USDA email warns stores: discounts for SNAP users could violate federal law

Millions of Americans face reduced SNAP benefits due to funding lapses, prompting organizations to offer assistance. However, retailers are prohibited by the USDA from offering discounts to SNAP recipients. The USDA has issued notices reminding retailers of the "equal treatment rule," which historically prevented discrimination against SNAP customers. This rule is now being applied to prevent offering lower prices to these beneficiaries. Grocery stores regularly offer discounts, making this USDA stance unusual. Penalties for violating this rule are unclear, but could include fines or losing the ability to accept SNAP. Some retailers who had planned discounts have since retracted them after receiving the USDA's notice. DoorDash and Instacart, however, have received regulatory waivers allowing them to adjust service and delivery fees for SNAP beneficiaries. These waivers specifically exempt them from the "equal treatment" requirement. The USDA's actions create uncertainty for retailers and SNAP recipients navigating these benefit changes.