A pilot program launched last year is helping Supplemental Nutrition Assistance Program (SNAP) recipients navigate some of the food security challenges presented by the nation’s current health care crisis.
In April 2019, the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) launched the Online Purchasing Pilot program for SNAP. The pilot program allows SNAP participants to order their groceries online from select retailers and have the groceries delivered to their homes. Under the program, for the first time SNAP participants are able to complete an online transaction using their electronic benefit transfer (EBT) card. Some companies, such as Walmart, have allowed SNAP customers to order their groceries online and pick them up at store locations, but this option still required store employees to complete the transaction through a point of sale system on-site.
The pilot program started in the state of New York and has since expanded to 18 states and the District of Columbia. At least 18 more states have been approved to join the program and are expected to begin implementation soon.
The expedited increase in online purchasing participation comes during a critical time for public health and well-being. The COVID-19 pandemic has led to a number of situations that threaten food security across the country including product shortages, retail restrictions, social distancing measures, increased unemployment and financial distress and a lack of government funding as money is rerouted to address the public health crisis. Many workers have been furloughed and unemployment insurance claims have exploded across the country, leaving many households struggling to make ends meet and straining food budgets, which for some were already limited.
The pandemic and economic downturn have spawned numerous responses at the federal, state, and local levels to alleviate the distress placed on those affected. The quick adoption of online purchasing in states with established EBT infrastructure is another policy response that could have a significant impact.
As people stay home to reduce spread of the virus, consumer behavior has been upended. During the week of April 12-18,online sales of consumer packaged goods — products usually sold in grocery stores such as food and household care items — grew 56% compared to the same time last year, according to NASDAQ.com.
Online ordering with pickup options has grown in popularity during the pandemic, with Kroger now expanding to offer this option at all of its stores. The company has promoted the option as a “low-contact, convenient service” that allows people to bypass shopping in stores themselves while social distancing measures are still in place, Supermarket News reported.
As with most aspects of this public health crisis, it is uncertain if these trends will continue after businesses reopen and people are able to go out again. However, the need to adapt has prompted many to turn to online shopping who otherwise wouldn’t have under normal circumstances, increasing the number of people who are familiar and comfortable with the process at the very least. The growth in curbside pickup shopping is also giving both consumers and retailers the chance to fine tune a complex system during a time of product shortages.
While online purchasing has the potential to increase access to food for SNAP participants and help decrease the spread of the COVID-19 virus, the impact of this new program will likely be inhibited by the slow implementation of Pandemic Electronic Benefit Transfer (EBT) across the country. The Pandemic EBT program, authorized by the Families First Coronavirus Response Act (FFCRA), provides assistance to families of children eligible for free or reduced-price meals amid school closures by issuing monetary benefits equal to the value of meals missed. While 36 states have been approved by the USDA to implement the program, a recent analysis by The New York Times found that on May 15, benefits had only been received by about 15% of those eligible.
Administrative costs and capacity, as well as outdated infrastructure and systems, have been cited as major barriers to states working to implement the program and issue benefits. With so many families still without food benefits, utilization of the online purchasing program will be limited until these issues are addressed.