How food stamp cuts may hurt retailers

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How food stamp cuts may hurt retailers

06/02/2017

According to a CNBC report, "The probability of [Trump's budget] passing in its current form remains low, but it should be monitored, particularly for the discounters, grocers, and dollar stores — all of which have called out last year's big reduction as a drag on sales," Gordon Haskett analyst Chuck Grom wrote in a recent note to clients.

 
As of December 2016, the average SNAP household — there were roughly 43 million — was taking home about $252 per month in benefits, the Congressional Budget Office has estimated. This amount would drop to $173 a month if Trump's budget is passed, representing a significant reduction of more than 31 percent, Grom went on, citing his firm's latest research on the subject.
 
Trump's budget proposal, if passed, could significantly speed up what was already expected to be a gradual reduction in the federal government's Supplemental Nutrition Assistance Program, or SNAP, from $65.8 billion in 2017 to $64.8 billion by 2026, according to a report from the CBO.
 
Read more about the SNAP cuts by clicking here.

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