A pilot program in the state of New York will allow recipients of the Supplemental Nutrition Assistance Program (SNAP) to purchase groceries online. The two-year program will allow the government to learn about the rollout before potentially expanding across the nation.
"People who receive SNAP benefits should have the opportunity to shop for food the same way more and more Americans shop for food, by ordering and paying for groceries online," said Agriculture Secretary Sonny Perdue in a statement. "As technology advances, it is important for SNAP to advance too."
Amazon and Walmart will participate in the initial pilot launch with ShopRite joining early next week. ShopRite and Amazon are providing the service to the New York City area, and Walmart will be providing online service for upstate New York locations. While beginning in New York, the program is slated to expand to other areas such as Alabama, Iowa, Maryland, Nebraska, New Jersey, Oregon and Washington the USDA announced in a press release.
The pilot phase is intended to ensure online transactions are processed safely and securely. USDA anticipates all eligible and interested retailers who can meet the requirements to process online SNAP transactions will eventually be able to take part, though the timeline is dependent on the progress of the pilot and any regulations which may need to be issued.
“We are excited to be part of the USDA’s pilot program and to be able to make our grocery pickup and delivery service available to more and more people, regardless of their payment method,” Walmart spokesperson Molly Blakeman said in an email statement to CNBC. “Access to convenience and to quality, fresh groceries shouldn’t be dictated by how you pay. This pilot program is a great step forward, and we are eager to expand this to customers in other states where we already have a great online grocery business.”
SNAP participants will be able to use their benefits to purchase eligible food items but will not be able to use SNAP benefits to pay for service or delivery charges. However, Amazon is allowing SNAP participants to receive free shipping on orders of $50 or more.
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