HR5950

The 'Keep SNAP and WIC Funded Act of 2025' ensures that the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) continue to operate and distribute benefits during any FY2026 government shutdown. This bill provides appropriations to the USDA specifically for these programs if interim or full-year appropriations are not enacted. This directly addresses the financial uncertainty that grocery retailers and food distributors face during federal funding lapses, as it guarantees the consistent flow of benefits to consumers who then spend those benefits on food products. The bill does not increase the total funding for these programs; it only ensures their continuity. The money trail for this bill is direct: it ensures that existing SNAP and WIC funds continue to be disbursed to eligible recipients. These recipients then spend the funds at authorized retailers. Companies like Walmart ($WMT), Kroger ($KR), Costco ($COST), and Target ($TGT) are major beneficiaries of SNAP and WIC spending due to their extensive grocery operations. Food distributors such as Sysco ($SYY) and US Foods Holding Corp. ($USFD) also benefit from the stable demand from these retailers. The mechanism is direct consumer spending, with the government acting as the initial funder. Historically, government shutdowns have caused significant disruptions to SNAP and WIC benefits. For example, during the 2018-2019 government shutdown, there was widespread concern about the continuity of SNAP benefits, leading to a rush to disburse benefits early. While specific market reactions to previous SNAP/WIC funding disruptions are hard to isolate from broader shutdown impacts, the uncertainty negatively affects consumer spending patterns and retailer planning. This bill aims to prevent such disruptions, providing a stable revenue stream for retailers and distributors that rely on these programs. Specific winners from this legislation are major grocery retailers and food distributors. Walmart ($WMT) is the largest SNAP retailer in the U.S. and stands to gain from guaranteed consistent demand. Kroger ($KR), Costco ($COST), and Target ($TGT) also have significant grocery sales tied to these programs. Food service distributors like Sysco ($SYY) and US Foods Holding Corp. ($USFD) benefit from the stable demand from their retail and institutional clients who serve WIC recipients. There are no direct losers, as the bill only stabilizes existing funding. This bill is currently in the legislative process, sponsored by Rep. Hayes, Jahana [D-CT-5] with 101 cosponsors, indicating moderate support. It has been referred to one committee. The next step is committee consideration, followed by a potential floor vote. If passed, it would take effect for FY2026, which begins October 1, 2025. The impact would be felt immediately upon any future government shutdown in FY2026, preventing the revenue dips previously experienced by retailers.