BALTIMORE — During a Senate bill hearing in Annapolis on Thursday, Maryland Department of Human Services Secretary Rafael Lopez announced the department's new stance on reimbursing stolen SNAP and cash assistance benefits.
Lopez testified in favor of Senate Bill 2, which would restore over a million dollars in stolen federal assistance benefits as well as require the vendor that distributes these benefits to provide enhanced security features.
Senator Katie Fry Hester (D-Howard and Montgomery Counties), the bill's sponsor, worked with Senator Ben Kramer (D-Montgomery County) on combining their legislative proposals addressing this theft.
"We must make those people whole and pay them back, and we must have stronger, stricter theft procedures," said Hester. "A thousand dollars to a family of four, if they don’t get that it means they don’t eat, that means they can’t pay their rent, that means they’re in a really bad space and so this bill will help."
In 2022, Maryland families reported losing over $1.6 million in federal assistance benefits, compared to $92,000 in 2021.
Victims of this benefit fraud also testified in favor of the bill.
"Back in August of last year, roughly $3,000 was stolen from my three children and I," said Renee. "I work as a CNA but just don’t make enough to pay for the bills and pay for the food."
"Because of the theft and because I lost my card, we have become homeless," said Mya Brown.
The state and federal government blame skimming devices installed on payment terminals that steal card information then transmits it to thieves, but a lack of security is also enabling this fraud.
"This is the card that our people use, this little card right here. And unlike the cards that all of us carry in our pockets for bank accounts and credit cards, it’s not chipped for example," said Secretary Lopez. "When someone has stolen our card, which happened to me three times last year, I immediately got a text to my phone and I got an email and call. That kind of urgency, we should expect nationally for the way in which we treat and engage people coming to us for help."
WMAR-2 News Mallory Sofastaii reported on this fraud last May. At the time, the former administration, under DHS Secretary Lourdes Padilla and Governor Larry Hogan, refused to replace these benefits.
"We were hearing a lot of stonewalling about this issue and a resistance to even have a conversation about it, much less get it straightened out and corrected, so I’m really excited to have this good bill before us and the support of the administration, it really is refreshing," said Senator Kramer.
The Senate Finance Committee will review the bill with its amendments and give it a favorable or unfavorable report. Senator Hester estimates reimbursements would cost the state around $2 million, however, a portion of reimbursements will also come from federal funding.
On December 29, 2022, President Joseph Biden signed into law the Consolidated Appropriations Act, 2023 (the Omnibus), which includes provisions for the replacement of stolen EBT benefits with federal funds. States are required to submit their reimbursement plans to the U.S. Department of Agriculture Food and Nutrition Service (FNS) by February 27. When FNS approves a state plan, that state will be able to replace certain benefits stolen October 1, 2022, through September 30, 2024, using federal funds.
Maryland was the first state to submit its plan. DHS is awaiting approval of its plan by FNS.