In a first-of-its-kind move, Nebraska has become the first state to receive approval from the U.S. Department of Agriculture (USDA) to implement a two-year pilot program banning the purchase of soda and energy drinks with Supplemental Nutrition Assistance Program (SNAP) benefits.
The pilot, announced Monday by Nebraska Governor Jim Pillen and Agriculture Secretary Brooke Rollins during a farm tour in the state, is set to take effect January 1, 2026. Governor Pillen sent a letter to Rollins in early April expressing his intent to pursue a SNAP waiver.
The waiver, signed by Secretary Rollins, marks the first time the USDA has approved a state's request to change the statutory definition of food for SNAP purchases. Previously, SNAP recipients could buy any food or food product for home consumption, excluding alcohol, tobacco, hot foods and personal care items. With this waiver, soda and energy drinks will be added to the list of restricted items in Nebraska.
Nebraska is not the only state pursuing SNAP restrictions. Secretary Rollins has encouraged states to serve as “laboratories of innovation,” and several other states are also seeking SNAP waivers, with plans to ban additional items such as candy and other dessert foods. Under federal law, states can request waivers to modify SNAP rules if USDA determines the change would improve the program’s efficiency or effectiveness. States seeking similar restrictions are Arkansas, Colorado, Kansas, Louisiana, Indiana, Idaho, Iowa, Texas and West Virginia.
The pilot presents significant implementation challenges and costs for convenience retailers across Nebraska. Added complexity could lead to longer checkout times and confusion for both customers and staff, increasing the risk of friction between cashiers and SNAP recipients. Those with integrated point-of-sale systems will have to undergo significant IT updates to program which items are allowed and which are prohibited, something that will need to be updated regularly with new SKUs entering the market. Additionally, Nebraska retailers operating near the state’s borders may see SNAP customers choose to shop in neighboring states without such restrictions.
“Nebraska’s waiver approval could set a precedent that significantly affects how convenience retailers’ stock and sell products to SNAP customers,” said Margaret Mannion, NACS director of government relations. “Such restrictions will lead to operational changes and compliance challenges for stores already navigating a complex regulatory environment.”
As other states pursue similar waivers, retailers across the country will soon face a fragmented patchwork of SNAP rules that reshapes the role convenience stores play in providing accessible nutrition and serving low-income communities.