At a time of year when consumers should only be considering gathering enough yummy goodies to pass out to trick-or-treaters and dreaming up meals for a Thanksgiving-worthy feast, an unfortunate wrench has been thrown into plans. Due to the ongoing US government shutdown, which shows no signs of being lifted, the Supplemental Nutrition Assistance Program (Snap) benefits are scheduled to be suspended at midnight on November 1. Snap is a federal program that provides food assistance to low-incom
come individuals and families to help them buy groceries, with 42 million Americans accessing the help each month.
Multiple retail associations are pointing out that, much like a domino being pushed down and offsetting a stack lined up, the Snap suspension will not solely impact the consumers who rely on these benefits to feed themselves and their loved ones.
“Retailers share in the frustration and fear caused by the expected lapse in SNAP benefits. During this uncertain time, it’s imperative we look for ways to support one another,” said Rob Karr, president and CEO of the Illinois Retail Merchants Association.
Snap’s suspension will also directly affect grocery retailers, such as Aldi, Walmart, Target, and Costco, that accept Snap benefits for both in-store purchases and online orders.
Not to mention the employees working for these grocery chains, at the checkout counter or behind the scenes, packing food for shipment.
The United Food and Commercial Workers International Union (UFCW) alone represents 1.2 million essential workers in the US, including workers in grocery, retail, meatpacking and food processing.
How Snap’s suspension impacts consumers and the local economy
Global Data’s managing director, Neil Saunders, told Inside Retail that without this boost of Snap spending, there will likely be a moderation in overall spend.
“Walmart gets a plurality of the spending, so it will be hardest hit. Some states and local agencies might try to find ways to provide assistance, but it is unlikely they can completely fill the funding gap. Most often missed payments are reimbursed, so it is likely that retail will make up some ground once the government reopens – this may result in a bit of a choppy pattern of growth,” said Saunders.
MMG EARTH is the first Black and nonbinary-led research and change management firm in the US. In a LinkedIn post, its founder, Bunny McKensie-Mack, argued that every dollar in Snap essentially creates up to $1.80 in local economic activity.
“When someone uses Snap benefits at a local store or farmers market, that money supports grocery workers, farmers, and drivers, who then use their wages to pay bills, buy meals and care for their families,” she said.
“Snap doesn’t just feed individuals, it nourishes entire communities… Every dollar we spend, save, or share sets off a chain reaction across our economy.”
In the short run, Day Manoli, an economics professor at Georgetown University, noted that grocery stores located in lower-income neighbourhoods are most likely to feel the brunt of these unpaid Snap benefits.
Over the next month, Manoli remarked that Snap-dependent shoppers are likely to accrue further credit card debt to make food purchases, and that some may decrease their spending on other goods, like new clothing.
Because the US spends about $8 billion a month on Snap benefits, James Ziliak, the founding director of the Center for Poverty Research at the University of Kentucky, estimated that this situation could have an economic impact of $12 billion a month.
According to reports, the USDA could potentially access a $6 billion contingency fund to make partial Snap payments for November; however, it would still fall short of the $8 billion needed.
In the meantime, to pick up the slack for where the government left off, several big-name retail players have been stepping in to help their more price-sensitive consumers.
How some retailers are responding to assist Snap-dependent individuals
On October 26, delivery platform DoorDash announced an emergency food response for those affected by the Snap benefits pause.
The platform’s effort will include free delivery for Project DASH, an initiative launched in 2018 that uses the company’s logistics platform to help government agencies and nonprofits deliver food and other essential items to people in need, to food bank and food pantry partners nationwide. This also includes partnerships with grocers to waive delivery and service fees on about 300,000 orders for Snap recipients in November.
Customers who have linked a Snap/EBT card to their DoorDash profile will also be able to shop at stores such as Sprouts Farmers Market, Dollar General and Schnucks, with delivery fees waived for one order.
Additionally, DoorDash will also donate fresh food, shelf-stable items and household essentials from its DashMart locations to local food banks in affected communities.
Max Rettig, vice president and global head of public policy at DoorDash, stated, “No one should go hungry in America – period.”
“Millions of families are worried right now about how they’ll put food on the table. Fighting hunger is core to our mission at DoorDash, and we’re stepping up alongside leading grocers and retailers to help bridge the gap. We know this is a stopgap, not a solution. But doing nothing simply isn’t an option.”
Following DoorDash’s lead, convenience delivery provider GoPuff stepped in to help, announcing a temporary initiative on October 27 to provide grocery credits to Snap recipients during November.
The company said it will allocate up to $10 million in total relief, offering $50 in credits for Snap-eligible grocery items.
The credits will be distributed in two $25 instalments during the month, one available from November 1-15, and the second from November 16-30. Customers can apply the discounts using the codes SNAPRELIEF1 and SNAPRELIEF2, respectively.
The retail industry’s Snap-related conflicts won’t be resolved anytime soon
The reality is that even if the government shutdown ends tomorrow and Snap benefits are magically reinstated forthwith, grocery retailers can still expect more conflict in the next few years.
Due to the passing of the “One Big Beautiful Bill Act”, signed by President Trump on July 4, 2025, Snap funding is expected to be reduced by $186 billion in cuts through 2034.
Since the law passed, there has been widespread concern among retailers about the upfront costs of implementing new Snap purchasing restrictions.
According to a report from the National Association of Convenience Stores (NACS), National Grocers Association (NGA) and FMI – The Food Industry Association, these costs are expected to total $1.6 billion.
Within that estimate, convenience stores are expected to shoulder the most costs at $1 billion, followed by grocers at $305.1 million, supercenters at $215.5 million, and, lastly, small-format stores at $11.8 million.
Separately, the trade groups’ report forecasts that food retailers will incur just shy of $760 million in annual ongoing compliance costs, of which grocers will pay just over $281 million.
Time will ultimately tell what the government shutdown’s impact will be on consumers’ and retailers’ ability to access and process Snap benefits, and what the long-term effect of these shifts will be on the industry at large.
Further reading: Why customers aren’t coming back (and what you can do about it)
