NYC & MIGRANT BENEFITSNYC’s EBT System for Benefit-Delivery System: Backgrounder

In choosing to use the Electronic Benefit Transfer (EBT) system to deliver benefits to migrants, New York City has chosen a tried and proven benefits-delivery system.

Background
The use of EBT systems by the U.S. government to deliver benefits to recipients has evolved over the last four decades, transforming the way social benefits are distributed and managed.

The concept of using electronic transfer systems for delivering government benefits began to take shape in the 1980s, with the aim of replacing traditional paper-based methods of distributing assistance. Electronic systems were seen as a means to improve efficiency, reduce fraud, and provide recipients with greater convenience, freedom, and dignity.

During the 1990s, the U.S. government initiated pilot programs to test the feasibility and effectiveness of EBT for delivering benefits. These programs focused on specific benefit types, with a gradual expansion to include larger-scale initiatives such as the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and cash assistance programs like Temporary Assistance for Needy Families (TANF) see more below).

An important aspect of the EBT system’s evolution involves establishing a network of authorized retailers and vendors which accept EBT cards. This expansion of retailer acceptance allowed recipients to use their EBT cards at a wider range of locations, transforming the way they could access essential goods and services.

As technology advanced, the EBT system further evolved to offer recipients greater flexibility and autonomy. This included the development of secure EBT card features, online account management tools, and the ability to access benefit funds through a growing network of ATMs and point-of-sale terminals.

Over the years, the U.S. government has expanded the use of EBT systems to include a variety of social benefit programs, ranging from food assistance and cash benefits to programs supporting women, infants, and children. States have increasingly integrated multiple benefit programs onto a single EBT card, streamlining the distribution process.

Current Use of the EBT System
The EBT system has been used by the U.S. federal government on a large scale beginning in 2004, and over the last two decades, it has become the cornerstone of efforts by the federal, state, and local governments to deliver social benefits effectively, efficiently, and at a lower cost to the tax payer.

Here are a few examples of how the EBT system has been employed by the federal and state governments to provide social benefits:

1. Supplemental Nutrition Assistance Program (SNAP): EBT cards are used to deliver food assistance benefits to eligible individuals and families. Recipients can use their EBT cards at authorized grocery stores, supermarkets, and farmers’ markets to purchase eligible food items. The EBT system modernizes the delivery of food assistance by replacing paper food stamps with an electronic method that offers greater convenience and flexibility for recipients.

2. Temporary Assistance for Needy Families (TANF): Some states utilize EBT cards to distribute cash assistance benefits to eligible low-income families. Recipients can access their TANF benefits via EBT cards, allowing them to withdraw cash at ATMs or make purchases at approved locations to meet their basic needs, such as housing, utilities, and other essential expenses.

3. Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): While WIC benefits are often distributed through paper vouchers, some states have transitioned to using EBT cards for WIC benefits. EBT cards enable WIC participants to easily redeem their benefits for specific nutritious foods at authorized retailers, streamlining the process and promoting healthier dietary choices.

4. Child Care Subsidy Programs: In some states, EBT cards are being used to distribute child care subsidy benefits to eligible low-income families. These benefits help families cover the costs of child care services, and EBT cards provide a convenient way for parents to access and manage their subsidy funds, ensuring that children have access to quality care while their parents work or attend school.

5. Disaster SNAP (D-SNAP): In the aftermath of natural disasters, the EBT system may be used to provide disaster-related food assistance to individuals and families who have been adversely affected. D-SNAP benefits loaded onto EBT cards enable disaster survivors to purchase food, replacing lost or spoiled food and helping them meet their nutritional needs during recovery efforts.