By Margaret Mannion, director of government relations at NACS

The Supplemental Nutrition Assistance Program (SNAP) is a critical lifeline for working families and individuals, providing food access to millions of Americans during times of temporary hardship. A key strength of the program is its flexibility, empowering participants to select from a wide variety of foods based on their dietary needs, personal preferences or cultural values. This ability to make personal food choices is essential to helping families manage their health and maintain their dignity, without the federal government dictating how Americans feed themselves and their loved ones. For convenience stores and other SNAP retailers that are an essential partner in this program, these freedoms also provide clarity and consistency in how they serve their customers.

But that principle is now at risk. A growing number of states are requesting federal waivers from the U.S. Department of Agriculture (USDA) to limit what SNAP benefits can be used to purchase, targeting items such as soda, energy drinks and candy.

In May, Agriculture Secretary Rollins made history by approving the very first SNAP waiver request for the state of Nebraska, which plans to ban the sale of soda and energy drinks. Days later, USDA also approved waivers in Indiana and Iowa seeking to ban certain soft drinks and candy, and has also approved waivers in Utah, Idaho and Arkansas. Many more states are awaiting their own waiver approvals. USDA is granting these waivers as state pilot projects for two years, with the ability to request yearly extensions for an additional three years. All states except Arkansas currently have a target implementation date of January 1, 2026.

While these proposals are framed as public health measures, the implications for SNAP retailers are severe, especially for small-format retailers like convenience stores and multistate operators. Implementing complicated product-specific restrictions at the state level will mean major point-of-sale system overhauls, complex compliance protocols and extensive staff training. For many retailers, the cost and complexity of complying could be enormous, potentially forcing them to stop accepting SNAP altogether.

Take a look at the Iowa waiver that was approved in May. The state plans to prohibit customers from using SNAP benefits to purchase “all taxable food items as defined by the Iowa Department of Revenue,” using Chapter 423 of the Code of Iowa and Iowa Administrative Code Chapter 701-220 to define taxable and nontaxable food items. Idaho is planning to ban the purchase of soda and candy, but the definition the state uses for candy specifically excludes items containing flour—meaning you will still be able to buy certain candies, like Twix or KitKat bars for example, because they contain flour.

Simple, right?

In reality, the tax codes that many states like Iowa and Idaho are using to define “soda” or “candy” were written solely for sales tax administration, not federal nutrition policy. They are notoriously difficult to interpret—especially when trying to determine where the 650,000 food and beverage products on the market today fall on the list (plus the thousands of new products introduced each year). Expecting SNAP retailers to navigate these complex definitions at the register is both unrealistic and unsustainable, and it may lead to a reduction in retailers participating in the program.

This would be a significant loss for the communities that SNAP retailers serve. Convenience stores operate in every corner of the country, including in rural areas and urban neighborhoods where grocery options are limited or nonexistent. Retailers are proud to serve as reliable food access points in their communities, especially for their SNAP customers. Pushing these retailers out of the program risks reducing food access for millions of Americans.

The differences among each state’s SNAP restrictions will also chip away at the consistency and predictability that has defined the program since its beginning. A fragmented system, where the same product may be eligible for SNAP in one state but not another, creates confusion for customers and compliance headaches for retailers who operate across multiple states.

Restrictions on SNAP purchases are planned to take effect January 1, 2026, in Idaho, Indiana, Iowa, Nebraska and Utah. Arkansas is expected to follow with a July 1 implementation date. Colorado, Florida, Kansas, Louisiana, Oklahoma, Texas and West Virginia have also requested waivers, but they are still awaiting USDA approval.

As USDA considers additional waiver requests, NACS is urging policymakers to fully account for the operational burden on retailers, the threat to food access and the risk of undermining the SNAP program’s integrity.