Yes, selling food stamps is a federal crime, and the penalties can be severe for both the buyer and the seller. The Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, is designed to help low-income households purchase essential food items.
In 2025, the U.S. government continues to aggressively enforce SNAP fraud laws as part of its effort to prevent misuse of taxpayer-funded assistance. Whether the transaction involves selling the physical EBT card or exchanging SNAP benefits for cash, goods, or services, the act is illegal.
Why Selling Food Stamps Is Illegal
SNAP is governed primarily by the Food and Nutrition Act of 2008, with ongoing amendments and federal regulations. The program is built on the principle that public assistance must be used only for approved food purchases that meet basic nutritional needs.
When someone sells, trades, or transfers SNAP benefits, they are committing SNAP fraud, which includes:
- Exchanging food stamps for cash (“trafficking”)
- Selling your EBT card
- Buying someone else’s food stamps
- Trading benefits for goods like alcohol, cigarettes, or electronics
- Using someone else’s benefits without authorization
These acts violate federal law because they divert public funds intended for food security.
Federal Penalties for Selling Food Stamps
SNAP fraud is handled by the U.S. Department of Agriculture (USDA) and federal law enforcement. In 2025, the penalties remain substantial and often include criminal prosecution.
1. Criminal Charges
Selling food stamps can be charged as:
- A misdemeanor (for small-value transactions)
- A felony (for higher-value or repeated transactions)
Penalties may include:
- Up to 5 years in federal prison
- Criminal fines up to $250,000
- Restitution payments to the government
- Permanent disqualification from SNAP benefits
Even selling a small portion of benefits can trigger federal investigation.
2. Civil Penalties
The USDA may impose civil fines, including:
- Monetary penalties
- Repayment of all misused benefits
- Disqualification from SNAP for a set number of years or permanently
For example:
- First offense: 1-year disqualification
- Second offense: 2-year disqualification
- Third offense: Permanent removal from SNAP
Penalties for Buying Food Stamps
The law does not only target sellers. Anyone who purchases SNAP benefits is equally liable. Buying food stamps can lead to:
- Federal criminal charges
- Fines
- Restitution
- Possible imprisonment
Participating in SNAP trafficking—on either side—is a serious federal offense.
Business Owners: Selling Cash for EBT Benefits Is Illegal Too
Many SNAP fraud cases involve small grocery stores, liquor shops, or convenience stores exchanging cash for EBT benefits at discounted rates (e.g., giving $50 cash for $100 in SNAP benefits).
For retailers, penalties in 2025 may include:
- Permanent disqualification from SNAP
- Federal felony charges
- Seizure of business assets
- Heavy fines
- Loss of business licenses
Retailers are held to strict compliance standards and are audited regularly.
Digital Age Concerns: Online Selling Is Also Illegal
In 2025, law enforcement also monitors:
- Social media marketplaces
- Messaging apps
- Online classified sites
Attempting to sell or buy food stamps online is still a federal crime, even if no money changes hands. Digital evidence is easily traced, and screenshots often become crucial in prosecutions.
Is There Any Legal Way to Give Away Food Stamps?
You may legally use your EBT card only for:
- Yourself
- Members of your SNAP household
You cannot legally:
- Transfer the card
- Share benefits
- Give someone your PIN
- Authorize non-household members to shop for you (unless they are officially added as a proxy through SNAP)
Conclusion
Yes it is absolutely against the law to sell food stamps, and both federal and state authorities treat the offense seriously. SNAP fraud undermines public trust, reduces aid to eligible families, and carries heavy criminal and civil penalties.
Anyone who relies on food assistance should use SNAP benefits only as intended: to buy food, legally and responsibly.
