SNAP cuts or delays are bad news for Walmart and other retailers

Supplemental Nutrition Assistance Program (SNAP) benefits for November are currently in limbo due to the government shutdown, which will likely impact both SNAP recipients and the grocery or big-box stores where they shop.

It’s still unclear when SNAP recipients will receive their full SNAP payments for November, according to CNN, which reported that this depends on the approval of a short-term spending package to temporarily fund federal agencies, which will still need to go through Congress and President Trump.

About 12% of U.S. residents received SNAP benefits in fiscal year 2024, according to the USDA. The maximum allotment for a single person in the contiguous U.S. is $298 per month for fiscal year 2026 (which began in October), according to the USDA. A good portion of SNAP funds go to Walmart, according to third-party data, so any cuts or delays to the program could show up in the retailer’s fourth-quarter results. This is on top of an already challenging consumer environment, with consumers worried about rising prices and inflation and the government shutdown leaving hundreds of thousands of federal workers without paychecks.

“One of the problems here has been the uncertainty — the on-again, off-again. Is [SNAP funding] going to be released? Is it not going to be released?” George Davis, professor of agricultural and applied economics at Virginia Tech, told Modern Retail. A USDA official said it could take weeks or months to release money to recipients. “People with lower income don’t have the resources to absorb that type of shock,” Davis said.

SNAP cuts or delays are bad news for Walmart and other retailers – Modern Retail