Success of Electronic Benefits Efforts Spurred Plan to Push Smart Cards

The U.S. government's interest in smart cards originated in its electronic benefits transfer initiatives.

"We know that the EBT program is succeeding, and that cards are the key to more efficient service delivery," said Greg Woods, deputy director of Vice President Gore's National Partnerships for Reinventing Government program. "Now we have smart card technology on the horizon, so we want to advance that for services inside government and to citizens."

Federally administered benefits like Social Security must be electronically delivered by 1999. Programs that are federally funded but state administered-like food stamps and welfare-have until 2002 to make the change.

Cards with embedded computer chips are not mandatory but are strongly encouraged. In Ohio, some supermarket checkout lanes accept food coupons that have been converted to smart cards. Wyoming is piloting the technology, and Texas, California, and a coalition of Northeast states are among others that have shown interest.

"The projects that we've seen so far have been for chip cards to replace the food stamp benefits," said David Temoshok, a General Services Administration official who is chairman of the administration's smart-card task force. "Most EBT in this country uses magnetic stripe technology because that's what the infrastructure supports today."

Mr. Temoshok is heartened that states are pursuing smart card EBT systems. The cards could deliver more than benefits, perhaps keeping track of the cardholders' medical appointments and health records.

The Western Governors Association is working on a multi-application card called Health Passport, Mr. Temoshok said. Texas is examining chip cards for the WIC (Women, Infants, and Children) nutrition program, similar to what Wyoming has already done.

In another state effort not directly related to EBT, New Jersey's governor has put forward a plan for smart card drivers' licenses.

Mr. Temoshok's job coordinating card services and contracts at the General Services Administration grew out of an earlier stint as director of the National Automated Clearing House Association's EBT Council.

The idea behind both EBT and smart cards, he said, is "the government as a community, not just the federal government but state and local government as well, providing a wide array of services to the public."

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