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NGA backs bill to widen SNAP online grocery participation

Expanding SNAP Options Act would lower hurdles for independent grocers

Russell Redman

July 7, 2020

4 Min Read
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The National Grocers Association (NGA) has endorsed the Expanding SNAP Options Act of 2020, which would make it easier for independent grocers to participate in the SNAP Online Purchasing Pilot.

Introduced by U.S. Sens. Dick Durbin (D., Ill.) and Tammy Duckworth (D., Ill.), the bill aims to enable SNAP online grocery purchasing at more stores by reducing obstacles for smaller retailers. The lawmakers noted that online SNAP transactions currently are limited to a few U.S. Department of Agriculture-approved retailers because of technical and financial barriers, and in many states the only options are Walmart and Amazon.

What’s more, even though some retailers allow SNAP for in-person grocery pickup, options are limited because grocers must have certain point-of-sale technology, they said. As a result, SNAP benefits recipients have fewer safe food options, and independent retailers, small farmers and other food providers from the economic benefit of SNAP payments.

“NGA is pleased to support the Expanding SNAP Options Act of 2020. This legislation will be instrumental in helping grocers process online SNAP payments, allowing them to expand their e-commerce offerings to their SNAP customer base, and benefit low-income households, the elderly and disabled Americans,” NGA President and CEO Greg Ferrara said in a statement.

Related:USDA’s SNAP online grocery pilot grows to more than 40 states

Under the SNAP Online Purchasing Pilot, launched in 2019, recipients of Supplemental Nutrition Assistance Program (SNAP) benefits can shop and pay for groceries online from authorized retailers using their electronic benefits transfer (EBT) cards. The online purchasing program, managed by the USDA’s Food and Nutrition Service (FNS), is now live in 39 states and the District of Columbia. Four other states — Kansas, Mississippi, South Carolina and Utah — have been approved to implement the service but haven’t yet gone live.

Greg Ferrara-NGA Show 2020-opening keynote.jpg

Amazon and Walmart are the authorized SNAP online retailers working with all states. Wakefern Food Corp.’s ShopRite banner is working with Connecticut, Maryland, New Jersey, New York and Pennsylvania, while the retail grocery cooperative’s The Fresh Grocer banner is working with New Jersey and Pennsylvania. Wright’s Market is working with Alabama.

In Illinois, where 2 million people receive SNAP benefits, only Amazon and Walmart have been authorized to handle SNAP online grocery transactions. “Unfortunately, and in the middle of a public health crisis, many Illinois SNAP recipients are shut out of being able to access online shopping options at many supermarkets and grocery stores,” according to Duckworth. “I’m proud to introduce legislation with Senator Durbin that will provide grocers of all sizes with the technical assistance needed to ensure all families have the same opportunity to safely purchase groceries online.”

Related:Kroger accepts SNAP benefits for grocery pickup

The Expanding SNAP Options Act would create a technical assistance center to support to independent grocers that lack capacity and resources to support SNAP online purchasing. In addition, the legislation calls for the development of an online and app-based portal for EBT redemption to support smaller retailers in offering products for online SNAP purchasing.

The bill, too, would provide grants to retailers needing financial assistance to offer SNAP online as well as expand SNAP online purchasing to all states.

NGA called setting up for SNAP online transactions “a lengthy process,” noting that it requires certain POS technology and website functions, USDA approval and a testing period.

“As the food retail industry experiences a shift towards online transactions during the COVID-19 pandemic, it’s critical for all independents to have an opportunity to offer SNAP online, a process that can be resource- and labor-intensive,” Ferrara added. “This legislation offered by Sens. Durbin and Duckworth will benefit retailers who want to participate in SNAP online but lack the resources to do so.”

Nearly 40 million Americans now rely on SNAP benefits, and that number has soared amid the coronavirus pandemic, as more than 45 million Americans have filed for unemployment. Also, with stay-at-home orders and social distancing, many Americans have turned to online grocery pickup and delivery services to avoid going to stores and minimize exposure to COVID-19. The past couple of months have seen the USDA clear more states to offer SNAP online purchasing, but Durbin and Duckworth said wider access to the service is needed.

“As we face serious hunger needs during the pandemic, and with consumers opting to get groceries delivered to safely avoid crowds at the store, we must expand online SNAP buying,” Durbin stated. “Creating an online portal for more retailers to use will expand access to SNAP benefits and food programs for Americans in need. This important step will help millions of people safely put food on the table, especially in rural areas and from smaller community retailers.”

U.S. Rep. Robin Kelly (D., Ill.) is expected to soon introduce an Expanding SNAP Options companion bill in the House of Representatives. NGA said it’s working to pass the legislation through Congress before it adjourns for the August recess.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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