American Corporations Benefit from Food Assistance Programs

American companies seem to be the overlooked beneficiaries of food assistance programs. If you search for “EBT-eligible food” on Amazon, you’ll find a surprisingly long list of non-essential products.

• Red Bull energy drink.
• Raw, premium Manuka honey.
• Organic coffee mixed with lion’s mane mushrooms.
• Oreo Sticks ‘N Creme, which doesn’t actually contain cream.
• 2.2 lbs of Nutella.
• A large bag of Halloween candy.

A report from June revealed that Walmart recovers about 25% of its spending on consumer packaged goods and general merchandise through the Supplemental Nutrition Assistance Program (SNAP). Other companies seeing significant percentages of SNAP spending include Kroger (8%), Costco (6%), and Amazon (5%). It’s quite something to realize that money flows from your paycheck to those in need, and then, well, to Walmart.

Interestingly, a 2020 study by the Government Accountability Office found that many Walmart employees rely on food stamps. Walmart ranked among the top four employers of SNAP and Medicaid recipients in every state, with McDonald’s also appearing in the top five in at least nine states, as noted by The Washington Post.

Senator Bernie Sanders has pointed fingers at companies like Walmart and McDonald’s for leaning on “federal government corporate welfare by paying starvation wages.” It’s a systematic issue, one that likely won’t change if the solution is merely to cut welfare recipients.

Currently, about 42 million Americans receive SNAP benefits, but these are set to be frozen in November due to a potential government shutdown. Democrats are framing this freeze as a critical issue, suggesting it could “starve seniors, children, veterans, and millions of Americans,” according to Democratic Rep. Melanie Stansberry.

As if that wasn’t enough, restrictions are looming; states are expected to enforce new rules in 2026 that limit the purchase of certain non-essential items like sugary drinks and candy.

The Numerator notes that a surprising portion of households receiving SNAP benefits actually comes from higher income brackets, with 23% earning over $80,000 a year. This percentage has grown by 6 points since 2020. Additionally, 65% of SNAP households reportedly have no children, an increase of 5 points since 2020.

Interestingly, baby products account for the largest portion of SNAP spending, followed closely by limited-time offerings from restaurants like McDonald’s or Taco Bell. In simpler terms, your taxes might be assisting someone in getting their chalupa. The complaints about losing food stamps seem to suggest there could be room for funding things like fitness classes instead.

To add another layer to this situation, around 59% of illegal immigrant households reportedly use welfare benefits, and about 48% of these households rely on food-related assistance programs, compared to 25% of native households.

Food stamps are intended to offer temporary help during emergencies, not serve as a guarantee for a steady supply of fast food. It’s curious how little anger is directed toward junk food companies benefiting from the system, and even less thought is given to encouraging SNAP users to find alternatives. The expectation seems to be for us to permanently fund these charity programs without question.