SNAP Funding Lapse Amid Ongoing Government Shutdown Threatens Independent Grocers And Community Food Access
FOR IMMEDIATE RELEASE
Chicago, Illinois [October 31, 2025] As the federal government shutdown drags into its fourth week, the looming interruption of the Supplemental Nutrition Assistance Program (SNAP) presents a serious threat not only to millions of Americans who rely on it for basic nutrition, but also to the independent grocers and communities that depend on it as economic and nutritional lifelines.
“Not only would a cut in SNAP be devastating to my customers who live in the poorest county in the United States, it would be overwhelming to my team,” said R.F. Buche, President of G.F. Buche Co. “Loss of sales will no doubt mean a loss of available hours and potential loss of jobs for people I consider my family. Cutting jobs and hours in a place where jobs are extremely scarce would be devastating to all involved.”
The broader food retail system is also at risk: a projected shortfall in SNAP-funded purchases would ripple upstream to wholesalers, distributors, and food suppliers, compounding economic damage throughout the shutdown.
“SNAP is one of the most effective public-private partnerships in American history,” said Stephanie Johnson, RDN, Group Vice President of Government Relations at the National Grocers Association. “Not only is there a high return on investment for taxpayers, but SNAP is a powerful economic engine for communities of all sizes, fueling the creation of over 389,000 local jobs”.
Why independent grocers and their communities are vulnerable
“Independent grocers are essential infrastructure for community health and economic strength,” said Ertharin Cousin, Founder and CEO of Food Systems for the Future. “As policymakers navigate this shutdown, they must understand that SNAP cuts don’t just hurt families, they dismantle local economies built around food access.”
Independent grocery stores often serve as vital community infrastructure, acting not only as retail outlets but as anchors for employment, local commerce, and access to fresh, affordable food. When SNAP funding is interrupted:
Independent grocers can lose a substantial portion of their customer base overnight.
With razor-thin margins, reduced sales immediately translate into layoffs, shorter hours, smaller fresh inventories, and potential closure.
Communities lose not only a source of healthy food, but also a vital anchor of local economic activity.
Grocery gaps deepen, particularly in low-income and rural areas, further limiting access to nutritious food and increasing health disparities.
Key facts & impacts
Data from FSF and partners show that SNAP feeds about 42 million Americans each year, nearly 40 percent of them children (USDA, 2023). Cuts to the program could endanger more than 27,000 retailers that rely on SNAP redemptions to sustain operations in rural and low-income communities (Center for American Progress, 2025). For many independent grocers, SNAP and WIC account for up to 70 percent of sales (FSF, 2025). When benefits drop, stores face immediate declines in demand, reduced hours, and losses of perishable foods.
“This moment requires both urgency and partnership,” Cousin said. “Public and private actors must work together to protect the grocery ecosystem that keeps our nation nourished and our communities strong”.
About the FSF Institute
Food Systems for the Future (FSF) Institute is a U.S. 501 (c) (3) organization led by Ambassador Ertharin Cousin. Through deep sector expertise, a network of advisors, and institutional partnerships, FSF addresses malnutrition with an economically sustainable climate lens. FSF is dedicated to delivering food as health, creating an ecosystem that ensures equitable access to affordable, nutritious food, particularly in historically underserved communities.
For the past two years, FSF Institute has worked to address structural barriers facing independent grocers and elevate solutions that sustain nutritious food access in low-income communities. Through its multi-phase Grocery Retail for All initiative, supported by the PepsiCo Foundation, FSF has conducted a national landscape assessment, published Grocery Retail for All: Affordable, Nutritious Food in Every Neighborhood., and convened a 2024 summit with The Global Food Institute at The George Washington University to advance equitable grocery models. In June 2025, FSF hosted the webinar “Understanding the Business Impact of SNAP: Insights from Independent Grocers”, bringing together grocers and experts to discuss the operational realities of food access in underserved areas.
Learn more at www.fsfinstitute.net
Media Contact:
Erika Contreras
Communications Manager