The Pennsylvania Food Merchants Association said several of its legislative priorities were included in the 2026-27 Pennsylvania state budget, which was passed on Sunday, July 19.
The budget authorizes the Pennsylvania Department of Human Services to transition electronic benefit transfer cards from magnetic stripe to encrypted chip technology by the start of 2028. The change is intended to protect Supplemental Nutrition Assistance Program (SNAP) recipients from benefit theft carried out with skimming devices at the point of sale. Pennsylvania joins Maryland, New Jersey and other states that have moved to chip-enabled EBT cards.
As part of the transition, DHS is required to conduct outreach to vendors, including on system upgrades retailers may need to implement.
“This is an important change not just for SNAP recipients but food retailers as well,” said Alex Baloga, PFMA president and CEO. “Not only will transitioning to chip cards strengthen the integrity of the program, but it will improve the grocery shopping experience for SNAP and non-SNAP recipients alike.”
Baloga credited state House Human Services Committee chairs Dan Williams and Doyle Heffley for advancing the initiative.
Increased funding for ORC
The budget also increases funding for the state Attorney General’s Organized Retail Crime Unit, which PFMA supported through the enabling legislation Gov. Josh Shapiro signed in 2023. The unit is entering its third year of operations.
“We thank the legislature for recognizing the value and importance of addressing organized retail crime,” Baloga said. “It is vital that we continue the momentum that we have built and continue to go after the professional crime groups undermining our communities.”
Continued food access funding
Lawmakers again allocated $2 million to the Fresh Food Financing Initiative, a public-private program providing one-time grants and loans to nonprofits, for-profits and co-ops opening or expanding grocery outlets in low- and moderate-income communities. The budget also continues the scheduled phasedown of the Corporate Net Income Tax rate.
Based in Camp Hill, PFMA has represented Pennsylvania’s food and beverage industry since 1952. Its nearly 500 member companies operate retail food stores, production facilities and distribution centers employing more than 350,000 Pennsylvanians.