Cuts to federal food aid could cause some grocery stores to shut down. That’s because of cuts to the Federal Supplemental Nutrition Program (SNAP), which provides monthly benefits that help eligible low-income households buy the food they need for good health. Those benefits make up the bulk of sales for some independent grocery stores.
As the Gulf States Newsroom reports, the failure of independent grocers could make it harder to get healthy foods in some parts of the South. Some independent grocers rely on SNAP for as much as 70% of their sales. That’s according to Furman University professor Ken Kolb. He says those stores are often located in low-income areas and shoppers may have to drive further for healthy food. “It drives up costs. It’s just really expensive to be poor in America.” Kolb then added, “Other grocers might have to cut jobs to make up for the lost sales.”
Recent analysis by the Center for American Progress (CAP), which describes itself as an independent nonpartisan policy institute based in Washington, DC, shows that more than 27,000 retailers “in areas with the highest shares of SNAP participants would be the mostly likely to bear the brunt of proposed drastic cuts to food assistance.”
President Trump’s signature domestic policy law, the One Big Beautiful Bill Act, is estimated to cut nearly $290 billion from SNAP over the next 10 years. Republicans say that’s needed to pay for renewing tax cuts. Yet, grocers describe turbulent market conditions in recent years caused largely by the COVID-19 pandemic, then soaring inflation, followed now by steep government cuts to social safety net programs, from Medicaid to SNAP.
The non-partisan, independent Congressional Budget Office (CBO) confirms that millions of food insecure Americans will see higher food costs due to the cuts to SNAP benefits. The CBO concludes that more than 4 million recipients will see a loss or reduction in benefits from these changes.
