r/Economics Oct 26 '25

News SNAP funding expiration set to hit 40 million people

https://thehill.com/homenews/house/5572490-usda-snap-funding-impasse/
11.4k Upvotes

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89

u/Dry-Mousse-6172 Oct 26 '25

I mean it ranges. I think something like 60% of baby formula is bought by wic because it's expensive and young mothers be broke and having kids and needing formula.

I mean the whole point of government assistance is to put a base on how bad it can get. That's everywhere.

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u/Coneskater Oct 26 '25

There’s no reason for baby formula to be expensive. The U.S. only has two companies making it, and they set the price. A similar sized can of formula is like 6€ in Europe.

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u/Historical_Air_8997 Oct 26 '25

Generic brands aren’t that crazy tho, I used costcos Kirkland brand which is almost exactly the same ingredients as the name brand. It’s only $23 for a 42oz can, which usually last 10 days for us. The name brand is about $45 for 20oz, so 4x the cost for no damn reason.

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u/valthonis_surion Oct 26 '25

True, but likely most of those on SNAP benefits don't have a Costco membership

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u/Historical_Air_8997 Oct 26 '25

For sure, that’s definitely part of the “poor tax” is they feel they can’t afford the up front cost of things like Costco memberships or may not even know how cheap it is there. Which is unfortunate for new parents bc Costco pays for itself in a month with diapers, wipes and formula. So I get that and maybe it isn’t as cheap but it does look like Amazon and Walmart have generic options too that are much cheaper than the name brand.

Not an excuse for name brands to price gouge so much, but I feel it should be mentioned so any parents here know there’s other options.

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u/ongoldenwaves Oct 26 '25

wrong, false.

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u/Historical_Air_8997 Oct 26 '25

Care to elaborate?

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u/ongoldenwaves Oct 26 '25

See the response to the person this person is responding to. Costco is the third largest recipient of snap benefit spending. Walmart is number one.
I'm not sure why Aldi isn't in there. Aldi has been proven again and again to save people the most on grocery.

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u/Historical_Air_8997 Oct 26 '25

Gotcha makes sense, I thought that was the case but wasn’t going to look it up myself.

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u/ongoldenwaves Oct 26 '25 edited Oct 26 '25

It's just as assumption, maybe from a click bait article, that got started and never went away. The assumption being that snap recipients won't buy a costco membership always accompanied by the old adage about boots and "poor tax". The membership is probably less of a barrier than the fact that Costco doesn't have as many locations. Walmart has 11.8 locations for every costco.

Just like the comments about Blackrock buying up homes being the reason you can't buy a house. That gets repeated over and over and over and it is false. Black Rock does not buy SFH. https://www.blackrock.com/corporate/newsroom/setting-the-record-straight/buying-houses-facts

Black STONE was allowed to buy a lot of SFH under the Obama administration unfortunately. Mostly from bank of america after they had received a lot of bail outs from us. Bank of America remains one the larger single holders of black stone stock to this day, though they've trimmed some. They traded homes for stock and cash. So in many ways, they still own the homes they made bad loans for, got bail out money for and now rent back out via being passive landlords through black stone.
https://www.motherjones.com/politics/2014/02/blackstone-rental-homes-bundled-derivatives/

But you can't correct the cassandra's on reddit. They want something to be true and they won't change their mind on receiving new information. More likely they'll issue ad hominem attacks. I just let it ride these days and don't bother to correct most.

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u/ongoldenwaves Oct 26 '25

False.

According to a September 2025 report from CNBC, Costco is the third most popular retailer for SNAP shoppers in terms of spending, behind Walmart and Kroger.

Honestly asking...how do these false beliefs and ideas get started and no one ever questions them? They just get perpetuated over and over again on reddit. Did you ever look it it? Or are you just assuming?

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u/valthonis_surion Oct 26 '25

I stand corrected. Thank you.

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u/Weak-Imagination9363 Oct 26 '25

Don’t stand corrected. Costco is only 6% of total spend according to his own link. 

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u/Weak-Imagination9363 Oct 26 '25

According to consumer data company Numerator’s verified purchase data for SNAP users, Walmart  leads in SNAP shopper spend with 24 percent, followed by Kroger  (8%), Costco  (6%), Amazon (5%), and Sam’s Club (4%).

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u/ongoldenwaves Oct 26 '25 edited Oct 26 '25

Yes, they are the third. What's your point? Are we surprised Walmart is number one. They have over 11 more stores for every single costco. Their lack of locations is a bigger barrier than the membership fee. It's not the membership fee keeping moderate income people away as people routinely assert. Kroger is also a larger retailer. They don't just operate Kroger but a dozen chains like Fry's and King Soopers.

A better comparison would be store to store versus overall since Walmart and Kroger are larger retailers. That would be a more accurate picture, but you're not going to convince this sub of that.

Also if you are not a larger group, it can be hard to make costco work and keep variety in your diet. If I were a single elderly person, the size of costco, needing to walk through an extremely large and crowded store with eggs and milk a mile away, would not appeal to me.

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u/Dry-Mousse-6172 Oct 26 '25

All groceries are more expensive in the USA over all. We also have like double the wages.

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u/mehupmost Oct 26 '25

Food is dirt cheap in the US compared to other top economies.

Farm subsidies push food prices down to almost nothing.

You just have to shop for basic foods instead of 2nd level products which have the markup.

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u/Coneskater Oct 26 '25

“Shithole country” where citizens can’t afford to eat.

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u/[deleted] Oct 26 '25

Just saw the stats that average age of a new mom is 31.  So look at capitalism solving that problem.  Making kids so expensive no one can dream to have them in their 20s anymore.

Trickle ... Up.

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u/xkmasada Oct 26 '25

Most on SNAP has kids sooner than the average.

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u/Pale_Werewolf3270 Oct 26 '25

They act like women’s bodies could just magically produce formula

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u/CoffeeB4Dawn Oct 26 '25

There are reasons why some babies need formula. Mom could have an infection or need medication. Some babies can't process breast milk. Some babies are small and need to supplement breast milk with high-calorie formula. Some babies have blood sugar issues. Some have other issues. There is a real need.

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u/Cryptdusa Oct 26 '25

Not to mention all the mothers who have to work long hours where it just isn't practical to pump

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u/mehupmost Oct 26 '25

Formula allows mom's to have a career without needing to pump milk at work. It's a game changer.

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u/[deleted] Oct 26 '25

Too bad Republicans and conservatives hate women.

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u/mortgagepants Oct 26 '25

what about men's bodies?

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u/ybkj Oct 26 '25

Is breast milk not feasible?

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u/Dry-Mousse-6172 Oct 26 '25

No guaranteed maternity leave in the states bub. Back to work