As public and private initiatives work to ease SNAP-related pressures on retailers, brands and consumers, USDA Secretary Brooke Rollins announced yesterday that the department will use all available contingency funds – totaling $4.65 billion – to partially cover November’s SNAP benefits. However, this still leaves a shortfall, as approximately $9 billion is needed to fully fund the month’s benefits.
“This means that no funds will remain for new SNAP applicants certified in November, disaster assistance or as a cushion against the potential catastrophic consequences of shutting down SNAP entirely,” Rollins said.
Rollins also stated that USDA considered reallocating existing funds from Child Nutrition programs to cover SNAP but decided against it. The move would create a $4 billion deficit in those programs, in addition to violating Congressional intent that those funds be specifically used for Child Nutrition and risk nutrition benefits and school meals for millions of children.
Currently, Congress has not stepped in to provide additional financing to cover the remaining funds for November’s SNAP benefits.
Private sector drives food access amid funding gap
Partial SNAP funding puts pressure on grocery budgets, prompting brands to expand value offerings and retail collaborations.
Last week, Instacart offered a temporary, company-funded promotion to all customers who placed an EBT order where they would receive 50% off of their purchase. The limited time offer is funded by Instacart, not USDA.
For Flashfood, a grocery app that connects shoppers with discounted groceries nearing their best-by date, downloads reached eight times the daily average, according to Esther Cohn, Flashfood’s VP of communications.
The company has developed “a coordinated outreach campaign to local store teams, letting them know that the best way they can leverage Flashfood right now is to ensure a strong supply, to meet the increased demand,” Cohn stated.
“This moment is really spotlighting the gaps in our food system and why it’s so important that we leverage all the streams of access we can,” Cohn added.
Retailers & brands should look to supply chain efficiency during SNAP benefit changes
When facing supply chain uncertainties and the sudden fluctuations in consumer purchasing due to SNAP benefit changes, retailers need strategies to prevent food spoilage. Additionally, retailers are at risk of losing sales, reduced employee hours and food loss, according to a statement from the National Grocers Association.
As consumers shift from having no benefits to suddenly having them – causing rapid inventory turnover – Impinj’s RAIN RFID tags helps businesses extend perishable food shelf life by providing real-time inventory visibility. The tags, which contain a unique ID, are often small stickers of embedded in the packaging, that identifies key information like the product and batch details.
The tags allow retailers to extend shelf life of perishable items by up to 15% and quickly identify and mark down items nearing expiration, which is crucial during fluctuating SNAP benefit periods, according to Megan Brewster, VP of advanced technology at Impinj and former senior advisor for the White House Office of Science and Technology Policy.
For example, a grocer can use RAIN RFID to immediately identify which milk cartons are close to expiring and mark them down, which helps keep shelves stocked and reduces waste.
Retailers like Walmart and Kroger have already adopted the technology for better inventory management, Brewster added.
For brands and retailers being “more efficient in your supply chain,” RAIN RFID tags can help “tackle food shortages as well as stock outs,” she said.
Judges order continued SNAP payments, USDA clarifies retail compliance
Rollins’ announcement comes after a coalition of 25 states sued the Trump Administration over SNAP benefits. In two separate cases, US district judges ruled in favor of continuing assistance: Judge John McConnell Jr in Rhode Island issued a temporary restraining order to maintain SNAP benefits in his jurisdiction, while Judge Indira Talwani in Massachusetts ordered the USDA to use available emergency funds to continue SNAP payments nationwide.
USDA issued a reminder last week that retailers must comply with the SNAP Equal Treatment Rule. The rule states that retailers “must offer eligible foods at the same prices and on the same terms and conditions to SNAP-EBT customers as other customers,” except for sales tax on SNAP purchases.
“You cannot treat SNAP-EBT customers differently than any other customer,” the agency stated.
For example, a grocer offering a discount for EBT customers would be a violation; whereas offering a discount for all customers is in compliance with USDA’s Equal Treatment Rule.
Unless retailers have a SNAP Equal Treatment waiver, offering discounts and services to SNAP customers will be considered a SNAP violation.
SNAP Equal Treatment waivers consist of programs like the Gus Schumacher Nutrition Incentive Program (GusNIP), which funds projects like Double Up Food Bucks in states like New York and Fresh Access Bucks in states like Florida that match dollars spent on certain foods like fruits and vegetables.
State waivers for healthy-food incentives, pilot tests or research studies via USDA’s Food and Nutrition Service (FNS) program also are excluded from the equal treatment requirement, which allow for approved retailers and partners to offer SNAP-specific discounts or benefits legally.
