New SNAP policy increases work requirements for nondisabled adults without dependents, raising the cutoff age from 54 to 64 and potentially removing coverage for over two million people per CBO estimates. Nearly 42 million Americans rely on SNAP to help afford food, and major retailers collectively receive billions in SNAP spending annually. Reduced benefits could lower purchase size but may increase traffic at discount grocers. Analysts say lower-income consumers may shift shopping toward retailers offering lower prices, which could partially offset lost spending per customer and boost sales for large discount chains.
Millions of Americans may soon have a harder time affording groceries. That could drive more spending at stores like Walmart. A new policy tied to President Donald Trump's tax law began taking effect on Monday. It will change how Supplemental Nutrition Assistance Program benefits - which nearly 42 million Americans rely on to afford food - are administered to low-income Americans. The most significant policy change will require nondisabled adults without dependents to fulfill work requirements until they reach age 64 to qualify for aid.
Major retailers like Walmart, Target, and Kroger collectively receive billions in SNAP spending each year. Benefit cuts could mean less spending from budget-conscious shoppers. But perhaps counterintuitively, analysts say the changes could ultimately benefit some large retailers. Michael Baker, an analyst at D.A. Davidson, told CNBC that reduced SNAP benefits may push lower-income consumers to shop more often at discount grocers like Walmart. He said this could boost the company's sales - even if individual shoppers spend less per trip.
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