This project estimates the reduction in federal spending on sugary drinks and other foods deemed unhealthful as a result of snap restriction waivers, and evaluates if snap participants buy more…

This project estimates the reduction in federal spending on sugary drinks and other foods deemed unhealthful as a result of snap restriction waivers, and evaluates if snap participants buy more healthful, less processed foods and beverages across all their purchases. Further, this project will determine if restricted snap expenditures and overall expenditures result in farmers receiving a greater share of snap dollars. To improve the nutritional quality of snap, USDA has approved six state waivers prohibiting the purchase of soda, candy, soft drinks, energy drinks, or other "unhealthy drinks" with snap benefits. At least five more states are expected to request similar waivers. This project will use high-resolution, near real time data on snap participant food and beverage spending and USDA's food dollar data series to understand: (1) the current level of snap benefits spent on the restricted items, (2) the extent and type of substitutions snap participants are making for the restricted items with their snap benefits, (3) the magnitude and extent to which participants use other funds to purchase restricted items, and (4) how spending changes impact agricultural producer revenue. Deliverables include reports and analyses that will give policymakers timely information about how waivers affect snap participant spending on more healthful foods and beverages and impacts on agricultural producer economic well-being. The outputs from this project will inform additional policy efforts, including adjusting or enhancing existing state restriction waivers to ensure USDA nutrition programs are spending government funds efficiently and to improve the health of government assistance program participants while also understanding how restrictions may influence the share of the food dollar expenditure that goes to the farm sector. OCE will exercise authority under 7 U.S.c 3318 (e) to award this noncompetitive cooperative agreement.