Updates to the Supplemental Nutrition Assistance Program (SNAP) benefits have already taken effect. Families across the United States could lose between $72 and $231 per month in SNAP assistance to purchase food. The One Big Beautiful Bill Act (OBBBA) provides for $186 billion in cuts to the Supplemental Nutrition Assistance Program over the next decade.
A CBO analysis released this month projects that 2.4 million fewer Americans
The data speaks for itself. According to estimates, this is the “largest cut in history to SNAP,” a federal program dating back to the New Deal era that provides basic food assistance to more than 40 million people. A Congressional Budget Office (CBO) analysis released this month projects that 2.4 million fewer Americans, including families with children, will receive food stamp benefits in an average month.
It is a vital resource for nearly 47 million families, and the news of its reduction has alarmed health
This program is the largest of its kind in the entire country, as seen above. The millions of families benefiting from it demonstrate these figures. It is a vital resource for nearly 47 million families, and the news of its reduction has alarmed health and social welfare experts. Under Donald Trump’s new tax law (OBBBA), the changes went into effect this Monday, which, among other estimates, suggest that families across the United States could lose between $72 and $231 per month in benefits.
A research examining the consequences of previous cuts to SNAP assistance, shows the following:
Studies confirm the drastic change this represents for beneficiaries. Research from a recent study published in the journal Preventive Medicine, examining the consequences of previous cuts to SNAP assistance, shows the following: As several states ended the emergency allocations offered during the COVID-19 pandemic, beneficiary families experienced a significant increase in food insufficiency and greater difficulty paying household expenses.
Benefit reductions are directly associated with an increase in food insufficiency
The cuts will become more evident, and for example, food will become more difficult to buy. Benefit reductions are directly associated with an increase in food insufficiency, meaning households have greater difficulty obtaining enough food. According to official consumer data—that is, people who use SNAP to pay at supermarkets—Walmart leads the way in spending with 24%, followed by Kroger (8%), Costco (6%), Amazon (5%), and Sam’s Club (4%).
Impact: The study notes that households with children were particularly affected
In addition to the above, families will struggle to pay other household expenses. The cuts not only affect food purchases but also make it difficult for families to cover other essential expenses. It will also have an impact on households with children. The study notes that households with children were particularly affected. They experienced an even greater increase in food insufficiency compared to households without children. Despite all this, experts assure that some of the largest supermarket chains, despite having many SNAP beneficiaries among their customers, could benefit.
“Walmart can leverage its scale and extremely low cost of debt to capitalize on SNAP cuts by offering better prices than its smaller competitors”
In this regard, Scott Moses, director of Solomon Partners’ food, restaurant, and pharmacy investment banking group, said: “Walmart can leverage its scale and extremely low cost of debt to capitalize on SNAP cuts, as it has with food inflation, by offering better prices than its smaller competitors can match and strengthening its customer value proposition.” It’s worth noting that the situation varies by state. For example, although New Mexico expects to lose around $200 million annually due to the new federal tax cuts starting this fiscal year, it still has a large surplus thanks to the boom in oil production. Therefore, each state’s situation varies.
