USDA Approves First State Waivers to Restrict SNAP Purchases

In a press release, Secretary Rollins described Nebraska’s waiver to remove soda and energy drinks from SNAP as “a historic step to Make America Healthy Again.”³ She has previously encouraged states to serve as “laboratories of innovation” and has called on all governors to submit SNAP waivers to encourage healthy eating and improve lifestyle habits. A growing number of states, including Arkansas, Colorado, Kansas, Idaho, Louisiana, and West Virginia are pursuing similar SNAP restrictions for items such as candy and soda. Secretary Rollins announced during a May 22 Make America Healthy Again (MAHA) Commission event that half a dozen more waiver approvals will be forthcoming.⁴ USDA also recently launched a tracker for monitoring the status of these waivers.⁵

Summary of Nebraska, Indiana, and Iowa SNAP Food Restriction Waivers

The SNAP waivers granted to Nebraska, Indiana, and Iowa each allow the state to operate a two-year pilot project, effective January 1, 2026, to amend the statutory definition of eligible foods for SNAP purchase. Specifically, USDA’s Food and Nutrition Service (FNS), which implements the SNAP program at the federal level, has waived the provisions in the Food and Nutrition Act of 2008 and implementing regulations that define “eligible foods” to mean “any food or food product for home consumption,” except alcohol, tobacco, and hot foods.⁶

Nebraska

Under the Nebraska waiver, the state will exclude from the definition of “eligible foods” soda, soft drinks, and energy drinks, as defined below.

• Soda or “Soft Drinks”: Soda or “soft drinks” are any carbonated non-alcoholic beverage that contains water, a sweetening agent (including but not limited to sugar, high-fructose corn syrup, or artificial sweeteners), flavoring, and carbon dioxide gas to create carbonation.
• “Energy Drinks”: “Energy drinks” are carbonated or non-carbonated beverages containing a stimulant such as fortified caffeine, guarana, glucuronolactone, or taurine. They may also include herbal extracts such as ginseng, mineral salts and vitamins, or high doses of organic acids, amino acids, inositol, sugars, or other similar compounds in addition to sweeteners. Juices or natural fruit pulp or concentrates may also be added. Energy drinks are specifically formulated to enhance energy, alertness, or physical performance.

Under the definitions in the Nebraska waiver, both soft drinks and energy drinks are intended for human consumption and are available in various flavors, formulations, and packaging. Beverages marketed primarily as sports drinks to increase hydration, like Gatorade or medically necessary nutritional products, are not included.

Indiana

Indiana’s waiver amends the definition of “any food or food product for home consumption” to exclude “soft drinks” and “candy,” as defined below. 

• “Soft Drinks”: “Soft Drinks” are defined to mean “nonalcoholic beverages that contain natural or artificial sweeteners. The term does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume.”⁷
• “Candy”: “Candy” is defined to mean “a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. The term does not include any preparation: (1) containing flour; or (2) requiring refrigeration.”⁸

Iowa

The Iowa waiver prohibits state SNAP beneficiaries from using their benefits to purchase “all taxable food items as defined by the Iowa Department of Revenue.” The state will use Chapter 423 of the Code of Iowa and Iowa Administrative Code Chapter 701-220 to define taxable and nontaxable food items. The waiver approval contains a list of food products that are subject to sales tax, which includes but is not limited to the following: 

• Candy, candy-coated items, and candy products, including gum, candy primarily intended for decorating baked goods, and hard or soft candies including jelly beans, taffy, licorice, and mints.
• Fruits, nuts, or other ingredients in combination with sugar, chocolate, honey, or other natural or artificial sweeteners in the form of bars, drops, or pieces.
• Carbonated and noncarbonated soft drinks, including but not limited to colas, ginger ale, near beer, root beer, lemonade, orangeade, and all other drinks or punches with natural fruit or vegetable juice less than 50% by volume.

Legal Authority

According to the waiver approvals, the pilot programs are authorized by Section 17 the Food and Nutrition Act, which allows the Secretary of Agriculture to conduct pilot projects designed to improve the efficiency of SNAP and the delivery of SNAP benefits to eligible households.⁹ The waiver approvals explain that the purpose of the programs is to evaluate their impact on SNAP participants’ purchasing habits (a proxy for consumption habits) and diets. As part of the evaluation of the project, each state is developing key metrics and data collection methods, and must provide FNS with a quarterly report during the first year of implementation. FNS will carefully review the results of the pilot projects, based on data provided by the state and other available information, to evaluate how waiving the state’s definition of eligible food impacts SNAP participants and retailers.

The waivers raise an important question about whether USDA has the authority to grant a waiver from the statutory definition of food.

Next Steps

We will continue to monitor for additional actions on SNAP food restriction waivers. Please contact us if you have any questions.

Authored by Veronica Colas and Rebecca Popkin.