A store that takes food stamps and is caught trafficking in them can lose the right to do so for good. USDA says the penalties for retailers run from a temporary removal to permanent disqualification from the Supplemental Nutrition Assistance Program, known as SNAP, plus fines, and that some cases go to criminal prosecutors.
The statement came in a September 18, 2026 USDA release on “Operation SNAP Back” in New York City’s five boroughs. It describes penalties that fall on stores, not on the families who shop in them.
What did USDA find in the five boroughs?
USDA says it ran hundreds of undercover investigations of bodegas, convenience stores and grocery stores across New York City, and took action against 170 retailers.
Two kinds of violations are described. Trafficking means exchanging SNAP benefits for cash. The second is ineligible purchases, such as using SNAP benefits to buy alcohol and non-food products.
What can happen to a store that traffics in benefits?
According to USDA, “penalties associated with these violations range from temporary removal to permanent disqualification from the program.” Retailers can also face significant fines.
The agency adds that several cases were referred to the USDA Office of Inspector General for criminal investigation and prosecution.
Could a shopper’s own store lose the right to take the card?
For a household that buys groceries with an EBT card, the practical question is whether the neighborhood store could be shut out of SNAP. USDA’s action targets retailers that break the rules, and the release describes no change to any recipient’s benefit. A family’s monthly amount is set by the state agency, not by what happens to a particular store.
What changes is where the card works. If a store is disqualified, EBT purchases there stop, and a household that depends on that store, perhaps the only one within walking distance, needs another authorized place to shop. USDA runs a SNAP retailer locator for finding stores that accept the card.
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What is USDA saying about the wider crackdown?
Agriculture Secretary Brooke L. Rollins said in the release, “This is just the latest action in the Trump Administration’s fight against fraud.” She added that “if you accept any portion of an annual $100 billion taxpayer program, you must follow the rules or face the consequences.”
The release also gives national totals. USDA says that since the start of the Trump Administration, more than $5.8 billion in fraud has been stopped, nearly 6,000 retailers have been disqualified or suspended, and over 2,000 illegal point-of-sale devices have been disabled or blocked. Those are the agency’s own figures, and the release does not break them down by state or year. The release also does not name the stores involved in the New York operation or give dollar amounts for it, and it does not say how many of the 170 cases were referred for criminal prosecution, only that some were. A temporary removal means a store loses the ability to accept EBT cards for a set period, while permanent disqualification ends it.
How can someone report suspected trafficking?
USDA asks people to report suspected program fraud at its fraud reporting page, with the line “if you see something, say something.” A shopper who is asked to hand over a card for cash, or sees a store offering cash for benefits, is looking at the conduct the release describes.
Recipients have their own reasons to stay careful. Selling or trading benefits for cash is trafficking too, and the release is about stores, not families, but the best protection for a household is to use the card only for eligible food and to keep its own recertification dates in order.
What if the store that takes the EBT card is removed from SNAP?
The 170 retailers USDA acted on in New York show how quickly a neighborhood store can be pulled from the program, and a household that relies on one has to find another place the card works while its own benefit dates keep running. Missing a renewal during that scramble is the mistake that actually cuts off the benefit.
The SNAP & Medicaid Renewal Organizer includes 51 state packs and a renewal and reporting calendar, so the household’s recertification and reporting dates are written down before a store change throws the routine off. Part 2 walks through the SNAP recertification step by step.
Get the state pack and renewal calendar to keep SNAP dates straight if a store drops out →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
