The US Department of Agriculture (USDA) has granted 23 states a Supplemental Nutrition Assistance Program (SNAP) Food Restriction Waiver. The waivers prevent SNAP benefits from being spent on certain non-nutritious items, such as candy and soda. This affects not only manufacturers, such as Coca-Cola Co. (KO) and Hershey Co. (HSY), but also food retailers.
Key Stat: SNAP helps feed 40 million people and accounts for 12% of US grocery spending, making it an important revenue source for Walmart Inc. (WMT), Dollar General Corp. (DG), and Dollar Tree Inc. (DLTR). These retailers are more reliant on SNAP shoppers than broadline grocers.
How We Got Here: The state waivers are part of a broader Make America Healthy Again (MAHA) agenda, which aims to address the root causes of chronic disease and reform the US food system. The SNAP waivers align with the updated Dietary Guidelines for Americans (DGA) released in January 2026. The new DGA pushes Americans toward whole, nutrient-rich foods like protein, dairy, vegetables, fruits, healthy fats, and whole grains, while cutting back on ultra-processed foods high in refined carbohydrates, added sugars, sodium, unhealthy fats, and chemical additives.
The Economic Stakes: The One Big Beautiful Bill Act (OBBBA) cut $187 billion from the SNAP program and mandated major structural changes. As a result, states are seeing sharp drops in SNAP enrollment, topped by a 49% decline in Arizona. Grocers and retailers that depend on SNAP revenue will feel the impact as more Americans lose food benefits.
The MAHA agenda and updated dietary guidelines favor protein and dairy producers, such as JBS NV (JBS) and Tyson Foods Inc. (TSN), as well as egg producers, such as Cal-Maine Foods Inc. (CALM). Losers include companies such as Mondelez International Inc. (MDLZ) and Hershey, whose product lines consist largely of items the new guidelines and SNAP waivers discourage.


























