Overview
- USDA says it will halt SNAP disbursements starting Nov. 1 if the shutdown persists and will not use roughly $5–6 billion in contingency reserves, which it argues are limited to disasters.
- A coalition of 25 states and the District of Columbia filed suit to keep benefits flowing and is seeking a temporary restraining order at the Oct. 30 hearing before Judge Indira Talwani.
- Nearly 42 million people could miss monthly aid, including millions of children and seniors, as attorneys general contend the agency previously allowed contingency funds for shutdown coverage.
- States and communities are mobilizing stopgaps, with Montgomery County approving about $8 million for local aid, Virginia issuing state-funded weekly EBT payments, and Maine businesses offering free food.
- Grocers and analysts warn of immediate shifts toward lower-margin staples and weaker discretionary spending, though missed benefits are expected to be paid retroactively once funding is restored.