SNAP is the largest federally-funded food assistance program in the US, with an annual budget of over $200 billion (SNAP + EBT Cash). In an average month in 2023, it was used by 41.5 million Americans– over 12% of the population– to buy groceries. Despite studies showing the program’s strong positive impact on recipients’ health and financial outcomes, only about 350 online retailers accept SNAP vs ~250,000 brick-and-mortar stores. 

While some big merchants (e.g. Walmart, Costco, Target) accept SNAP online, what's stopping smaller retailers from bursting through the floodgates?

A brief history of snap

The Supplemental Nutrition Assistance Program (SNAP), originally known as the Food Stamp Program, was introduced in 1939 in response to the Great Depression. While the pilot concluded in 1943, the idea was revived under President Kennedy’s administration in 1961 on a trial basis. Over the years, the program was shaped by various pieces of legislation, notably the Food Stamp Act of 1964, which established food assistance as a tool to strengthen the agricultural economy and improve levels of nutrition among low-income households.

The introduction of electronic benefit transfer (EBT) cards in the 1990s modernized the program by allowing participants to access funds on a debit card (versus physical vouchers). Renaming the program to SNAP in 2008 emphasized the government’s focus on nutrition and set the stage for further expansion. A pivotal moment occurred with the passing of 2014’s Farm Bill that mandated a pilot to explore and survey the feasibility of SNAP acceptance online. 

Shift to online