SNAP Soda Bans Cut Purchases by 12%
A new study finds bans on buying soda with SNAP benefits led to a 12% drop in sugary drink purchases, with no evidence recipients switched to spending
A new study reports that state bans on purchasing soda with federal food assistance benefits led to a 12% decline in sugary drink buys. The research, a working paper from Stanford University, MIT, and the University of Chicago, examined the first half of 2026 in the initial ten states to implement such restrictions.
This decline equates to roughly 34 fewer 12-ounce cans of soda and similar drinks per person each year. Crucially, the report found SNAP recipients did not compensate by using their own money to buy the banned sugary drinks.
Policy Impact on Purchasing Behavior
The findings challenge a common economic assumption. Many believed that restricting SNAP purchases would not change overall grocery habits, theorizing that consumers would simply spend more of their own cash to buy the same items. The new report, however, finds "no evidence of such substitution" in states that banned only soda, excluding fruit juices and energy drinks.
In states where other sugary drinks remained eligible for purchase with benefits, shoppers shifted up to 39% of their consumption to those still-covered beverages. At least 23 states have now had waivers approved to ban sugary drink purchases with SNAP dollars.
The Scale of SNAP Spending
SNAP accounts for about 12% of total grocery spending nationwide, according to the National Grocers Association. Recipients also tend to spend 19% more on groceries each month than non-recipients, data from Numerator shows. This gives them considerable influence over retail sales.
| Item | Estimated Impact |
|---|---|
| Soda purchase decline | 12% in ban states |
| Equivalent cans per person | 34 fewer 12-oz cans per year |
| States with approved waivers | At least 23 |
| States studied for initial impact | 10 |
Public Health and Industry Effects
Policymakers and nutrition experts have considered SNAP restrictions and sugar taxes as tools to improve public health and lower rates of chronic diseases like diabetes. The study estimates that banning all sugary drinks from SNAP would generate roughly $1.1 billion in annual benefits, with 70% coming from reduced healthcare costs.
While all states with waivers restrict sugary drinks in some form, fifteen also restrict candy. A separate Numerator study projected a $300 million sales loss for the confectionery industry from these rules. Hershey CEO Kirk Tanner said in July that the company had seen some effects in early-adopting states, but sales were largely within expectations. Hershey is working with retailers to monitor the restrictions' shelf-level impact.
Legal Challenges and Future
The future of these SNAP purchasing bans remains uncertain due to legal challenges. A court ruling previously overturned restrictions in five states after recipients filed lawsuits, potentially paving the way for more legal action.
