Proposed Rule to Update Standards for SNAP-Authorized Retailers: In Brief

Summary

On February 17, 2016, the U.S. Department of Agriculture’s (USDA’s) Food and Nutrition Service (USDA-FNS) published a proposed rule titled, “Enhancing Retailer Standards in the Supplemental Nutrition Assistance Program (SNAP).” On April 5, 2016, USDA-FNS published a clarification of the proposed rule and extended the comment period to May 18, 2016.

SNAP, the largest of USDA’s domestic food assistance programs, provides benefits to eligible participants; these benefits are redeemable for SNAP-eligible foods at SNAP-authorized retailers. SNAP-authorized retailers are stores and markets that are allowed to accept SNAP benefits.

The proposed rule would implement provisions of the Agriculture Act of 2014 (“2014 farm bill,” P.L. 113-79) that made changes to inventory requirements for SNAP-authorized retailers and, per USDA-FNS, would also address other policy objectives. This proposed rule would make changes to 7 C.F.R. Part 271 and Part 278 in five areas of retailer authorization policy: (1) sales of hot, prepared foods; (2) definition of staple foods; (3) inventory and depth of stock; (4) access-related exceptions to the rules; and (5) disclosures of retailer information.

The proposed rule has been controversial, particularly the provisions not explicitly addressed by the farm bill. Driving the debate over these changes has been the potential impact on smaller retailers. Many Members of Congress have raised opposition to the proposed rule, and both the House- and the Senate-reported FY2017 Agriculture and Related Agencies appropriations bills include language to limit USDA’s discretion in setting retailer standards.