Following nearly a year of advocacy by Bronx Borough President Ruben Diaz Jr., Congressman Sean Patrick Maloney and others, the U.S. Department of Agriculture (USDA) has announced the selection of New York State to participate in a nationwide pilot program to allow Supplemental Nutrition Assistance Program (SNAP) participants to purchase their groceries online.
Borough President Diaz and Congressman Maloney led the campaign in New York State to bring about this innovative change, which will allow consumers greater access to affordable groceries, help combat food deserts, promote healthier diet choices and create billions of dollars in new business opportunities.
“New York State has always led the way when it comes to innovation in government, and this pilot program will put our state at the intersection of health, technology and business. Allowing consumers to use their SNAP benefits in the same way you would also use a credit or debit card to purchase groceries will lead to lower prices and greater options for consumers in every corner of this city and state,” said Bronx Borough President Ruben Diaz Jr. “I want to thank Congressman Maloney and our New York delegation, our partners in business and the health and hunger advocates who understood the need for this pilot program and joined our efforts to bring this important new program to New York.”
“Working hand-in-glove with Borough President Diaz, we delivered on our goal of bringing the SNAP program in New York State into the 21st century. This pilot will help make it easier and more efficient for New York families to put food on their tables. New York has always paved the way for new ideas and innovations – this pilot program is no different - and I want to thank my colleagues in Congress for joining us in bringing this program to New York,” said Congressman Sean Patrick Maloney.
Borough President Diaz initially proposed such changes in his “State of the Borough” address in February 2016. In July 2016, Borough President Diaz participated in a conference on Capitol Hill to address the need for technological advancements for SNAP benefit users with Ohio Rep. Tim Ryan. The next month, the borough president authored a letter to USDA Secretary Tom Vilsack urging his department to select New York State for this pilot program.
Congressman Maloney was integral in drumming up support for the pilot program in Congress. In November, the congressman led his colleagues in the New York State delegation on a letter to Secretary Vilsack, in which they jointly called for New York’s selection in the pilot program.
As part of the pilot program, the USDA has selected two vendors—Amazon and FreshDirect—to serve customers in New York State. Both companies worked closely with Borough President Diaz to bring the pilot program to New York. In addition, FreshDirect launched a similar pilot program in The Bronx, in conjunction with the borough president, in 2012.
“I am grateful for the support of both FreshDirect and Amazon on this technological innovation, and I look forward to working with both companies on its implementation.This announcement by the USDA will allow New York to set the example for the entire nation on public/private partnerships that improve nutrition, fight hunger and offer consumers greater choices, all while expanding the marketplace,” said Borough President Diaz.
The USDA’s announcement is below.
USDA Announces Retailer Volunteers for SNAP Online Purchasing Pilot
WASHINGTON, Jan. 5, 2017 - The U.S. Department of Agriculture (USDA) today announced the seven retail firms selected to take part in a pilot designed to enable Supplemental Nutrition Assistance Program (SNAP) participants to purchase their groceries online. The two-year pilot is slated to begin this summer.
"Online purchasing is a potential lifeline for SNAP participants living in urban neighborhoods and rural communities where access to healthy food choices can be limited," USDA Secretary Tom Vilsack said. "We're looking forward to being able to bring the benefits of the online market to low-income Americans participating in SNAP."
- Firms selected include:
- Retailers - Pilot States
- Amazon - Maryland, New Jersey, New York
- FreshDirect - New York
- Safeway - Maryland, Oregon, Washington,
- ShopRite - Maryland, New Jersey, Pennsylvania
- Hy-Vee, Inc. - Iowa
- Hart's Local Grocers - New York (based in Rochester)
- Dash's Market - New York (based in Buffalo)
The firms selected represent a variety of store types, including national online retailers as well as large grocery chains and smaller, regional networks to appropriately test online SNAP purchasing in different settings. Pilots will take place in seven states in both rural and urban areas, marking the next critical step in bringing the online purchasing option to SNAP clients.
While USDA has authorized SNAP online grocery ordering in a few locations, this pilot will test both online ordering and payment. Online payment presents technical and security challenges that will need to be examined and fully addressed before it is offered nationwide. As with the core program, SNAP participants will only be able to use their benefits to purchase eligible items online – not to pay for service or delivery charges. USDA is committed to maintaining the security of SNAP benefits for both the protection of SNAP participant accounts and to prevent and detect trafficking, so SNAP online purchases must have a higher level of security than most other online purchases.
As the pilot proceeds and USDA confirms the system is operating as required, we anticipate being able to add additional retailers. Eventually, our goal is for this to be a national option for SNAP participants, once the pilot phase is complete and USDA can incorporate lessons learned into program rules.
USDA has taken many steps in the last several years to strengthen SNAP and increase access to healthy foods. Recently, USDA announced a purchase and delivery pilot, which is designed for non-profits and government entities to improve access to groceries solely for homebound elderly and disabled SNAP participants. USDA also provided funding to incentivize participants in SNAP to purchase more healthy fruits and vegetables through the Food Insecurity Nutrition Incentive Program, increased farmers market participation in SNAP to improve access to fresh and nutritious food, and announced final changes to increase access to healthy food choices for SNAP participants by requiring authorized retail establishments to offer a larger inventory and variety of healthy food options.
As the nation's first line of defense against hunger, SNAP helps put food on the table for millions of low income families and individuals every month and has never been more critical to the fight against hunger. SNAP is a vital supplement to the monthly food budget of more than 43 million low-income individuals. Nearly half of SNAP participants are children, 10 percent are over 60 and more than 40 percent of recipients live in households with earnings.
