Economic Impact of SNAP Funding Cuts on Local Grocery Stores

Wed Nov 12 2025 18:02:45 GMT+0200 (Eastern European Standard Time)

The recent suspension of SNAP benefits during the government shutdown has severely affected local grocery stores and communities reliant on this vital support. Owners express concern for their employees and customers as economic repercussions escalate.

The suspension of SNAP benefits due to the government shutdown has led to a significant impact on small grocery stores and food access for many Americans. Business owners like Ryan Sprankle and Liz Abunaw highlight the challenges faced by local economies and the urgency for legislative action to restore these benefits. The effects are felt not only in the marketplaces but also in food pantries and communities that rely on free food distributions.

A year ago, Ryan Sprankle welcomed President Donald Trump to a grocery store his family owns near Pittsburgh, discussing high grocery prices. Today, he has a more urgent message regarding the negative impacts of delayed Supplemental Nutrition Assistance Program (SNAP) benefits caused by the current government shutdown.

“You can’t take away from the most needy people in the country. It’s inhumane,” Sprankle stated, as the suspension of SNAP, affecting about 42 million Americans, puts a strain on both his stores and his customers.

The U.S. Senate has passed legislation to reopen the government and replenish SNAP funds, but uncertainty looms over when these payments will resume. In 2024, SNAP recipients redeemed over $96 billion in benefits, with a significant portion supporting local independent grocery stores like Sprankle’s.

Etharin Cousin, a former director of the UN World Food Program, noted that SNAP not only serves as a safety net but acts as a local economic engine, driving sales and community jobs. For many small grocery stores, SNAP funds provide essential revenue, with some businesses, like Sprankle’s, depending on it for a quarter of their income.

Other small grocers are also feeling the effects. Liz Abunaw from Chicago's Forty Acres Fresh Market reported customers forced to abandon full carts due to financial constraints. SNAPS benefits, while only a portion of her revenue, are crucial for maintaining operations and supporting local suppliers.

The effects of halted SNAP benefits have been particularly stark for organizations like Kanbe’s Markets, a nonprofit distributing fresh produce. Kanbe’s has seen sales drop and pantries struggling to meet demand. Founder Maxfield Kaniger emphasizes the moral obligation of providing food, declaring that the inability to do so highlights broader systemic issues.

As stores across the country report declining foot traffic and reduced sales, many are stepping up, like Babir Sultan’s convenience stores in Kansas City, which offered free produce to SNAP beneficiaries. The impact reverberates through the community, illustrating that when customers are pinched, local economies falter.