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Open in hackernews

USDA Threatens Stores Giving Discounts to People on Food Stamps

https://newrepublic.com/post/202604/usda-threatens-grocery-stores-discounts-people-food-stamps
46•mrtesthah•3h ago

Comments

duxup•3h ago
Citizens offering kindness to people in need will not be tolerated.

Christian America's support of these guys has to be a pretty big disappointment to their god...

shawn_w•2h ago
Nah, it's right up Supply Side Jesus' alley.

https://www.beliefnet.com/news/2003/09/the-gospel-of-supply-...

taylodl•3h ago
Using poor, hungry people as pawns in their political games is evil. Full stop.
chasd00•2h ago
Read the article and then you'll put away your pitchforks. A basic rule is snap recipients can't be treated differently than non-program members which seems reasonable.

"At issue is SNAP’s “Equal Treatment Rule,” which bars stores from either discriminating against people in the program or offering them favorable treatment. "

pseudalopex•2h ago
Forbidding charging SNAP recipients more is reasonable. Why is it reasonable to forbid charging SNAP recipients less?
throwaway378400•2h ago
I was thinking the same thing, it feels neutral at best, but anything potentially bad about it is probably for non-program members.

If you give SNAP beneficiaries a discount that isn't gov subsidised, all things same everyone not in SNAP might theoretically pay more.

It sounds reasonable, but tinfoil time, unless they normally have people watching this, it feels like the USDA was told or anticipated this.

So much of this gives "Look what you made me do" vibes.

pseudalopex•1h ago
> If you give SNAP beneficiaries a discount that isn't gov subsidised, all things same everyone not in SNAP might theoretically pay more.

SNAP increases demand for eligible goods. Increased demand increases prices.

People pay taxes to fund SNAP. Private discounts for SNAP recipients could reduce SNAP expenses theoretically.

datavirtue•1h ago
Yep, soft drink companies and processed food merchants laugh all the way to the bank.
datavirtue•1h ago
It was done in bad faith. The Trump administration is well known for this hateful, spiteful behavior. They just have to control everything. No exceptions.

This whole thing with SNAP is an experiment by them. They are trying to introduce "temporary" measures and situations to condition people. The Nixon zombies running the Republican party have dreamt of this opportunity for decades.

sslayer•1h ago
To be a fair program it should not cause an undue burden on the participating stores.

Store A could advertise that it will provide a 10% discount to SNAP recipients. Now Stores B,C,D,etc.. have to match or beat to be competitive. This would ultimately introduce competitiveness into the market where it was meant to assist those less fortunate.

ElevenLathe•1h ago
Offering a discount is assisting the less fortunate, as far as I can tell: They will get more food per dollar on their bridge card, costing the government less. This is (almost) the same dynamic as forbidding Medicare to negotiate drug prices, isn't it?

I suppose chains could work around this by just lowering prices in neighborhoods with a lot of people on SNAP, which would actually be even better IMO, because it means lower food prices for entire low income neighborhoods, possibly even pushing shoppers from other neighborhoods to shop in these places and bring more money into the community. I would drive to the other side of the tracks if all my groceries cost 10% less.

altairprime•1h ago
To do that without being abused by rich bargain-hunters, you can add in the Costco membership model with geo-discounted signups.
ElevenLathe•22m ago
Now you're back to discriminating instead of treating all purchasers the same way, which was the whole point of the theorized workaround.
datavirtue•1h ago
In Ohio we call that "driving to Kentucky."
SpicyLemonZest•1h ago
The relevant regulation (https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/s...) says "No retail food store may single out coupon users for special treatment in any way.". Imagine, for example, a retailer that offers SNAP discounts only on the worst cuts of meat they otherwise have trouble selling; you can imagine why a SNAP recipient might feel uncomfortable with that, even though in principle it's a Pareto improvement.
pseudalopex•1h ago
> Imagine, for example, a retailer that offers SNAP discounts only on the worst cuts of meat they otherwise have trouble selling; you can imagine why a SNAP recipient might feel uncomfortable with that, even though in principle it's a Pareto improvement.

People I knew who received food assistance would have welcomed the Pareto improvement. And this would not explain why a 10% discount for all eligible goods should be forbidden for example.

datavirtue•1h ago
They can shop anywhere they like.
tpmoney•1h ago
It a consumer protection and fair competition thing (and probably anti-fraud too). There are similar rules in place for medicare/medicaid too. Gifts of any kind to induce a patient to choose your facility over any other are forbidden. That's why if you look really closely at ads at pharmacies encouraging Medicare/Medicaid people to switch, even though they talk about all these free things, they're all things that are free if you're on Medicare/Medicaid regardless of what facility you choose. I worked for a place one time that was sued by the feds for giving a $10 grocery store gift card to Medicare/Medicaid recipients if they were the source of a referral. The referral didn't even have to use the company's services, just answer they heard about them from X patient if and when they called for more information. But that was enough to be considered a violation of the laws.

I think the broad theory goes that people receiving these benefits are in pretty tight financial straights and some benefit or discount that might be "nice" to someone else is "essential" to them and may cause them to use your services even when that isn't the best use of their benefits for the purposes of those benefits.

pseudalopex•45m ago
Switching grocers does not require registration. Many people shop multiple grocers even.
Steven420•18m ago
People that don't work should not get preferential treatment over people that actually contribute to the economy. Many people that need food stamps are just temporarily in a bad position but many are just taking advantage
giraffe_lady•2h ago
Gleefully exploiting a reasonable rule against the clear spirit of its authors to further immiserate the most vulnerable members of our society? My pitchfork is staying out thanks.
anthem2025•1h ago
Can you find any examples, ever, of the government threatening stores for giving discounts?

They are trying to starve people as a political tool.

tpmoney•1h ago
Not for food stamps, but here's the feds going after a pharmacy for gift cards and co-pay waivers from 2015: https://www.justice.gov/usao-ednc/pr/pharmacy-company-agreed...

Here's one for a pharmaceutical company, the details aren't quite clear but it sounds like they were funding co-pay assistance programs for their medications specifically but not others: https://www.justice.gov/usao-ma/pr/teva-pharmaceuticals-agre...

Here's a broader NPR article from 2008 covering the same idea: https://www.npr.org/sections/health-shots/2018/05/09/6091508...

Here's a 2024 article on the possibility of subsidizing outpatient housing for drug rehab being a violation of the statutes: https://www.startribune.com/many-minnesotans-in-addiction-tr...

Here's a attorney website noting that any exchange of cash for EBT benefits is a violation of the law: https://usda.attorney/snap-violation/ and a discount that is explicitly for EBT users is almost certainly a violation of that.

Realistically the fact that there is an entire process for getting a waiver for "incentives" for SNAP recipients (https://www.fns.usda.gov/form/snap-incentives), and that particular site has been up since before Trump took office and this one from 2023 for a government program that specifically says you must apply for a waiver: https://www.fns.usda.gov/snap/healthy-incentives suggests that this is another one of these cases in this administration where the brokenness of the system that has always been there is only finally coming to light for a lot of people.

Conservatives were not wrong when they said (paraphrasing) that a government powerful enough to give you everything is a government powerful enough to take away everything too. It's just in this weird timeline we find ourselves in, it's the "conservative" party that's being the monster they feared for decades.

SpicyLemonZest•1h ago
I've still got my pitchfork out. As the reminder says, discounts are allowed with a USDA waiver, so they should either offer a temporary blanket waiver or suggest some better way to mitigate the impact on SNAP recipients.
lcnPylGDnU4H9OF•1h ago
> they should either offer a temporary blanket waiver or suggest some better way to mitigate the impact on SNAP recipients

Without something like this, why should one assume good faith behind the change? The people chanting "the cruelty is the point" seem to be vindicated rather clearly.

altairprime•1h ago
Well, they are slightly off course: both the starvation and general cruelty are the methods, in service of a much uglier point.
lcnPylGDnU4H9OF•13m ago
> a much uglier point

If not cruelty, what?

Power? To do what, if not "be cruel in service to oneself without repercussion"?

SpicyLemonZest•1h ago
I'm not even sure "good faith" is the right word. Trump stated explicitly today that he does not want SNAP benefits to be paid until he wins the shutdown fight. But a lot of people have this idea that being politically earnest is cringe, so it's not an option to simply say it's bad he won't explore other options to pay the benefits. You have to make up some clever reason why the issue is more complicated than it sounds, and maybe Trump had no choice, no matter how much that requires you to ignore context and court orders and the stated positions of the politicians involved.
taylodl•1h ago
Are you familiar with the term "malicious compliance"?

Brought to you by the administration who doesn't see fit to follow any other law, but boy oh boy will they enforce it if it hurts others. Sorry - it's evil.

eminence32•2h ago
Relevant links:

https://www.fns.usda.gov/snap/ebt/retailer/retailer-notice/r...

https://www.fns.usda.gov/snap/fr-022124

> Coupons shall be accepted for eligible foods at the same prices and on the same terms and conditions applicable to cash purchases of the same foods at the same store except that tax shall not be charged on eligible foods purchased with coupons.

Obviously lawyers are going to be involved in interpreting these rules. But as a lay person, I wonder: a store cannot charge a different price to someone who is buying food with a SNAP coupon. But for someone who has SNAP benefits, but isn't using a SNAP coupon to buy food (you know... because the government isn't funding the program), do these rules still apply?

giraffe_lady•1h ago
> But for someone who has SNAP benefits, but isn't using a SNAP coupon to buy food (you know... because the government isn't funding the program), do these rules still apply?

The lawyer that does pro bono work for the food bank I volunteer with believes this rule doesn't apply in this case for exactly that reason. But the legal challenges will take time and the threat is effective now regardless so it barely matters.

lcnPylGDnU4H9OF•11m ago
> the threat is effective now

What is the actual threat? Assuming a grocery chain ignores the interpretation, what troubles could they face?

pseudalopex•1m ago
They could be disqualified from SNAP or fined.[1]

[1] https://www.ecfr.gov/current/title-7/subtitle-B/chapter-II/s...

dragonwriter•54s ago
Banning from the EBT program, civil fines, and, potentially, criminal charges (I’m not sure you can wedge discounts for SNAP beneficiaries into any of the criminal violation categories though it seems like if you did it for cash purchases by SNAP beneficiaries as a way of trying to help deal with the suspension or reduction of SNAP benefits, it could probably be argued to be indirect trafficking—using SNAP payments to subsidize other inventory—which is criminal.)
aerostable_slug•2h ago
The USDA notice included the fact that retailers can get a waiver from Equal Treatment provisions, but (of course) the author failed to mention that tidbit.

https://www.fns.usda.gov/form/snap-incentives

FireBeyond•2h ago
Oh, and just how quickly do you think those waivers will be processed during the government shutdown?