Hawaii SNAP Program Analysis

Economic Indicator

SNAP participation serves as a real-time indicator of economic hardship. Sharp increases often precede or coincide with economic downturns, making this data valuable for policy planning.

Long-term Stability

The data shows a baseline of 50,000-60,000 households needing food assistance even during economic growth periods, indicating persistent food insecurity challenges in Hawaii.

Growth Trajectory

Year-over-year analysis reveals -- change in participation, reflecting current economic conditions and policy changes.

Hawaii's Higher Costs

Average benefits in Hawaii significantly exceed national averages due to the state's high cost of living. This reflects both higher food costs and adjusted federal allotment levels for the islands.

Policy Impact

Notable spikes in benefit levels (particularly in 2021) correlate with emergency COVID-19 allotments and expanded eligibility, demonstrating the program's responsiveness to crisis.

Purchasing Power

The dramatic increase in average benefits during the pandemic period (reaching $733-$988/household) represents a major boost to household food budgets, with significant multiplier effects on Hawaii's economy.

Budget Implications

Peak monthly costs exceeded $111 million in August 2021, highlighting the substantial federal investment in Hawaii's food security and the potential fiscal impact of benefit changes.

Rapid Response Success

The --% increase in participation demonstrates the program's ability to rapidly expand during economic crisis, serving as a crucial safety net for Hawaii's tourism-dependent economy.

Tourism Sector Impact

Hawaii's spike was particularly pronounced due to the near-total shutdown of tourism in March-April 2020, affecting service workers who typically live paycheck-to-paycheck.

Emergency Allotments

The unprecedented benefit levels in 2021 (averaging $700-900/household) reflect federal emergency allotments that temporarily maximized benefits for all recipients.

Recovery Patterns

The decline from peak in late 2021 shows economic recovery as tourism returned, though participation remains elevated above pre-pandemic levels, suggesting lasting economic impacts.

New Baseline Established

As of May 2025, participation has stabilized at approximately 13% above pre-pandemic levels, indicating the pandemic created a new normal with higher structural food insecurity.

Benefit Cliff Impact

Post-emergency benefit levels declined 11.1% from peak but remain 43% above 2019, showing lasting federal commitment even after emergency allotments ended in 2023.

Program Details

• Funding Source: $110M from Temporary Assistance for Needy Families (TANF) grant
• Coverage: Will help at least one-third of SNAP beneficiaries
• Duration: Approximately 2-month cushion
• Primary Focus: Families with dependent children

Eligibility Requirements

• Income threshold: Up to 300% of federal poverty level
• Single adult: Up to $46,000/year
• Family of four: Up to $90,000/year
• Note: Not everyone will be eligible - primarily families with dependent children

Assistance Types

• Housing cost assistance
• Utility payment support
• Coordination with other programs: WIC, DA BUX, school meals
• Food bank network mobilization

Limitations

Governor Green: "My program will give us probably about a two-month cushion... but that can't go on forever."

Scott Morishige (DHS): "Not everyone will be eligible... primarily for families with a dependent child."

Overall Crisis Level

• 30% of households experienced food insecurity in 2023
• 37% of all households anxious about running out of food
• 11% categorized as low food security
• 19% as very low food security
• 10% of households went a whole day without food some or most months
• Another 14% were marginally food secure

Child Food Insecurity

• 29% of households with children faced food insecurity
• 9% had children skipping meals due to lack of money
• 6% had children go a whole day without food
• 38% of adults in households with children experienced food insecurity
• Parents sacrifice their own food security before letting children go without

Geographic Disparities

• Hawaii Island: 40% food insecurity (highest)
• Maui: 31%
• Oahu: 28%
• Kauai: 23% (lowest, but still critical)
• Food insecurity consistently high across all islands (23-40% range)

Statewide Capacity (FY2025)

• 500+ agency partners and pantries statewide
• 29.1 million pounds of food distributed (FY2025)
• 1,319 mobile distributions across the state
• 173,000 individuals served monthly (Q3 FY25) - already at pandemic-era levels
• Hawaii Foodbank: $105M worth of food at retail cost

Island-by-Island Network

• Oahu: 211 partners, 20.1M lbs food, 752 mobile distributions
• Kauai: 64 partners, 2.1M lbs food, 110 mobile distributions
• Maui: 129 partners, 7.6M lbs food, 93 mobile distributions
• Hawaii Island: 100 partners, 2.8M lbs food, 364 mobile distributions

Efficiency & Local Support

• 5.3x purchasing power - $1 donated = $5.30 food value
• $4+ million spent with local farmers and producers (FY2025)
• 77% of produce budget spent with local farmers (Oahu)
• Supporting local agriculture while feeding families

Federal Funding at Risk

• 20% of food distributed comes from USDA commodity programs
• TEFAP CCC program ended Spring 2025: $4M loss
• This represented 7% of all food distributed by Hawaii's food banks in 2024
• Additional TEFAP/CSFP disruptions possible during shutdown

October 2025: Benefit Reduction

• 2% benefit cut effective October 1, 2025
• $36/month reduction for family of four
• $1M monthly impact statewide
• Compounds existing benefit adequacy concerns in high-cost Hawaii

November 2025: OBBBA Work Requirements

• Potentially 16,000 individuals could lose benefits
• $5M/month impact estimated
• Affected groups:
  • 16,000 individuals aged 55-64
  • 10,000 households with dependent child aged 14+
  • Homeless individuals
  • Veterans
  • Youth aged 18-24 transitioning from foster care

Households Potentially Impacted

• 24,000 civilian federal employee households
• 44,000 active-duty military households (crossed out in estimates - may have different protections)
• ~7,000 federal contractor households
• Total: 31,000 households at risk (15% of Hawaii's population)

Food Insecurity Projections

• At 1/3 food insecurity rate: 10,000 households (31,000 individuals)
• At 45% ALICE or below: 14,000 households (42,000 individuals)
• These households may need emergency food assistance if paychecks are missed

Compounding Crises

• 165,000 on SNAP facing potential benefit disruption
• +31,000 federal workers facing missed paychecks
• Already 30% food insecurity rate statewide (2023)
• Food bank demand already at 173,000 (near pandemic peak)
• TEFAP CCC program lost ($4M/year)

Total SNAP Spending in Hawaii

• ~$60+ million/month in SNAP benefits (2024-2025)
• ~$720+ million/year flowing to Hawaii food retailers
• 130,000 households enrolled (2024 data)
• Additional $40-45M/year expected from policy changes (2024)
• Provides stable, predictable revenue stream for retailers

SNAP Share of Retailer Sales (National Data)

• Grocery stores: 20% of sales from SNAP
• Convenience stores: 23% of sales from SNAP
• Dollar stores: 34% of sales from SNAP
• Mass retailers: 25% of sales from SNAP
• Some stores in low-income areas: 50%+ SNAP sales
• Overall: 8-12% of all U.S. household food purchases

Retailer Vulnerability

• Over 80% of SNAP benefits spent at larger stores (supermarkets, superstores)
• Small retailers particularly vulnerable in high-poverty areas
• Convenience stores (48.6% of new Hawaii authorizations) heavily SNAP-dependent
• Rural stores may rely on SNAP for survival in food desert areas
• 20% SNAP benefit cut could force closure of high-dependency stores

Economic Multiplier Effect

• $1 in SNAP = $1.50-$1.80 in local economic activity
• GDP multiplier: 1.54x during economic downturns
• Every $1 billion in SNAP supports 13,560 jobs
• In 2020: SNAP supported 199,000 jobs in independent grocery + 45,000 in related industries
• Benefits ripple through agriculture, manufacturing, transportation, services

Hawaii's Unique Considerations

• Hawaii's high cost of living means higher benefit levels per recipient
• Island geography limits competition; store closures create food deserts
• Import-dependent food system amplifies economic multiplier effects
• Tourism economy volatility makes SNAP countercyclical support critical
• Shutdown could remove $60M+/month from Hawaii's food retail economy

Shutdown Impact on Retailers

If November SNAP benefits are disrupted:

• $60+ million loss in monthly revenue for Hawaii food retailers
• 20-50% revenue drop for SNAP-dependent small stores
• Risk of store closures in high-poverty neighborhoods
• Job losses in retail, distribution, food service sectors
• $90-108M economic impact (including multiplier effects)
• Permanent damage to rural/underserved food access infrastructure

Rapid Growth in Local Food Access

Food hub SNAP sales grew from $136,000 in 2021 to $1.1 million in 2024, representing an 8.2x increase in just three years. This demonstrates growing demand for locally-sourced food among SNAP recipients.

Double Bucks Impact

The Double Bucks incentive program contributed $479,000 in 2024, effectively increasing SNAP purchasing power by 43% at food hubs. This shows the multiplier effect of incentive programs on local food access.

Total Economic Impact

Combined SNAP and Double Bucks sales reached $1.6 million in 2024, supporting local farmers and providing fresh, healthy food options to SNAP households. Food hubs serve as crucial bridges between local agriculture and food assistance programs.

Scaling Opportunity

While food hub sales grew rapidly, they still represent a small fraction of Hawaii's $720M+ annual SNAP spending. Expanding food hub infrastructure and Double Bucks funding could significantly increase local food access and support Hawaii's farmers.

High Turnover, Stable Size

Despite 370 new authorizations and 364 closures, the network remained essentially flat (+6 retailers, 0.7% growth). This indicates a mature, stable retailer network with natural business turnover.

Convenience Store Dominance

48.6% of new authorizations were convenience stores (180 stores), reflecting Hawaii's dispersed geography and need for neighborhood food access. Only 31 new supermarkets were authorized.

Geographic Distribution

Retailers mirror population: Honolulu 56.2%, Hawaii County 19.7%, Maui 15.4%, Kauai 8.6%. Rural areas rely more heavily on convenience stores for SNAP access.

Local Food Systems Growth

Farmers' markets and direct-to-consumer options grew from 19 new authorizations, supporting local agriculture and fresher food options for SNAP recipients.

Public Assistance (PA) Households

Recipients who also receive other cash welfare benefits such as:

• TANF (Temporary Assistance for Needy Families) - cash welfare for families with children
• SSI (Supplemental Security Income) - assistance for elderly, blind, or disabled individuals
• General Assistance - state/local cash assistance programs

Non-Public Assistance (Non-PA) Households

Recipients who receive only SNAP benefits and no other cash welfare. This group represents 70-80% of all SNAP participants and includes:

• Working families - the "working poor" with jobs but insufficient wages
• Low-wage workers - especially in Hawaii's service and tourism sectors
• Households without children or those not receiving TANF/SSI

Key Insight: SNAP Serves Working Families

The dominance of Non-PA participants reveals that most SNAP recipients are working families, not welfare dependents. Wage insufficiency—not unemployment—is the primary driver of SNAP participation in Hawaii.

Policy Implications

This breakdown shows that addressing food insecurity requires not just assistance programs, but also wage growth, affordable housing, and economic development to help working families afford Hawaii's high cost of living.

Urban-Rural Divide

Honolulu (Oahu) dominates participation by volume, but rural counties show higher per-capita rates, reflecting limited economic opportunities outside urban centers.

Geographic Challenges

Inter-island differences highlight unique challenges: Hawaii County's large geographic area, Kauai's isolation, and Maui County's multi-island jurisdiction all affect program administration and access.

Economic Diversity

The ratio of Public Assistance to Non-PA participants varies by county, reflecting different economic structures and employment patterns across the islands.

Resource Allocation

County-level data informs targeted outreach, application assistance, and retailer network development to ensure equitable access across all islands.