Simmons champions legislation to protect SNAP recipients from fraud and to establish payday advance services regulation

SPRINGFIELD - State Senator Mike Simmons held a press conference Wednesday with Senate colleagues to champion legislation he has filed to protect SNAP recipients from fraud as well as regulate payday advance services.

"My colleagues and I are determined to pass legislation that protects SNAP recipients," said Simmons (D-Chicago). "The Trump administration has slashed federal support for SNAP, which puts more people at risk of going hungry and not being able to feed their families. Illinois needs to take action to protect SNAP from fraud and prevent further hardship."

Simmons outlined Senate Bill 3266, which would require the Illinois Department of Human Services to implement the use of chip-enabled cards for electronic benefit systems. This would allow SNAP participants using EBT cards to use chip readers in their transactions. In 2024, over 89,000 fraudulent transactions involving SNAP benefits were reported to IDHS. Simmons' proposal to add electronic chips to EBT cards aims to safeguard the benefits on those cards, directly reducing fraud.

Simmons is also spearheading Senate Bill 3480 to create the Payday Advance Consumer Protection Act. The measure would regulate businesses that participate in "payday advance services" such as cash advances, early pay services and alternate methods that allow workers to access funds from their paycheck before their official payday. The measure would require licensure by the Illinois Department of Financial and Professional Regulations and would create new protections for consumers who use payday advance services.

"We thank Sen. Simmons for championing SB 3480, the Payday Advance Consumer Protection Act, a critical step to protect Illinoisans from predatory financial practices," said Anusha Thotakura, executive director of Citizen Action/Illinois. "Illinois must join the seven other states that have taken action to enact commonsense regulations on payday advance providers."

Senate Bill 3480 and Senate Bill 3266 await further action.