119-hr3700

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3700

 To amend the Richard B. Russell National School Lunch Act to require 
 certain State agencies and covered Indian Tribal organizations to 
 replace summer EBT benefits that are determined to have been stolen, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 4, 2025

 Ms. Bonamici (for herself and Mr. Goldman of New York) introduced the 
 following bill; which was referred to the Committee on Education and 
 Workforce

_______________________________________________________________________

 A BILL

 To amend the Richard B. Russell National School Lunch Act to require 
 certain State agencies and covered Indian Tribal organizations to 
 replace summer EBT benefits that are determined to have been stolen, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Mitigating Electronic Access Losses 
for Students Act of 2025'' or the ``MEALS Act of 2025''.

SEC. 2. SUMMER EBT FRAUD PREVENTION.

 

Section 13A of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1762) is amended--

    (1) by redesignating subsection

    (h) as subsection
            (i) ; and

    (2) by inserting after subsection

    (g) the following:
 ``

    (h) Summer EBT Fraud Prevention.--
 ``

    (1) Guidance; rulemaking.--The Secretary shall--
 ``
        (A) issue guidance to State agencies and covered 
 Indian Tribal organizations, on an ongoing basis, as 
 informed by the process outlined in subparagraph
            (D) , 
 that describes security measures that--
 ``
            (i) are effective, as determined by the 
 Secretary, in detecting and preventing theft of 
 summer EBT benefits, including through card 
 skimming, card cloning, and other similar 
 fraudulent methods;
 ``
            (ii) are consistent with industry 
 standards for detecting, identifying, and 
 preventing debit and credit card skimming, card 
 cloning, and other similar fraudulent methods; 
 and
 ``
            (iii) consider the feasibility of cost, 
 availability, and implementation for State 
 agencies and covered Indian Tribal 
 organizations;
 ``
        (B) promulgate regulations through notice-and-
 comment rulemaking to require State agencies and 
 covered Indian Tribal organizations that elect to 
 participate in the program under this section to take 
 the appropriate security measures, as determined by the 
 Secretary, described in the guidance issued under 
 subparagraph
        (A) ;
 ``
            (C) not later than 1 year after the date of 
 enactment of this subsection, promulgate regulations 
 (including an interim final rule) to require State 
 agencies and covered Indian Tribal organizations that 
 elect to participate in the program under this section 
 to implement procedures for the replacement of summer 
 EBT benefits consistent with paragraph

    (2) ;
 ``
            (D) coordinate with the Director of the Office of 
 Family Assistance of the Administration for Children 
 and Families of the Department of Health and Human 
 Services, the Attorney General of the United States, 
 State agencies, covered Indian Tribal organizations, 
 retailers (including retail food stores described in 
 subparagraph
        (A) of subsection

    (b)

    (1) and vendors 
 described in subparagraph
        (B) of such subsection), and 
 EBT contractors--
 ``
            (i) to determine--
 ``
            (I) how summer EBT benefits are 
 being stolen through card skimming, 
 card cloning, and other similar 
 fraudulent methods;
 ``
            (II) how those stolen benefits 
 are used; and
 ``
            (III) the locations where card 
 skimming, card cloning, and other 
 similar fraudulent methods are taking 
 place;
 ``
            (ii) to establish measures, including 
 equipment enhancements for retail food stores 
 described in subparagraph
        (A) of subsection

    (b)

    (1) and vendors described in subparagraph
        (B) of such subsection, to prevent summer EBT 
 benefits from being stolen through card 
 skimming, card cloning, and other similar 
 fraudulent methods; and
 ``
            (iii) to establish standard reporting 
 methods for State agencies and covered Indian 
 Tribal organizations that elect to participate 
 in the program under this section to collect 
 and share data with the Secretary on the scope 
 of summer EBT benefits being stolen through 
 card skimming, card cloning, and other similar 
 fraudulent methods; and
 ``
        (E) not later than 2 years after the date of 
 enactment of this subsection, submit to the Committee 
 on Agriculture, Nutrition, and Forestry of the Senate 
 and the Committee on Education and Workforce of the 
 House of Representatives a report that includes--
 ``
            (i) information on the frequency of theft 
 of summer EBT benefits and the location of 
 those thefts, including benefits stolen through 
 card skimming, card cloning, and other similar 
 fraudulent methods;
 ``
            (ii) a description of the determinations 
 made under subparagraph
            (D) 
            (i) , the measures 
 established under subparagraph
            (D) 
            (ii) , and 
 methods established in subparagraph
            (D) 
            (iii) ;
 ``
            (iii) a description of the industry 
 standards described in subparagraph
        (A)
            (ii) ;
 ``
            (iv) a comparison of State agency and 
 covered Indian Tribal organization plans 
 related to reimbursement, prevention, and other 
 relevant procedures approved in accordance with 
 paragraph

    (2)
        (A)
            (i) ; and
 ``
            (v) a description of actions taken by the 
 Secretary, and actions the Secretary plans to 
 take, to detect and prevent theft of summer EBT 
 benefits, including benefits stolen through 
 card skimming, card cloning, and other similar 
 fraudulent methods.
 ``

    (2) Replacement of benefits.--
 ``
        (A) In general.--The Secretary shall use funds 
 appropriated pursuant to this section to require State 
 agencies and covered Indian Tribal organizations that 
 elect to participate in the program under this section 
 to replace summer EBT benefits that are determined by 
 the State agency or covered Indian Tribal organization 
 to have been stolen through card skimming, card 
 cloning, or similar fraudulent methods, subject to the 
 conditions that--
 ``
            (i) the State agency or covered Indian 
 Tribal organization shall include as part of 
 each plan for operations and management of the 
 State agency or covered Indian Tribal 
 organization required under 

section 292.8 of 
 title 7, Code of Federal Regulations (or a 
 successor regulation), and submitted after the 
 date of enactment of this Act a plan for the 
 replacement of stolen summer EBT benefits 
 that--
 ``
            (I) includes appropriate 
 procedures, as determined by the 
 Secretary, for the timely submission of 
 claims to, timely validation of claims 
 by, and replacement issuance by the 
 State agency or covered Indian Tribal 
 organization that includes--
 ``

    (aa) a signed statement 
 by the affected eligible 
 household on the benefit theft, 
 consistent with the signature 
 requirements and options, 
 including electronic 
 signatures, provided by 

section 11

    (e)

    (2)
            (C) of the Food and 
 Nutrition Act of 2008 (7 U.S.C. 
 2020

    (e)

    (2)
            (C) );
 ``

    (bb) criteria to 
 determine if a submitted claim 
 is valid;
 ``
            (cc) procedures for the 
 documentation of replacement 
 issuances, including the 
 submitted claims and findings 
 from the validation;
 ``
            (dd) the submission of 
 data reports on benefit theft 
 and replacement activity to the 
 Secretary;
 ``

    (ee) procedures to inform 
 eligible households of their 
 right to appeal an adverse 
 decision regarding a submitted 
 claim; and
 ``

    (ff) the State agency's 
 or covered Indian Tribal 
 organization's use and planned 
 use of benefit theft prevention 
 measures, including any 
 additional guidance that may be 
 issued under subsection

    (h)

    (1) ;
 ``
            (II) includes appropriate 
 procedures, as determined by the 
 Secretary, for reporting the scope and 
 frequency of card skimming affecting 
 eligible households to the Secretary; 
 and
 ``
            (III) includes appropriate 
 procedures, as determined by the 
 Secretary, in the case of theft 
 involving a card or other account that 
 stores summer EBT benefits and other 
 benefits (including supplemental 
 nutrition assistance program benefits), 
 for determining, to the extent 
 possible, the total portion of stolen 
 benefits that is attributable to summer 
 EBT benefits; and
 ``
            (ii) the replacement of stolen summer EBT 
 benefits for an eligible household shall not 
 exceed the lesser of--
 ``
            (I) the amount of summer EBT 
 benefits stolen from the eligible 
 household--
 ``

    (aa) during the calendar 
 year that the claim reporting 
 such theft was submitted; and
 ``

    (bb) that have not been 
 replaced or otherwise 
 supplemented by a prior 
 approved claim; or
 ``
            (II) the amount equal to the 
 summer EBT benefit allotment of the 
 eligible household issued to the 
 eligible household immediately prior to 
 the date on which the benefits were 
 stolen.
 ``
        (B) Plan deadline for current participants.--In 
 the case of a State agency or covered Indian Tribal 
 organization participating in the program under this 
 section on the date of enactment of this subsection, 
 such State Agency or covered Indian Tribal organization 
 shall be required to--
 ``
            (i) submit an initial version of the plan 
 for the replacement of stolen summer EBT 
 benefits described in subparagraph
        (A)
            (i) to 
 the Secretary for approval not later than 60 
 days after the date of enactment of this 
 subsection; and
 ``
            (ii) implement such initial plan upon 
 approval by the Secretary.
 ``

    (3) Comptroller general.--
 ``
        (A) In general.--Not later than 2 years after the 
 date of enactment of this subsection, the Comptroller 
 General of the United States shall submit to the 
 Committee on Education and Workforce of the House of 
 Representatives and the Committee on Agriculture, 
 Nutrition, and Forestry of the Senate a report that 
 examines risks related to summer EBT benefit payment 
 system security, including the risk of stolen benefits 
 through card skimming, card cloning, and other similar 
 methods.
 ``
        (B) Contents.--The report under subparagraph
        (A) shall include an assessment of--
 ``
            (i) the extent to which the Department of 
 Agriculture manages summer EBT benefit payment 
 system security, including risks related to 
 stolen benefits, compared to leading industry 
 practices;
 ``
            (ii) the manner in which State agencies, 
 covered Indian Tribal organizations, retailers, 
 and other relevant entities manage risks 
 related to stolen summer EBT benefits;
 ``
            (iii) the oversight of and guidance 
 provided by the Secretary to State agencies and 
 covered Indian Tribal organizations regarding 
 stolen summer EBT benefits; and
 ``
            (iv) recommendations and policy options 
 for--
 ``
            (I) improving how the Department 
 of Agriculture and other relevant 
 entities manage summer EBT benefit 
 payment system security risks, 
 including those related to stolen 
 benefits; and
 ``
            (II) how the Department of 
 Agriculture may best share those 
 improvements with State agencies, 
 covered Indian Tribal organizations, 
 retailers, and other relevant 
 entities.''.
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