(Zero Hedge) Trump’s proposal to overhaul the U.S. food stamp program, or the Supplemental Nutrition Assistance Program (SNAP) as it’s currently known, has brought with it a widely overlooked fee that could end up costing food retailers billions. Per MSN:
That provision is a new fee that the White House wants to charge retailers that accept food stamps, which is now known as the Supplemental Nutrition Assistance Program.
The Office of Management and Budget said the fee would be assessed when stores sign up and would require renewal after five years. The budget office said the amount would depend on the size and type of retailer, but the president’s budget estimates that the fee would generate $2.4 billion in revenue over the next decade.
An OMB official described the fee as “modest” and “reasonable,” emphasizing that some large retailers redeem a billion dollars or more in food stamp benefits each year.
“Although a small number of stores may choose to leave the program rather than pay the fee, we do not expect that this will affect access to authorized stores,” the official said.
Of course, the fee is likely intended to cut down on the wildly unmanageable 260,000 different retailers that opt into the program each year. That said, the biggest financial impact will accrue to traditional grocery stores, dollar stores and supercenters (aka Walmart) which collectively account for well over 80% of the $66BN in annual SNAP benefits…