Camp HIll, PA (July 2026) — The Following passage of the 2026-27 Pennsylvania state budget Sunday, the Pennsylvania Food Merchants Association lauded the inclusion of several important association priorities in the agreed-to plan.
Crucially, the budget includes language authorizing the Pennsylvania Department of Human Services to transition electronic benefit transfer (EBT) cards from magnetic stripe to encrypted chips by the start of 2028.
With benefit theft a growing problem nationwide, Pennsylvania will join neighboring states Maryland and New Jersey, and others across the country, upgrading their EBT cards to chip-enabled technology. The change will add a crucial layer of protection for Supplemental Nutrition Assistance Program (SNAP) recipients who are currently vulnerable to having their benefits stolen by criminals making use of skimming devices at the point of sale.
As part of the transition, DHS will be required to conduct outreach to vendors, including system upgrades that a vendor may need to implement. PFMA looks forward to partnering with DHS to ensure a successful changeover to EBT chip cards in the coming years.
“This is an important change not just for SNAP recipients but food retailers as well,” said PFMA President and CEO Alex Baloga. “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. We thank the chairs of the state House Human Services Committee, Representatives Dan Williams and Doyle Heffley, for championing this vital initiative.”
Also included in the budget is an increase in funding for the state Attorney General’s Organized Retail Crime unit. PFMA is a close partner with Pennsylvania’s ORC Unit and championed the enabling legislation signed by Governor Shapiro in 2023. An increase in their funding for 2026-27 reflects not only the effectiveness of the ORC Unit to date, but an increasing recognition by elected officials of the seriousness of organized retail theft and its impact on local communities.
“We thank the legislature for recognizing the value and importance of addressing organized retail crime,” said PFMA President and CEO Alex Baloga. “With the state’s ORC Unit now entering its third year of operations, it is vital that we continue the momentum that we have built and continue to go after the professional crime groups undermining our communities.”
The budget again includes $2 million to continue the state’s Fresh Food Financing Initiative (FFFI), a statewide public-private financing program that helps business owners open or expand healthy grocery outlets in communities throughout the commonwealth. The program provides one-time grants and loans to nonprofits, for-profits and co-ops that help increase access to healthy, affordable food and improve economic opportunities for low- and moderate-income residents statewide.
Finally, lawmakers continued the scheduled phasedown of the Corporate Net Income Tax rate. PFMA credits the governor and General Assembly for recognizing the cost pressures currently faced by the food retail industry and businesses across the commonwealth, and not exacerbating them this budget cycle through new or increased taxation.
About PFMA
The Pennsylvania Food Merchants Association has advocated for the food and beverage industry across the Commonwealth since 1952. Today the association represents nearly 500 member companies from across the globe that operate thousands of retail food stores, production facilities and distribution centers, and collectively employ more than 350,000 Pennsylvanians.
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