Michigan plans chip-enabled SNAP cards after millions lost to fraud

When criminals steal food benefits from poor Michiganders, they take food from hungry families. But help should be on the way come May, when the Michigan Department of Health and Human Services sends out chip-equipped cards to some users, according to a project timeline Michigan Capitol Confidential obtained through a records request.

In 2024, Michigan reported $14 million worth of fraud in the Supplemental Nutrition Assistance Program. The state reported $7.7 million of fraud in 2025, and upgraded cards should shrink the amount that occurs through card-skimming. The SNAP program helps feed 1.4 million Michiganders monthly.

Michigan SNAP card upgrade timeline CAPCON by mcclallen

The projected timeline shows that many Michigan food stamp recipients should get upgraded cards by August. The department will mail out upgraded cards in three waves from August through September. It then will monitor the rollout and report results to the U.S. Department of Agriculture’s Food and Nutrition Services office.

MI SNAP UPGRADE Retailer Notice Final February2026 by mcclallen

Roughly 10,000 retailers in Michigan accept SNAP cards. They must upgrade their point-of-sale machines to accept the upgraded cards.

The upcoming security upgrades show that Michigan’s legislative oversight works, according to Rep. Jason Woolford, R-Howell, who led the charge to upgrade cards through House Bill 4746.

“My committee’s investigation highlighted how outdated SNAP card technology was making Michigan vulnerable to fraud,” Woolford told CapCon in a text message. “Seeing the department move forward with more secure cards shows that oversight works. These upgrades will help protect benefits for families while making it harder for criminals to exploit the system.”

MISNAPCARDSRetailernotice2026 by mcclallen

The state health department didn’t respond to a request for comment. But in a March 12 House Oversight meeting, Doug Woodard, the director of public assistance fraud at the Michigan Office of Inspector General, thanked lawmakers who voted to upgrade SNAP cards.

“I think that it will reduce [fraud] significantly,” Woodard responded to a question about the upgrade. “Thank you all for whoever voted on that and got it in. We do appreciate that. It’s going to help us immensely. The chip card, it’s low-hanging fruit out there right now, and we’re the first state in the Midwest.”

A CapCon series exposing fraud partially inspired lawmakers to upgrade the cards, something that the private sector did in 2015.

Seven other states are upgrading or have upgraded their SNAP cards — Alabama, Arkansas, California, Maryland, Massachusetts, New Jersey,and Oklahoma — according to the U.S. Department of Agriculture.

California reported an 83% reduction in stolen SNAP benefits after upgrading its SNAP cards.

A bipartisan bill in Congress seeks to upgrade SNAP cards in every state.