By Margaret Mannion, director of government relations at NACS

In yesterday’s NACS Daily article, “SNAP Choice Under Threat: States Move to Restrict What Customers Can Buy,” NACS reported that a number of states are requesting federal waivers from the U.S. Department of Agriculture (USDA) to limit what the Supplemental Nutrition Assistance Program (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.

Here is a closer look at the SNAP waivers the USDA has approved in each state:

Nebraska

Under the Nebraska waiver, the state will exclude soda, soft drinks and energy drinks, as defined by:

• Soda or soft drinks: Any carbonated non-alcoholic beverage that contains water, a sweetening agent (including but not limited to sugar, high-fructose corn syrup or artificial sweeteners), flavoring and carbon dioxide gas to create carbonation.
• Energy drinks: Carbonated or non-carbonated beverages containing a stimulant such as fortified caffeine, guarana, glucuronolactone or taurine. They may also include herbal extracts such as ginseng, mineral salts and vitamins, or high doses of organic acids, amino acids, inositol, sugars or other similar compounds in addition to sweeteners. Juices or natural fruit pulp or concentrates may also be added. Energy drinks are specifically formulated to enhance energy, alertness or physical performance.

Under the Nebraska waiver, beverages marketed primarily as sports drinks to increase hydration, like Gatorade, and medically necessary nutritional products are not included in the ban.

Indiana

Under the Indiana waiver, the state will ban soft drinks and candy, defined as:

• Soft drink: Any nonalcoholic beverages that contain natural or artificial sweeteners. The term does not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or are exclusively naturally sweetened using natural vegetable and/or fruit juice.
• Candy: Any preparation of sugar, honey or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops or pieces. The term does not include any preparation requiring refrigeration.

Iowa

The Iowa waiver will prohibit SNAP purchases of “all taxable food items as defined by the Iowa Department of Revenue.” The state will use Chapter 423 of the Code of Iowa and Iowa Administrative Code Chapter 701-220 to define taxable and nontaxable food items.

The waiver approval contains a list of food products that are subject to sales tax, which includes but is not limited to:

• Candy, candy-coated items and candy products, including gum, candy primarily intended for decorating baked goods and hard or soft candies including jelly beans, taffy, licorice and mints.
• Fruits, nuts or other ingredients in combination with sugar, chocolate, honey or other natural or artificial sweeteners in the form of bars, drops or pieces.
• Dried fruit leathers or other similar products prepared with natural or artificial sweeteners.
• Ready-to-eat caramel corn, kettle corn and other candy-coated popcorn.
• Caramel wraps, caramel or other candy-coated apples or other fruit; sweetened coconut; marshmallows; and granola bars, unless they contain flour.
• Carbonated and noncarbonated soft drinks, including but not limited to colas, ginger ale, near beer, root beer, lemonade, orangeade and all other drinks or punches with natural fruit or vegetable juice less than 50% by volume.
• Sweetened naturally or artificially sweetened water.

Arkansas

Under the Arkansas waiver, the state is banning the following items: “soda, low and no-calorie soda, fruit and vegetable drinks with less than 50% natural juice, other unhealthy drinks and candy.” The ban will not extend to flavored water, carbonated flavored water or sports drinks. It does not provide further clarification for “other unhealthy drinks.”

The waiver explains that the state will use the GS1 US product classification framework and standards, including the Global Trade Item Number (GTIN) (part of the UPC), to define ineligible foods. The waiver notes that GS1 US product classification standards offer industry-accepted categories to help businesses speak a common language when classifying and identifying products. However, it does not provide any further detail on how those standards will be applied or enforced under the waiver.

Idaho

Under the Idaho waiver, the state plans to ban soft drinks and candy, defined as:

• Soft drink: Any nonalcoholic beverage containing sweeteners. The definition does not include drinks with milk or milk substitutes, beverages with more than 50% juice and products that require preparation before consumption.
• Candy: Any preparation of sugar, honey or other sweeteners in combination with chocolates, fruit, nuts or other ingredients in the form of bars, drops or pieces. This definition does not include those items containing flour or requiring refrigeration.

Utah

The Utah waiver prohibits customers from using their SNAP benefits to purchase soft drinks, as defined by:

• Soft drinks: Any nonalcoholic beverage that is made with carbonated water and is flavored and sweetened with sugar or artificial sweeteners. This definition does not include a beverage that contains milk, milk products, soy, rice or other milk substitutes, or that is greater than 50% vegetable or fruit juice by volume.

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.

Look for the full article in the September issue of NACS Magazine.