Feds pull Iowa’s ‘healthy food’ SNAP waiver

A federal waiver allowing Iowa to restrict the types of food that can be purchased with federal nutrition assistance has been vacated, according to the Iowa Department of Health and Human Services. 

The action follows a federal court ruling that the waivers, aimed at restricting the purchase of sugary drinks and sweets, violated the federal definition of food.

Iowa HHS wrote in a news release Thursday afternoon that it had directed Supplemental Nutrition Assistance Program retailers to update their systems to allow SNAP participants to again use their funds to purchase foods within the federal guidelines. 

Iowa’s waiver request was approved by the U.S. Department of Agriculture in May 2025 and implemented Jan. 1, 2026. SNAP recipients, under the waiver, could not use their benefits on foods that are eligible for sales tax. This excluded things like candy and soft drinks, but also had some gray areas around items like granola bars and prepared foods, which led some groups to argue the waiver was confusing to retailers and program participants.

Gov. Kim Reynolds pushed back on the court ruling against the waivers and said the Iowa waiver helped to promote better health and nutrition. 

Reynolds also signed  “Make America Healthy Again” legislation in May that tasked HHS with implementing waivers that specified foods purchased with SNAP benefits were “healthy foods.” These waivers are contingent on USDA approval. 

The HHS news release said the federal changes will also impact the SUN Bucks program – a federal nutrition program that distributes electronic benefit transfer, or EBT, funds to SNAP participating households with children during the summer months. 

Iowa opted out of the program the past two summers, in favor of its own pilot program that focused on giving eligible households boxes of healthy food. Reynolds chose to participate in the federal program this summer, under the condition that the benefits would also have to adhere to the healthy foods waiver. 

HHS said in the news release that because SUN Bucks was underway when the updated rules took effect, “foods that were previously eligible before the waiver will be allowed under SUN Bucks.”