EBT

Electronic Benefits Transfer (EBT) is a system that delivers government assistance benefits to eligible individuals and households through an electronic card, replacing traditional paper vouchers in several programs. In the United States, EBT is most widely used for the Supplemental Nutrition Assistance Program (SNAP); it also supports cash assistance under the Temporary Assistance for Needy Families (TANF) program and, in some jurisdictions, other programs such as WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). The EBT system is operated by state agencies with funding and standards set at the federal level.

How it works: eligible recipients receive an EBT card issued by their state. Benefits are loaded onto a secure account and can be accessed with a personal identification number (PIN). At authorized retailers, users swipe the card, enter their PIN, and the system deducts the purchase amount from the beneficiary’s balance. Some programs allow cash withdrawals from ATMs, while SNAP benefits are restricted to qualifying food items and other approved purchases. SNAP restrictions generally exclude alcohol, tobacco, hot prepared foods, and certain non-food items; WIC benefits are limited to specific approved products.

Administration and scope: EBT is administered by state agencies, under federal guidelines from the U.S. Department of Agriculture’s Food and Nutrition Service (FNS). Adoption has varied by program and state, but the system is now widely used for SNAP benefits and has expanded to other forms of assistance in many regions.

Advantages and limitations: EBT improves efficiency, reduces stigma associated with receipt of benefits, and enhances traceability. Limitations include dependence on card access and network coverage, potential outages, and uneven retailer acceptance in some areas.