Grocers, employees under pressure amid a week without SNAP funding

It’s been over a week since a lapse in funding for SNAP—the first-ever pause in funding for the program during a government shutdown—has left 42 million Americans recipients without payments to buy groceries since November 1.

After a federal judge in Rhode Island last week ruled the Trump administration must use emergency funds to finance the program, the USDA said it planned to fund 50%—then 65%—of the benefits. A back-and-forth in court followed, as the federal judge ordered the USDA on Thursday to pay out full benefits, which several states have begun to do, though the Trump administration quickly appealed. On Friday night, the Supreme Court issued an administrative stay that temporarily granted Trump’s emergency request to pause the order until a lower court issued its ruling. The First Circuit Court of Appeals on Sunday declined the appeal, and the Trump administration said today it plans to continue to challenge the lower court rulings. The Trump administration this weekend also asked states that had begun paying out benefits to “undo” them.

A monthlong SNAP lapse could lead to a $8 billion drop in revenue for the more than 250,000 retailers that accept SNAP benefits. Walmart accounts for over a quarter of SNAP sales, followed by Kroger at 8.6% and Costco at 5.9%, according to Numerator. In the wake of the funding lapse, food bank lines have grown, and companies like GoPuff, DoorDash, and Instacart have offered coupon codes and waived fees for SNAP recipients. Grocers like Meijer, Hy-Vee, and H-E-B have also donated to local food banks amid the USDA’s warning last week that retailers cannot offer special discounts to SNAP recipients.

Statements from advocacy and trade groups like the National Grocers Association (NGA) and the Food Research & Action Center identified the impacts of the funding lapse, not only on grocers’ revenue, but also their employees (SNAP funds $20 billion in wages, per NGA), and farmers, pointing to the potential for cut hours and fresh food loss.

In a number of posts on Reddit, posters who identified themselves as grocery and retail employees expressed concerns over such issues, as well as handling declined EBT cards and the potential for theft. Several Reddit posters claiming to be Walmart workers reported their hours had begun to be cut, while others claimed meat department sales were down. Walmart did not respond to Retail Brew’s request for comment.

Beyond larger grocers like Walmart, the non-issuance of SNAP benefits also disproportionately impacts grocers in low-income and rural areas, where SNAP spending accounts for a larger percentage of sales. Many New York City grocers told Gothamist the SNAP lapse could mean employee layoffs, changes in the products they sell, or even closing their doors. Amid proposed cuts to the program earlier this year, the Center for American Progress reported 27,000 retailers could be at risk of financial burden, including more than 3,700 smaller grocery stores and 600 farmers markets.