The Indicator from Planet Money Why Trump's spending bill could close your grocery store
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Aug 13, 2025 The impact of Trump's legislation on the Supplemental Nutrition Assistance Program (SNAP) is a major focus, revealing how cuts affect families and local grocery stores. Independent grocers, especially in low-income areas, face mounting challenges that could threaten their survival. The discussion also touches on the financial strains grocery stores endure due to SNAP fraud and tax cuts, underlining the integral role these stores play as community resources.
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Local Grocer Rooted In Community
- Jimmy Wright runs Wright's Market, a small independent grocery in Opelika, Alabama where SNAP makes up about a third of sales.
- Customers praise his ground beef and catfish, showing tight community ties and reliance on local stores.
SNAP Is A Disproportionate Revenue Source
- SNAP accounts for roughly 12% of national grocery sales but can be much higher at individual stores, reaching 70% in low-income areas.
- Cutting SNAP risks closing small grocers and worsening food deserts where healthy options are scarce.
Cuts Have Wider Economic Ripple Effects
- The 2025 law is estimated to cut about $190 billion from SNAP over a decade by adding work requirements and capping inflation adjustments.
- Reduced SNAP spending ripples through the economy because each SNAP dollar can add roughly $1.50 to GDP in downturns.