Impact of Government Shutdown on SNAP Benefits and Local Grocery Stores

Wed Nov 12 2025 18:12:37 GMT+0200 (Eastern European Standard Time)

The ongoing government shutdown has frozen funding for the Supplemental Nutrition Assistance Program (SNAP), deeply affecting local grocery stores and their customers. Business owners express frustration and concern over the economic implications of halted food aid.

As the government shutdown continues, the freezing of SNAP benefits has led to significant hardships for millions of Americans and local grocery stores. Business owners like Ryan Sprankle emphasize the essential role SNAP plays not just as food assistance, but as a vital economic driver that sustains local businesses and communities. The legislation to restore SNAP funding is pending in the House of Representatives, and the uncertainty continues to loom over small retailers and their customers.

In a stark contrast to last year when Ryan Sprankle welcomed President Donald Trump to one of his local grocery stores in Pennsylvania, he now conveys a different message as the government shutdown freezes SNAP benefits crucial to his customers and business operations.

“You can't take away from the most needy people in the country. It’s inhumane,” Sprankle expressed, pointing out that the cutoff has left 42 million Americans vulnerable while impacting his own small grocery chain.

The shutdown has halted funding for the Supplemental Nutrition Assistance Program (SNAP), with the Senate having passed legislation to reopen the government and replenish funds, but the outcome still hangs in the balance as it awaits House consideration.

SNAP benefits redeemed exceeded $96 billion in 2024, with 74% of that amount spent at supermarkets, making the program a driving force for local economies. Etharin Cousin, former director of the UN World Food Program, noted, “SNAP isn’t just a social safety net for families. It’s also a local economic engine.”

Lower SNAP revenue can swiftly result in diminished sales for small chains, as seen in Sprankle’s store where 25% of the revenue comes from SNAP transactions. As customers cut back on spending, the strain extends to employees fearing layoffs and reduced hours.

Newer grocery owners, like Liz Abunaw in Chicago, struggle too. She recounted seeing customers return full carts due to the loss of assistance, while stating, “SNAP is currency. I get money I then use in this economy.”

The nonprofit organization Kanbe’s Markets also faces challenges, experiencing a 10% sales drop in the wake of the SNAP funding halt. Their reliance on providing affordable produce in food deserts highlights the program's importance in maintaining community well-being.

Babir Sultan, with four convenience stores in Kansas City, has also seen a significant decline in foot traffic. In response, he has offered free produce to SNAP recipients, emphasizing that the impact of reduced aid extends beyond those receiving welfare – affecting the entire community.

“If you’re in need, just ask, we’ll take care of you,” Sultan affirmed, illustrating the interconnectedness of local businesses and the communities they serve amidst economic uncertainties.