SNAP stores face permanent ban for benefit trafficking—but states can waive it
H.R. 2407 — SNAP Reform and Upward Mobility Act of 2025 · Filed by Josh Brecheen (R-OK) · 2 cosponsors · Introduced Mar 27, 2025 · Referred to committee
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What it does
This bill modifies the Supplemental Nutrition Assistance Program (SNAP) by requiring annual state activity reports, permanently disqualifying retail stores and wholesalers convicted of trafficking SNAP benefits or selling firearms/ammunition/controlled substances in exchange for benefits, and allowing states to retain a portion of recovered fraud funds for fraud investigations. It creates civil penalties (up to $10,000 per violation, $40,000 per investigation) as an alternative to permanent disqualification in some cases.
Why we flagged it
The bill's core function is to tighten enforcement against benefit trafficking and criminal misuse of SNAP, while creating a mechanism for states to retain and deploy recovered funds for fraud investigation. The title accurately reflects this enforcement focus.
What the text implies
- Permanent disqualification of stores may disproportionately harm food access in rural or underserved areas where few retailers accept SNAP, potentially creating food deserts for vulnerable populations.
- The discretionary exception allowing states to avoid disqualification based on 'hardship to participants' creates enforcement inconsistency and may incentivize states to underenforce against repeat violators in areas with limited retail options.
The full analysis lists 4 implications of this text.
Who stands to gain
State SNAP agencies (via retained fraud recovery funds); Retailers with strong compliance records (competitive advantage via disqualification of competitors)