Indiana Businesses May Face Financial Losses Under Proposed SNAP Restrictions on Soda and Candy

Grocers in Indiana are warning that new restrictions on food stamp benefits, banning soda and candy, could lead to financial losses for businesses and create unfair competitive situations.

The changes are set to take effect at the start of next year, when the Department of Agriculture will remove soda and candy from SNAP benefits, a move aimed at reducing costs.

“I think the intent is to try to get rid of the food stamp cost. They’re trying to cut the budget,” President of the Indiana Grocery and Convenience Store Association Joe Lackey said.

Lackey agrees that cutting costs is necessary, but believes adding these restrictions is not the way to go about it.

“This is not the way to do it by piecemealing it and creating unfair competitive situations,” he said.

The changes will likely cause stress for SNAP retailers near the state’s border, as benefits can be used across the country and Indiana cannot restrict what enrollees buy outside of the state.

“If you want to do this, the way to do it is to go do it nationally,” Lackey said. “It’s a federal program. It’s federal money. The feds are the ones paying for it. So, go through USDA, and USDA just announces it nationwide that this is what we’re going to do.”

Lackey also expresses concern about how Indiana code defines candy and soda, which could lead to confusion among buyers.

“Unfortunately, most of the recipients are not going to know about this,” Lackey said. “We know this from past history. They’re not going to know about this until they come in the store, and then our employees, in our grocery and convenience stores are going to have to try to explain it to them, and they’re not going to be happy about it.”

Lackey worries that clerks will have to explain nuanced definitions of candy and soda, which could lead to abuse.

“I know some situations where some of our associates and our storage are going to be abused,” he said. “It’s not fair to them.”