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Companies Step In to Provide Food Assistance While SNAP Benefits Are Suspended

Companies Step In to Provide Food Assistance While SNAP Benefits Are Suspended

Bitget-RWA2025/11/01 23:16
By:Bitget-RWA

- U.S. government shutdown halts SNAP benefits from Nov 1, prompting delivery platforms to offer aid to 42M low-income Americans. - Instacart, DoorDash, Gopuff, and Zip provide discounts, fee waivers, and $10M+ in direct relief to mitigate food access gaps during funding lapse. - Analysts warn $8B monthly program suspension risks $1.80 economic ripple effect per SNAP dollar, disproportionately impacting low-income grocery stores. - Bipartisan $71M congressional bill seeks permanent solution while companies

With the U.S. government shutdown causing a halt to Supplemental Nutrition Assistance Program (SNAP) benefits from November 1, leading delivery services are stepping up to help ease the burden for 42 million Americans who depend on this aid. Instacart,

, Gopuff, and Zip have rolled out programs that include discounts, waived fees, and direct support for SNAP users, aiming to ensure continued food access during the funding gap, as detailed in a PBS article. ( )

Companies Step In to Provide Food Assistance While SNAP Benefits Are Suspended image 0

Instacart, headquartered in San Francisco, is offering a 50% price cut on the next grocery purchase for customers who used SNAP/EBT cards in October. This deal will be honored even if the USDA resumes benefits as planned. Additionally, Instacart has expanded its food bank partnership network from 100 to 300 sites and pledged $5 million in aid. "Our priority is to deliver fast, practical help—stretching grocery budgets and backing food banks," said Dani Dudeck, Instacart’s chief corporate affairs officer, according to a NewsBreak report. (

)

DoorDash, which collaborates with 25 supermarket chains such as Sprouts and Dollar General, will remove service and delivery charges for 300,000 SNAP recipient orders in November. The company has also committed to distributing 1 million free meals from food banks and noted that 2.4 million of its customers have linked SNAP/EBT cards to their profiles. Gopuff, a delivery service based in Philadelphia, is providing $50 in free groceries to SNAP users through its app, with up to $10 million set aside for this effort.

Zip, an Australian “buy now, pay later” platform, has teamed up with Forage—a third-party processor for government benefits—to offer eligible SNAP recipients installment payments without fees. To participate, users must fill out a form in the Zip app, and the program utilizes Forage’s network of EBT-accepting grocers, as reported by AIJourn. (

)

The USDA’s move to suspend SNAP payments has raised wider economic alarms. Analysts say the $8 billion monthly program’s pause could dampen consumer spending and hit grocery stores in low-income neighborhoods hardest, according to Inside Retail. (

) "Each SNAP dollar can generate up to $1.80 in local economic activity," said Bunny McKensie-Mack of MMG EARTH, highlighting the program’s broader community impact.

Although companies are stepping in to help, advocates emphasize these are only short-term fixes. Lawmakers from both parties have introduced a bill to provide $71 million to extend SNAP benefits and assist food banks. While DoorDash’s Project DASH and Gopuff’s grocery credits offer immediate help, experts warn that a lasting solution has yet to be found.

The USDA has instructed states to delay November SNAP distributions until further notice, but current EBT card balances can still be used. Forage CEO Ofek Lavian said the company stands ready to work with states and retailers on “innovative, temporary solutions” if federal payments continue to be postponed.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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