Food

USDA sued over new state bans on candy and soda

Tonya Costoff Medeiros

18 Mar 2026 — 1 min read

Consumers are barred from purchasing soda with their SNAP benefits. ©Image Credit: Unsplash / Joe Hepburn

Those who qualify for SNAP benefits are feeling the sting of the USDA's newest regulations and bans that put restrictions on what people can use their benefits for. SNAP consumers in five states are suing, alleging that the USDA's approval of the waivers is a violation of the Administrative Procedure Act.

Benefits with strict rules

The USDA's waivers feature a list of foods that aren't eligible for the benefits. Items like candy and soda will be on the not acceptable list and won't be covered by SNAP.

The work falls on retailers

Stores will need to go through items one by one and determine what is covered and what isn't, using the USDA guidelines. Some states are creating lists of allowable items with universal product codes.

"Because of the significant ambiguities in the various waiver definitions of ‘food,’ absolute compliance with the waivers will be impossible for many retailers," states the lawsuit.

Consumers across five states take action

The lawsuit has been filed in the U.S. District Court for the District of Columbia. The states listed in the lawsuit are Colorado, Iowa, Nebraska, Tennessee, and West Virginia.

As of 2024, data shows that about 41.7 million people use SNAP benefits monthly. That means the waivers will have far-reaching effects.

Strings are attached

For now, it looks like if you use SNAP benefits, you're going to be restricted in terms of what you can use them for.

Source: Food Dive

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