USDA Takes Action Against 170 New York City Retailers in SNAP Fraud Sweep

NYC bodega storefront lit by emergency lights during USDA SNAP fraud crackdown on 170 retailers

USDA has taken enforcement action against 170 SNAP retailers across New York City. The agency announced the sweep, called Operation SNAP Back, on September 18, 2026.

USDA’s Food and Nutrition Administration led the effort. Investigators targeted bodegas, convenience stores, and grocery stores in all five boroughs: the Bronx, Brooklyn, Manhattan, Queens, and Staten Island.

Agents ran hundreds of undercover investigations at SNAP-authorized stores before taking action. USDA alleges the retailers broke program rules in several ways.

Some stores allegedly took part in SNAP trafficking. That means swapping a customer’s EBT benefits for cash instead of food. Others allegedly let shoppers use benefits on items SNAP doesn’t cover, like alcohol or non-food goods. USDA says additional retailers violated other terms of their SNAP authorization.

It’s important to note this doesn’t mean all 170 stores were found guilty in court. USDA’s release describes enforcement actions and allegations. Some cases were referred for further criminal investigation, but not every store faces the same outcome.

This crackdown targets retailers, not everyday SNAP recipients. USDA’s announcement doesn’t cut benefits, change eligibility, or lower monthly payments for anyone in New York City.

Still, shoppers could feel some impact. If a neighborhood store loses its SNAP authorization, customers can no longer use EBT there. USDA hasn’t released a list of which specific stores are affected. Shoppers can still use benefits at any other authorized retailer nearby.

Retailers found to have broken SNAP rules face a range of possible penalties:

  • Temporary suspension from the program
  • Permanent disqualification
  • Civil monetary penalties
  • Criminal investigation in serious cases

USDA said some matters were referred to its Office of Inspector General for possible prosecution.

Operation SNAP Back is part of a larger nationwide anti-fraud campaign, according to USDA. The agency says that since the start of the Trump administration, it has stopped more than $5.8 billion in fraud across the country. USDA also reports disqualifying or suspending nearly 6,000 retailers nationwide and disabling more than 2,000 illegal point-of-sale devices. Those figures cover the entire country, not just New York City.

This isn’t USDA’s only major retailer sweep this year. In June 2026, the agency announced a similar crackdown in the Los Angeles area, which involved search warrants executed by USDA’s Office of Inspector General and Homeland Security Investigations.

USDA hasn’t named the 170 New York retailers or said how many face permanent disqualification versus temporary suspension. Those details may surface later through court records or future USDA statements.

For now, USDA’s message is clear: retailers who break SNAP rules face serious consequences, while the benefits program itself continues unchanged for eligible New York households.

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