State officials say EBT chip rollout urgent after widespread benefit theft; legislators press for timeline and retailer readiness

OTDA's acting commissioner, Barbara Gwynn, told the joint fiscal committees the agency has issued procurements for a chip-enabled EBT system and card vendor and expects to announce an award within weeks if the legislature enacts funding included in the FY 2027 executive budget. The upgrade is intended to reduce benefit theft that has affected hundreds of thousands of households nationally and, officials said, tens of thousands of New Yorkers.

Why it matters: Lawmakers repeatedly described household-level hardship after stolen SNAP benefits; they pushed OTDA for an aspirational yet accountable timeline. Gwynn said implementing chip-enabled EBT will require system work, retailer preparation and card procurement; she estimated a 12 18 month rollout "with a goal on the shorter end." Officials said they will work with the federal government and retailers to ensure the point-of-sale transition, and that larger retailers are likely to be ready sooner.

Key details from testimony: OTDA said it issued a procurement earlier than in previous years to be ready when funding is secured; it has evaluated proposals and expects to name a winning bidder and begin vendor coordination within weeks. The agency said it will require contract amendments on both the system and card sides, and is coordinating with USDA and retailers. OTDA also highlighted other security measures such as card-lock functionality and outreach about protecting accounts.

Lawmakers' demands: Legislators representing urban districts emphasized urgency for older New Yorkers and households dependent on SNAP; senators and assemblymembers sought an aspirational deadline (many cited California's roughly two-year transition as a reference point) and asked OTDA to provide regular progress updates.

Unresolved items: OTDA repeatedly said the roll-out timing depends on enacted funding and vendor contract work; the agency did not commit to specific merchant transition dates but offered to report back quarterly.

What's next: OTDA will notify the legislature when awards are made and said it would be willing to provide quarterly implementation reports to committee members.