Short-Run Impacts of SNAP Restriction Waivers on Beverage Purchases

David Frisvold () and Felipe Lozano-Rojas ()
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David Frisvold: University of Iowa
Felipe Lozano-Rojas: University of Georgia

No 18883, IZA Discussion Papers from IZA Network @ LISER

Abstract: Ten states implemented Supplemental Nutrition Assistance Program (SNAP) Food Restriction Waivers to restrict purchases of sugary beverages with SNAP funds for the first time in program history in 2026. We estimate the short-run impact of these waivers using a new panel dataset of household beverage purchases. For the average SNAP household, these waivers decrease soda purchases by 13 percent with persistent effects for up to two months after implementation. For inframarginal SNAP households, these waivers decrease soda purchases by 18.5 percent. These findings are inconsistent with the predictions of traditional demand theory and suggest that behavioral models incorporating mental accounting and labeling better characterize consumer responses to SNAP purchase restrictions.

Keywords: SNAP; consumption; mental accounting; labeling; fungibility (search for similar items in EconPapers)
JEL-codes: D12 H51 H53 H75 I38 (search for similar items in EconPapers)
Date: 2026-08
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