USDA outlines retailer compliance for state SNAP waivers

Summary:

• The USDA recently outlined compliance requirements for retailers serving SNAP consumers in states with waivers restricting the purchase of certain items like candy or soda.
• Retailers have a 90-day grace period to comply with state SNAP waivers, after which noncompliant retailers will face penalties.
• FMI – The Food Industry Association emphasized the need for additional resources and clarity to avoid confusion regarding state-level SNAP restrictions.

Insight:

The USDA’s updated guidance coincided with the implementation of SNAP waivers in five states on Jan. 1.

The USDA began approving SNAP waivers for states in May, and the impact of the government shutdown on the timing of retailer compliance clarifications remains unclear.

FMI stressed the importance of accurate product lists to help retailers comply with SNAP restrictions and ease confusion for consumers.

FMI also urged states and the federal government to provide materials to assist SNAP consumers during their shopping trips.

The USDA’s guidance emphasizes that SNAP purchases from warehouses must align with EBT card restrictions, potentially complicating cross-state shipping for retailers.

Any retailer removed from the SNAP program can reapply to accept SNAP payments again, but FMI seeks clarification on penalties for unintentional violations.

Currently, 18 states have received SNAP waivers, with more expected to follow suit, including Indiana, Iowa, Nebraska, Utah, and West Virginia.