New SNAP restrictions from the USDA Food and Nutrition Service (FNS) are now in effect, introducing important policy changes that redefine how retailers must apply purchase limitations—particularly for items like candy, sugary drinks, and other state‑regulated products. If your store accepts SNAP, these updates may require adjustments to your POS system, staff training, and overall compliance procedures in the months ahead.
Below is a clear breakdown of what’s changing, what retailers must do, and how to stay compliant.
What Is This Update About?
USDA FNS has issued new guidance clarifying how retailers must apply purchase restrictions in states that have been approved for SNAP Food Restriction Waivers. These restrictions center on certain “unhealthy” or non‑nutritive products—such as candy, sweetened beverages, and other items defined by each state’s approved waiver.
The policy memo explains the compliance expectations for retailers and how enforcement will be carried out once waivers take effect.
What Do SNAP Retailers Need to Know About the New SNAP Restrictions?
- In‑store purchases: Restrictions depend on the store’s state, because the transaction is fulfilled at the physical location.
- Warehouse‑fulfilled or delivery orders: Restrictions depend on the EBT cardholder’s state, not the state where the warehouse or retailer is located.
Retailers serving multiple states—or fulfilling delivery orders across state lines—should pay close attention to this distinction.
How Can Retailers Prepare for the New SNAP Restrictions?
To remain compliant, retailers should begin preparing ahead of enforcement.
- Update POS Systems
- Update POS systems to correctly block restricted items based on the cardholder’s state (for warehouse orders) or store state (for in‑store purchases).
- Validate that item eligibility logic reflects each state’s waiver details.
- Train Store Staff
- Train staff on new rules and eligible items.
- Prepare cashiers for customer questions and declined-item scenarios.
Enforcement Timeline
For states with approved SNAP Food Restriction Waivers:
- A 90‑day grace period begins once the waiver takes effect in that state.
- After 90 days, FNS may begin undercover compliance checks to ensure retailers are blocking restricted items at checkout.
- Compliance is required to continue processing SNAP transactions.
Retailers should use the grace period to finalize POS updates, staff training, and internal audits.
Consequences for Non-Compliance
FNS has outlined progressive enforcement measures:
- 90-Day Grace Period for adjustments.
- First violation: A formal warning letter.
- Second violation: Involuntary removal from the SNAP program.
- Appeals: Retailers may request an administrative review of enforcement decisions.
Please review your systems and processes to ensure compliance with new SNAP restrictions. For full details, visit the USDA FNS website or refer to the recent NACS article on new SNAP regulations.
Examples of Common Restricted Items
States define their own list of restricted products based on USDA‑approved waiver guidelines, which can be found on the USDA FNS website. Examples include:
- Sugary Drinks & Sweetened Beverages
- Sodas (Coca‑Cola, Pepsi)
- Energy drinks (Monster, Red Bull)
- Fruit‑flavored drinks with <50% real juice (varies by state)
- Sweetened punches, sugary flavored beverages
- Candy & Sweets
- Candy bars (Snickers, Twix) and bagged candy (Skittles, M&M’s)
- Chocolate- or candy‑coated treats
- Some baked goods or desserts (state dependent)
- Other Products (State Specific)
- Sweetened sports drinks
- Chewing gum (e.g., restricted in Iowa)
- “Unhealthy beverages” defined individually by states
Retailers should check the USDA FNS website to confirm the exact product list for each applicable state.
Where Retailers Can Learn More
For full details on the new SNAP restrictions, visit the USDA FNS website or refer to the recent NACS article.
How goEBT by CDE Can Help
Retailers needing help upgrading their POS system or for general questions about the new SNAP restrictions, can contact goEBT by CDE at 877-418-7957.