SNAP Cuts Take Effect, Reshaping Grocery Industry and Family Budgets in Wyoming and the U.S.

A new federal policy tied to President Trump’s tax law took effect this week, bringing the largest cuts to the Supplemental Nutrition Assistance Program (SNAP) in its history. The program, which currently provides food aid to more than 40 million Americans, will now reach significantly fewer people.

According to federal estimates, roughly 2.4 million individuals — including families with children — are expected to lose benefits, with monthly support reductions ranging from $72 to $231.

The changes are expected to reshape grocery shopping habits nationwide. Discount retailers such as Walmart and other big-box chains are forecast to gain customers as households search for cheaper food options. At the same time, independent grocery operators, many already operating on thin profit margins, warn of sharp revenue declines, with some reporting business losses of up to 45 percent.

Experts caution that the broader impact extends beyond economics. With fewer benefits available, many low-income families may be forced to prioritize cost over nutrition, moving away from fresh produce and toward processed foods. Analysts say that trend could increase long-term health costs across society.

In FY 2022, approximately 29,521 Wyoming residents, or about 13,752 Wyoming households, benefited from SNAP benefits, which is 5% of the state's population.

The average monthly benefit was $155 per person, excluding any supplements related to COVID-19 or other disasters. 83% of WY households receiving SNAP in FY 2022 had income at or below the poverty line.

Independent grocers are bracing for what could be the harshest fallout from the SNAP reductions. Michael Baker, an analyst with D.A. Davidson & Co., said, noted by CNBC, the biggest impact will be felt “around the edges,” particularly by small operators already surviving on razor-thin margins.

Stephanie Johnson, group vice president of government relations at the National Grocers Association (NGA), which represents 20,000 independent and small chain stores nationwide, said the new rules will affect retailers in two waves. The first wave involves tighter work requirements. Adults who do not meet a 20-hour-per-week employment threshold — or fail to file the necessary paperwork to qualify for an exemption — will now be limited to just three months of SNAP benefits over a three-year period. “Those people will fall off immediately as states implement changes,” Johnson explained, noting that this alone represents about half of the overall impact.

The second wave, she said, will depend heavily on geography and community need. “The impact will be different depending on the neighborhood. There are a lot of unknowns,” Johnson added.