Latest news with #JasonGromley
Yahoo
2 days ago
- Business
- Yahoo
House Budget Bill Targets $300B in SNAP Cuts — 4 Potential Impacts To Benefits
Americans who depend on food stamps to help them buy groceries could see their benefits slashed if Congress passes President Trump's budget bill, which he personally dubbed the 'Big Beautiful Bill.' Find Out: Read Next: The bill certainly includes big cuts to the Supplemental Nutrition Assistance Program (SNAP), a federal program that helps about 40 million Americans buy healthy food, according to the U.S. Department of Agriculture (USDA). The U.S. House passed a version of the bill in late May that includes nearly $300 billion in SNAP cuts, according to a report from the Center on Budget and Policy Priorities (CBPP), which cited Congressional Budget Office (CBO) estimates. The bill is now being weighed by the Senate, where it's expected to face a tougher fight. A few key Republican senators have voiced opposition to the House version. However, as USA Today reported, much of that opposition has to do with a desire to cut more spending from the bill, protect certain energy subsidies or avoid slashing Medicaid funding. There is little, if any, GOP opposition to cutting SNAP benefits, at least publicly. The SNAP cuts do face plenty of opposition from advocacy groups, though. Jason Gromley, Senior Director for Share Our Strength and its No Kid Hungry campaign, called the bill 'a vote to increase childhood hunger.' 'This proposal reflects the largest and most extreme cuts to SNAP in history,' Gromley said in a press release. 'These cuts will do nothing to improve the lives of Americans, and will make it even harder for those who do receive benefits to afford enough food to feed their families.' According to the CBPP, here are four ways the proposed cuts will impact SNAP benefits. More than 2 million children will see food assistance to their families either 'cut substantially' or ended altogether. That figure is based on CBO estimates of the bill's SNAP provisions impact. It doesn't include provisions that prevent future benefit increases, which will impact all SNAP recipients. Warren Buffett: As the CBPP noted, under current SNAP rules, adults without children in their homes are limited to three months of benefits out of every three years if they can't prove that they either meet a 20-hour-per-week work requirement, or are exempt from the requirement. The House bill would expand the restriction to parents of children over the age of 6, and to older adults aged 55 to 64. Expanding the work requirement would cut SNAP by $92 billion through 2034, according to the CBO. It also would take food assistance away 'entirely' from 3.2 million adults in a typical month. One result is that about 1 million children would see their food benefits reduced substantially. The House bill would cut federal spending on school lunches and breakfasts by $700 million, according to the CBO. This would affect about 420,000 children in an average month by ending their school meals and/or cutting off their summer SNAP payments. The House bill also would eliminate all SNAP assistance for up to 250,000 foreign-born residents — including roughly 50,000 children — who are legal residents of the U.S. Many are refugees and people granted asylum who've proven to have fled violence and persecution in other countries, according to the CBPP. More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on House Budget Bill Targets $300B in SNAP Cuts — 4 Potential Impacts To Benefits
Miami Herald
27-05-2025
- Business
- Miami Herald
Morgan Stanley makes bold call on Kraft Heinz, Conagra
What will happen with food stamps benefits? Are retailers affected? What about the packaged food companies and beverage manufacturers? These are the key questions raised after the House Committee on Agriculture proposed major reforms. The Republican-led Committee recently proposed cutting more than $290 billion from the Supplemental Nutrition Assistance Program (SNAP) over the next 10 years. Around 42 million people across the country rely on SNAP to buy groceries. Related: Reports may show if economy is toughing out tariffs The Committee argued that the program has become too expensive and inefficient, which is why it is proposing a reform that would include stricter work requirements, tighter eligibility rules, ending programs like SNAP-Ed, and giving states a financial responsibility in the program. The goal behind the proposed changes is to reduce fraud, fix loopholes, and end "the Biden Administration's illegal overreach." Anti-hunger advocates quickly criticized the proposal, warning that it could result in high rates of food insecurity, especially for parents who are unable to document enough work hours, reported NBC news. "A vote for this bill will result in more kids facing hunger - in every state, in every community, in every zip code," said Senior Director Jason Gromley, of the nonprofit Share Our Strength. On the other hand, Morgan Stanley analysts estimate that the overall economic impact may not be as significant as it initially appears. Food and beverage industries would, however, be affected the most. Even before the Agriculture Committee revealed its actual proposal on SNAP cuts, the Center for American Progress (CAP), an independent nonpartisan policy institute, projected a serious impact on retailers. According to CAP, more than 27,000 retailers in largely rural counties carry the highest risk of being negatively impacted by SNAP cuts. "Some stores in low-income neighborhoods have more than 50 percent SNAP sales. A 20 percent cut to SNAP would make it very difficult for stores like this, in food deserts, to remain open," said Stephanie Johnson of the National Grocers Association. More on Retail: Iconic retailer returns after 13 years to take on AmazonIkea's new product offering could be a game changer for consumersBankruptcy forces ice cream chain to close 500 locations In addition to small retailers, even giants like Walmart (WMT) will be affected. About 94% of SNAP shoppers purchased groceries at Walmart in the 12 months ended July 31, 2024, according to data from Numerator. Further, budget retailers like 7-Eleven, Dollar General (DG) , Dollar Tree (DLTR) , and Winco Foods captured roughly twice the market share among SNAP shoppers, compared to those not using SNAP benefits. Meanwhile, Morgan Stanley analysts project that actual SNAP cuts may amount to only $150 billion, with only about $90-100 billion of direct reductions in SNAP benefits as increased state contributions would offset federal cuts, writes Barron's. "For packaged foods, SNAP cuts and category restrictions present another volume headwind (albeit modest) to an industry that is already struggling with weak underlying demand. For beverages, we view SNAP benefit cuts and state restrictions on SNAP use for soda (and potentially energy drinks) as a manageable incremental headwind for corporate sales growth," Morgan Stanley said as reported by Supermarket Perimeter. Companies with the highest level of exposure include Kraft Heinz Co. (KHC) and Conagra Brands Inc. (CAG) , while Coca-Cola (KO) , Keurig Dr Pepper (KDP) , and Monster Beverage Co. (MNST) are "well positioned despite moderate incremental SNAP risk, with strong pricing power, market share gains, and existing historical volume growth." According to Morgan Stanley experts, the most affected packaged-food companies besides Conagra are WK Kellogg (KLG) and J.M. Smucker (SJM) , because more than 22% of their sales are coming from low-income consumers. With inflation already widely hurting people's wallets and reducing their spending, low-income consumers might start to focus more on the more affordable private-label products. Related: Iconic brand from your childhood finds new life Analysts say SNAP shoppers are more likely to buy products from Conagra, Kellogg, and Kraft Heinz than from Mondelez (MDLZ) , Campbell's, or Hershey (HSY) . Mondelez is less exposed, with only 25% of its sales in the U.S. However, analysts think that most of the SNAP-related risks are already reflected in the stock prices of packaged-food companies. Year-to-date, Conagra stock is down 19.05%, and Kraft Heinz dropped 14.53%. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
