The world’s richest nation is on the brink of a hunger crisis. As the US federal government shutdown stretches into its second month, the Department of Agriculture (USDA) has warned that it will run out of funds to pay food benefits by 1 November, leaving 42 million Americans, one in eight, without monthly food assistance.
What is SNAP?
The Supplemental Nutrition Assistance Program (SNAP), formerly known as “food stamps,” is America’s largest anti-hunger initiative. It provides monthly benefits to low-income households to buy groceries through Electronic Benefit Transfer (EBT) cards — debit-style cards accepted at supermarkets, local grocers, online retailers, and farmers’ markets.In 2024 the program supported over 42 million people and pumped more than $120 billion into the economy. Funded and administered by the USDA, SNAP underpins everything from farm production to retail logistics.
How it works
Eligibility is based on income, household size, expenses, and immigration status. Most lawful residents qualify after five years in the US, though children, refugees, and special-visa categories are exempt.
- Spending rules: Benefits can only be used for food prepared at home, not hot or restaurant meals (unless a state joins the Restaurant Meals Program).
- Monthly caps: After the 2024 Cost of Living Adjustment (COLA), a family of four can receive up to $973 per month.
- Digital access: Recipients can order groceries online at Amazon,
Walmart , Target and regional chains — a post-pandemic shift that’s being studied worldwide.
More than social aid: An economic engine
According to the USDA Economic Research Service, each dollar spent through SNAP generates between $1.50 and $1.80 in economic activity.
- Retail effect: Walmart and Amazon capture the largest share of SNAP transactions, especially online.
- Stabiliser: During recessions, SNAP spending rises automatically, keeping grocery markets afloat.
- Farm support: SNAP acceptance at farmers’ markets boosts local agriculture.
Globally, SNAP-driven consumption affects food imports and commodity prices, influencing exporters from Latin America to India.
The shutdown shock
On 28 October 2025, a USDA memo sent to state agencies and later confirmed to Reuters and Bloomberg stated: “At this time, there will be no benefits issued November 01.”The memo, attributed to Stacy Dean, Deputy Under Secretary for Food, Nutrition and Consumer Services, added that “the well has run dry.”A USDA spokesperson clarified to Bloomberg that the department’s contingency and disaster relief funds are “legally restricted and cannot be used for regular SNAP payments.”If no appropriations bill passes, roughly $8 billion in food aid will cease, affecting one in eight Americans.
Why it’s happening
Earlier this year, the 2025 Farm Bill negotiations under a Republican-controlled Congress resulted in a $6.4 billion cut to SNAP funding over the next fiscal year. The reduction, first reported by Bloomberg (Sept 2024), limited COLA adjustments, slowed digital-EBT pilots, and shrank USDA reserves.The ongoing shutdown stems from a budget impasse between President Donald Trump’s administration and Democratic lawmakers over spending caps and welfare oversight.
- At a press briefing on Capitol Hill (Oct 27), House Speaker
Mike Johnson said: “Trump trusts us to fix this mess. Democrats are appeasing Marxists while Americans go hungry.” - In response, Senate Majority Leader Chuck Schumer told reporters: “If Republicans don’t reopen government, we will see a hunger crisis unseen since the Great Depression.”
Human stories behind the numbers
In Maine, single mother Kasey McBlais told the Associated Press she plans to delay paying utility bills to feed her children: “My children won’t go hungry, but we’ll have to choose which bills can wait.”In Massachusetts, Sharlene Sutton, a mother of four who left her job to care for an epileptic child, said: “I’m not worried about myself, it’s about the kids. Where am I going to get food from?” (AP interview, Oct 29)
States and charities step in
Governors in Louisiana, Vermont, Virginia and New York have authorised temporary extensions of SNAP using state funds. New York Governor Kathy Hochul announced $30 million in emergency food aid on Oct 29, promising: “No family in New York should go hungry because of Washington’s gridlock.” Yet the USDA cautioned states that they “will not be reimbursed for these payments.”Charities are overwhelmed. John Sayles, CEO of the Vermont Foodbank, told Reuters: “The charitable food system doesn’t have the resources to replace all those food dollars.”In New Mexico, Roadrunner Food Bank CEO Katy Anderson said to AP: “We’re already seeing panic. We serve 83,000 households a week this could double overnight.”
The economic ripple
According to Kate Bauer, an economist at the University of Michigan’s School of Public Health, “SNAP is the foundation of economic support for many food retailers. The impact will ripple far beyond the households receiving aid.”USDA economists estimate that a one-month halt could erase $13 billion in consumer spending, hitting small grocers, rural economies, and large chains alike.
The global dimension
SNAP’s shockwave may reach overseas. Reduced US food imports could dampen demand for grains, produce, and processed goods from Latin America, India, and Southeast Asia. Policymakers in the UK, EU and India have studied SNAP’s digital-EBT model; its breakdown could stall similar fintech-driven welfare plans abroad.
Bottom line
If Washington fails to end the shutdown, America’s $120 billion nutrition safety net could collapse plunging millions into hunger and sending economic aftershocks through farms, retail chains and global trade.As USDA Deputy Under Secretary Stacy Dean wrote in her warning memo: “The well has run dry.”It’s a metaphor that now defines a nation where political gridlock may soon mean empty plates.
