Capstone Visual: SNAP Recipients in Nearly Half the US Cannot Buy Taxpayer-Funded Junk Food at Walmart

Capstone Visual: SNAP Recipients in Nearly Half the US Cannot Buy Taxpayer-Funded Junk Food at Walmart

Capstone Visuals — SNAP Recipients
Client Portal Capstone Visuals
Special Situations
Nicolas Moscoso-Roman
Nicolas Moscoso-Roman
Vice President
(571) 699-4307
[email protected]
Grace Feitel
Grace Feitel
Senior Associate
(202) 989-0360
[email protected]
Rosie McCarthy
Rosie McCarthy
Associate
(202) 830-2795
[email protected]
The Bottom Line:

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.

States with Food Restriction Waivers from the USDA
SNAP Food Restriction Waivers by State
23 states have obtained SNAP Food Restriction Waivers as of May 19, 2026 · Hover for detail
No SNAP-funded junk food
No waiver
Loading map…
Source: USDA Food and Nutrition Service, state waiver approvals as of May 19, 2026.

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.

Winners & Losers: 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.

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