Proposed SNAP cuts could put more than 27,000 retailers at financial risk

The US House Committee on Agriculture is reportedly planning significant cuts to the Supplemental Nutrition Assistance Program (SNAP), a move that could ultimately put over 27,000 retailers at risk of financial burden, according to new analysis by the Center for American Progress (CAP).

The cuts and changes to SNAP could reportedly include restricting future benefit increases, shifting some of the benefit costs to states for the first time, and increasing work requirements. This could impact not only the approximately 42 million Americans who receive these benefits, but the grocers and larger economies in areas with higher SNAP participation and less food access that rely on these consumers’ spending.

Using two-tiered criteria analyzing the top 10% of counties for SNAP usage and counties with a SNAP retailer to 1,000 SNAP recipient ratio of less than the median, CAP identified 27,266 businesses in 303 counties across the country who will be the most impacted, including 3,721 smaller grocery stores, 994 specialty stores, and 600 farmers and markets. CAP found that 95% of counties with the highest SNAP participation have low access to SNAP retailers, and 77% of these are in rural areas.

These counties include South Dakota’s Corson Country, with two SNAP retailers including a Family Dollar, for 1,334 recipients, and Arizona’s Apache County, with 52 retailers like Dollar General, Dollar Tree, and Safeway to 22,161 recipients—both rural counties. They also include urban counties like New Mexico’s Doña Ana County, with 154 retailers such as Albertsons, Walgreens, CVS, Walmart, and Target, along with a number of local markets, to 67,155 recipients. Other retailers listed as at-risk include locations of 7-Eleven, Kroger, Rite Aid, and Costco.

Stephanie Johnson, group VP of government relations at the National Grocers Association, told CAP that SNAP benefits make up half of the sales at some grocers in low-income areas, making it “very difficult” for those in food deserts to stay open. Earlier this week, the NGA published data showing SNAP funding contributes to $4.5 billion in state and federal tax revenue, along with 388,000 jobs and $20 billion in wages.

“A robust and efficient SNAP program is more than food assistance for families who have fallen on hard times—it’s a sound investment in America’s workers, businesses, and communities,” Johnson said in a statement.

The cuts, ultimately, could “destabilize the food industry,” CAP said, and grocers “should expect shocks to their revenue.”