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SNAP Cutoff Threatens to Hit Texas Grocers Hard

October 29, 2025 – The suspension of Supplemental Nutrition Assistance Program (SNAP) benefits for an estimated 3.5 million Texans could ripple far beyond the families who rely on the aid. Economists and industry experts warn that grocery stores—especially small, locally owned ones—will face sharp revenue declines if the federal government shutdown continues into the weekend.

According to the National Grocers Association, SNAP recipients account for roughly 12% of all grocery sales nationwide. In Texas, that translates to about $614 million in spending each month, much of which flows directly into neighborhood food stores.

“When those benefits run out, it’s going to have a significant impact on store sales, product demand, and eventually jobs,” said Gary Huddleston, grocery industry consultant for the Texas Retailers Association. “Smaller grocers in rural and low-income areas will feel it first and hardest.”

Each month, SNAP funds—about $400 per recipient—are loaded onto debit-style cards, triggering grocery restocking schedules statewide. If those funds stop, retailers could be left with unsold perishables and tightening margins.

Large chains like H-E-B and Kroger are better positioned to absorb short-term shocks, but independent grocers in South, Southeast, and West Texas may struggle to stay afloat. Economists warn the cutoff could worsen food deserts, areas already lacking access to affordable groceries.

As the shutdown continues, grocers are bracing for difficult decisions—layoffs, reduced inventory, and potential closures—if federal funding doesn’t resume soon.