Trafficking of Supplemental Nutrition Assistance Program benefits occurs when SNAP recipients sell their benefits for cash to food retailers, often at a discount. Although trafficking does not increase costs to the federal government, it is a diversion of program benefits from their intended purpose of helping low-income families access a nutritious diet. This report, the latest in a series of periodic analyses, provides estimates of the extent of trafficking during the period 2012 through 2014.

This report explores the feasibility and potential cost of enabling EBT systems to differentiate between program-eligible and ineligible items. It considers the cost of upgrading systems in stores that now have scanners and the cost of installing new systems in stores without scanners. The report also examines the potential for the purchase of ineligible items even with the introduction of new technological controls.