- A new report reveals over 5,000 U.S. liquor stores and smoke shops are authorized SNAP retailers, creating a conflict with program rules that ban the purchase of alcohol and tobacco.
- Analysts warn these stores are hotbeds for fraud, where benefits are illegally exchanged for prohibited items, diverting assistance from the program's core mission of providing nutrition to low-income families.
- The issue is magnified by soaring program costs, with SNAP expenditures projected to exceed $100 billion in 2025, increasing scrutiny on potential waste and abuse.
- Efforts to investigate fraud are hampered by a lack of data, as more than 20 states are suing to block a federal request for detailed transaction information, with California, home to nearly half the identified high-risk retailers, leading the legal challenge.
- The controversy highlights a fundamental tension between preventing fraud, respecting privacy and ensuring SNAP fulfills its purpose as a nutritional safety net for vulnerable populations.
A new analysis of federal food assistance data reveals that more than 5,000 liquor stores and smoke shops across the United States are approved to accept Supplemental Nutrition Assistance Program (SNAP) benefits – raising significant questions about program integrity, fraud and the core mission of feeding low-income families.
The findings published in early December by the Foundation for Government Accountability (FGA) identify over 4,000 stores with "alcohol" in their title and another 1,000 referencing “tobacco” as authorized SNAP retailers. Researchers warn the true number is likely higher, as the count only included stores that explicitly advertised those products in their business names.
As explained by BrightU.AI's Enoch engine, food stamps (now known as SNAP) are coupons issued to eligible low-income households to cover their monthly food needs, with eligibility primarily determined by gross income. But the authorization of these retailers exists in stark contrast to SNAP's foundational rules, which explicitly prohibit the purchase of alcohol, tobacco and other non-food items.
This disconnect, analysts say, creates fertile ground for abuse. "These stores 'become hotbeds of fraud' where benefit cards are bought and sold in exchange for alcohol or tobacco products," FGA Senior Data Analyst Kristi Stahr told Just the News.
"Food stamps are meant to provide supplemental nutrition for vulnerable populations: low-income kids, the elderly and people with disabilities,” said Michael Greibrok, FGA senior research fellow. "Letting smoke shops and liquor stores cash in on the program is not the safety net taxpayers envisioned and only funnels assistance away from the truly needy.”
The $100B question: Is SNAP funding the needy or feeding fraud?
The issue is compounded by health considerations. Critics argue that stores primarily selling alcohol and tobacco are unlikely to stock the nutritious foods SNAP is intended to support. The report also comes amid a separate, heated policy debate over whether sugary drinks, a major purchase item with SNAP dollars, should also be banned from purchase – with several states already implementing such restrictions.
Fraud cases documented over the years illustrate the problem. In one 2019 scheme, a Virginia grocery store owner was sentenced to 20 years for trafficking over $1.5 million in SNAP benefits. The FGA notes that more than 70% of all food stamp traffickers operate out of convenience stores, a category that includes the identified liquor and smoke shops.
The scale of the potential problem remains partially obscured due to a lack of comprehensive data. Agriculture Secretary Brooke Rollins, who has championed SNAP reforms including recent waivers allowing states to ban soda and candy purchases, has requested detailed transaction data from all states to uncover fraud. However, her efforts have met legal resistance.
More than 20 states, led by California, have sued to block the federal data request on privacy grounds. A temporary restraining order is currently in place. Notably, the FGA analysis found that nearly half of all the identified alcohol and smoke shop retailers are located in California – the state with the highest number of SNAP recipients.
The controversy unfolds against a backdrop of exploding program costs. SNAP expenditures are estimated to surpass $100 billion in 2025, a dramatic increase from $17.1 billion in 2000. This fiscal pressure intensifies scrutiny on every dollar spent.
With a significant number of high-risk retailers on the authorized list and a lack of full transactional transparency from many states, administrators face an uphill battle. The Trump administration has recently mandated that recipients reapply to ensure eligibility, a move aimed at curbing abuse without the complete data set Rollins seeks.
The situation presents a complex dilemma: how to protect a vital anti-hunger program from fraud while respecting privacy and ensuring it fulfills its fundamental purpose of providing nutritional support to those in need. The thousands of liquor and smoke shops on the approved retailer list have become the latest flashpoint in this enduring challenge.
Watch Clayton and Natali Morris of "Redacted News" discussing a possible food stamp civil war in this video.
This video is from the Son of the Republic channel on Brighteon.com.
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