The U.S. Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) issued a reminder to food retailers regarding the SNAP Equal Treatment Rule after several retailers advertised discounts specifically for customers using Supplemental Nutrition Assistance Program (SNAP) benefits.
FNS administers programs like SNAP, which served an average of 41.7 million participants per month in Fiscal Year 2024, accounting for $99.8 billion in federal spending and about 70 percent of USDA nutrition assistance spending. The agency stressed that retailers must strictly adhere to compliance guidelines:
Retailers must offer eligible foods at the same prices and on the same terms and conditions to SNAP-EBT customers as other customers. Retailers cannot treat SNAP-EBT customers differently than any other customer. Offering discounts or services only to SNAP-paying customers is a SNAP violation unless retailers hold an FNS-approved equal treatment waiver.
Broader Context: SNAP Funding Crisis Amid Shutdown
The compliance reminder arrived as the retail sector also grappled with the uncertainty surrounding SNAP funding due to the federal government shutdown.
A coordinated effort by advocacy groups and state associations pushed the USDA to release contingency funds for November benefits. The National Association of Counties (NACo) and the National League of Cities (NLC) jointly urged the USDA to release these funds, noting the available $4.65 billion fell significantly short of the estimated $8 billion needed to cover the month.
The issue escalated in court:
- Federal judges in both Massachusetts and Rhode Island ordered the USDA to take action, finding the government was legally obligated to utilize the contingency funds.
- In response, on November 3, the USDA announced it would release the contingency funds, but only for partial SNAP benefits, forcing state agencies to manage a complex and delayed distribution plan.
Related Article: Coalition of States Files SNAP Benefits Suspension Lawsuit
Industry Impact: Retailers and Advocates Weigh In
The National Grocers Association (NGA), representing independent supermarkets, released a strong statement from President & CEO Greg Ferrara, highlighting the severe consequences for the industry:
“The current disruption to SNAP funding is likely to have far-reaching consequences for local grocers, their employees, and the communities they help feed… With SNAP fueling over 389,000 American jobs, the disruption to program funding may lead to reduced employee hours, perishable food losses, and declining sales for many community grocers across our nation.”
The NGA urged Congress to act swiftly to restore funding, emphasizing that grocers participate in the program out of a commitment to community needs.
Separately, the Food Research & Action Center (FRAC) criticized the administration’s handling of the crisis:
“The decision to provide only partial benefits forces state agencies to scramble under unclear guidance, which will further delay benefits. It also means that families are missing out on much needed nutrition support. Enough time has already been lost – the funds must be released immediately to avert further harm, chaos and confusion.”