financing Initiative, which provides grants and loans to help grocery operators and other organizations expand access to affordable, healthy food in underserved communities throughout the commonwealth.
In addition, lawmakers continued the scheduled reduction of Pennsylvania’s Corporate Net Income Tax rate. PFMA said the decision recognizes the cost pressures facing food retailers and other businesses while avoiding additional tax burdens during the current budget cycle.
Baloga thanked Gov. Josh Shapiro and members of the General Assembly for advancing measures that support retailers, protect SNAP beneficiaries and strengthen Pennsylvania’s food system.