The Supplemental Nutrition Assistance Program (SNAP), historically known as food stamps, has undergone recent changes, including the end of COVID relief benefits across the U.S. in March. The final elimination of extra SNAP benefits nationwide in March reduced food and beverage aid by $23 billion annually. As a result, in the initial months after the benefit cutbacks, SNAP households reduced their monthly food and beverage spending, on average, by about 35% of cut benefits. For example, if SNAP benefits were cut by $200, the reduced food and beverage spending would be about $70 less per month, according to Circana, formerly IRI and The NPD Group.
SNAP households have also decreased their spending on nonfood items at over three times the rate of their spending on food and beverages, which is a reversal from their spending in the early stages of the pandemic when COVID-related benefits, including SNAP benefit enhancements, provided more spending money for these households. The savings from discretionary spending is now subsidizing SNAP households' at-home and away-from-home food and beverage spending.