The government freeze for the Supplemental Nutrition Assistance Program at the end of October has had an impact on food access for close to 42 million Americans and will be a factor in fourth-quarter earnings reports for some retailers. While the U.S. Senate passed legislation that would reopen the federal government and replenish SNAP funds, it’s unclear when SNAP payments might resume if the House passes the legislation and the government reopens.
SNAP recipients were estimated to be on a pace to redeem more than $100 billion in benefits in 2025 before the halt, according to data from the U.S. Department of Agriculture. About 74% was spent at superstores and supermarkets, with food products being the top category by far. Around 14% was spent at smaller grocery and convenience stores.
Walmart (WMT) accounts for more than 20% of all SNAP spending, while other retailers that may have been impacted include Dollar General (DG), Dollar Tree (DLTR), Kroger (KR), Albertsons (ACI), Costco Wholesale (COST), Amazon (AMZN), and Target (TGT). Essential foods such as meat, fruits, vegetables, milk, eggs, and bread account for close to 50% of all SNAP spending.
Historically, retailers have reported a direct correlation between SNAP spending being halted or altered and store revenue.