Local economy could lose $1.5 Million in activity if SNAP remains unfunded

Local businesses in North Central Arkansas could see an economic hit if the Supplemental Nutrition Assistance Program (SNAP) continues unfunded due to the ongoing federal government shutdown.

Data from the Arkansas Hunger Relief Alliance show SNAP serves an estimated 5,268 people in Baxter, Marion, and Fulton counties, with benefits totaling $810,981 each month. Every dollar spent through SNAP circulates roughly $1.80 in the local economy, meaning the program supports approximately $1.5 million per month in economic activity across the three-county area. That money that would normally be spent at grocery stores and then recirculates through the local economy.

Local grocers have told KTLO, Classic Hits, and the Boot News that while concern is growing for store sales, their primary worry is their neighbors falling in need as the holiday season approaches. Harps stores have set up in-store donation stations to support local food banks at their stores to give the public an avenue to assist those in need.

Statewide, SNAP reaches more than 237,000 Arkansans, generating an estimated $68 million in economic activity. In the broader nine-county area served by the Food Bank of North Central Arkansas, monthly SNAP payouts of just over $2 million translate to roughly $3.75 million in local economic impact.

Governor Sarah Huckabee Sanders announced Friday that her office will direct $500,000 to six food bank networks across Arkansas to help offset the loss of SNAP funding. The portion allocated to the Food Bank of North Central Arkansas will allow them to purchase roughly 80,000 pounds of food enough to fill about two semi-trucks. But the food bank says the remaining need in the nine-county service area would be 2.67 million pounds, the equivalent of 67 additional semitrucks of food.

The complete economic impact won’t be clear until some time passes and largely will depend on the actions of those in seats of power to bring an end to the now month long government shutdown.

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