Cost sharing for transitioning to chip-enabled EBT cards

Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended— (1) in subsection (a), by striking subsection (k), and inserting subsection (k), except as provided in subsection (l),; and (2) by adding at the end the following: (l) Administrative cost-Sharing for transitioning to chip-Enabled EBT cards (1) In general On approval of a plan submitted by a State agency under paragraph (2), the Secretary shall pay to such State agency an amount equal to 90 percent of all administrative costs incurred by the State agency in carrying out a transition from magnetic-stripe EBT cards to EBT cards with chip technology that complies with the American National Standards Institute X9.58–2024 EBT standard, or its succeeding standard, including costs associated with— (A) card issuance strategies; (B) one-time up-front costs paid by the State to card vendors; (C) business and functional design requirements; (D) implementation planning; (E) system testing; (F) education and outreach in language accessible by all households, including informational activities under subsection (a)(4); and (G) any other administrative fees reasonably necessary for the successful implementation of chip cards. (2) Approval of transition plans (A) Submission A State agency shall submit to the Secretary for approval a plan that carries out paragraph (1), including system testing, retailer and household education, and outreach efforts. State plans must include steps to ensure that recipients will retain access to their benefits without interruption during the transition. (B) Secretarial action Not later than 90 days after the date on which the Secretary receives a complete plan under subparagraph (A), the Secretary shall— (i) approve the plan; (ii) approve the plan with conditions; or (iii) disapprove the plan and provide the State agency with a written explanation of the reasons for such disapproval. (C) Deemed approval If the Secretary fails to take action within the 90-day period described in subparagraph (B), the plan shall be deemed approved. (3) Sunset This subsection shall sunset on September 30, 2031..