The Iowa Department of Health and Human Services (HHS) has announced that a federal waiver restricting the types of food eligible for purchase under the Supplemental Nutrition Assistance Program (SNAP) has been vacated. This decision follows a federal court ruling that found Iowa’s restrictions—which aimed to prohibit the purchase of sugary drinks and certain sweets—violated the federal definition of food.
Implemented on January 1, 2026, the state-level waiver prevented SNAP recipients from purchasing items subject to state sales tax. While Governor Kim Reynolds advocated for the policy as a means to promote better nutrition, the mandate created operational confusion for retailers, particularly regarding the classification of prepared foods and granola bars. Following the court’s intervention, Iowa HHS has directed retailers to immediately update their systems to align with standard federal SNAP guidelines.
The ruling also impacts the SUN Bucks program, a federal initiative providing EBT funds to households with children during summer months. Although Governor Reynolds had previously opted for a state-led pilot program, she committed to the federal SUN Bucks program this year under the condition that the ‘healthy food’ restrictions remained in place. Because the program was already underway when the court ruling took effect, state officials confirmed that items previously excluded under the waiver will now be eligible for purchase for the remainder of the summer period.