SNAP benefits are monthly funds provided to eligible low-income individuals and families to help them purchase food. These benefits are loaded onto an Electronic Benefit Transfer (EBT) card, which works like a debit card at authorized grocery stores, farmers markets and other retailers.

Eligibility is based on household size, income, assets and expenses. The vast majority of SNAP benefits, at 75%, are awarded to households at or below the poverty line. Further, 36% of SNAP benefits are received by households living at or below half of the poverty line. SNAP provides temporary food security to eligible seniors, the disabled, and families with young children, while also delivering strong returns for taxpayers and local economies. 

Most SNAP recipients are elderly, disabled, and/or have children. Eighty-four percent of all SNAP benefits go to a household with a child, older adult, or person with a disability. In fiscal year 2022, two in five SNAP participants were children.  

When Congress created food stamps in the 1960s, which has transitioned into today’s SNAP program, lawmakers drafted a clear statute to define eligible food within the program. “Eligible food,” as Congress intended, clearly excludes alcohol, tobacco, and hot foods, but it does not exclude any food items based on nutritional value, which is not defined by Congress.  

The list of SNAP eligible products, as determined by Congress and outlined by USDA, are fruits, vegetables, meat, poultry, fish, dairy products, breads, cereals, other foods such as snack foods and non-alcoholic beverages, and seeds and plants, which produce food for the household to eat. SNAP prohibits alcohol, tobacco, costlier hot ready-to-eat meals, non-food products, and more. However, hot foods may be purchased through the use of D-SNAP, which is a temporary disaster food assistance program that provides one month of benefits to people impacted by a natural disaster.

FMI—The Food Industry Association members are frontline facilitators of SNAP. The vast majority of SNAP benefits are redeemed through FMI retailers, and SNAP is a win-win. SNAP positively impacts local farmers, food producers and retailers while stimulating local economies and providing temporary food security to seniors, the disabled, and families with young children.

Thanks to investments and innovations from the SNAP-participating companies FMI represents, the SNAP program has become more efficient and more flexible to address unique needs among our customers.

Overpayments occur as an administrative error when a state distributes SNAP benefits at a higher amount than the beneficiary is eligible to receive. This can occur either at the fault of the agency or of the beneficiary, intentionally or unintentionally. 

Any inefficiencies or errors occurring during the administration of benefits is the responsibility of the states. As stewards of taxpayer funding, it is reasonable for the federal government to pursue reductions in the SNAP error rate—particularly since the vast majority of errors occur before beneficiaries even reach the retailer. Nevertheless, FMI retailers remain committed to enhancing SNAP efficiency and preventing fraud through ongoing investments and innovations.