The federal government has requested North Dakota postpone its planned statewide ban on the use of federal food assistance for candy, soda, and other sugary drinks, which was originally set to begin this month. The delay pushes the effective date to November 1, providing North Dakota an opportunity to re-evaluate the policy's substantial implementation costs. This decision affects residents of Bismarck and Mandan who rely on federal Supplemental Nutrition Assistance Program (SNAP) benefits.
The State Department of Health and Human Services (HHS) estimates the state will spend between $3.5 million and $4 million to implement the SNAP restrictions. The policy was adopted without being vetted in a legislative session, meaning the public and grocery stores had no opportunity to provide input, according to the source material. While the federal government now plans to take public comment, this process is seen by some as a procedural step rather than a genuine effort to gauge public impact.
These state cost estimates do not account for expenses incurred by grocery stores, including upgrades to point-of-sale systems or staff training. North Dakota grocery stores, including those serving communities in Burleigh and Morton counties, already face significant challenges; the North Dakota Association of Rural Electric Cooperatives reported 47 store closures between 2014 and 2025. Preserving these stores, especially those offering fresh produce in small towns, has been a legislative priority, promoting healthier communities.
State leaders initially supported the ban in part to try and secure more federal Rural Health Transformation Program dollars. However, the amount of funding tied to the policy remains "fuzzy," and its allocation to North Dakota depends on a significant amount of grant money being obligated within a short timeframe, which is "far from guaranteed," according to the source material.
The implementation of the SNAP restrictions adds to the already heavy workload of HHS employees. The agency is also tasked with dramatically reducing an increased SNAP error rate, which could cost North Dakota nearly $13 million next year if not addressed. This error rate reflects both underpayments and overpayments of benefits to households. In addition, HHS is simultaneously implementing new expanded work restrictions for SNAP recipients, Medicaid work requirements, and new bureaucratic processes for individuals needing to prove medical frailty to avoid work requirements.
The strain on HHS staff is evident. The Forum of Fargo-Moorhead recently reported that economic assistance employees at HHS worked approximately 13,000 hours of overtime over two months this summer. This overtime, costing around $500,000, was necessary to catch up on a backlog of applications. The federally imposed delay of the soda ban will likely necessitate further webinars to explain flow charts and restrictions to retailers, adding to the agency's tasks. For instance, some marshmallows will be allowed under the rules, while others will not, based on certain size distinctions.
Because North Dakota embraced the SNAP soda ban in a year when the Legislature was not in session, the costs versus benefits were not subject to public scrutiny as they would typically be during a legislative session. This federal delay provides lawmakers with an opportunity to consider whether the SNAP soda ban is truly worth its significant expense when the Legislature reconvenes in January.
