This law could make grocery stores vanish

The Trump administration’s so-called “Big, Beautiful Bill,” which the president signed into law on July 4, could have some unwelcome impacts on U.S. grocery stores—especially those that are independently owned or in low-income neighborhoods.

The bill slashed government spending on items like Medicare and Medicaid and gave massive tax cuts to corporations and the wealthiest Americans. But it also cut Supplemental Nutritional Assistance Program (SNAP) benefits, a federal program which at least 41.7 million received last year. 

According to the National Grocers Association (NGA), which represents independent community grocers across the U.S., as well as their wholesalers, roughly 12% of grocery store payments come from SNAP. In some rural and low-income neighborhoods, closer to 70% of sales are made using the assistance program. That means that neighborhood stores in those areas will almost undeniably see dwindling sales.

In May, the Center for American Progress identified at least 27,000 grocery retailers that were likely to be the hardest hit by the bill’s cuts. “The impacts of cuts to SNAP are likely to be felt most strongly in areas with the highest rates of SNAP participation,” the report noted. “In these communities, even if a family doesn’t personally see their budget for food reduced, community residents could see their local grocer close.”

Amid economic challenges that were present before the bill’s passing, even major chains have been attempting major moves to stay competitive. Last year, grocery store giants Kroger and Albertsons attempted to merge. The move, which would’ve been the largest supermarket merger in history, was blocked by a judge after the FTC sued. 

“This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets,” the FTC said in a statement at the time. “This victory has a direct, tangible impact on the lives of millions of Americans who shop at Kroger or Albertsons-owned grocery stores for their everyday needs, whether that’s a Fry’s in Arizona, a Vons in Southern California, or a Jewel-Osco in Illinois.”

While SNAP recipients and grocers may suffer due to the massive cuts, some republicans have pointed to an alleged uptick in fraudulent SNAP payments as a reason for the SNAP cuts. House Speaker Mike Johnson cited a USDA statistic, which says SNAP transactions jumped 55% between the last quarter of FY2024 and the first quarter of FY2025. Those fraudulent charges, however, aren’t from SNAP beneficiaries themselves, but from scams that target recipients who rely on the program.