In general

Except as provided in paragraph (2), the Secretary is authorized to pay to each State agency the amount provided under subsection (a)(6) for the costs incurred by the State agency in the—

(A) planning, design, development, or installation of 1 or more automatic data processing and information retrieval systems that the Secretary determines— (i) would assist in meeting the requirements of this chapter; (ii) meet such conditions as the Secretary prescribes; (iii) are likely to provide more efficient and effective administration of the supplemental nutrition assistance program; (iv) would be compatible with other systems used in the administration of State programs, including the program funded under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.); (v) would be tested adequately before and after implementation, including a requirement that— (I) such testing shall be accomplished through pilot projects in limited areas for major systems changes (as determined under rules promulgated by the Secretary); (II) each pilot project described in subclause (I) that is carried out before the implementation of a system shall be conducted in a live-production environment; and (III) the data resulting from each pilot project carried out under this clause shall be thoroughly evaluated before the Secretary approves the system to be implemented more broadly; (vi) would be operated in accordance with an adequate plan for— (I) continuous updating to reflect changed policy and circumstances; and (II) testing the effect of the system on access for eligible households and on payment accuracy; and (vii) would be accessible by the Secretary for inspection and audit under section 2020(a)(3)(B) of this title ; and

(B) operation of 1 or more automatic data processing and information retrieval systems that the Secretary determines may continue to be operated in accordance with clauses (i) through (vii) of subparagraph (A).