Proposed Rule: FSP Electronic Benefits Transfer Benefit Adjustments

This rule proposes to revise Food Stamp Program regulations pertaining to state agencies’ ability to make adjustments to a recipient account in an Electronic Benefits Transfer (EBT) system, in order to correct a system error or an out-of-balance condition. EBT stakeholders have proposed the changes so that states and their processors can correct errors when they are identified, rather than 10 days after the advance notice has been sent to the household.

The changes would enable state agencies to correct errors in a more timely manner, and bring EBT closer in line with current commercial Electronic Funds Transfer (EFT) practices. This rule also proposes to revise the formula for recovering funds under the representation rule.