Families across the US could soon find it more difficult to buy basic groceries.
A sweeping report has revealed that a staggering 27,000 retailers across the country are likely to experience financial hardship due to cuts to food assistance.
In some places, this means communities could see their local grocer close down for good.
The analysis, from progressive think tank The Center for American Progress, identified retailers, mostly in rural areas, which are likely to bear the brunt of cuts to the Supplemental Nutrition Assistance Program (SNAP).
SNAP provides food benefits to low-income families to supplement their grocery shopping.
The program, which was formerly known as food stamps, has been around in some form since 1939.
But SNAP is seeing the largest cuts in its history under President Trump’s One Big Beautiful Bill Act.
Cuts to SNAP will not just affect Americans enrolled in the program but will also pull the rug out from under grocers, farmers, and the broader economy, according to the research.
A sweeping report has revealed that a staggering 27,000 retailers across the country are likely to experience financial hardship due to cuts to food assistance
Republicans argue that the program, which is used by about 42 million people, is badly managed and discourages Americans from working.
They say the changes will restore ‘integrity’ to SNAP.
The new law will also reduce federal spending on the program by around $187 billion over the next decade, according to the nonpartisan Congressional Budget Office.
‘Our section of the One Big, Beautiful Bill restores integrity to the Supplemental Nutrition Assistance Program, provides relief to farmers, invests in the future of rural America, and prevents the largest tax increase on American families,’ said House Agriculture Committee Chairman Glenn Thompson, in May.
‘We ensure that SNAP works the way Congress intended it to, by reinforcing work, rooting out waste, and instituting long-overdue accountability incentives to control costs and end executive and state overreach.’
SNAP is a fully electronic system which means that each month beneficiaries receive a set amount loaded onto a card, which can then be used like a debit or credit card in stores.
This can be used at major grocery stores, dollar stores and farmers’ markets – and to order food online from retailers such as Amazon.
Among the changes made by the legislation is upping the eligibility criteria, making states assume some of the costs and penalizing them for making erroneous payments.
While larger grocery chains like Walmart or Target may be able to sustain the hit of cuts to the program, smaller and independent stores rely on the revenue from SNAP beneficiaries.
This means the impacts of cuts to SNAP are likely to be felt most strongly in areas with the highest rates of SNAP participation.
In these communities, even if a family does not personally see their budget for food reduced, community residents could see their local grocer close, The Center for American Progress (CAP) said.
SNAP is seeing the largest cuts in its history under President Trump’s One Big Beautiful Bill Act
House Agriculture Committee Chairman Glenn Thompson said the changes would bring ‘integrity’ back to the SNAP program
Families that see their benefits reduced or even taken away entirely will have fewer resources to pay for food.
This means that more people will go hungry, the research claims, and sales at authorized SNAP retailers will fall.
To determine which businesses are most likely to be harmed by cuts, CAP looked at the top 10 percent of counties with the highest SNAP participation rates, and places with a below-average number of SNAP retailers in relation to participants in the program.
The report identified 27,266 businesses in 303 counties across the US that met both criteria.
This list includes 3,721 smaller grocery stores, 994 specialty stores, and 600 farmers and markets.
The amount Americans receive from the program depends on their location and household make up.
On average, beneficiaries receive around $6.16 a day, according to the Center on Budget and Policy Priorities.
According to CAP, access to stores that accept SNAP fell in areas with higher participation.
It found 95 percent of counties with the highest rates of people receiving SNAP have limited access to retailers that accept the benefits.
The amount Americans receive from the program depends on their location and household make up
Stephanie Johnson from the National Grocers Association (NGA)
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Rural areas are also disproportionately represented among the high-risk counties.
'Some stores in low-income neighborhoods have more than 50 percent SNAP sales,' said Stephanie Johnson from the National Grocers Association (NGA).
'A 20 percent cut to SNAP would make it very difficult for stores like this, in food deserts, to remain open.'
A spokesperson from the NGA told the Daily Mail that many aspects of the new legislation remain uncertain, such as each state's error rates and its ability to handle the cost-share.
'The bill's work requirements took effect immediately upon signing, and these changes will have an impact on the number of participants eligible for SNAP,' they said.
'While we appreciate the efforts of policymakers to provide certainty through tax provisions, for some grocers serving low-income areas, these changes in SNAP may present steep challenges.
'Independent grocers run on tight margins, and for some, stable SNAP benefits are what make it possible to keep stores open in underserved communities.'
The CAP report also warned that grocery workers could suffer job losses as a result of the cuts.
The NGA spokesperson added: 'The SNAP isn't just a vital safety net for families, it is also a powerful economic driver that supports over 388,000 jobs across the food industry.'