The US Department of Agriculture (USDA) has recently reminded grocery retailers that, according to federal law, it is prohibited to offer special discounts or incentives solely to recipients of the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, unless the store has obtained official exemption.
In a notice updated on October 30th (last Thursday), the agency stated that retailers authorized to accept SNAP Electronic Benefit Transfer (EBT) cards must abide by SNAP equal treatment rules, applying the same prices and terms to all customers. The USDA emphasized that “eligible foods must be provided to SNAP-EBT customers at the same price and under the same terms as they are with other customers.”
The notice stated, “Providing discounts or services exclusively to SNAP customers without an exemption permit is a violation of SNAP regulations.”
Federal regulations mandate that SNAP users receive equal treatment as other customers. Based on two key provisions – governing electronic benefit systems and retailer conduct – stores must offer SNAP shoppers the same prices, discounts, and checkout options as everyone else.
Furthermore, the regulation prohibits discrimination and favoritism, meaning retailers cannot charge higher fees or deny transactions to SNAP customers, nor can they offer exclusive discounts or incentives.
Only stores granted an “incentive waiver” by the USDA can provide special offers as part of promoting healthy eating programs, such as additional benefits for purchasing fruits and vegetables to reduce diet-related diseases.
Stores can apply for exemptions by filling out an application form and choose one incentive model from various options, such as offering percentage or fixed amount discounts at checkout.
The USDA issued this reminder amidst a federal government shutdown since early October due to a budget dispute, causing financial distress for SNAP funding.
On October 31st, two federal judges ordered the USDA to use emergency funds to continue SNAP benefits after the department warned of funds running out. Currently, the USDA has agreed to allocate SNAP benefits for November, albeit with reduced amounts.
On November 3rd, the USDA announced it would follow the court order to use $4.6 billion in emergency funds to pay approximately half of November’s SNAP benefits. According to court documents, beneficiaries will receive 50% of their normal benefits for the month, averaging around $94.
The USDA also revealed that some state governments had to adjust payment systems to distribute reduced benefits, with the process ranging from several weeks to months, depending on the state.
USDA Secretary Brooke Rollins stated on November 2nd (Sunday) that SNAP is “a broken and corrupt program,” with nearly twenty states refusing to provide data to the Department of Government Efficiency (DOGE) to verify if illegal immigrants are receiving food stamp benefits.
In a post on X platform, Rollins stated, “Guess what? In just the states cooperating with the investigation, we’ve already uncovered massive fraud.”
In an interview with Fox News, she pointed out that thousands of cases of welfare fraud have been uncovered, with dozens arrested for SNAP fraud, and thousands of deceased individuals still receiving benefits.