A recent undercover investigation has revealed that several bodegas in New York City are processing SNAP and EBT benefits for alcohol purchases, a practice prohibited by federal law.
During an encounter in Queens, a clerk accepted a beer purchase using an EBT card by labeling it as a food item, enabling the transaction.
Under the Food and Nutrition Act of 2008 and related regulations, SNAP benefits may only be used for eligible food items; alcohol cannot be purchased with these benefits. Violations can result in disqualification from the program, civil penalties, and state criminal charges.
In another case, a clerk at a Harlem bodega manipulated an EBT transaction to convert benefits into cash, which was then used to buy beer within minutes. This action violates federal rules that prohibit exchanging SNAP benefits for cash except for limited change in an eligible transaction.
The investigation also uncovered attempts by some retailers to process EBT cards for non-food items such as kratom, a psychoactive substance. Clerks tried to label these purchases as "EBT Cash" or "EBT Food" to circumvent restrictions.
Federal regulations prohibit accepting SNAP or EBT benefits for non-food items, including drugs, alcohol, and tobacco. Violations may trigger enforcement actions under federal, state, and USDA regulations.
These findings suggest that the diversion of taxpayer-funded benefits for illicit purchases could be more widespread than previously recognized.
Regulatory agencies may investigate the implicated retailers and impose penalties for noncompliance with SNAP regulations.
