Food and Grocery Industry Urges Congress to Protect SNAP Benefits
The food and grocery industry is raising urgent concerns about the importance of the Supplemental Nutrition Assistance Program (SNAP) as Congress contemplates significant spending cuts and some states move to restrict purchases made through the program.
Last week, the House Agriculture Committee passed legislation that could slash up to $300 billion in nutrition spending and revamp SNAP by mandating states to contribute to the program’s benefits, as reported by Politico. Additionally, the House Budget Committee recently approved a tax cut bill, paving the way for a House floor vote expected to take place this week, according to Reuters.
The proposed cuts at the federal level are intended to support the party’s domestic policy agenda and certain farm bill programs. The chairman of the House Agriculture Committee has expressed concerns about the number of “work-ready” individuals receiving SNAP benefits, advocating for stricter work requirements for program participants.
Simultaneously, states are exploring limitations on SNAP purchases of items like candy and soda, aligning with the “Make America Healthy Again” movement’s belief that benefits should be used for healthier food choices. Nebraska recently became the first state to gain federal approval to restrict the purchase of soda and energy drinks under the SNAP program.
As of February, over 42 million people are enrolled in SNAP, marking a 2% increase from the previous year, according to the USDA. SNAP contributes approximately 5% of all supermarket sales, with the FMI — The Food Industry Association highlighting during a recent webinar how reductions in SNAP funding could impact retailers’ sales.
FMI’s Chief Public Policy Officer and Senior Vice President of Government and Member Relations, Jennifer Hatcher, emphasized the broad support for SNAP across the political spectrum. She cited a survey conducted by Fabrizio, Lee & Associates and FMI in late April, revealing that 59% of respondents oppose cutting or reducing SNAP funding, while one-third are in favor of such measures.
Amidst concerns over grocery expenses and potential cost increases due to trade policies, Walmart reintroduced a $6.99 minimum basket fee for SNAP consumers placing online orders below $35, as reported by Reuters in late April.
The National Grocers Association (NGA) expressed deep reservations about the proposed cuts and changes in program costs outlined in the legislation. NGA President and CEO Greg Ferrara emphasized that SNAP plays a pivotal role in combating food insecurity and serves as a significant economic driver for numerous local communities nationwide.
According to Ferrara, SNAP funding not only addresses food insecurity but also fosters economic growth, generating over $4.5 billion in state and federal tax revenue annually. The NGA previously highlighted data indicating that every dollar invested in SNAP yields $1.79 in economic activity within communities.
NGA representatives recently met with Democratic members of Congress to advocate for limiting cuts to SNAP funding. Ferrara urged Congress to pursue balanced reforms that strengthen the program, combat waste and fraud, and uphold the well-being of American families while supporting jobs in the food and grocery industry.
FMI is actively lobbying for the federal oversight of SNAP to ensure consistency and prevent potential delays, errors, and disputes that could arise from varying state restrictions on SNAP usage. A survey conducted by FMI indicated that 57% of respondents prefer a single national standard governing SNAP-eligible purchases.
Continued Monitoring of SNAP Policy Discussions
To facilitate ongoing discussions about SNAP policy changes, FMI recently launched a new website providing survey data and serving as a resource for information on current SNAP-related deliberations.
Approximately 25 states have contemplated restrictions on specific SNAP purchases, such as candy and soda, this year. State policy adjustments of this nature necessitate USDA waivers, with Nebraska securing the first approval and other states like Arkansas, Indiana, and Iowa submitting waiver requests.
FMI has opposed limitations on how SNAP beneficiaries utilize their benefits, advocating for resources like dietitian-supported recipes and tailored shopping experiences instead. The organization raised concerns that varying state policies could confuse both shoppers and retailers.
FMI President and CEO Leslie G. Sarasin emphasized the moral and economic significance of maintaining a robust SNAP program, urging policymakers to prioritize its strength and effectiveness.
Contributions to this article were made by Sarah Zimmerman and Peyton Bigora.
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