A person holds an indication studying “SNAP Feeds Households,” as meals assist advantages will likely be suspended beginning November 1 amid the continuing U.S. authorities shutdown, throughout “A Rally for SNAP” on the steps of the Massachusetts Statehouse in Boston, Massachusetts, U.S., October 28, 2025.
Brian Snyder | Reuters
Practically 42 million People are days away from lacking their month-to-month meals stamp examine as the federal government shutdown enters its twenty eighth day.
The Trump administration has mentioned funds for the Supplemental Vitamin Help Program, or SNAP, is not going to be distributed if the federal authorities continues to be shut down on Nov. 1. With little motion towards a decision on Capitol Hill, Congress seems set to blow previous that deadline.
The expiration of assist would have a devastating impact on hundreds of thousands of households already struggling to afford meals, and drive individuals throughout the nation to hunt assist at meals banks. The lapse in that spending would even have a ripple impact on the economic system, from small grocers to huge chains like Walmart and even retailers that promote discretionary merchandise.
There will likely be “an instantaneous impact on the buying combine” towards decrease revenue margin groceries and family staples, and the potential for extra theft as meals budgets dry up, Wolfe Analysis analyst Spencer Hanus wrote in a notice to traders Monday. Shopper confidence amongst lower-income People might additionally take a success heading into the vacation season, Hanus mentioned.
SNAP recipients acquired a mean of about $187 monthly in fiscal 2024, in line with authorities knowledge. Amongst these beneficiaries, 73% dwell under the poverty line, which is at present $32,150 or much less for a household of 4.
Following years of excessive meals inflation and different latest hits to the dimensions of presidency advantages, the lack of that help can be an enormous blow to many low-income People.
Shoppers who use SNAP advantages to pay for groceries spend extra, and store extra usually, than different customers, in line with knowledge from Numerator.
On common, a SNAP beneficiary spends $832 monthly on groceries, 20% greater than a non-SNAP shopper, although the quantity spent on every journey averages 12% much less, or about $20.80 per outing, the market analysis firm mentioned. SNAP customers go to extra retailers monthly at 6.6, in comparison with 6.1 for individuals who do not obtain the help, in line with Numerator.
Hanus mentioned his agency is seeing Google search curiosity for “meals banks” and “meals stamps” surge as SNAP beneficiaries search for alternate options. Whereas there’s usually a spike in curiosity in these phrases round Thanksgiving, he mentioned “it’s up materially yr over yr, implying that this shopper is feeling a shock right here.”
The potential lack of assist from the shutdown is the second latest hit to authorities meals help packages for lower-income People. The One Massive Stunning Act laws handed by Republicans this yr cuts SNAP advantages by an estimated 20%.
Hanus estimates the spending modifications within the invoice equate to a 1.5% to 2% hit to retail trade gross sales.
The retailers most reliant on SNAP profit spending
An individual outlets at a Greenback Normal retailer on Might 28, 2025 in Chicago, Illinois.
Scott Olson | Getty Pictures
Whereas there are other ways to contemplate how a lapse in SNAP advantages might impression retailers, grocers will probably take a success. And the results might attain staff.
“Typically, grocers’ staffing and stock are deliberate round profit cycles, so a lapse might result in lowered worker hours, perishable meals losses, and declining gross sales,” trade group the Nationwide Grocers Affiliation mentioned in a press release. “Moreover, when advantages are restored, the ensuing surge in demand might pressure provide chains nationwide.”
Numerator knowledge exhibits Walmart, Greenback Normal and Greenback Tree usually tend to cater to SNAP customers, whereas Goal, Costco and Amazon-owned Entire Meals are much less probably. Hanus estimates a high-single digit % of Walmart’s gross sales are associated to SNAP, whereas Greenback Normal and Greenback Tree are within the mid-single digits.
However SNAP customers spend probably the most yearly on groceries at Walmart, adopted by Kroger and Costco, in line with Numerator.
Prospects enter a Walmart retailer on April 09, 2025 in San Leandro, California.
Justin Sullivan | Getty Pictures Information | Getty Pictures
Walmart is the nation’s largest retailer, and its largest grocer. It additionally captures considerably extra SNAP grocery spending than rivals, Numerator discovered. Greater than 94% of SNAP customers have purchased meals there previously yr, with a mean annual spend of $2,653, or 26% of the cohort’s annual grocery spending.
Just below half, or 48.8%, of all SNAP recipients shopped at Kroger previously yr, spending a mean $1,687.67 yearly, or 8.6% of the group’s complete yearly grocery spend.
Whereas it requires a membership to buy, Costco takes the third spot for the place SNAP customers purchase groceries by common annual spend at $1,482.98. Walmart-owned membership membership Sam’s Membership captures the fourth spot for share of spend at 3.8% and does provide discounted memberships for brand spanking new members who confirm participation on a authorities help plan.
Walmart referred CNBC to the Nationwide Retail Federation, which mentioned chopping off funding for meals assist “creates a disaster for hundreds of thousands of American households.” Albertsons referred CNBC to the Meals Business Affiliation, which referred to as on Congress to reopen the federal government and “be sure that these very important packages stay reliable for individuals who should depend on them to get them by way of a tough time.”
Costco declined to remark. Kroger, Greenback Normal, Greenback Tree, Amazon and Entire Meals didn’t instantly reply to requests for remark.
In all, 3.6% of U.S. in-store grocery journeys paid utilizing the federal government’s SNAP or Girls, Infants and Youngsters advantages in 2025 by way of September, which is down from 3.9% in 2024, in line with Numerator. That share has fallen from the pandemic peak of 6.5% in November 2021, when there was a further emergency allotment.
Nonetheless, extra grocery journeys are funded with SNAP advantages now than pre-pandemic, when between 2.2% and a couple of.8% of groceries had been bought below this system in the entire months between February 2019 and February 2020.
The impression past grocery
If SNAP funding expires, recipients could purchase much less of different items, too.
“Fewer {dollars} within the customers’ pockets forces a reallocation of discretionary {dollars} in the direction of meals and extra tepid spending total,” mentioned Wells Fargo fairness analyst Edward Kelly in a notice to traders final week. He famous that retailers reporting earnings in November could say they’ve seen weaker discretionary spending throughout that month as a result of meals help expiration.
Whereas there has by no means been a time when the federal authorities has not provide you with a contingency for SNAP funding throughout shutdowns, states are starting to step in. New York Gov. Kathy Hochul is engaged on $30 million in assist for impacted New Yorkers.
Plus, missed SNAP advantages must be paid in arrears as soon as the federal government reopens — although it is unknown when that will likely be.
“We would count on an eventual decision of the federal government shutdown, which might imply a windfall for low-end customers into peak purchasing season as missed funds are made up,” Kelly mentioned.
