As the USDA moves forward with state Supplemental Nutrition Assistance Program (SNAP) restriction waivers, independent grocers are warning that unclear guidance and stricter enforcement could have unintended consequences for food access in the communities they serve.
In a Jan. 6 statement, the National Grocers Association says USDA’s recent guidance on SNAP restriction waivers represents an important step forward but notes that implementation has introduced significant new challenges for retailers. As of Jan. 1, grocers in five states are required to identify, track and enforce restrictions across tens of thousands of products, a process NGA said requires extensive system reprogramming, item coding, employee retraining and customer education.
While produce has not been directly targeted by the current SNAP waiver restrictions, NGA officials say uncertainty around product definitions and future rulemaking is creating concern, particularly for value-added produce and prepared fresh items.
“So on the SNAP waiver side, the only foods that are being excluded at this time are soda and candy,” says Stephanie Johnson, group vice president government relations and political affairs for NGA. “In some of the states, they have expanded it a little bit into baking goods and prepared baked goods. But that isn’t affecting produce yet.”
However, the association is watching closely as USDA considers updates to its SNAP stocking standards, which could have implications for certain fresh and value-added produce items. USDA proposed changes to those standards last fall and has indicated that final guidance could be released soon.
“There was some confusion or concern about the value-added products that come with a spoon,” Johnson says. “I think that concern is more for the convenience store folks, because generally our stuff isn’t as ready to eat.”
Still, questions remain around how items such as salad bowls or fresh-cut produce kits that include utensils might be treated under future guidance.
“I think that remains to be seen in the final rule,” Johnson says. “The USDA has been kind of moving back and forth on where they’re at with those specific items, and we just really don’t know yet.”
For now, NGA said most produce items remain SNAP-eligible, particularly those sold in cold cases and intended to be consumed at home. Items packaged and handed directly to consumers for immediate consumption are more likely to be deemed SNAP-ineligible, an area the association acknowledged can be confusing for retailers and shoppers alike.
Despite broader concerns around SNAP compliance, NGA emphasized that fresh produce remains a relative bright spot for independent grocers.
“For the most part, produce is a department, really a safe haven, for our folks on these programs,” Johnson says.
The association has also encouraged USDA to strengthen fresh produce requirements within SNAP stocking standards.
“We were strong proponents of including all types of produce in the stocking standards,” Johnson says. “We did encourage stronger fresh standards … just because our members have more fresh.”
Concerns about enforcement were a central focus of a Jan. 8 joint letter from NGA and the National Association of Convenience Stores to USDA. In that letter, the associations warn that a new two-strike enforcement framework could result in involuntary SNAP withdrawal after a second violation, even when retailers are making good-faith efforts to comply.
During the interview, Johnson said that policy shift could be devastating for independent grocers in low-income communities, many of whom rely heavily on SNAP sales.
“We do have stores that have above 50% SNAP sales,” she says. “Seeing a significant drop in those sales would be really hard for those stores to overcome.”
If a store were forced to close as a result, the impact would extend well beyond SNAP eligibility.
“If a store isn’t open, the community loses access to all of those foods, including the produce,” Johnson says.
NGA says it has urged USDA to differentiate between retailers that intentionally violate SNAP rules and those that are working in good faith to comply. In its letter, the association called for flexibility in enforcement and clearer guidance before penalties that could remove retailers from the program are imposed.
For independent grocers, NGA says, SNAP compliance is not just a regulatory issue but also a community one. Without clearer definitions, realistic enforcement and sufficient implementation time, the association warned that policy changes risk undermining the very food access goals SNAP is intended to support.
