Walmart Hit by $2 Billion Loss as SNAP Payments Halt – Will Stores Close on November 1?

The ongoing 2025 United States federal government shutdown has triggered fresh worries across the country — especially about whether Walmart will shut its doors on November 1, 2025.

The concern centers on a major announcement from the United States Department of Agriculture (USDA) that the Supplemental Nutrition Assistance Program (SNAP) will pause next-month, leaving over 40 million Americans uncertain about food-nutrition support.

SNAP Halt & USDA’s Announcement

The USDA posted a stark message: “Bottom line, the well has run dry. At this time, there will be no benefits issued November 01.”
The reason given: SNAP has exhausted its budget for November and cannot legally tap emergency-disaster funds to continue normal payouts.
The agency also asserted that states will not be reimbursed if they choose to use their own funds to keep SNAP payments going.
The USDA’s commentary included pointed political language: It said lawmakers were at an “inflection point” and suggested they must either reopen the government or continue to hold out for other policy changes.

Economic Fallout – The Retail Impact

Walmart’s Exposure

Research shows Walmart absorbs about 24% of total SNAP spending — significantly higher than its grocery-retail competitors.
With SNAP spending amounting to roughly $8.3 billion per month, a full November halt could cost Walmart nearly $2 billion in lost sales.

Broader Industry Risk

According to economists, SNAP funds account for about 8% of all retail grocery spending — meaning even a short interruption could trigger layoffs or other serious adjustments in the sector.
Because the shutdown is causing benefits to halt, retailers like Walmart, Kroger, Costco, Amazon and Sam’s Club may all feel pressure.

Political Stand-Off & Government Shutdown Context

The shutdown began on October 1, 2025, after lawmakers failed to agree on renewing expiring subsidies under the Affordable Care Act.
It has become the second-longest shutdown in U.S. history.
Hundreds of thousands of federal employees have been either furloughed or are working without pay.
Attempts to pass short-term funding bills have failed repeatedly — for example, the Senate voted down a House-passed stop-gap bill on October 14-15, and another failed vote occurred on October 28, marking at least 13 unsuccessful efforts by the Senate to end the stalemate.

So… Will Walmart Actually Close on November 1?

No — despite the panic on social media, Walmart has not announced any nationwide closures.

A Walmart official confirmed that stores will remain open as usual.
Fact-checkers have classified the claim that Walmart will shutter in-store shopping on November 1 as false.
The confusion stems largely from the USDA’s warning about SNAP benefits halting — not a Walmart decision to close.

Key Takeaways

The SNAP benefit pause is a direct consequence of the government shutdown and lack of funding — not a retail chain closure.
While Walmart will not close its stores, the retailer (and broader grocery/retail sector) stands to suffer from the ripple effect of a SNAP payment freeze.
The funding deadlock remains a major risk for food security, low-income consumers, and the U.S. economy, particularly retail and grocery sectors.
Policymakers, retailers, and relief organizations should be prepared for potential flooding of demand in food-banks and discount retailers if SNAP funds stop.

In summary, while the USDA’s announcement that SNAP benefits will not be issued starting November 1 has triggered widespread concern, it is not triggering a closure of Walmart stores. Walmart remains open and functioning normally.

The broader risk lies in the financial strain on households that depend on SNAP and the subsequent economic fallout for retailers and local communities. Keeping the big picture in mind can help separate the facts from circulating fears and focus attention where it matters most.

FAQs

Will Walmart close all its stores on November 1 because SNAP stops?

No. Walmart has publicly stated that it will continue normal operations on November 1 and has made no announcement of closures tied to the SNAP situation.

Why is SNAP being halted on November 1?

The USDA says funding for the Supplemental Nutrition Assistance Program (SNAP) has been exhausted due to the government shutdown — and the agency has chosen not to tap emergency or disaster funds to continue monthly disbursements.

How could this affect retail spending and grocery stores?

Because SNAP spending represents a substantial portion of grocery-retail business (especially for retailers like Walmart), a pause in benefits could lead to a drop in consumer purchases, stress on store revenue, and potentially job risks in the grocery sector.