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But not every state will follow the same rules, creating confusion

By Mark Huffman of ConsumerAffairs

• New state-level restrictions on what SNAP benefits can buy are set to begin in 2026, with some states banning items like soda, candy, energy drinks, and other unhealthy foods.
• Expanded work requirements and funding shifts from the federal government to states are expected to reduce overall participation and increase administrative burdens, with many grocery retailers uncertain how these changes will affect demand and compliance.
• Retailers and supply chains are scrambling to update point-of-sale and EBT systems, train staff, and adjust inventories as confusion grows over implementation timelines and product eligibility rules.

Major changes to the Supplemental Nutrition Assistance Program (SNAP) set to take effect in 2026 are stirring confusion across the grocery industry, as both retailers and benefit recipients prepare for a patchwork of new rules that could reshape how millions of Americans shop for food.

Beginning next year, at least a dozen states have received permission from the U.S. Department of Agriculture to implement waivers that restrict the purchase of certain foods and beverages with SNAP benefits. Items such as sugary drinks, candy, energy drinks, and other products deemed non-nutritious are being excluded from eligibility a departure from long-standing SNAP policy that allowed recipients to use their Electronic Benefit Transfer (EBT) cards on essentially all food items not explicitly prohibited.

The states lists of banned items differ, and implementation dates vary, leading to substantial uncertainty. For example, Floridas restrictions are scheduled to begin as early as January 1, 2026, while Texas, Indiana, and others have staggered later start dates.

Potential confusion

Critics including food retailers and consumer advocates warn that a product accepted in one store might be declined just a few miles away, depending on state rules and where the scanner is located.

Retailers are particularly vocal about the operational hurdles. Grocery chains and independent markets must update point-of-sale software to recognize state-specific SNAP restrictions, retrain cashiers, and revise inventory plans to avoid repeated declines at checkout.

Its just a classic government operation where theyve thrown this out there, and well-meaning though they may be, its caused mass confusion, and its making some retailers question whether theyre going to stay with the program or not, Joe Lackey, president of the Indiana Grocery and Convenience Store Association, told Politico.

Work requirements

Complicating matters further are broader reforms tied to the so-called One Big Beautiful Bill, passed in 2025, which expands work requirements for SNAP recipients and shifts a greater share of administrative costs to state governments.

Advocates for the grocery industry fear these changes could shrink the pool of SNAP shoppers over time, particularly among able-bodied adults now required to complete 80 hours of work or training per month to remain eligible a significant expansion of previous work-related mandates.

Industry groups say the combined effect of new eligibility standards, nutritional restrictions, and state-by-state variation could depress sales in categories traditionally buoyed by SNAP purchases, such as snacks and beverages, and complicate planning for manufacturers and distributors.

Meanwhile, independent grocers that rely heavily on SNAP dollars to drive traffic in low-income communities worry they may see declines in customer loyalty if benefits are harder to use or if shoppers switch to stores in neighboring states with looser rules.

Advocates for the policy changes argue that steering SNAP dollars toward more nutritious foods could improve public health outcomes and reduce long-term healthcare costs. But until uniform guidance and robust technology systems are in place nationwide, retailers and families alike are bracing for a bumpy transition that could reverberate throughout the grocery supply chain in 2026 and beyond.