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USDA Warns Grocers on SNAP-Only Discounts as Shutdown Disrupts Benefits

Tens of millions face delayed or reduced aid with timing still uncertain.

A sign for food stamps, as the U.S. President Donald Trump administration said it plans on Monday to partially fund food aid for millions of Americans after two judges ruled it must use contingency funds to pay for the benefits in November during the government shutdown, outside a grocery story in Baldwin, New York, U.S., November 3, 2025. REUTERS/Shannon Stapleton
AJ Wark, 21, a maritime studies student at Texas A&M University at Galveston, poses on campus on Nov. 2, 2025. Wark, who depends on SNAP benefits, said she has had difficulty saving money for essential needs. “A lot of students are able to get a meal plan, but there are students who weren’t approved for loans. Now that SNAP is being cut off, it’s been kind of tough for a lot of us,” she said.
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Overview

  • Routine SNAP funding halted on Nov. 1 after USDA said food assistance accounts had run dry during the government shutdown, affecting roughly 42 million people.
  • A federal judge ruled the benefits pause unlawful, but officials have not provided a clear schedule for restarting or restoring full payments.
  • USDA reminded retailers of the SNAP Equal Treatment rule, which bars discounts or services offered only to SNAP customers without a waiver, with limited exceptions for approved healthy-food incentives.
  • Private platforms announced stopgaps: DoorDash pledged 1 million free meals and fee waivers for about 300,000 grocery orders, Instacart offered 50% off up to $50 for up to 100,000 redemptions through Nov. 30, and Gopuff pledged up to $10 million in SNAP-eligible credits.
  • Reporting describes escalating hardship for families and local grocers, with disproportionate impacts on Black households and increased pressure on food banks.