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SNAP Removes Junk Food from Approved List in Two States — Check What’s No Longer Eligible

Starting January 1, 2026, Indiana and Iowa will ban the purchase of sodas, candy, and many packaged snack foods with SNAP benefits under the USDA’s “Make America Healthy Again” initiative. This article explains the policy change, why it matters, and offers practical tips—such as healthy food swaps, budgeting advice, and where to find SNAP-Ed resources—to help families navigate the new rules and maintain nutritious, affordable diets.

By Anthony Lane
Published on

SNAP removes junk food from approved list in Indiana and Iowa, marking a major change in how recipients can use benefits. Beginning January 1, 2026, SNAP benefits in these states cannot be used to buy certain soft drinks, candy, and many packaged snack foods. This change is part of the USDA’s “Make America Healthy Again” (MAHA) initiative, designed to encourage more nutrient-dense food purchases and improve long-term health.

This article explains the policy in clear, conversational terms—simple enough for a 10-year-old to follow, yet detailed enough for professionals. You’ll find context, data, practical advice, and straightforward examples to help SNAP recipients, retailers, and policymakers prepare.

SNAP Removes Junk Food from Approved List in Two States — Check What’s No Longer Eligible

SNAP Removes Junk Food from Approved List in Two States

FeatureDetails
Program NameSNAP MAHA Waiver (Make America Healthy Again)
Administered ByU.S. Department of Agriculture (USDA), Food and Nutrition Service (FNS)
States AffectedIndiana and Iowa
Effective DateJanuary 1, 2026
Excluded ItemsIndiana: Soft drinks and candyIowa: Sweetened beverages, snack foods (chips, cookies, crackers, snack bars), and candy
SNAP Recipients ImpactedIndiana: ≈ 789,000 (~12 % of state population)Iowa: ≈ 616,000 (~19 % of state population)
Childhood Obesity RateIndiana: ~ 20 % (ages 10–17)Iowa: ~ 19 % (ages 10–17)
Projected Annual SavingsIndiana: ≈ $20 million (reduced diabetes incidence)Iowa: ≈ $18 million (reduced diabetes incidence)
SNAP-Ed ResourcesNutrition education, cooking demos, budgeting guidance (see snaped.fns.usda.gov)
Retailer RequirementsPOS‐system updates to flag banned SKUs; staff training
Official WebsiteUSDA SNAP Official Site

Background on SNAP and MAHA

The Supplemental Nutrition Assistance Program (SNAP) provides monthly benefits for groceries to low-income households. In 2024, it served around 42 million Americans at a cost of $115 billion [1]. Under normal rules, SNAP covers most grocery items except:

  • Alcoholic beverages
  • Tobacco products
  • Hot prepared foods ready to eat
  • Nonfood items (e.g., soap, pet food) [5]
SNAP Removes Junk Food from Approved List in Two States — Check What’s No Longer Eligible

In early 2025, the USDA launched “Make America Healthy Again” (MAHA) to allow states to restrict the purchase of ultra-processed, sugar-heavy foods—often called junk food—with SNAP benefits. The goal is to encourage healthier eating, reduce obesity, and lower diet-related healthcare costs. Before Indiana and Iowa, Nebraska piloted a waiver banning sugary sodas and energy drinks, effective January 1, 2026 [7].

What Changed in Indiana and Iowa?

Indiana’s Waiver

  • Approval: May 23, 2025
  • Effective: January 1, 2026
  • Banned:
    • Soft drinks: All sugar-sweetened and diet sodas (e.g., Coca-Cola, Diet Pepsi).
    • Candy: Chocolate bars (Hershey’s, Snickers), gummies, hard candy, licorice, and chewing gum if labeled as candy.
  • Why: Indiana reports 20 % of children ages 10–17 are obese [2]. Officials say banning these items will help SNAP align with its goal to support nutrition, not just calorie intake [8].

Iowa’s Waiver

  • Approval: May 23, 2025
  • Effective: January 1, 2026
  • Banned:
    • All foods subject to state sales tax → most “junk food”:
      • Sweetened beverages: Sodas, fruit drinks, energy drinks, flavored waters, sports drinks.
      • Snack foods: Chips, cookies, crackers, snack bars.
      • Candy & confections: Boxed/bulk candy (M&M’s, Skittles), licorice, novelty candy.
  • Why: Iowa’s children have a 19 % obesity rate [2]. Banning taxed, ultra-processed snacks aims to reduce diet-related conditions like prediabetes [9].

Why This Policy Matters

Health Impacts

  • Obesity & Disease: CDC data show ~19 % of U.S. children ages 10–17 are obese. Indiana’s (~ 20 %) and Iowa’s (~ 19 %) match that rate. Childhood obesity raises risks for type 2 diabetes, hypertension, and other chronic issues.
  • Ultra-Processed Foods: Research links ultra-processed foods and sugar-sweetened beverages to excess calories and poor nutrition. Banning them could shift purchases to healthier items [10].
  • Health Savings: The Urban Institute projects banning sugary drinks in SNAP prevents ≈ 15,000 new cases of type 2 diabetes annually, saving $90 million nationwide. Indiana and Iowa estimate savings of $20 million and $18 million per year, respectively [4].

Economic & Social Impacts

  • Cost of Healthy Foods: A USDA analysis shows $1 of fresh produce yields ~ 50 calories, while $1 of candy yields ~ 323 calories [12]. Low-income families may struggle if healthier items are pricier without added support.
  • Retailer Burden: Stores need to update POS systems so SNAP cards decline on banned SKUs. Small retailers may spend $5,000–$10,000 on software updates and training [14].
  • Stigma & Autonomy: Some argue restrictions stigmatize SNAP recipients by suggesting they can’t choose healthy foods themselves. However, proponents respond that SNAP is taxpayer-funded and should promote nutrition.

How SNAP Recipients Can Prepare

1. Check State Guidance

2. Understand Excluded Foods

  • Indiana: Only soft drinks and candy.
  • Iowa: All taxed, packaged junk foods (sodas, candy, chips, cookies, snack bars).

Tip for Kids: Think of SNAP as a magic grocery card that works for most foods—but in Indiana it won’t work for sodas or candy, and in Iowa it won’t work for almost any packaged snack.

3. Make a Healthy Shopping List

  • Categorize Foods:
    • Eligible: Fruits, vegetables (fresh, frozen, or canned without added sugar/salt), whole grains (brown rice, oats), lean proteins (beans, lentils, poultry), low-fat dairy (plain milk, yogurt).
    • Ineligible (Jan 1, 2026):
      • Indiana: Sodas, candy.
      • Iowa: Any packaged snack taxed by state.
  • Healthy Swaps:
    • Soda → Sparkling water (no sugar), water.
    • Candy → Fresh fruit (apples, bananas), unsalted nuts, plain yogurt with fruit.
    • Cookies → Whole-grain crackers or low-sugar cereal.
  • Compare Cost: Use USDA’s Food Price Outlook for updated price comparisons https://www.ers.usda.gov/data-products/food-price-outlook [17].

4. Stock Up Before the Ban

  • December 2025: Use SNAP to buy extra canned fruits (no added sugar), whole-grain pasta, beans, brown rice, and frozen veggies. These items remain eligible.

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5. Watch for POS Alerts

  • Point-of-Sale (POS): Look for a red “Denied” message when scanning banned items.
  • Hotlines:
    • Indiana SNAP: 1-800-403-0864
    • Iowa SNAP: 1-855-944-3663

6. Use SNAP-Ed & Community Resources

  • SNAP-Ed: Free classes on meal planning and nutrition. Find providers at https://snaped.fns.usda.gov/ [13].
  • Farmers’ Market Incentives: Programs like Double Up Food Bucks match SNAP dollars spent on produce. See https://www.doubleupfoodbucks.org/ [18].
  • Produce Prescriptions: Some clinics offer vouchers for fresh fruits and vegetables through partners such as local health centers.

FAQs

1. Why is SNAP removing junk food?
To promote healthier diets, reduce obesity, and lower healthcare costs by encouraging SNAP dollars to go toward nutrient-rich foods rather than ultra-processed snacks and sugary drinks [7].

2. Can I buy banned items with cash?
Yes. The ban applies only to SNAP benefits. You can still purchase soft drinks, candy, or taxed snacks with personal money at checkout.

3. How do retailers know what to ban?
Retailers receive SKU lists from state SNAP agencies to update their POS systems. When you scan an ineligible item, SNAP benefits are automatically declined.

4. Will this reduce obesity?
Banning sugary drinks and candy can lower consumption, which may reduce obesity risk. But long-term improvements require nutrition education, produce incentives, and better access to healthy foods [19].

5. What if I live far from a grocery store?
Currently, no blanket exemption. However, if you live > 20 miles from a grocery store, contact your county human services office for possible exemptions.

6. Will other states adopt this?
Yes. States like Arkansas, Colorado, Kansas, and Idaho have submitted or plan similar waivers. Future expansions depend on health outcome data.

Author
Anthony Lane
I’m a finance news writer for UPExcisePortal.in, passionate about simplifying complex economic trends, market updates, and investment strategies for readers. My goal is to provide clear and actionable insights that help you stay informed and make smarter financial decisions. Thank you for reading, and I hope you find my articles valuable!

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