More Federal Government Overreach

The Department of Agriculture plans to adopt rules that require all stores that sell food to increase access to "healthy food".  If stores do not comply with the proposed news rules, they will no longer be authorized to accept food stamps as payment.  This will threaten the very existence of corner and convenience stores.

The WSJ provides in-depth analysis of the proposed rule changes and their effects.

"U.S. regulators are pushing stricter rules for stores that accept food stamps—a proposal that could determine which retailers win and lose the billions of taxpayer dollars at stake.

The overhaul of the $74 billion Supplemental Nutrition Assistance Program, or SNAP, would hurt convenience stores and pharmacies like 7-Eleven Inc. and Walgreens Boots Alliance Inc., while it could benefit giants like Wal-Mart Stores Inc. and Kroger Co.

By year end, the U.S. Department of Agriculture wants to adopt rules that require stores redeeming food stamps to stock a wider variety of meats and vegetables and sell fewer hot meals, like pizza. The aim is to increase access to healthy food for low-income people. But the Obama administration’s latest effort to influence eating habits—following an effective ban on trans fats and a requirement to disclose added sugar on nutrition labels—has prompted a showdown with Congress.

Going further, the USDA’s proposal bars retailers from SNAP if they receive more than 15% of their sales from hot food, or if a fast-food chain, like KFC or Subway, operates under the same roof.

7-Eleven said many of its 8,000 U.S. locations would be kicked out, based on hot food sales. Mark Guest, who owns three 7-Eleven stores in New England said, “If my store is no longer SNAP-authorized, our revenues will decline substantially...our customers will spend their cash elsewhere.”

Wawa Inc. said its 700 convenience stores would stop accepting SNAP because of hot food sales, causing it to lose 7 million transactions a year."

These proposed rule changes would impact small businesses in Georgetown as well as the Georgetown consumer.  Some businesses would likely not survive and consumers would have to change their buying habits to patronize the big stores where convenience and quick service is not valued.