USDA Asks Three States to Pause SNAP Candy Restrictions After Court Ruling
The U.S. Department of Agriculture has asked three states to pause programs that would stop SNAP recipients from buying candy and sugary drinks with their benefits. The request, reported by DLA Piper on September 11, went to North Dakota, Ohio, and South Carolina. It follows a June court ruling that vacated USDA's approvals of similar restriction pilots in five other states.
For the U.S. candy industry, the pause keeps the current rules in place for now. It does not end the debate.
What Happened
The Supplemental Nutrition Assistance Program, SNAP, lets low-income households buy food with government benefits. Starting in 2025, a growing number of states applied for waivers to block SNAP purchases of candy, soda, and energy drinks within their borders.
In June 2026, the U.S. District Court for the District of Columbia ruled against the program's legal basis. The court found that USDA had used a general pilot-project provision to approve state efforts to redefine "food" and exclude certain categories, which the court said the law does not allow. The ruling vacated approvals in Colorado, Iowa, Nebraska, Tennessee, and West Virginia, and sent the matter back to USDA.
The pause requests to North Dakota, Ohio, and South Carolina followed. South Carolina's waiver was set to start on August 31 and North Dakota's on September 1; both were asked to delay until November 1. Ohio's waiver, scheduled for October 1, is on hold until the state receives further guidance.
A full list of state waiver programs, including several still scheduled for 2027 and 2028, is maintained on the USDA Food and Nutrition Service website.
What the Pause Means
Three points describe the current situation:
- **The June ruling questions the legal foundation, not the policy goal.** The court objected to how USDA approved the waivers, not to whether states can restrict SNAP purchases at all. New attempts under a different legal path remain possible.
- **More states are in line.** The USDA waiver list still includes Louisiana, Missouri, Montana, Nevada, and others with restrictions scheduled between late 2026 and 2028. The legal fight will likely shape whether those proceed as planned.
- **November 1 is the next date to watch.** The two delayed state programs are paused until then, and further guidance from USDA is expected before that date.
Why It Matters for Candy Suppliers and Importers
SNAP is a real purchase channel for everyday candy in the United States, and any state that restricts it removes a slice of retail volume. The immediate effect of the pause is zero: no new restrictions take effect this month. The medium-term question is whether a legally durable version of these restrictions appears, and in how many states.
For suppliers, two preparations make sense regardless of the outcome. The first is visibility: knowing which products in a catalog fall under proposed definitions of "candy" in each state, since the definitions differ. The second is optionality. Reduced-sugar and sugar-free lines give retailers something to keep on the shelf if rules tighten, and they are already a growing part of U.S. assortment planning. Our sugar-free gummy range exists for exactly this kind of program requirement.
Importers serving U.S. retail chains should also expect buyers to ask about sugar content and formulation flexibility more often. Retailers planning for possible restrictions will favor suppliers who can adjust recipes without a full re-development, which is the kind of work handled inside a custom gummy program.
The legal battle will take months to settle. Until then, the practical posture is simple: watch the November date, keep product documentation current, and keep sugar-reduced options ready.
Sources
- DLA Piper, "Food and Beverage News and Trends" (September 11, 2026): dlapiper.com
- USDA Food and Nutrition Service, "SNAP Food Restriction Waivers" (updated September 16, 2026): fna.usda.gov