By LCTeam Buying food stamps officially known as SNAP benefits has long been illegal in the United States. The Supplemental Nutrition Assistance Program (SNAP) is a federally funded program designed to help low-income households afford nutritious food. Because these benefits are taxpayer-funded and intended only for eligible recipients, any attempt to buy, sell, or trade SNAP benefits is considered fraud under federal law.
Let’s understand what the law says, what counts as illegal conduct and the penalties individuals can face.
Federal Law Still Makes Buying SNAP Benefits Illegal
Under the Food and Nutrition Act of 2008 (7 U.S.C. § 2024)—the law governing SNAP—it is a federal crime to:
- Buy or attempt to buy SNAP benefits
- Sell or attempt to sell SNAP benefits
- Exchange SNAP benefits for cash
- Trade SNAP benefits for goods or services that are not allowed under SNAP rules
In everyday terms, if someone tries to purchase another person’s EBT card or exchange cash for SNAP funds, they are committing a federal offense. This applies regardless of the amount whether it’s $20 or $200.
Why Buying Food Stamps Is Illegal
The government prohibits buying or selling SNAP benefits for three major reasons:
- Preventing Fraud and Abuse: SNAP is intended to provide food assistance, not cash income. Illegal buying and selling undermines the integrity of the system.
- Protecting Taxpayer Money: SNAP is funded by federal tax dollars. Misuse of benefits results in financial loss and costly investigations.
- Maintaining Eligibility Rules: SNAP rules ensure only qualified households receive benefits. Buying benefits bypasses these rules entirely.
Penalties for Buying Food Stamps
Penalties depend on the severity of the violation, prior offenses, and whether the fraud involves an organized scheme.
1. Criminal Penalties
Buying SNAP benefits can lead to:
- Misdemeanor charges, or
- Felony charges for larger amounts or repeated violations
A conviction can result in:
- Fines up to $20,000 or more
- Jail or prison sentences ranging from months to several years
- Permanent criminal record
2. Civil Penalties
Even if the case does not go to criminal court, individuals can still face:
- Civil fines
- Repayment of funds received
- Administrative penalties
3. SNAP Disqualification
If a person receiving SNAP benefits is caught buying or selling benefits, they may be disqualified from the program:
- First offense: 12-month ban
- Second offense: 24-month ban
- Third offense: Lifetime ban
These penalties apply even if the individual attempted the transaction but was caught before completing it.
Examples of Illegal Transactions
The following actions are illegal:
- Paying someone cash to let you use their EBT card
- Trading SNAP benefits for drugs, alcohol, or other non-food items
- Buying EBT card information online or through social media
- Offering someone goods (such as electronics or clothing) in exchange for SNAP funds
Even asking someone to sell you their benefits can be enough to trigger an investigation.
Law Enforcement Is Actively Monitoring Violations
In recent years, federal and state agencies including the USDA Office of Inspector General have increased monitoring of SNAP fraud. Investigators often use:
- Undercover operations
- Electronic transaction tracking
- Social media monitoring
Because SNAP benefits are now entirely electronic, unusual or illegal transactions are easier to detect.
Conclusion
Federal law treats the purchase, sale, or exchange of SNAP benefits as fraud, with potentially severe criminal, civil, and administrative consequences. If you are unsure about what is allowed under SNAP rules, it is always safer to consult an attorney or contact your state’s SNAP office. Fraud even a small amount can lead to significant legal trouble.