SNAP Economic Multiplier Effect

Policy
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The Supplemental Nutrition Assistance Program (SNAP) helps low-income individuals and families afford nutritious food at authorized retailers. Beyond improving access to food, SNAP stimulates local economies through what is known as the multiplier effect. Economic activity that ripples throughout the community is generated when SNAP benefits are spent at local grocery stores, farmers markets, and other food retailers. This activity supports jobs, services, and businesses tied to food production, distribution, and retail. SNAP benefits cover a portion of food expenses, freeing up household dollars that can be spent on other essential needs, such as housing, transportation, and health care. In this way, SNAP dollars extend beyond just food purchases.