USDA Issues Critical Update on Cannabis Products and SNAP Compliance

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USDA Issues Critical Update on Cannabis Products and SNAP Compliance

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USDA Clarifies SNAP Policy on Cannabis Products

On June 5, 2025, the U.S. Department of Agriculture’s Food and Nutrition Service (USDA FNS) issued a crucial update to Supplemental Nutrition Assistance Program (SNAP) retailers concerning cannabis products. The communication emphasized that accepting SNAP benefits for foods and drinks containing controlled substances such as cannabis or marijuana is a program violation. Administrator James C. Miller highlighted this action as part of a larger effort to combat “waste, fraud, and abuse” within the SNAP system.

The letter delivered a stern warning to retailers, cautioning that violations could result in severe consequences such as disqualification from SNAP, monetary penalties, and potentially criminal prosecution. Despite these measures, it was noted by industry analysts that the SNAP Retailer Guide lacks explicit mention of terms like “marijuana” and “cannabis,” focusing only on the broader term “controlled substances.”

Policy Gaps and State-Federal Conflicts

With variances between federal and state cannabis laws, there is increasing pressure on federal agencies such as FNS, FDA, and DEA to develop cohesive policies regarding cannabis products within SNAP. Despite these challenges, the current guidance explicitly prohibits SNAP transactions involving food and drinks containing cannabis or marijuana. Stewart Fried, a principal at OFW, underscored the necessity for a unified federal plan to address these discrepancies.

The directive underscores the essential role of SNAP-authorized retailers in ensuring low-income families have access to nutritious food while maintaining the integrity and accountability of taxpayer-funded programs. More than 41 million Americans benefit from SNAP monthly, making compliance with these guidelines imperative for participating retailers.

Expansion of Ineligible Product List

Originally, SNAP’s policy excluded cannabis-related cannabidiol (CBD) products, but recent updates have broadened the scope to include marijuana and cannabis products broadly. The latest revision specifies that “foods and drinks containing controlled substances such as cannabis/marijuana and CBD” are not eligible for purchase with SNAP benefits.

Alongside this prohibition, the USDA’s website lists other ineligible products such as alcoholic beverages, tobacco, medicines, hot foods at the point-of-sale, and non-food items. This comprehensive list reassures stakeholders that SNAP funds are utilized appropriately, respecting both the letter and the spirit of the law.

The USDA FNS has yet to disclose specific data on the extent of cannabis purchases made with SNAP benefits, leaving open questions among retailers and policymakers.

#CannabisNews #CBDTrends #HempInnovation #CannabisPolicy #CannabisIndustryUpdates

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