5 January 2026

SNAP retailers receive a temporary grace period for new food restriction waivers

The United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) issued a memorandum on December 30, 2025, establishing a temporary 90-day grace period for retailers to comply with states’ new food restriction waiver requirements. This development affects both brick-and-mortar (walk-in) and online retailers authorized to participate in the Supplemental Nutrition Assistance Program (SNAP).

The memorandum clarifies the FNS policies and compliance expectations, including which retailers are subject to the waivers, how online orders and deliveries impact compliance obligations, and potential consequences for noncompliance.

What are the food restriction waivers?

The food restriction waivers allow states to prohibit the purchase of certain foods, such as candy and sugar-sweetened beverages, with SNAP benefits. While the scope and specific requirements vary from state to state, to date, FNS has approved waivers for 18 states. Some states’ waivers became effective on January 1, 2026, while other waivers will be implemented in spring and summer 2026.

FNS expects state agencies and retailers to work together closely, with retailers needing to update their point-of-sale equipment, train employees, and otherwise prepare for compliance.

FNS memorandum and oversight plan

Although not expressly acknowledged within it, the FNS memorandum appears to override certain key requirements in the approved state waivers, including criteria for determining which state’s rules will apply to walk-in stores or online retailers operating through warehouses. Retailers are encouraged to ensure compliance with the applicable state’s food restriction waiver while accounting for the FNS guidance in the memorandum.

The FNS memorandum also outlines a comprehensive oversight plan by FNS to monitor retailer compliance with the waivers. FNS is expected to conduct undercover investigations to test compliance, and any findings of noncompliance could be addressed via administrative actions. State agencies may also conduct their own monitoring activities to report to FNS, and they may receive authorization from FNS to pursue criminal investigations associated with SNAP violations by entering into memoranda of understanding with FNS.

90-day grace period for compliance

FNS is granting retailers a 90-day grace period for each state’s food restriction waiver. After the grace period, retailers will be subject to FNS investigations, where the first offense will result in a warning letter. After another 30-day period following the warning letter, retailers may be subject to additional investigations. A second offense will subject the affected retailer to involuntary withdrawal from the SNAP program. The retailer will then be required to reapply to participate in SNAP if it wants to be reinstated.

Retailers may request an administrative review, during which the involuntary withdrawal will be held in abeyance pending the outcome of the review.

Implications for retailers

While the 90-day grace period may offer temporary relief from federal and state investigations and enforcement risks, retailers remain responsible for full compliance with state food restriction waivers. Online retailers in particular are already subject to significant implementation challenges under the existing SNAP rules and waivers. The new food restriction waivers add to this complex regulatory environment.

Given the risk of government investigations and enforcement actions, retailers may wish to consider taking full advantage of the grace periods to achieve compliance as early as possible. This approach may allow time to test and correct compliance issues before the grace period ends.