The Trump administration is pushing to reduce the annual budget food-stamp by 20% per year, over next 10 years. The administration claims this plan is aimed at creating opportunities for low-income Americans to acquire the skills needed to take part more fully in the growing U.S. economy, and foresee people leaving the program as incomes rise, with its lower costs reflecting beneficiaries’ improved economic status. Trade groups representing food retailers, food banks and anti-hunger groups have also expressed grave concern over the proposal.
These potential changes to the food-stamp program (SNAP) could significantly impact sales at grocers and food retailers. According to the USDA data, more than 52% of SNAP dollars, or $33 billion, were redeemed at big-box stores such as Walmart and Target, up from 47% in 2015.