Gus Schumacher Nutrition Incentive Program (GusNIP) SNAP/NAP Policy

No. Retailers are required by statute to purchase their own POS equipment necessary for redeeming SNAP benefits. POS equipment budget requests must be limited to upgrades to retailers’ existing equipment specifically for the purpose of enhancing the issuance and/or redemption of GusNIP fruit and vegetable incentives.

There are additional funding opportunities available from FNS to support farmers markets and direct marketing farmers (also known as community supported agriculture (CSAs) or farm stands) in acquiring POS equipment. Please visit https://www.fns.usda.gov/snap/state-ebt-equipment and https://totilpay.com/marketlink-program/ for more information.

Specialized supplies, such as refrigeration equipment must be apportioned to the use for grant activities.  As example, if 1/3 of the space in a refrigerator unit will store CSA produce boxes for GusNIP fruit and vegetable incentives and the rest will be used for general inventory, only 1/3 of the cost may be included in the grant application budget. 

Purchasing inventory (including fruits and vegetables) for retailers is outside the scope of the grant program which is intended to provide incentives to SNAP/NAP households to increase the purchase of fruits and vegetables. Between September 1, 2020, and August 31, 2021, GusNIP Nutrition Incentive project participants redeemed $20,340,434 in fruit and vegetable sales at 1,615 SNAP authorized retailer firms.[1] The estimated economic impact for firms and the surrounding community was $39,893,540.1    [JPRN2] [KMRN3] 

Cash refunds are prohibited for any product purchased with SNAP benefits[1]. Providing cash refunds for SNAP scrip (paper, tokens, or receipts) or items purchased with SNAP benefits is trafficking SNAP benefits. This is a serious violation of SNAP rules and can have lasting legal ramifications for any firm engaging in such practices. Refunds of SNAP scrip and purchases made with SNAP benefits must be returned to the SNAP household’s EBT SNAP account through a refund transaction on the POS device[2].

[1] NAP policy differs. Please reach out with specific questions about NAP policy. 

[2] Presently, Puerto Rico is the only NAP block grant territory that issues benefits through EBT.  The other NAP territories use paper coupons. 

Applicants who wish to provide fruit and vegetable incentives to only a certain subset of SNAP/NAP participants must show that: 1) the specific group meets the selection criteria listed in the request for applications; 2) proposal provides a strong, evidence-based justification for selecting the specific group for their intervention; 3) the method for recruiting participants does not raise privacy or ethical concerns; 4) outreach efforts to the specific group alone would not be sufficient to ensure comparable or satisfactory participation of the specific group. The State/Territory SNAP/NAP Agency must provide a statement in their Letter of Support concurring with the applicant’s proposal to limit incentives to the selected group and the method for recruiting participants.

Before applying, applicants should have already had extensive discussions with the State/Territory Agency and the State’s/Territory’s EBT processor to confirm feasibility and cost for any proposed system changes.  Applicants must submit a Letter of Support from applicable SNAP/NAP State/Territory Agency as part of their grant application. This letter must explain the specific role of the agency, including any activities the agency is expected to conduct in support of the project such as identifying SNAP/NAP participants, and/or sending them any correspondence related to the project. The letter must also identify any State/Territory Agency systems, including EBT systems, required to implement the proposed project along with an acknowledgment of who will bear the costs associated with any activities or system changes if applicable.

If the corresponding State/Territory SNAP/NAP Agency will be involved in this outreach plan, the required Letter of Support from the State/Territory must make mention of their involvement and the extent to which they will provide support. 

Participation in evaluation is voluntary and cannot be required to receive the incentive. Receiving the incentive should not be contingent on participating in the evaluation. Getting households to participate in a survey/evaluation/focus group, etc. through what may be perceived as coercion is not acceptable.

EBT SNAP benefits are not allowed to be converted to e-tokens or any other type of currency not specifically approved under the scrip demonstration waiver.

Scrip projects are currently allowed under a demonstration waiver only for Farmers Markets and only for physical scrip/tokens or returning to the vendor with a receipt after processing the EBT transaction. The scrip waiver was meant as an alternative solution to electronic transaction processing due to the unique infrastructure and technology challenges Farmers Markets faced when EBT was first implemented.

There is a solution for individual farmers to electronically process SNAP benefits directly though the EBT system using the FNS App for Farmers Markets (EBT mobile payment app).  Please visit https://www.fns.usda.gov/snap/state-ebt-equipment and https://totilpay.com/marketlink-program/ for more information. The description must include the type of equipment needed by both vendors and customers, refund processes specific to e-tokens, and information about the technology provider.  

Online purchasing is different from online ordering. Any FNS authorized retailer can receive orders via the internet if the payment is processed in-person at the time of pick up or delivery.

Online Purchasing allows retailers to accept EBT payment over the internet. This is a separate authorization and involves a much longer process with additional steps. 

An authorized retailer that would like to accept SNAP EBT orders and payment online as well would require two separate authorizations. Grantees who wish to provide incentives as an online retailer must clearly state that in the proposal and indicate whether or not they have received an online FNS authorization.  They must also clearly describe how the incentives will be provided through the online platform.

For more information, please visit https://www.fns.usda.gov/snap/online-purchasing-pilot.

If any SNAP/NAP waivers will be required, they must be obtained from FNS prior to submitting a GusNIP nutrition incentive program application. They should be attached in Field 12. 

A SNAP/NAP Policy Analyst will review grant applications for adherence to SNAP/NAP program rules and regulations.

It is required to partner with SNAP/NAP authorized[1] firms to conduct a nutrition incentive project. Types of SNAP/NAP firms include grocery stores, convenience stores, farmers markets, and direct-marketing farmers (CSAs and farm stands). Before a firm can participate in a GusNIP Nutrition Incentive Program project, the applicant/grantee organization must confirm the firm is authorized. The names and addresses of SNAP authorized firms are available to the public and can be obtained via the SNAP Retailer Locator map or the GusNIP Incentive Locator map. If the firm is on the map, that means the firm is authorized. 

The map is updated every two weeks.  Once the applicant/grantee organization has confirmed that the firm is SNAP/NAP authorized, the grantee may move forward with the firm’s participation. Information on the eligibility requirement and process for SNAP authorization can be found at: https://www.fns.usda.gov/snap/apply-to-accept 

For any question regarding the status of a firm’s SNAP authorization, the firm’s owner should contact the SNAP Retailer Service Center at 1-877-823-4369. 

Consult the respective NAP-administrating agency for the most up-to-date information. Administrating agencies for NAP block grant programs include: The Administration for the Socio-Economic Development of the Family Department of Family Affairs in Puerto Rico, https://servicios.adsef.pr.gov/views/programa/programaAsistenciaNutrici…; The American Samoa Department of Human and Social Services in the Territory of American Samoa, http://dhss.as/index.html; and The Department of Community and Cultural Affairs in Commonwealth of the Northern Mariana Islands, https://dcca.gov.mp/nap-nutrition-assistance-program/.

[1] FNS does not authorize retailers in any of the NAP block grant territories.

Before a firm can participate in a GusNIP Nutrition Incentive Program project, the applicant/grantee organization must confirm the retailer is authorized. Authorized firms can be found on the SNAP Retailer Locator map. If the firm is on the map, that means the firm is authorized. This map is updated every two weeks.  Once the applicant/grantee organization has confirmed that the firm is SNAP/NAP authorized, the grantee may move forward with the firm’s participation. Types of SNAP/NAP firms include grocery stores, convenience stores, farmers markets, and direct-marketing farmers (CSAs and farm stands). 

Grantees are required to compile monthly reports for FNS. These reports must include the firms (and FNS numbers) that were added to the GusNIP project in the previous month. These[SGF5]  reports should be sent to the GusNIP mailbox (Sm.fn.GusNIP@usda.gov). NOTE: This process for reporting partner firms applies to all current GusNIP, GusCRR, ARPA, and FINI projects. NIFA can provide the template for proper submission. 

Information on the eligibility requirement and process for SNAP authorization can be found at: https://www.fns.usda.gov/snap/apply-to-accept 

There are new efforts underway in Colorado, Washington, and Louisiana in cooperation with FNS to carry out Electronic Healthy Incentive Projects (e-HIP). These projects are designed to test incentive models that automatically load incentives on to a SNAP shoppers’ EBT card after a qualifying purchase of fruits or vegetables thereby allowing more incentive dollars to reach SNAP participants. At this point, these are the primary approved projects for EBT integration. If your project intersects with this ongoing work or proposes innovation in EBT integration, it should be thoroughly described in the project’s design, timeline and letter of support from the state.

It is up to the applicant to decide how best to present required information. A table, graphic, paragraph or other means may be used. A reader should be able to ascertain when and how a GusNIP fruit and vegetable incentive will be both earned and redeemed, including how incentives will be tracked by all those involved (i.e., participants, firms and partnering entities as applicable). Do not assume the methods of a SNAP transaction are known. If SNAP transactions or fruit and vegetable incentive earning models vary by firm type, explicitly explain by each firm type. If specialized equipment is used in the SNAP transaction and/or fruit and vegetable incentive earning or redemption process, include sufficient manufacturer and model details such that policy determination(s) can be made.

CSAs are an allowable business model. SNAP policy requires that CSAs may not accept payment from SNAP/NAP participants more than 14 days before food delivery or pickup. Any application proposing to work with a CSA must demonstrate when a SNAP transaction will occur with regards to food/box delivery or pick up. Additional clarification of when and how the earned fruit and vegetable incentive will be honored is also required. Both an immediate discount combining the SNAP transaction and fruit and vegetable incentive, or an alternating schedule of SNAP transaction and fruit and vegetable incentive redemption are allowed, as example.

Applicants must demonstrate adequate understanding of SNAP refund policies and how their nutrition incentive project will plan for and adhere to policy. As example, an application may describe how refunds for SNAP benefits used to earn incentives will be monitored so that SNAP customers are not able to obtain a refund for the SNAP purchase but keep the incentive earned from the purchase.

Information on an EBT card is considered personally identifiable information (PII) and must be protected. Copying or using full or partial EBT card numbers to track individuals is prohibited. Safeguards designed to protect any data related to an individual should be thoroughly described in the data safety monitoring plan.

Additionally, projects must operate through authorized SNAP/NAP retailers. Separating the SNAP transaction from the fruit and vegetable incentive earning opportunity by either time or space is prohibited. 

FNS maintains a Nutrition Assistance Program Block Grants webpage that provides information about the 3 U.S. territories that participate. The website can be found at: https://www.fns.usda.gov/nap/nutrition-assistance-program-block-grants

NAP and SNAP benefits are not interoperable meaning it is not possible for a NAP coupon to be used outside of the territory where it was issued.

Yes. PAN, for its Spanish name, is the same as NAP.

Administracion de Desarollo Socioeconomico de la Familia (ADSEF) administers NAP in Puerto Rico. https://servicios.adsef.pr.gov/views/programa/programaAsistenciaNutricional.aspx

Puerto Rico designs its own set of program rules for NAP. FNS approves these rules through an annual Plan of Operations. Activities proposed in a GusNIP applications should adhere to this Plan. The most recent Plan of Operations can be found at: https://www.fns.usda.gov/snap/nap-state-plan-operations-puerto-rico.

American Samoa’s Department of Human and Social Services (DHSS) administers the American Samoa Nutrition Assistance Program (ASNAP) and designs the set of rules for the program.  

GusNIP nutrition incentive coupons should be unique and different from NAP coupons.

CNMI’s Department of Community and Cultural Affairs (DCCA) administers the NAP program and designs the set of rules for the program. Contact information can be found at: https://dcca.gov.mp/nap-nutrition-assistance-program/.

GusNIP nutrition incentive coupons should be unique and different from NAP coupons.