Food Stamps do not literally exist anymore, so it is impossible to sell them.
The term "food stamps" is still used colloquially, pedant, and "food stamps" persists in casual conversation.
It is not impossible to illegally trade SNAP (Supplemental Nutrition Assistance Program) or EBT (Electronic Benefits Transfer) benefits for cash, drugs, or other ineligible items. This practice, known as "trafficking," is a well-documented federal crime under 7 U.S.C. § 2024, and it occurs regularly despite aggressive enforcement efforts by the USDA's Food and Nutrition Service (FNS).
While the EBT system has reduced fraud compared to the old paper "food stamp" era, trafficking persists through methods like selling benefits at a discount (e.g., $100 in SNAP for $50 cash), indirect exchanges (e.g., buying groceries with SNAP and reselling them), or using benefits to purchase non-food items that are then traded.
Recipients sell their EBT card balance or PIN to others for cash, often at 50 cents on the dollar, to fund drugs, alcohol, tobacco, or other non-eligible purchases.
Recipients buy eligible items (like soda or energy drinks) with SNAP and sell them back to stores or individuals for cash. Stores may also buy bulk items purchased with SNAP to resell, creating a black-market loop.
The USDA estimates annual trafficking losses at hundreds of millions of dollars, with FNS disqualifying over 1,000 retailers yearly for violations. A 2023 USDA report highlighted patterns like unusually high EBT transaction volumes relative to store inventory as red flags.
Real-world examples abound in public discussions:
- On platforms like Reddit, users in r/foodstamps frequently discuss or report trafficking, such as bodega owners facing USDA investigations for "high-volume" EBT sales suggesting cash swaps, or recipients admitting to selling benefits for drugs/firearms.
- Recent X (formerly Twitter) posts describe it as a "sub-economy," with anecdotes of addicts trading $4,000 in monthly SNAP for $2,000 cash to buy drugs, or parents returning SNAP-purchased cans at Walmart for cash to fund habits.
In short, while penalties are severe and detection is improving, trafficking is neither rare nor impossible—it's an ongoing issue that undermines the program's goal of providing nutrition to low-income families.