Risks from US SNAP cuts vary by region and consumer category

New federal rules governing the Supplemental Nutrition Assistance Program (SNAP) are starting to take effect under the Republican reconciliation bill that become law in July; SNAP provides monthly funds to low-income households for their grocery expenditures.

• Looming cuts to the federal food assistance program, known as SNAP, will weigh on the level of consumer spending by up to 0.5% nationally.
• SNAP plays a key role in funding grocery expenses of low-income households.
• Forthcoming cuts could reduce food-at-home consumption by 0.7%-0.8%.
• Not all food retailers are equally vulnerable; some may benefit from increasing traffic from shoppers seeking out discounts.
• There will be negative spillovers from the SNAP cuts to other consumer spending categories such as clothing, food away from home, and personal care.