USDA Tells Stores Not to Offer Discounts for SNAP Users

NEW YORK, NEW YORK – OCTOBER 30: An EBT sign is displayed on the window of a grocery store on October 30, 2025 in the Flatbush neighborhood of the Brooklyn borough in New York City. Supplemental Nutrition Assistance Program (SNAP) benefits and other assistance are set to stop on November 1st amid a federal government shutdown that has been going on for 29 days and is the second-longest shutdown in the nation’s history. New York Gov. Kathy Hochul declared a state of emergency for extra emergency funds and personnel to be deployed, as SNAP payments will be suspended. About 42 million Americans are expected to lose access to their benefits. (Photo by Michael M. Santiago/Getty Images)

The United States Department of Agriculture issued a stern reminder to grocery stores and other retailers that they must not offer special discounts to customers using the Supplemental Nutrition Assistance Program (SNAP) unless a specific waiver has been approved. The notice underscores what the USDA calls the “Equal Treatment Rule,” which requires that prices and terms of sale be identical for EBT-card customers and all other shoppers.

The rule, found in federal regulations under 7 C.F.R. § 278.2(b), states that stores “must offer eligible foods at the same prices and on the same terms and conditions to SNAP-EBT customers as other customers.” The USDA’s message adds: “Offering discounts or services only to SNAP–EBT customers is a SNAP violation unless you have a SNAP equal treatment waiver.”

The reminder arrives amid heightened concerns over food security and benefit delays during the ongoing federal government shutdown. Retailers in states such as Texas were specifically warned that offering targeted price reductions to SNAP recipients could trigger penalties. One industry analyst said the tone of the communication is more like “a threat” than a friendly reminder.

Retailer Response and Implications

Some retail owners view the enforcement notice as contentious during a time of crisis. “It’s hard not to want to help our neighbors,” one small-store owner in a low-income community told the Space Coast Rocket. “But the rules say we cannot give a break just because someone uses SNAP.”

Observers say the USDA could have issued a blanket waiver allowing discounts, but opted instead to enforce the existing rule. The USDA has authority under 7 U.S.C. § 2014(h)(1) and related regulations to waive certain SNAP rules during emergencies, including retailer treatment standards. Anti-hunger advocates argue that restricting retailers from offering voluntary discounts could undermine efforts to ease food insecurity in vulnerable communities. “The message effectively prohibits stores from providing discounts, meal vouchers or other forms of targeted assistance to households,” one article noted.

USDA officials argue that the equal treatment rule prevents discrimination and ensures that SNAP customers pay the same price as others. “SNAP is designed to give low-income families access to nutritious food, not provide preferential pricing to only one class of shopper,” an agency spokesperson said. (Note: quote paraphrased for clarity.) The rule is embedded in the retailer training guide and is part of the eligibility and compliance framework for authorized stores.

Still, the timing of the notice, during a period of benefit delays and economic strain, has sparked debate over the role of retailers, agencies and community supports. When asked whether the agency would offer discretionary waivers for special discounts, USDA said it would consider requests in accordance with law.