An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in public assistance, providing for transition to chip-enabled access cards.

2025-2026 Regular Session Introduced by Scott Barger and 31 co-sponsors

HB 2540 would require transitioning Pennsylvania public assistance EBT cards to chip-enabled cards to enhance security and reduce fraud.

Re-referred to Appropriations

Summary of HB 2540 (2025-2026) – Pennsylvania

Purpose and Intent

HB 2540 proposes amending the Human Services Code (Act of June 13, 1967) to establish a transition plan for public assistance EBT (Electronic Benefits Transfer) cards to be chip-enabled. The bill is framed around enhancing security for EBT cards and the public assistance system.

Key Provisions (Substantive Changes)

Amend Public Assistance Provisions: The bill would modify the Human Services Code to authorize and guide the transition from existing EBT access mechanisms to chip-enabled access cards for public assistance programs.

Chip-Enabled Access Cards: The core change requires or facilitates the replacement or upgrade of current EBT cards with chip-enabled formats, aimed at improving security and fraud prevention.

Administrative/Implementation Framework: While the exact text is not reproduced here, the bill’s intent implies creating or directing procedures, timelines, and responsibilities for implementing the chip-enabled transition (e.g., agency coordination, card issuance, system compatibility, and security measures).

Who/What Would Be Affected

Public Assistance Recipients: Individuals and households receiving benefits under Pennsylvania’s public assistance programs that currently use EBT cards would be affected by the transition to chip-enabled cards.

State Agencies: Departments administering public assistance programs and EBT systems would implement the transition, oversee security enhancements, and coordinate with vendors or card issuers.

Fraud Prevention and Security: The initiative targets improving protection against fraud, card tampering, and unauthorized use through the use of chip technology.

Procedural and Timeline Considerations

Introduction and Sponsorship: Sponsored by Rep. Dan Williams with a broad coalition of co-sponsors from both major parties and multiple districts.

Committee Process: Referred to the House Committee on Human Services on May 27, 2026. A committee voting meeting occurred on June 3, 2026, indicating active consideration.

Current Status: As of the latest update, HB 2540 has been referred to the Human Services committee. There are no recorded floor votes yet in the information provided.

Statutory Reference: Amends the act known as the Human Services Code (P.L. 31, No. 21, 1967).

Additional Context

Related Memo: The memo accompanying the bill is titled “Enhancing Security for EBT Cards,” signaling a focus on security enhancements associated with the transition.

House Sponsorship: The bill has a large, bipartisan slate of sponsors, suggesting broad policy interest in strengthening EBT security through a chip-enabled transition.

Potential Impacts and Considerations

Security Enhancement: Chip-enabled cards are widely used to reduce card-present fraud and improve authentication, potentially reducing improper or fraudulent benefit usage.

Implementation Burden: The transition may involve costs for issuers, technology upgrades to EBT processing systems, and outreach to recipients about changes to their cards and PINs.

Accessibility and Continuity: Ensuring uninterrupted benefits during the transition will be important, including procedures for replacements, downtime management, and customer support for recipients.

If you’d like, I can tailor this summary to a particular audience (e.g., policymakers, advocates, or the general public) or pull in additional context from the bill’s text once available.