WASHINGTON, Nov. 13, 2023 – The U.S. Department of Agriculture today announced an investment of more than $52 million to improve dietary health and access to fresh fruits and vegetables for eligible families.

The funds support efforts across three National Institute of Food and Agriculture (NIFA) competitive grant programs that make up the Gus Schumacher Nutrition Incentive Program (GusNIP). The program is named in honor of the former USDA Under Secretary of Agriculture for Farm and Foreign Agricultural Services (1997 to 2001).

“USDA is delivering on its promise to bolster food and nutrition security for underserved communities,” said USDA Chief Scientist and Under Secretary for Research, Education and Economics Dr. Chavonda Jacobs-Young. “Investments like this enable people to afford and eat healthy fresh fruits and vegetables so they don’t have to make a choice between healthy eating and cheaper less healthier options.”

GusNIP’s three grant programs include Nutrition Incentive, Produce Prescription and the Nutrition Incentive Program Training, Technical Assistance, Evaluation and Information (NTAE) Center. By bringing together stakeholders from various parts of the food and health care systems, GusNIP projects help foster understanding to improve the health and nutritional status of participating households, facilitate growth in underrepresented communities and geographies, and aggregate data to identify and improve best practices on a broad scale.

“GusNIP has provided over $270 million in funding to nearly 200 projects throughout the U.S. since its 2019 launch and participants are consistently reporting increased fruit and vegetable intake as a result,” said NIFA Director Dr. Manjit Misra. “This latest round of funding only strengthens the impacts these programs are having nationwide.”

Nineteen awardees are receiving GusNIP Nutrition Incentive (NI) funding totaling $41.8 million. NI projects increase the purchase of fruits and vegetables by providing incentives at the point of purchase among income-eligible households participating in the USDA Supplemental Nutrition Assistance Program (SNAP).

Produce Prescription awards account for $5.2 million to 11 awardees. These projects demonstrate and evaluate the impact of fresh fruit and vegetable prescriptions. The goals of the program are to increase procurement and consumption of fruits and vegetables, reduce individual and household food insecurity and reduce health care use and associated costs.

One awardee is receiving $7 million through the NTAE Center program. NTAE projects offer training, technical assistance, evaluation and informational support services. 

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean-energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

#

USDA is an equal opportunity provider, employer, and lender.

SNAP healthy incentive programs encourage people participating in SNAP to purchase healthy foods by providing a coupon, discount, gift card, bonus food item or extra funds.

Research shows that incentive programs are an effective way to promote healthy eating and improve nutrition security for more Americans.

Request a SNAP incentive project waiver.

Who has a role to play in SNAP healthy incentives?

The White House National Strategy on Hunger, Nutrition, and Health called on all of us to help expand SNAP incentives. Key partners include:

• SNAP-authorized retailers
• State, local, and tribal governments
• Non-profit and for-profit organizations

Together, we can bring more SNAP healthy incentive programs to more communities – making nutritious food more accessible and affordable.

How can healthy incentives help?

A key barrier to healthy eating is lack of access or enough money to buy nutritious food. SNAP healthy incentives empower Americans to eat more fruits and vegetables, whole grains, and other healthful foods. Improving what we eat can significantly reduce diet-related chronic diseases and disparities.

What foods can be incentivized?

Retailers can offer incentives for foods in the following food group categories:

• Fruits
• Vegetables, including legumes (beans and peas)
• Whole grains
• Dairy foods

Incentives can apply to specific products or any combination of products as long as they fall into one of the categories above and meet the specifications outlined in the chart below.

Food Group(s)	Eligible Incentive Foods *
Fruits and Vegetables	Whole fruits and vegetables (including legumes) 100% fruit and/or vegetable juice Any variety of fresh, canned, dried, or frozen whole or cut fruits and vegetables without added sugars, fats, oils, or salt (i.e., sodium). Seeds and plants
Dairy	All varieties of low-fat or non-fat liquid, dry, or evaporated pasteurized cow’s milk, without flavoring or sweeteners, including lactose-free and lactose-reduced products Fortified soy beverages (soy milk) Low-fat or non-fat fresh or frozen yogurt Low-fat or non-fat buttermilk Low-fat or non-fat kefir Low-fat or non-fat cheese Note: Cream, butter, sour cream, and cream cheese are not included due to their low calcium content.
Whole Grains	Whole grains, such as amaranth, barley (not pearled), brown rice, buckwheat, bulgur, millet, oats, quinoa, dark rye, and wild rice. Whole-grain products with whole grain listed as the first ingredient (or the second ingredient after water), such as whole-grain cornmeal, whole-wheat bread, whole-wheat chapati, whole-grain cereals, and whole-grain pasta.

^*Prepared foods (e.g., sandwiches, salad bars, etc.) and accessory foods (e.g., cookies, crackers, ice cream, etc.) are not eligible for SNAP incentives. See associated FNS policy memos for definitions of prepared and accessory foods.

How do SNAP recipients receive and use incentives?

Each SNAP healthy incentive program is different. Generally, a SNAP customer earns incentives, such as a coupon, discount at the point of purchase, or extra funds for SNAP purchases, when they purchase eligible incentive foods with their SNAP EBT card. They can then redeem the incentives to purchase more eligible incentive foods or other SNAP eligible foods.

What types of SNAP incentive programs exist?

Federally Funded	Electronic Healthy Incentives Pilot (eHIP) In June 2023, Colorado, Louisiana and Washington were selected to operate statewide eHIP projects. The grant cycle for these projects runs for four years.  Colorado Department of Human Services proposes to upgrade the state's EBT systems with FIS, the state's EBT contractor, to provide eHIP incentives at 26 retailers across the state.  Washington State Department of Social and Health Services proposes to upgrade the state’s EBT systems with FIS, the state’s EBT contractor, to provide eHIP incentives at 17 retailers across the state. Louisiana Department of Children and Family Services proposes to develop and upgrade the state’s EBT systems with Inmar, the state’s EBT contractor, to provide eHIP incentives at select retailers across the state.  FNS previously funded the SNAP Healthy Incentives Pilot (HIP), which operated in Hampden County, Massachusetts, from November 2011 through December 2012. HIP was a precursor to the Food Insecurity and Nutrition Incentive grant program (FINI), which has since been renamed the Gus Schumacher Nutrition Incentive Program (GusNIP). Gus Schumacher Nutrition Incentive Program (GusNIP) GusNIP is a competitive grant program administered by the USDA's National Institute of Food and Agriculture. GusNIP grantees are authorized to provide fruit and vegetable incentives to SNAP recipients. The GusNIP Nutrition Incentive Hub offers a wealth of information about nutrition incentive projects and includes grantee spotlight stories. Healthy Fluid Milk Incentive (HFMI) projects SNAP participants shopping at select grocery stores receive incentives for purchasing qualifying milk.
State or Local Government Funded	Incentives can be funded by state, local, and tribal governments that partner with SNAP-authorized retailers.
Privately Funded	SNAP-authorized retailers can independently fund incentive programs or non/for-profit organizations can fund incentives in partnership with stores.
Farmers Market	Farmers markets are authorized to provide incentives to SNAP recipients to make local foods more affordable and support farmers.

How do I find retailers participating in SNAP health incentives?

The SNAP Retailer Locator allows anyone to locate nearby SNAP-authorized retailers by entering a street address, city and state, or zip code. Enter your starting location and select a retailer or map point to get details and directions. If a retailer is participating in SNAP healthy incentives, you will see that information on the pop-up window. You can also use the “SNAP Healthy Incentive” filter function to search for participating retailers.

How do we start a SNAP incentive program?

The basic steps for starting a SNAP healthy incentive program are:

1. Identify funding. Unless you are a federal grantee, you must identify state, local or private funding.
2. Select SNAP-authorized retailers. Determine which stores will offer incentives.
3. Choose your model. Decide how households will earn and redeem incentives.
4. Request a waiver. The funding entity or store must get FNS approval to offer healthy incentives. Federal incentive grantees and farmers markets do not need a waiver.
5. Train staff and program operators.
6. Market and promote. Make sure all SNAP households have an equal opportunity to participate. Consider sharing information about incentives in multiple languages.

If you have any questions or concerns on retailer incentive programs not addressed on this webpage, please email FNS at SM.FN.incentiveprogram@usda.gov.

Do we need approval to operate a SNAP incentive program?

Yes. SNAP incentive projects must get FNS approval to waive the SNAP equal treatment provision before offering healthy incentives. The SNAP equal treatment provision requires SNAP recipients to be treated the same as other customers. The provision prohibits both negative treatment (such as discriminatory practices) and preferential treatment (such as incentive programs).

• The waiver can be requested by the retailer or funding entity.
• Incentive projects operating at multiple store locations only need one waiver for all locations.
• A single store may offer incentives funded by multiple sources, but if any portion is funded by a state or local government or private entity, they must first obtain a waiver from FNS.
• Exceptions, when a waiver is not required:
  • Farmers markets that independently fund incentives for their own market do not need to request a waiver.
  • Incentive projects that are part of one of the federally funded projects listed above, such as GusNIP or HFMI, do not need to request a waiver.

Submit your SNAP Incentive Waiver Request to FNS today!

How do we apply for a SNAP incentive waiver?

Please use this form to submit a waiver request.

Waiver requests are approved or denied within 45 days.

What does the research say?

Healthy Incentives Pilot Final Evaluation Report

• HIP participants (respondents aged 16 and older) consumed almost 1/4 cup (26%) more fruits and vegetables per day than did non-participants.
• HIP households spent more SNAP benefits on fruits and vegetables than non-HIP households in participating supermarkets and superstores – $12.05 versus $10.86 on average each month – an increase of $1.19 or 11%.
• HIP households reported higher total spending on fruits and vegetables than non-HIP households.

Food Insecurity Nutrition Incentives (FINI) Evaluations

• Evaluation of the Implementation of Food Insecurity Nutrition Incentives (FINI): Final Report
  • This report presents findings from the process evaluation of 70 large-scale and community-based grants implemented by 58 grantees at participating SNAP retailers.
• Evaluation of FINI: Interim Report
  • FINI increased fruit and vegetable purchases by 12-16% in three of the treatment groups.
  • The overall redemption rate for FINI incentives was about 82%. For many retailers, redemption rates and issuance were slow at implementation and improved over time.

Gus Schumacher Nutrition Incentive Program (GusNIP)

• The findings from year two show that participants redeemed more than $20 million dollars in nutrition incentives and produce prescriptions distributed by GusNIP and the program generated an economic impact of about $41 million dollars. In addition, participants reported greater fruit and vegetable intake and improvements in food security. Findings from year three now available!

Farmers Market Incentive Provider Study

• This study showed that SNAP redemptions and incentive use tended to grow the longer the incentive program was in operation. Newly SNAP-authorized farmers markets had lower median SNAP and incentive redemption than markets that had been SNAP-authorized for more than three years.

DALLAS, TX, June 29, 2023 – Today, USDA’s Food and Nutrition Service announced that Louisiana will receive $9.5 million to test out a new model for incentivizing fruit and vegetable purchases among participants in the Supplemental Nutrition Assistance Program, also known as SNAP. Colorado, Louisiana, and Washington will receive a total of $25 million as well as federal support to establish and operate an electronic healthy incentives pilot (eHIP) intended to streamline incentives and make it easier for SNAP households to access the healthy foods necessary for lifelong health and well-being.

Each of the pilot states will upgrade its SNAP system so incentive dollars can be loaded directly onto participants’ Electronic Benefit Transfer (EBT) cards. The eHIP pilots aim to test incentive models that reduce administrative costs, allowing more incentive dollars to reach SNAP participants. Louisiana’s project targets marginalized, high food insecurity, tribal, rural, persistent poverty, low-income and low-access communities where residents suffer from diet-related diseases. SNAP participants will receive $0.30 for every dollar of SNAP benefits spent on fruits and vegetables back onto their EBT card to be redeemed during a subsequent purchase for any SNAP eligible food, up to $25 per month. Louisiana expects to launch the program in August 2024.

“USDA is committed to ensuring every family has access to affordable, nutritious foods.” said Stacy Dean, USDA deputy under secretary for Food, Nutrition, and Consumer Services. “We applaud the selected states for stepping up and partnering with us to test and ultimately improve SNAP incentive programs. Together we will learn more about what works and pave the way for similar programs across the country.”

Research shows that SNAP incentive programs are an effective way to promote healthy eating and improve nutrition security. One study showed that SNAP participants who received fruit and vegetable incentives consumed 26% more fruits and vegetables per day than nonparticipants. Increased demand for fruits and vegetables also helps strengthen the food supply chain.

“In Louisiana, we are always looking for additional ways to help strengthen families and support our neighbors in need. Increasing access to fruits and vegetables through SNAP healthy incentives is another part of that effort," said Terri Ricks, Secretary of the Louisiana Department of Children and Family Services.

In addition to state-level projects, more and more local partners are implementing innovative SNAP healthy incentive programs. Offering incentives not only attracts SNAP customers to local stores but also gives stores the opportunity to have a positive impact in their community — making healthy foods more affordable for American families. State, local and tribal governments, SNAP-authorized retailers, and non-profit or for-profit organizations interested in launching a SNAP healthy incentive program can learn more and apply on the FNS website. Incentive programs can operate at a single location or across multiple stores.

USDA’s Food and Nutrition Service works to end hunger and improve food and nutrition security through a suite of 16 nutrition assistance programs, such as the school breakfast and lunch programs, WIC and SNAP. Together, these programs serve 1 in 4 Americans over the course of a year, promoting consistent and equitable access to healthy, safe, and affordable food essential to optimal health and well-being. FNS also provides science-based nutrition recommendations through the co-development of the Dietary Guidelines for Americans. FNS’s report, “Leveraging the White House Conference to Promote and Elevate Nutrition Security: The Role of the USDA Food and Nutrition Service,” highlights ways the agency will support the Biden-Harris Administration’s National Strategy, released in conjunction with the historic White House Conference on Hunger, Nutrition, and Health in September 2022. To learn more about FNS, visit www.fns.usda.gov and follow @USDANutrition.

###

USDA is an equal opportunity provider, employer, and lender.

Summary

The Supplemental Nutrition Assistance Program (SNAP), is the cornerstone of the Nation’s nutrition assistance safety net. FNS certifies low-income Americans to participate in the program and authorizes and monitors retailers to accept SNAP benefits for eligible food products. Currently, around 40 million low-income Americans receive SNAP benefits, and more than 250,000 retailers are authorized to accept SNAP benefits.

Section 1001 of the American Rescue Plan Act of 2021, PL 117-2, (“ARPA”) authorized USDA $4,000,000,000 for Food Supply Chain and Agriculture Pandemic Response, including the ability to provide grants and other assistance to maintain and improve food and agricultural supply chain resiliency. Funds in the amount of $25,000,000 are now available, on a competitive basis, to enter into three cooperative agreements with state agencies to carry out Electronic Healthy Incentive Projects (eHIP) under USDA’s Framework to Transform the Food System.

Grant applications are due by 11:59 EST April 17, 2023*.

*Note: States specifically affected by the clarification regarding their EBT re-procurement status (per notice on grants.gov – i.e., page 24 of the modified eHIP RFA) have already been granted an extension through 11:59 p.m. Eastern Time on April 30^th 2023.

Eligibility

Eligible entities include the 53 State agencies who administer SNAP. State agencies in the process of re-procurement or conversion of their EBT systems will not be considered eligible applicants. Each eligible applicant may only submit one application in response to this grant solicitation.

This award is contingent upon the availability of funds. Awards are contingent upon funds having been apportioned internally and made available to FNS.

FNS reserves the right to make more than one award, and to use this competition to award additional grants in this or the subsequent fiscal year should additional funding become available.

Background

In 2012, FNS tested a way of making fruits and vegetables more affordable for participants in SNAP through the Healthy Incentives Pilot (HIP). Under HIP, SNAP participants received 30 cents for every SNAP dollar spent on qualifying fruits and vegetables at participating SNAP-authorized firms. The pilot’s incentive model integrated incentive delivery and redemption through the state’s Electronic Benefit Transfer (EBT) processor, which loaded the incentive directly onto the household’s EBT card (i.e., EBT integration).

The final HIP evaluation presented positive findings on the impacts of financial incentives for fruit and vegetable consumption and as a result, FNS has witnessed a significant increase in healthy foods incentives offered to SNAP households. In FY 2022, the Gus Schumacher Nutrition Incentive Program (GusNIP) awarded $38,700,000 to 8 organizations, to implement fruit and vegetable incentive projects to SNAP households; FNS approved six incentive waiver requests for independent retailers to offer fruit and vegetable incentives across seven states; and FNS awarded $3,000,000 for a grantee to implement a healthy milk incentive project across six states. The increased purchase for fruit and vegetables resulting from eHIP will maintain and strengthen the delivery infrastructure of such foods, benefitting supply chain resiliency.

While HIP tested the impact of financial incentives and the feasibility of EBT integration, eHIP will evaluate the administrative costs when administered at the state-level through the state’s EBT processor and compare these costs to other incentive programs. FNS’ goal is to maximize funds directed to SNAP households, establish methods for consistent and effective incentive delivery, and decrease overall administrative costs. The final eHIP project will be independently evaluated by an evaluation contractor competitively selected by FNS.

See Also

• Press Release
• SNAP eHIP Webinar
• SNAP eHIP Q&As
• SNAP Healthy Incentives Webpage
• SNAP Healthy Incentives Infographic