The Nebraska Department of Health and Human Services is working toward launching a “demonstration project” that restricts what can be purchased with SNAP benefits
Nebraska is Trying Again After Court Order
On June 22, 2026, a federal judge blocked SNAP food restrictions in Colorado, Iowa, Nebraska, Tennessee, and West Virginia. The court ruled that USDA did not have the legal authority to approve the restrictions in the way it did.
In October 2026, USDA announced that they had received a new request from Nebraska that would block even more than the original. The USDA is currently reviewing the proposal. If approved as-is, the restrictions on soda, soft drinks and energy drinks would begin December 1, 2026. The restriction on candy would begin on March 1, 2027.
What is Changing?
Nebraska has requested federal approval to change which foods can be purchased with SNAP benefits. This proposal is still being reviewed by the U.S. Department of Agriculture’s Food and Nutrition Administration (FNA), so these restrictions have not been approved and are not currently in effect.
Under Nebraska’s revised request, SNAP benefits would no longer cover certain sodas, soft drinks, energy drinks, and candy. The state is proposing two different implementation dates if the request is approved: December 1, 2026, for soda, soft drinks, and energy drinks, and March 1, 2027, for candy.
Here is what Nebraska is proposing:
| Category | ❌ No Longer Eligible (Banned) | ✅ Still Eligible (Allowed) |
|---|---|---|
| Sodas & Pop | ❌ Soft drinks that contain carbonation, water, flavoring, and a sweetening agent such as sugar, high-fructose corn syrup, or artificial sweeteners. Examples include drinks like Coke, Pepsi, Mountain Dew, and Dr. Pepper. | ✅ Milk and milk-based drinks ✅ Soy, rice, and similar milk substitutes ✅ Mineral water sold in containers ✅ Specialty liquid foods or drink mixes that are meant to replace more commonly used foods in the diet ✅ Non-Carbonated Drinks: Because the ban definition specifically specifies “carbonated,” flat drinks like lemonade, fruit punch, juice or flavored waters (without bubbles) appear to remain eligible. ✅ Seltzer: Plain carbonated water (without sweeteners or flavoring) is likely allowed, but sweetened sparkling waters may be banned. |
| Energy Drinks | ❌ Energy drinks that contain stimulants such as fortified caffeine, guarana, glucuronolactone, or taurine and are specifically made to increase energy, alertness, or physical performance. This can include both carbonated and non-carbonated energy drinks. | ✅ Sports drinks made mainly for hydration, such as Gatorade ✅ Medically necessary nutritional products |
| Food & Sweets | ❌ Candy made with sugar, honey, or other natural or artificial sweeteners combined with ingredients such as chocolate, fruit, nuts, or flavorings. That includes candy sold as: ❌ Bars ❌ Drops ❌ Powder ❌ Pieces ❌ Cotton candy ❌ Candy-coated fruit | ✅ Baking ingredients such as sprinkles, melting wafers, plain marshmallows, sweetened coconut, toffee bits, and baking chips ✅ Protein bars ✅ Granola and granola bars ✅ Cereal and cereal bars ✅ Toaster pastries ✅ Yogurt with candy pieces ✅ Ice cream ✅ Baked goods like cookies, pastries, cakes, muffins, and other bakery-style items ✅ Other food items food items, including meat, dairy, fruits, vegetables, etc. |
These definitions come from Nebraska’s revised waiver request. Because USDA has not yet approved the request, the final rules could change before implementation.
Who is Affected?
If USDA approves Nebraska’s request, the restrictions would apply to all SNAP participants and all SNAP-authorized retailers throughout Nebraska. There would not be a household-by-household phase-in.
The proposed schedule is:
- December 1, 2026: Restrictions on soda, soft drinks, and energy drinks would begin.
- March 1, 2027: Restrictions on candy would begin.
Retailers would be expected to update their systems for those effective dates. Nebraska is also proposing a 90-day grace period following each implementation date to give retailers time to come into compliance.
Again, these dates are proposed implementation dates, not currently effective rules. USDA must approve the waiver before Nebraska can move forward with the demonstration project.
Things You Need to Know
Because this is still a waiver request under federal review, some details from Nebraska’s earlier plans have changed. The revised request provides several important details about what Nebraska intends to do if the project is approved.
Out-of-state shopping is being tracked. The state will track transactions made in border states (Iowa, Missouri, Kansas, Wyoming, Colorado, South Dakota). They want to see if recipients cross state lines to buy soda and energy drinks.
Shopping out of state is still OK. The document explicitly states: “Clients’ out of State transactions will not be used as a primary indicator of fraud or negatively impact SNAP eligibility.” You are allowed to shop out of state without penalty.
The revised request says these surveys will be used to evaluate the project, but it does not explicitly state in this document that participation in the surveys is voluntary. However, other approved waiver requests have stated that the surveys are voluntary so it is likely that language will be added.
How to Prepare
Because USDA has not approved the revised request yet, SNAP recipients do not need to change how they shop based on this proposal right now.
However, if you want to prepare in case the waiver is approved:
- Watch for official notices. Nebraska says it plans to begin direct communication with SNAP participants and eligibility staff at least two months before the proposed implementation dates.
- Know the proposed beverage rules. If approved, sweetened carbonated soft drinks and qualifying energy drinks would become ineligible on December 1, 2026, while sports drinks intended primarily for hydration would remain eligible.
- Know the proposed candy rules. Candy would not become restricted until March 1, 2027. Many other sweet foods—including cookies, ice cream, cakes, pastries, cereal bars, granola bars, and baking ingredients—would remain eligible under Nebraska’s proposed definitions.
- Don’t change your spending based on the proposal yet. Until USDA approves the waiver and Nebraska announces that the restrictions will take effect, the proposed changes are not final.
Relief Recap
Nebraska is asking USDA for permission to stop SNAP from paying for certain sodas, soft drinks, and energy drinks starting December 1, 2026, and candy starting March 1, 2027. This request is still under review, so nothing has changed yet. If USDA approves it as written, many other sweet foods—including cookies, ice cream, cakes, granola bars, cereal bars, and baking ingredients—would still be allowed.
Maybe you help me figure out why Walmart in Indiana is banning 100% juice and no sugar juice and baking needs like sugar and such from food stamps
Tammy, that can definitely be confusing.
Stores like Walmart don’t actually set SNAP rules themselves—they just follow the system that determines what’s eligible. If something is being denied, it’s usually due to how the item is categorized in the system, not a store-wide “ban.”
If it seems like something that should qualify is being blocked, you might want to ask the store manager or contact your state SNAP office to see what’s going on.
We hope you’re able to get some clear answers soon.