Grocers face changes in food stamp rules

Since 2025, state-level waivers that restrict what SNAP participants can buy — mainly candy and soda — have gained steam, with nearly half of the states receiving USDA approval by mid-2026. These waivers have happened under the Trump administration as part of the “Make America Healthy Again” initiative, which aims to reduce the prevalence of chronic diseases.

State lawmakers’ efforts to restrict what their residents can buy with their food assistance benefits based on nutritional value are not new — and aren’t limited to one political party. In 2003, Minnesota lawmakers proposed making “junk” foods ineligible for food assistance purchase, but the USDA rejected the proposal in 2004 due to concerns over implementation and inconsistent definitions of what constitutes “healthy” foods.

In 2007, a USDA report determined that creating a uniform definition for healthy foods would be difficult, and implementation of restrictions would be complex and costly. The report also noted that restrictions may not change how SNAP participants shop, as they could still buy less nutritious food with non-SNAP funds.

New York City’s attempt to ban the purchase of sugar-sweetened drinks with SNAP benefits failed in 2011, and Maine’s efforts to restrict SNAP purchases were thwarted in 2016 and 2018. However, under Trump’s second term, the administration’s Make America Healthy Again Commission released a report in May 2025 noting that children receiving SNAP benefits are more likely to consume greater quantities of sugar-sweetened beverages and processed meats.

U.S. Secretary of Health and Human Services Robert F. Kennedy, Jr. stated that the system cannot continue to fund programs that make people sick and then pay to treat the illnesses those programs help create. The administration started approving state-level waivers in 2025, with waivers for several states taking effect on January 1, 2026.

By August, 23 states had received USDA approval for waivers, which vary by state and allow the exclusion of additional items like candy, soda, and energy drinks from SNAP eligibility. For example, Hawai’i’s waiver bans the purchase of soft drinks with SNAP funds, while Idaho’s restricts the purchase of soda and candy.

These varying state-by-state approaches have raised implementation concerns in the grocery industry, particularly around how to determine which products apply to the waivers.

For grocers, understanding the nuances of these waivers and their implications is essential, as it may impact how they manage their inventory and interact with SNAP participants. As the situation continues to evolve, grocers must stay informed about the latest developments and any changes to the waivers.

The ruling has significant implications for the grocery industry, and it is essential to monitor the situation closely, especially for stores like Kroger.