Companies Fill Food Aid Vacuum as SNAP Payments on Hold

As the U.S. government shutdown triggers a suspension of Supplemental Nutrition Assistance Program (SNAP) benefits starting November 1, major delivery platforms are stepping in to mitigate the financial strain on 42 million low-income Americans who rely on the program. Instacart, DoorDash, Gopuff, and Zip have announced initiatives offering discounts, fee waivers, and direct relief to SNAP recipients, aiming to keep food accessible during the funding lapse, according to a PBS report. (a PBS report)

Instacart, the San Francisco-based grocery delivery giant, announced a 50% discount on the next grocery order for customers who used a SNAP/EBT card in October. The offer remains valid even if the USDA resumes payments on schedule. The company also expanded its food bank support network from 100 to 300 locations, committing $5 million in total assistance. "We're focused on practical, immediate solutions: helping families stretch their grocery dollars and supporting food banks," said Dani Dudeck, Instacart's chief corporate affairs officer, as reported in a NewsBreak article. (a NewsBreak article)

DoorDash, which partners with 25 grocery chains including Sprouts and Dollar General, will waive service and delivery fees for 300,000 orders from SNAP recipients in November. The company also pledged to deliver 1 million free meals from food banks and highlighted that 2.4 million of its users have SNAP/EBT cards linked to their accounts. Gopuff, a Philadelphia-based convenience delivery service, is offering $50 in complimentary groceries to SNAP users via its app, with up to $10 million allocated for the program.

Zip, the Australian "buy now, pay later" app, partnered with Forage-a third-party payment processor for government benefits-to provide no-fee installment payment options for eligible SNAP recipients. The initiative requires users to complete a form in the Zip app and leverages Forage's network of grocers that accept EBT payments, according to an AIJourn report. (an AIJourn report)

The USDA's decision to halt SNAP payments has sparked broader economic concerns. Retail analysts estimate the monthly $8 billion program's suspension could reduce overall consumer spending and disproportionately impact grocery stores in low-income areas, according to Inside Retail. (Inside Retail) "Every dollar in SNAP creates up to $1.80 in local economic activity," said Bunny McKensie-Mack of MMG EARTH, emphasizing the program's ripple effect on communities.

While companies are filling the gap, advocates stress that these measures are temporary. A bipartisan bill in Congress seeks to allocate $71 million to extend SNAP benefits and support food banks. Meanwhile, DoorDash's Project DASH and Gopuff's grocery credits aim to provide immediate relief, but experts caution that long-term solutions remain elusive.

The USDA has directed states to pause November SNAP issuances until further notice, though existing balances on EBT cards remain usable. Forage CEO Ofek Lavian stated the company is prepared to collaborate with states and grocers on "creative, temporary solutions" if federal payments remain delayed.