The Pennsylvania Food Merchants Association is celebrating a series of major victories in the 2025-26 state budget agreement. The package includes meaningful improvements to the Supplemental Nutrition Assistance Program and the continuation of dedicated funding to combat organized retail theft. For retailers across the Commonwealth, these changes represent both long-awaited upgrades and new tools to strengthen operations, security and community access to food.
Beyond fraud prevention, the budget prioritizes modernization of SNAP through two significant studies. The first examines the transition from magnetic-stripe SNAP EBT cards to chip-enabled cards. Magnetic stripes remain vulnerable to skimming devices that steal card data and drain accounts before families can use their benefits. Retailers see the fallout every day, from drained cards to customer frustration. Customers often discover empty balances at checkout with limited options to resolve the issue. Chip-enabled cards match the standard already used in most financial transactions and offer stronger safeguards against theft. The statewide study will map out costs, equipment needs and the steps required for a smooth transition across retailers of all sizes. PFMA considers this effort essential to protecting families and stabilizing a system retailers rely on heavily.
Beyond technology upgrades, the second study takes a much-needed look at Pennsylvania’s unusual county-based SNAP distribution schedule. Unlike every other state, Pennsylvania issues benefits on a county-by-county basis. Some counties release their entire monthly benefits over just one or two days. The result is predictable: intense spikes in store traffic, demand for high-turnover items, pressure on supply chains and staffing strains. Recipients who move between counties often face abrupt changes to their benefit date. The new study will evaluate options for a more uniform statewide schedule, one that supports stable operations and improves the customer experience. Funding is included to support any future transition. PFMA has consistently championed this reform as a win for both retailers and families who depend on predictable access to food.
The budget also advances a key nutrition initiative by incorporating the Healthy Food Bucks concept. Under this model, SNAP participants receive at least forty cents in added purchasing power for every dollar spent on fresh fruits and vegetables at eligible retailers. This incentive encourages healthier choices without imposing mandates and supports grocers, convenience stores and local farmers by boosting produce sales. It is a market-based approach that respects recipients while strengthening local food networks.
One of the most impactful victories for PFMA members is the continuation of funding for the Organized Retail Crime Unit in the Attorney General’s Office. Organized retail theft remains one of the most serious and costly threats facing retailers today. Losses tied to organized theft have climbed sharply in recent years and have threatened store viability in some communities.. Theft rings target high-demand goods, resell stolen products and leave stores grappling with financial losses, safety risks and operational challenges. Continued funding ensures that Pennsylvania has a specialized team focused on coordinated investigations, prevention strategies and enforcement. For PFMA’s more than 600 member companies operating over 3,000 stores statewide, this investment directly supports safer workplaces, stronger communities and more stable business operations.
PFMA President and CEO Alex Baloga emphasized the significance of these wins. “We look forward to reviewing the evidence from these studies and working with our partners at DHS and in the legislature as they shape these reforms. PFMA and its members believe in a SNAP system that is effective, secure and free of fraud. We are also pleased to see the ongoing support for the Organized Retail Crime Unit. Protecting retailers, employees and the food community from theft is essential. Together, we’re moving forward.”
The budget also renews investment in the Fresh Food Financing Initiative through a 2 million-dollar allocation. This long-standing program helps businesses open or expand grocery options in underserved communities. Grants and loans support nonprofits, cooperatives and for-profit retailers committed to improving food access and strengthening local economies. For many communities, these investments help stabilize access to nearby grocery options.
With improvements to technology, distribution scheduling, nutrition incentives and retail security, the budget delivers a comprehensive set of reforms. PFMA is ready to help with these changes and ensure they translate into real benefits for Pennsylvania’s food and beverage industry. ■