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Why Maryland is spending $38M to update food and housing benefits cards

Since 2023, Maryland has lost $43 million to criminals who exploited the weaknesses in the EBT cards the state issued to families in need. Those cards provided funds under programs such as the Supplemental Nutrition Assistance Program and Temporary Assistance to Needy Families.

“We are desperately trying to move to modernize the technology to make sure that these cards are protected,” Maryland Secretary of Human Services Rafael López told WTOP.

In order to prevent future theft and fraud, López said the state’s shifting to EBT cards that have chip technology instead of the magnetic strip feature that has proven vulnerable to criminals.

On Wednesday, DHS got approval from the Maryland Board of Public Works to contract with Fidelity Information Services of Milwaukee to shift to the new cards.

“And FIS will be our new partner that transitions in, to make sure we have chip technology available to all Marylanders on July 1 of 2026,” López said.

That contract spans from November of this year to June of 2031, according to López.

The change is critical, he said, especially at a time when so many families are reliant on the benefits provided by EBT cards.

“We have just upwards of 943,000 Marylanders who use these cards,” he said.

Nearly 700,000 of those cardholders use them to access food through SNAP — the same program that could run out Nov. 1 unless the government shutdown ends.

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