Word on the Hill

The Word 🏛️ The government shutdown – now the longest in U.S. history – continues to drag on, with the battle over SNAP benefits now a focal point. Late last week, a federal judge ordered the Trump administration to tap emergency funds to partially fund the program through November. Then, on Tuesday, the president threatened to block funding until Democrats “open up the government,” (the White House later said the administration is “fully complying” with the court order).

What it means: At least some SNAP funding should move, whether through contingency plans in some states or emergency funds released by the USDA. The question is when. A USDA official said in a court filing that it could take “anywhere from a few weeks to several months” for states to adjust their systems to account for the reduced benefit amounts.

According to the USDA, 267,000 retailers are authorized to accept the $8 billion in SNAP benefits distributed nationwide each month. Small and independent grocers often generate a significant percentage of their revenue from SNAP transactions, and small grocers from the Rockies to the Bronx are warning that this month’s revenue hit could be disastrous for their businesses.

Meanwhile, on the street: Retailers across the country are stepping up to help fill customers’ grocery gaps. For example, Iowa-based Hy-Vee announced on Oct. 31 that its stores with hot-food service will provide free meals to children 12 and under, and that other shoppers can purchase that same meal for $3.

Retailers that accept SNAP payments must be careful not to run afoul of regulations. A USDA email sent to retailers over the weekend reminded of the program’s equal treatment requirement, which says they “cannot treat SNAP-EBT customers differently than any other customer.” The memo emphasized that “providing discounts or services only to SNAP-paying customers is a SNAP violation.”