Grocers hope court ruling is reprieve from SNAP funding halt

After the Trump administration said it would not use contingency accounts to fund SNAP, the stores were bracing for a big drop in sales and also trying to help customers.

The Minnesota Star Tribune
October 31, 2025 at 8:46PM
Colonial Market says one-third of sales come from people using SNAP benefits. (Jerry Holt/The Minnesota Star Tribune)

Those who serve SNAP recipients are hoping a federal ruling Friday will force the Trump administration to continue funding the food nutrition and security program.

The government has contingency accounts to fund the Supplemental Nutrition Assistance Program during shutdowns. However, the administration has indicated it would cut off funding when regular funds run out on Saturday.

More than 12% of U.S. residents in 2024 used SNAP benefits, including more than 440,000 Minnesotans.

Stores that take SNAP benefits such as Twin Cities Colonial Market locations were both bracing for a big dip in revenue and trying to figure out how they could help their customers through what promised to be a tougher patch than usual.

It’s unclear what’s next. The ruling by U.S. District Judge John McConnell for Rhode Island said the government must immediately start tapping contingency funds for SNAP.

But the Justice Department could appeal, and it might take several days to get the program moving again.

It’s also unclear when the shutdown may end. There has been no movement this week by Congress to come to a resolution.

Nearly one-third of Colonial Market customers use SNAP benefits to buy food, said owner Daniel Hernandez. That means he would lose about $2,000 a day.

“We have so much anxiety,” said Hernandez, who owns two stores in Minneapolis.

If SNAP funds run out, he will offer his customers who normally use the benefits a 10% discount. He’ll also need to figure out if he’ll need to slash hours for his 55 employees at his three stores in Minneapolis and Bloomington.

Across the state, SNAP recipients spend $70 million a month at grocery stores from Coborn’s and Cub to Aldi and Target.

In 2024, SNAP recipients spent a total of $857 million with eligible retailers, according to the Food Group.

That includes $235,000 worth of food at the Minneapolis Farmers Market, said Executive Director Ashley Nathe.

The farmers market was only OK’d to take SNAP benefits from May to October last year. But it just received a grant that will allow vendors to accept them through the winter months.

She said her vendors are frustrated, wondering how long the shutdown will linger.

This week, the United Food and Commercial Workers International Union (UFCW) — which represents 1.2 million workers including thousands at 107 Cub Foods stores, and hundreds of other grocery stores such as Whole Foods and Kroger — wrote to U.S. Agriculture Secretary Brooke Rollins imploring her to use the contingency funds.

“Rising costs at the grocery store already threaten household budgets, especially for low-income families. An interruption in food assistance will only make matters worse,” the letter said.

Food shelves already are stressed.

“The families that do rely on [SNAP] to feed their children? We know their faces by heart. They’re in here all the time, and they’re going to be hurt” if contingency funds aren’t tapped, said Kevin Hannigan, who owns the Produce Exchange supermarket inside Midtown Global Market in Minneapolis.

He estimates 5% to 15% of his sales are from SNAP benefits as customers use a combination of cash, credit and the benefits card to pay for their purchases

The managers of Longfellow Market started a food-donation drive inside the store at Lake Street and 39th Av. S. to send to a food shelf that serves the area in anticipation of people needing more help.

about the writer

about the writer

Dee DePass

Reporter

Dee DePass is an award-winning business reporter covering Minnesota small businesses for the Minnesota Star Tribune. She previously covered commercial real estate, manufacturing, the economy, workplace issues and banking.

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