Starting Jan. 1, people enrolled in the Supplemental Nutrition Assistance Program (SNAP) will no longer be able to purchase foods and beverages that are taxable in Iowa.
This includes candy, soda and sugary beverages with less than 50% fruit or vegetable juice – but also dried fruit leathers, flourless granola bars and some prepared items that are not exempt from state sales tax.
Last February, U.S. Secretary of Agriculture Brooke Rollins shared her vision for the U.S. Department of Agriculture's nutrition programs and encouraged governors to “pilot creative solutions that could become the model for other states, and indeed for the nation.”
Gov. Kim Reynolds responded by requesting a waiver from the USDA in March to limit SNAP eligible purchases in Iowa to non-taxable foods and beverages.
“We can and must do better for Americans and Iowans by encouraging healthy choices that will help people thrive, not simply providing cash benefits with no focus on holistic well-being,” Reynolds said in her letter to Rollins.
Prior to the USDA’s approval of Iowa’s SNAP waiver, some grocery store items were already excluded. Alcoholic beverages, tobacco products, vitamins and medicines, hot foods and non-food items could not be purchased with SNAP benefits.
But organizations like the Iowa Hunger Coalition have raised concerns about broadening that list.
“Our biggest concern on that SNAP waiver is folks getting in line at the grocery store and not knowing that these rules have changed and then having these really uncomfortable conversations with a checkout clerk,” said Paige Chickering, vice chair of the Iowa Hunger Coalition.
Iowa’s tax code, especially for prepared foods, is complex, Chickering added. For example, coleslaw, baked beans and potato salad sold by weight or volume and without utensils could be tax-exempt and allowed under the new SNAP rules. But a salad made on-site with dressing and a fork would be excluded.
The Iowa Department of Health and Human Services (HHS) said garden seeds and plants that produce food will continue to be eligible for purchase with SNAP, even though they’re taxable.
Chickering said Iowa HHS sent out mailers to SNAP users to raise awareness about the changes, and some grocers are adding educational signs in their stores.
But she’s concerned that confusion over the new rules and uncomfortable checkout experiences could further contribute to stigma around SNAP.
“We continue to believe that families should really be able to make the right food choices for themselves,” Chickering said.
Iowa opts into SUN Bucks, scrapping summer food box pilot program
The changes to SNAP eligible purchases in Iowa will apply to another federal food program for children, which the state is joining in 2026 after opting out for the last two years.
SUN Bucks, also known as Summer EBT, provides eligible families with $40 each month per child on prepaid debit cards to use at grocery stores during the summer. The program is meant to help replace school meals that low-income kids would get for free or at a reduced price during the school year.
Iowa did not participate in the SUN Bucks program in 2024 and 2025, and launched its own pilot program, called Healthy Kids Iowa, earlier this year. Food banks worked with pantries to distribute boxes of food during the summer at designated pick-up sites.
Reynolds said in a news release with Iowa HHS that the response to the pilot program was positive, "but operating the program was challenging for some food banks and pantries."
The news release announced the USDA’s approval of Iowa’s waiver to align SUN Bucks with its new “Healthy SNAP” guidelines, which Reynolds said allows the state to provide healthy food in a convenient way for families.
“Food assistance programs that are nutrition focused do more to help low-income Iowans by addressing both hunger and health,” Reynolds said.
According to the Healthy Kids Iowa report released in December, the state’s pilot program served 66,786 children between June and August.
Over half of the participants who responded to a survey said they would choose Summer EBT over Healthy Kids Iowa. They listed convenience and easy access as the top reason.
Participants also reported issues with expired or spoiled food and a lack of options to accommodate dietary restrictions or cultural preferences.
Chickering said many of the pantries that distributed food through Healthy Kids Iowa were eager to do something to help but had roughly six weeks’ notice to organize.
“It was a huge lift,” Chickering said. “A lot of staff I spoke to said they felt like they were working an entire second, full-time job trying to make sure that Healthy Kids Iowa was feasible for their community.”
While some pantries distributed boxes of food during their regular hours, others were limited to weekly or monthly pick-ups, Chickering said. Having enough cold storage space was another challenge for some pantries.
“I think Summer EBT, or SUN Bucks, is really the best tool we have at our disposal to fight child hunger in those summer months,” Chickering said.
An estimated 240,000 children in Iowa are eligible to participate Summer EBT, according to the Food Research and Action Center.
Save the Children Network and Iowa Hunger Coalition delivered over 650 handwritten petition signatures in support of Summer EBT to the governor’s office last month, Chickering said. The decision to participate in the federal program signals that state officials are "really listening and paying attention” to anti-hunger advocates and communities, she added.
