The U.S. Department of Agriculture (USDA) is proposing new restrictions on Supplemental Nutrition Assistance Program (SNAP) eligibility that could eliminate food assistance for an estimated 6.3 million Americans, potentially reducing grocery spending among millions of households beginning in 2029.
The proposed rule, published Nov. 10, would significantly narrow a longstanding policy known as broad-based categorical eligibility (BBCE), which allows states to extend SNAP eligibility to certain low-income households receiving assistance through the Temporary Assistance for Needy Families (TANF) program.
Under current rules, states can use certain TANF-funded benefits and services, including childcare assistance and job training, to establish categorical eligibility for SNAP. The USDA proposal would limit that pathway to households receiving qualifying TANF assistance, generally excluding those whose connection to the program is limited to noncash services or in-kind benefits.
The USDA estimates the change would affect approximately 3.2 million households, representing 6.3 million individuals, or 17.6% of current SNAP participants, when the proposal reaches its projected full implementation in fiscal 2029. The agency also forecasts approximately $45 billion in reduced federal SNAP benefit spending between fiscal 2027 and 2031.
The administration argues the change would restore the program’s intended eligibility standards and prevent households with incomes or assets above federal SNAP limits from qualifying through broader state assistance programs.
More than 40 states currently use some form of broad-based categorical eligibility, making the proposal potentially significant for food retailers across the country.
Consumer advocates and labor organizations have criticized the proposal, arguing that it would make food assistance less accessible to working families already facing pressure from housing, childcare and grocery costs.
Ty Jones Cox, vice president for food assistance at the Center on Budget and Policy Priorities, said the existing policy allows working families to receive grocery assistance even when necessary expenses leave them with limited disposable income. The Food Research & Action Center has also warned that restricting categorical eligibility could increase administrative costs, processing delays and food insecurity.
The proposed changes could extend beyond grocery purchasing. USDA estimates nearly 1.8 million children could lose automatic eligibility for free school meals, while approximately 5,500 WIC participants could lose eligibility under related provisions.
The proposal comes as SNAP faces additional changes stemming from the One Big Beautiful Bill Act, signed into law in July 2025. Those changes expanded work requirements and shifted a greater share of administrative and benefit costs to states. According to USDA figures cited by CBS News, more than 5 million Americans have already lost access to SNAP since the legislation was enacted.
For grocery retailers, the potential reduction in SNAP participation represents another source of uncertainty for consumer spending. SNAP benefits support grocery purchases across conventional supermarkets, independent grocers and other authorized food retailers, making changes to eligibility relevant throughout the food supply chain.
The USDA’s proposed rule is not final and would not immediately affect current recipients. The agency is accepting public comments through Dec. 10, 2026, before moving toward a final determination. The department currently projects implementation in 2029.