(North Dakota Monitor) — The federal One Big Beautiful Bill Act, signed into law in 2025, dramatically reshaped aspects of the Supplemental Nutrition Assistance Program, which helps low-income families pay for groceries.
One of those changes was the introduction of the Healthy Choice Waiver, which allows states to restrict the use of SNAP benefits for certain products, like candy and soda.
North Dakota applied for the waiver in 2025 in an effort to secure more funding through the federal Rural Health Transformation Program.
Its application was approved at the end of last year, and the new restrictions — including bans on energy drinks, candy and sweetened beverages — will take effect Sept. 1 and last for two years. After that, the state will be able to request up to three annual extensions, according to a letter approving the state’s application.
“We here at Health and Human Services have a vision to be the healthiest state in the nation, so the food choice waiver is a great way to align seamlessly with our mission and push North Dakota participants to choose healthier options,” said JoAnna Rygg, administrator for the state’s waiver program.
Five states’ waivers were shot down by a federal court in June, but North Dakota was not one of the states named in the case and will not be impacted, according to Rebecca Askins, interim director of the Economic Assistance Section for the state Department of Health and Human Services.
The department expects to spend $3.5 million to $4 million to implement and enforce the changes. Of that total, $1 million will come from a grant the state received from the SNAP Education program, which aims to teach families how to implement healthy lifestyle changes.
The remainder of the cost will be split between the federal and state government, with the state paying around 75%, Askins wrote in an email.
Tracie Thompson, owner of Baker’s Market in Westhope, said she and other rural grocery stores have been getting regular updates from the North Dakota Association of Rural Electric Cooperatives about how to prepare for various changes coming to SNAP.
But when they spoke with representatives from SNAP, officials didn’t mention the Healthy Choice Waiver, instead focusing on the Double Up Dakota Bucks program, which doubles every dollar SNAP recipients spend on fresh produce.
The topic’s come up in conversations with other grocers, Thompson said, but there haven’t yet been more in-depth conversations about how the changes could impact stores’ bottom lines.
While the deadline for grocers and other retailers to have their systems updated is Sept. 1, they’ll still have a three-month grace period to finalize the required changes, Rygg said.
“The grace period is there to recognize that there are significant challenges associated with implementation of these projects,” Rygg said during a June 23 webinar.
The state is hosting multiple webinars this summer to share information about the changes and answer retailers’ questions. But many grocers are still unaware of the waiver or its implications, according to John Dyste, president of the North Dakota Grocers Association.
The state is “doing webinars, but they don’t get anybody to sign up. That’s because (grocers) don’t know or they don’t care about it,” Dyste said.
Dyste, who serves as a liaison between grocers and the SNAP program, said state officials have asked his association to spread the word via email but are “frustrated with the lack of retailer involvement so far.”
“People are inundated with emails, and they can ignore them very easily,” he said, adding that he’d like to see more direct outreach, like mailed notices.
Grocers and retailers that accept SNAP benefits are required to update their systems so that, by the end of the grace period, customers aren’t able to use their benefits on any restricted products. They’ll also have to train employees and submit a form affirming they’ve made the required changes.
If, after the grace period, a store is believed to not be complying with the changes, it will be put under investigation. If the investigation finds noncompliance, the store will receive a warning letter, and if changes are not made, it will be kicked off the program, Rygg said.
Although Dyste said he expects a fair amount of work for retailers, “none of us know exactly what it’s going to look like.”
Retail chains and larger stores will have an easier time adapting thanks to their larger budgets and greater manpower and expertise. Smaller stores face a more “daunting task,” Dyste said.
For Thompson, the owner of Baker’s Market, the changes come with an unknown price tag.
“We would have to call our software company … I’m not even going to guess what that cost would be,” she said, adding that the man hours required to have employees update the system instead would be “astronomical.”
While Baker’s Market already has a modern system, she said she knew of other stores with outdated technology that would require hand-entering products, or a new system entirely.
“It could be anywhere from $3,000 probably up to $16,000, depending on if they have to buy a new program,” she said.
During the June 23 webinar, Rygg told retailers that the state was prepared to offer assistance, including providing flow charts to help identify restricted products, clarifying definitions and providing on-site support as needed.
However, when an attendee asked whether there would be financial support to help stores update their systems, Rygg told her that the department is “seeking it out,” but there was no confirmation yet.
But Dawn Brossart, director of North Dakota’s SNAP program, quickly added that because of the upcoming deadline, “at this time, I think we need to proceed (like) there is not assistance available.”
Besides teaching employees about the new changes, managers will have to prepare staff for frustrated customers adjusting to the restrictions, Dyste said.
“The staff, the people at the checkout stand, are going to hear it, because the people using SNAP benefits have to be trained, too,” he said.
Thompson said her employees already have to deal with customers who get frustrated by the nuances of what SNAP does and doesn’t cover. She said she hopes SNAP officials will do more outreach to program users to explain the changes.
“Because we’re going to see the side of it where they get upset,” she said.
The new rule could cause confusion, as items sold as baking ingredients — like marshmallows — will still be eligible for SNAP, while other products, such as fruit snacks or trail mixes with chocolate-covered raisins, will not.
Dyste said his members understand and support the program’s goal of encouraging healthier eating. Thompson said she is in favor of people buying healthier food, too, but worries the policy is judgmental.
“Who am I to tell the person that walks in the store that they can’t have a soda?” she said. “I do see a lot of junk food, a lot of pop, a lot of frozen things that go out. But I’m not on SNAP and I purchase those things.”
FOLLOW US FOR INSTANT UPDATES!
