Devastating cuts to the Supplemental Nutrition Assistance Program (SNAP) will not only harm the people who depend on the program to feed their families, but will also disproportionately harm rural communities’ local economies.
The long-standing, primary program from the federal government for reducing food insecurity in the country was shrunk dramatically through the One Big Beautiful Bill that was signed into law in July. According to the Congressional Budget Office, SNAP will have a reduction of $187 billion in funding—or about 20% of the entire program through 2034.
In the often politicized debates about public assistance, what is often neglected is the fact that SNAP spending by its 41.7 million recipients boosts economic activity, starting with neighborhood grocery stores and extending to the wider food system. It is estimated that for every dollar spent in SNAP benefits, an additional $1.54 of economic activity is generated in what is known as a multiplier effect. In a rural state like Nebraska, where agriculture and food production are major industries, this ripple effect is significant. SNAP dollars, spent across rural and urban residents alike, help strengthen each link in the food supply chain – from farming, processing, and labor, to distribution and retail.
The Center for Rural Affairs’ fact sheet demonstrates the economic impact of SNAP dollars in Nebraska, including a breakdown by legislative district. In 2023, $331 million in SNAP benefits equated to $482 million in economic activity as those dollars were spent at local grocery stores, farmers markets, and supported the state’s agricultural economy.
The Center’s data makes evident that SNAP not only helps individuals and families meet their basic needs; it also strengthens Nebraska’s economy by keeping dollars local. Read more here.
