November Publications
Author: Adarsh Jayaram
Published: November 2, 2025
SNAP benefits are set to pause at the end of October due to the government shutdown, which will have more ripple effects than many realize. SNAP is a government program which provides credits which can be used on grocery stores or farmers markets, and the purpose is to provide Americans with the guarantee that they will have access to food. Even if someone is going through poverty or a temporary crisis, SNAP will ensure that the recipient will not go hungry.
The reason that a SNAP has great impacts is the fact that many low income households are living on a day to day basis. They spend all the money that they earn at the end of the month. Food is not a large expense, but it frees up much needed cash for other expenses like rent, gas, and more. Without SNAP, these households would be forced to save more or risk hunger during a crisis, like getting laid off or taking too many unpaid sick days. When large segments of the local population spend less, local economies will slow down, leading to less income across the board. Since poor households tend to be grouped together, this can lead to a downward spiral for them, as decreasing income and job security leads to increasing stinginess in spending which leads to a weaker economy.
Luckily, the pause of SNAP is just that: a pause. What we can expect to see is low income households resorting to credit cards or loans to temporarily fuel their expenses, and then paying them off once they see their SNAP benefits again. Grocery stores in particular may see a brief slowdown, but there won’t be any permanent damage, like increased prices, staff cuts, and closures. And the effects further down the supply chain will be minimal. However, the lesson in all this is that the economy is very intertwined. Personal finance doesn’t exist in isolation, because prices, incomes, and job security are all connected through a broader economy.