Key Takeaways
- A federal judge blocked SNAP purchase restrictions in five states — Colorado, Iowa, Nebraska, Tennessee, and West Virginia — ruling that the USDA had no authority to rewrite the legal definition of “food.”
- Soda, energy drinks, and candy bought with EBT are legal again in those five states, yet 18 other states keep their approved bans in place for now.
- The patchwork of state rules lands on retailers at the checkout counter, so a POS that updates EBT eligibility over the air keeps your store on the right side of fast-moving changes.
What the court ruled on SNAP purchase restrictions
A federal judge blocked SNAP purchase restrictions in five states on June 23, 2026, and the change hit registers right away. U.S. District Judge Amy Berman Jackson found that the USDA overstepped when it approved waivers letting Colorado, Iowa, Nebraska, Tennessee, and West Virginia bar soda, energy drinks, and candy from benefit purchases.
What does that mean for an owner who already reprogrammed his lanes? Sales of those items on EBT are allowed again in the five states named in the suit. The judge vacated the approvals and told the agency to redesign pilots that comply with federal law.
The case started in March, when SNAP recipients in the five states sued. Judge Jackson wrote that the court took no position on whether the bans are good policy — only on whether the USDA followed the statute. It did not, she ruled.
Which five states are affected — and which still ban soda and candy
Does this decision wipe out every state ban? No. The ruling applies to the five states in the lawsuit and no one else. At least 23 states have applied for these SNAP food-restriction waivers, and 18 already hold USDA approval, including Idaho, Florida, and Hawai’i.
So a sports drink can be outside SNAP in one state and inside it in the state across the river. If you ran the 2026 list of banned SNAP items for your state, that list still governs your store unless your state was one of the five. The table below sorts out where things stand.
| State group | Status after the ruling | What to do at the register |
| Colorado, Iowa, Nebraska, Tennessee, West Virginia | Restrictions vacated — soda, energy drinks, and candy are EBT-eligible again | Re-enable those items for EBT tender |
| 18 other approved states (Idaho, Florida, Hawai’i and more) | Restrictions still stand unless USDA pulls them or a court rules separately | Keep each state’s banned list active |
| States that applied but have not rolled out yet | No change — nothing to enforce | Watch for start dates and updates |
Stores that accept benefits through a flat-fee EBT plan will want their item settings to match their own state, not the headline. A national news alert does not change the rules in Idaho.
Why the judge struck the waivers down
Where did the waivers go wrong in the eyes of the court? They tried to carve out candy and soda from the Food and Nutrition Act’s definition of “food.” Congress wrote that definition, Jackson noted, and it did not hand the agency a pen to edit it.
“Congress defined what ‘food’ is supposed to be, and it did not authorize the agency to amend or waive the definition it enacted,” the judge wrote. “It did not authorize the agency to cut types of food out of SNAP entirely.”
There was a procedural miss as well. The USDA relied on a clause meant to “increase SNAP efficiency,” but the judge found nothing in the state plans indicating real efficiency gains. The agency also skipped a step — posting notice of major pilot projects in the Federal Register 30 days ahead. Two strikes, and the approvals fell.
What changes at your POS right now
Your next move depends on your zip code. The decision is good news for some owners and a non-event for others, and mixing them up is where mistakes happen.
If your store sits in one of the five states
You can ring soda, energy drinks, and candy back onto EBT. Check your item eligibility flags in inventory and flip the affected SKUs back to benefit-eligible. A customer who was turned away last week can pay by card today, so the counter staff needs a heads-up before the first shift.
If your store sits in a state that still restricts
Nothing changes. Keep the banned items blocked for EBT tender and leave your pricebook rules as they are. Declines on restricted items are still correct, and your team should know the difference between a state rule and a card problem. Our guide on how EBT disputes work at the register walks through that conversation.
The hidden cost of a state-by-state rulebook
Why do retail groups keep pushing back on these waivers? For owners, it comes down to the workload. Every state drew its own line, leaving clerks to decide whether flavored water counts as a banned drink while a line forms behind it.
NACS made that point in plain terms. “These waivers do not make SNAP more efficient. They make it more confusing,” said Margaret Mannion, the group’s director of government relations, after the ruling came down. “Our members are the ones who have to navigate these complex changes at the register every day.”
The dollars matter too. One industry analysis cited by Grocery Dive pegged the potential sales loss from these waivers at about $830 million across soda, candy, and energy drinks. For a small convenience store running on thin margins, a swing in those categories shows up fast on the P&L.
How your POS keeps EBT compliant when the rules move
Can one store keep up with a rulebook that shifts by court order? Not by memory. The work belongs in the system, where eligibility lives next to each item, and updates push out without a tech visit.
- Over-the-air item settings: EBT eligibility flags update across your lanes at once, so a reversed ban does not wait on a manual reprogram.
- Clean tender separation: A POS that handles EBT, eWIC, and card tenders keeps food, restricted, and non-food baskets sorted at checkout.
- Accurate reporting: Category-level sales data shows what a ban took off the shelf and what a reversal puts back on the shelf.
Stores that lean on integrated EBT and eWIC acceptance spend less time second-guessing the register and more time selling. And once soda and candy return to a basket, smart shelf placement near the checkout helps recover the impulse sales the ban interrupted.
Steps independent retailers should take this week
- Confirm your state. Check the five-state list against your store address before you touch a single setting.
- Update item eligibility. In the five states, re-enable soda, energy drinks, and candy for EBT; everywhere else, leave current rules alone. Pair this with a quick inventory review.
- Brief your staff. A one-page note at the counter stops awkward declines and arguments during a rush.
- Watch your payment mix. If benefit sales shift, revisit how you handle card costs — our breakdown of cash discount programs explains one common option.
- Keep records. Save the date you changed settings in case a customer or auditor asks why a transaction went the way it did.
Could the ruling reach the other 18 states?
Is this the end of the story? Probably not. The decision binds five states, but the same legal and procedural reasoning sits under every other approval. Advocates have already called the ruling a roadmap for future challenges.
The USDA, for its part, signaled it will keep fighting and may appeal. Nebraska added a wrinkle by requesting a second waiver while the case was live. For now, owners in the other 18 states should hold their current settings and keep an eye on the news, because the next ruling could land on their counter.
Update your POS the right way — and where to get help
Your NRS POS will not flip these settings on its own. If your store sits in Colorado, Iowa, Nebraska, Tennessee, or West Virginia, head back into your Pricebook and re-check the “EBT Eligible” box on the soda, candy, and energy-drink items you blocked earlier — the same screen, just the reverse move. Stores in the other approved states leave their settings as they are.
Not sure where to click? NRS Support can walk you through your Pricebook at (800) 215-0931. New to NRS and want a register that keeps EBT eligibility accurate as the rules shift?
Schedule a POS demo or contact our team at 1-833-289-2767, and ring every sale with confidence.
FAQ:
Did a federal judge block SNAP purchase restrictions?
Yes. On June 23, 2026, U.S. District Judge Amy Berman Jackson vacated the USDA-approved waivers that let five states bar soda, energy drinks, and candy from SNAP purchases. The court found that the agency lacked authority to rewrite the legal definition of “food,” so the restrictions no longer apply in those states.
Which states are affected by the SNAP purchase restriction ruling?
The ruling covers five states: Colorado, Iowa, Nebraska, Tennessee, and West Virginia. Residents in each of those states filed the lawsuit, and the order applies only to them. The judge’s reasoning could shape future cases, but the decision itself stops at those five borders.
Does the ruling end SNAP soda and candy bans nationwide?
No. It ends the bans only in the five states named in the suit. At least 18 other states still hold USDA approval for similar restrictions, and those rules stay in force until the agency withdraws them or a separate court strikes them down.
Can my store now sell soda on EBT in the five states?
Yes, in Colorado, Iowa, Nebraska, Tennessee, and West Virginia, soda, energy drinks, and candy are SNAP-eligible again, so ringing them on EBT is correct there. Update your item eligibility flags to match your own state and your register stays compliant. Stores outside those five states should leave their current rules in place.
Why did the judge block the SNAP restrictions?
The court ruled that the USDA exceeded its authority. Congress defined “food” in the Food and Nutrition Act, and Judge Jackson found that the agency could not waive or alter that definition to carve out candy and soda. The USDA also relied on an “efficiency” clause that did not fit and skipped a required 30-day Federal Register notice, which sealed the outcome.
What items were banned under the state SNAP waivers?
The waivers focused on sugary drinks and sweets. Most states restricted soda and energy drinks, and several added candy. Definitions differed by state, which is part of why a sports drink could count as eligible in one state and restricted in another. You can check your state’s current banned items in the 2026 SNAP banned-items guide.
What should I do if my state still restricts soda and candy?
Keep your banned-item list active for EBT tender. The ruling does not touch the other approved states, so declining a restricted item on benefits is still the right call. Brief your staff so they can explain the difference between a state rule and a payment problem, and watch for news in case your state is challenged next.
Will the USDA appeal the SNAP ruling?
The agency signaled it will keep pushing its food-policy agenda and left an appeal on the table. Nothing is final until any appeal runs its course. Treat today’s rules as the rules that bind you now, and keep your POS settings flexible enough to change quickly if a higher court weighs in.
Does the ruling affect WIC or eWIC purchases?
No. The case concerns SNAP food restrictions, not WIC. Your eWIC acceptance and approved WIC product list are governed by separate federal and state rules, so nothing about this decision changes how WIC items ring at the counter.
What is the difference between a SNAP decline and a card decline at the register?
A SNAP decline on a restricted item means the rule blocked that product from being tendered for benefits, while a card decline usually indicates a balance, connection, or hardware issue. Knowing which one happened saves time and avoids arguments at the counter. Our breakdown of how EBT disputes work at the register covers the common causes and fixes.
How many states have approved SNAP food-restriction waivers?
At least 23 states applied, and 18 already hold USDA approval, including Idaho, Florida, and Hawai’i. Some of those states have rolled out their rules, while others have start dates still ahead. You can track the current list on the USDA Food and Nutrition Service waiver page.
Could the other 18 states lose their SNAP restrictions too?
It is possible. The same legal and procedural problems the judge identified sit under every other approval, and advocates have called the decision a roadmap for future challenges. For now, the other states’ rules remain in effect, so owners there should hold their settings and stay alert to new filings.
How do I keep my POS EBT settings correct as the rules change?
Use a system that stores eligibility at the item level and pushes updates over the air. When a rule flips, you change a setting once, and every lane follows, instead of reprogramming terminals by hand under pressure. Pair that with a quick inventory eligibility review whenever a court order or state notice lands.
