How did consumers change their grocery spending in response to changes in <scp>Supplemental Nutrition Assistance Program</scp> benefit generosity?

Abstract In this paper, we examine the impact of reducing Supplemental Nutrition Assistance Program (SNAP) benefits on grocery purchases using data from Circana. We use an imputed difference‐in‐difference model to exploit state‐level variation in decisions to remove pandemic‐era SNAP emergency allotments to estimate the impact of such policies. We find that SNAP households respond to the removal of SNAP emergency allotments by reducing their grocery expenditures by 4.6% on average and by putting 24.1% more of their grocery bills on credit cards. These results hold for SNAP participants headed by Black and White individuals and for households with children.