Restrictions on using Supplemental Nutritional Assistance Program benefits to purchase soda and candy have emerged as a significant policy initiative under the Make America Healthy Again movement. Researchers from the National Bureau of Economic Research examined the impact of these restrictions, which have been implemented across multiple states, to determine whether they meaningfully affect purchasing behavior or if recipients simply substitute other funding sources.
According to a study published by NBER and supported by a grant from Bloomberg Philanthropies, soda purchases declined by approximately 12% among SNAP recipients in 10 states after restrictions took effect. This reduction corresponds to individuals consuming about 34 fewer 12-ounce cans of soda annually. Study co-author Matt Notowidigdo, an economics professor at the University of Chicago Booth School of Business, characterized this as modest but significant. The researchers estimate that reduced soda consumption would lower the risk of developing type 2 diabetes by 2.6% over the next decade, potentially preventing approximately 34,000 new cases in the U.S. and generating roughly $1 billion in annual health care savings.
However, the research identified important limitations and unintended consequences. SNAP recipients redirected up to 39% of unspent soda money toward other sugary beverages and fruit juices that fell outside state restrictions, suggesting that comprehensive restrictions would be more effective at reducing overall sugar consumption. Additionally, survey data indicated that restrictions made recipients more likely to report feeling judged or disrespected, raising concerns about stigma effects that complicate health assessments.
As of now, 23 states have received Department of Agriculture waivers to implement similar restrictions, though implementation varies by state and five states have suspended their programs following federal court orders. Some policy experts have questioned whether the approach produces meaningful public health gains relative to its stigmatizing effects. Robert Paarlberg, a Wellesley University professor emeritus focused on food policy, suggested that taxing sugary beverages across all income groups, as Philadelphia implemented to achieve a 31% consumption reduction, might represent a more effective alternative that avoids stigma-related concerns while generating revenue for community investments.
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