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Court Vacates USDA Approvals for State SNAP Purchase Limits

The ruling forces a legal test over the limits of agency authority.

Overview

  • A federal district judge last week vacated USDA approval letters for pilot waivers that would have barred some SNAP purchases in Colorado, Iowa, Nebraska, Tennessee and West Virginia, ruling the agency exceeded the statute’s definition of “food” and failed to follow required procedures.
  • The USDA said it remains committed to restricting 'junk food' purchases under the Make America Healthy Again initiative but has not announced an appeal, leaving the policy in legal and regulatory limbo.
  • Arkansas announced it will implement a ban on using SNAP benefits for candy and soda this week and has prepared a banned-items list and a shopper app to help stores and beneficiaries follow the new rules.
  • Retail and grocer groups warn the restrictions will create large implementation costs and checkout burdens, with industry estimates of roughly $1.6 billion in initial expenses and ongoing compliance headaches for small stores.
  • The dispute sets up three possible paths forward — an appeal, formal notice-and-comment rulemaking under the pilot statute, or congressional action — and could directly affect the program used by about 42 million Americans while raising questions about enforcement and food-access impacts in states like Arkansas.