Indiana Becomes First State to Ban Candy and Soda From Food Stamps — Kit Kats Are Still Allowed

A Flour Loophole Creates Strange Rules

Starting January 1, 2026, Indiana becomes the first state to ban candy and soda purchases with food stamps. Governor Mike Braun says it’s about nutrition.

But the way the state defines candy has created some odd results. Kit Kats and Twix bars are still allowed because they contain flour.

M&Ms and Skittles are not. Bottled iced tea is banned, but ice cream stays on the menu.

The rules get stranger from there.

Soda Tops SNAP Purchases Nationwide

Soft drinks are the number one item Americans buy with food stamp benefits.

USDA data shows about 10 percent of all SNAP spending goes toward sugary beverages, roughly three times what recipients spend on milk.

Nationwide, SNAP households spend more on soda, candy, and desserts combined than on fruits and vegetables.

Governor Braun pointed to these numbers when he signed an executive order in April 2025 asking the federal government for permission to restrict purchases.

The Flour Rule Changes Everything

Indiana defines candy as sugar or sweetener combined with chocolate, fruits, or nuts in bar, drop, or piece form. But anything containing flour is exempt.

That single ingredient makes Kit Kats, Twix, Butterfingers, and Snickers SNAP-eligible because their wafers or cookie layers contain flour.

Meanwhile, pure chocolate bars, gummies, hard candies, and fruit strips are all banned. Retailers say the distinction will confuse cashiers and customers alike.

Bottled Tea Gets Caught Too

The soft drink definition sweeps in more than soda.

Any nonalcoholic beverage with natural or artificial sweeteners counts, so bottled iced teas, sports drinks, energy drinks, and flavored waters are all off limits. Diet sodas are banned too.

Drinks containing milk or more than 50 percent real fruit juice stay eligible.

That means a sugary fruit punch with 51 percent juice is fine, but unsweetened bottled tea with a splash of honey is not.

Stores Have 90 Days to Adjust

Grocery retailers across Indiana must reprogram their point-of-sale systems to flag restricted items before SNAP transactions go through.

The USDA has given stores a 90-day grace period starting January 1, meaning full enforcement begins in April.

The Indiana Grocery and Convenience Store Association says retailers got little warning before the state announced the plan, and many are still unclear which products fall under the new rules.

Critics Point to Food Deserts

Opponents argue the restrictions hurt families in areas where healthy options barely exist.

About 54 million Americans live in places the USDA calls low-access zones, more than half a mile from a supermarket in cities or 10 miles in rural areas.

Corner stores and gas stations in these neighborhoods stock plenty of soda and snacks but few fresh vegetables.

Critics say banning certain purchases does nothing to bring healthier choices closer to people who need them.

Twenty Years of Rejected Waivers

States have tried to restrict SNAP purchases for decades. New York City applied in 2010 to ban sugary drinks.

Maine tried in 2015 and again in 2017. Minnesota asked in 2004.

The USDA rejected every single request, under both Republican and Democratic administrations. Officials said restrictions would stigmatize recipients and create logistical nightmares for retailers.

The Trump administration reversed that position in 2025.

Kennedy and Rollins Lead the Charge

HHS Secretary Robert F. Kennedy Jr. and USDA Secretary Brooke Rollins made SNAP reform a priority. Kennedy called the program a taxpayer-funded driver of chronic disease.

Rollins signed Indiana’s waiver in May 2025, making it the first approved under the Make America Healthy Again initiative.

The two have appeared together at signing events, encouraging governors of both parties to submit their own waiver requests.

18 States Now Restrict SNAP Purchases

By December 2025, 18 states had received federal approval for restrictions taking effect throughout 2026. Texas and Florida start in April.

Louisiana begins in February. Missouri waits until October.

Each state sets its own definitions, so what counts as candy or soda varies depending on where you live.

Iowa has the broadest rules, banning anything taxed under state law including gum, marshmallows, and juice drinks with less than half real fruit.

Democrats Join the Movement Too

Colorado Governor Jared Polis became the first Democratic governor to embrace the restrictions. He noted that even his state’s 24.9 percent obesity rate, the lowest in the nation, is too high.

Hawaii followed in December 2025 with a waiver banning only carbonated soft drinks with more than 10 grams of sugar per serving.

Kennedy says several other Democratic governors have privately committed to filing waivers but want to avoid the partisan MAHA branding.

Chips and Ice Cream Stay on the Menu

The Indiana restrictions target only candy and soft drinks. Chips, cookies, ice cream, frozen pizza, and bakery items remain fully SNAP-eligible.

Some researchers say this undermines the health argument since recipients can simply shift spending to other processed foods.

A University of Michigan study found that when people cannot buy soda with benefits, they often purchase other unhealthy items or use their own cash for restricted products.

Indiana’s Experiment Runs Through 2027

The waiver is a two-year pilot program. Indiana must collect data on whether the ban changes purchasing habits and improves health outcomes.

If the results look promising, more states could follow with permanent restrictions.

If not, critics will have evidence that bans do little beyond making grocery shopping harder for families already struggling to get by.

Either way, what happens in Indiana over the next two years could reshape food assistance nationwide.

This article was created with AI assistance and human editing.

Read more from this brand:

• Food Stamps Will Stop Covering Soda, Chips, and Candy in 18 States by 2026
• The 80-hour rule that just hit 42 million SNAP recipients
• Trump’s New Food Stamp Rules Spare One Group Forever