Opportunity Information: Apply for USDA FNS SNAP EHIP FY 2023
SNAP EHIP 2023 is a USDA Food and Nutrition Service (FNS) competitive grant opportunity that funds State-administered projects to deliver healthy food incentives directly through the SNAP Electronic Benefit Transfer (EBT) system. SNAP, authorized under the Food and Nutrition Act of 2008 (as amended), is the nation s primary nutrition assistance program, serving roughly 40 million low-income participants and operating through a retail network of more than 250,000 authorized stores. This opportunity uses American Rescue Plan Act (ARPA) resources intended to strengthen and modernize food and agricultural supply chains, with an emphasis on resiliency and improved access to nutritious foods.
The funding comes from Section 1001 of ARPA, which provided USDA with broad authority and resources for pandemic response and supply chain resiliency efforts. Under USDA s Framework to Transform the Food System, the Department set aside up to 25,000,000 for Electronic Healthy Incentive Projects (eHIP). Through this Request for Applications, FNS planned to award up to three cooperative agreements (not standard grants), with a total funding cap of 25,000,000 across all awards. While the program anticipated as many as three awards, FNS noted it could make more than one award and could also use the same competition to support additional awards in the current or subsequent fiscal year if more funding became available. As with many federal opportunities, awards were explicitly contingent on funds being apportioned and made available internally to FNS.
Eligibility is limited to State governments specifically the 53 State agencies that administer SNAP benefits (typically including States, the District of Columbia, territories, and certain other administering entities). The opportunity is cataloged under CFDA 10.561, uses a cooperative agreement instrument (implying substantial federal involvement or collaboration during implementation), and was posted with a creation date of January 19, 2023, and an original application closing date of March 31, 2023.
Programmatically, eHIP builds on lessons from the 2012 Healthy Incentives Pilot (HIP), which tested whether financial incentives increase fruit and vegetable purchases among SNAP households and whether those incentives can be seamlessly delivered through EBT. In HIP, participants earned an incentive equal to 30 cents for every SNAP dollar spent on qualifying fruits and vegetables at participating SNAP-authorized retailers. A key feature of HIP was EBT integration, meaning the incentive was automatically calculated and loaded back onto the household s EBT card through the State s EBT processor, rather than distributed via coupons, vouchers, or separate apps. The HIP evaluation reported positive results for fruit and vegetable consumption and demonstrated that EBT-integrated incentives could work operationally.
Since HIP, healthy food incentive models have expanded across the country through several channels. The notice highlights that in FY 2022 the Gus Schumacher Nutrition Incentive Program (GusNIP) awarded 38,700,000 to eight organizations for fruit and vegetable incentive projects for SNAP participants, that FNS approved multiple incentive waiver requests enabling independent retailers to run fruit and vegetable incentives across several States, and that FNS also supported a multi-State healthy milk incentive project with 3,000,000. Against that backdrop, eHIP is positioned as a way to strengthen and standardize incentive delivery at the State level, potentially driving higher fruit and vegetable purchases in a manner that also supports the distribution and retail infrastructure for perishable healthy foods. FNS explicitly links those increased purchases to maintaining and strengthening the delivery infrastructure for fruits and vegetables, thereby supporting broader supply chain resiliency goals.
A central purpose of eHIP is evaluation of administrative cost and operational efficiency when incentives are run by State agencies through their EBT processors. While HIP focused on feasibility and participant impacts, eHIP is designed to measure what it costs to administer an EBT-integrated healthy incentive at scale through State systems and to compare those costs to other incentive delivery models. FNS states its goals as maximizing the share of funding that reaches SNAP households (rather than being consumed by overhead), establishing consistent and effective methods for delivering incentives, and reducing overall administrative costs. To ensure objective findings, FNS indicated the final eHIP project would be independently evaluated by an external evaluation contractor selected through an FNS competitive process.Apply for USDA FNS SNAP EHIP FY 2023
- The Department of Agriculture, Food and Nutrition Service in the agriculture, food and nutrition sector is offering a public funding opportunity titled "SNAP EHIP 2023" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.561.
- This funding opportunity was created on Jan 19, 2023.
- Applicants must submit their applications by Mar 31, 2023. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $25,000,000.00 in funding.
- The number of recipients for this funding is limited to 3 candidate(s).
- Eligible applicants include: State governments.
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SNAP eHIP 2023 (Electronic Healthy Incentive Projects) FAQs
What is SNAP eHIP 2023?
SNAP eHIP 2023 (Electronic Healthy Incentive Projects) is a USDA Food and Nutrition Service (FNS) competitive funding opportunity to support State-administered projects that deliver healthy food incentives directly through the SNAP Electronic Benefit Transfer (EBT) system.
Which federal agency is offering this opportunity?
The opportunity is offered by the U.S. Department of Agriculture (USDA), Food and Nutrition Service (FNS).
What is the main goal of eHIP?
A central goal is to evaluate administrative cost and operational efficiency when healthy food incentives are administered by State agencies through their EBT processors. FNS also emphasizes maximizing the share of funding that reaches SNAP households, establishing consistent and effective incentive delivery methods, and reducing overall administrative costs.
How are incentives delivered to SNAP households under eHIP?
Incentives are delivered through EBT integration. The incentive is automatically calculated based on qualifying purchases and then loaded back onto the household's EBT card through the State's EBT processor, rather than being distributed through coupons, vouchers, or separate apps.
What earlier project does eHIP build on?
eHIP builds on lessons from the 2012 Healthy Incentives Pilot (HIP), which tested whether financial incentives increase fruit and vegetable purchases among SNAP households and whether those incentives could be delivered seamlessly through EBT.
What did the 2012 Healthy Incentives Pilot (HIP) do?
In HIP, participants earned an incentive equal to 30 cents for every SNAP dollar spent on qualifying fruits and vegetables at participating SNAP-authorized retailers. A key feature was EBT integration, meaning incentives were automatically processed and returned to the household's EBT card via the State's EBT processor.
What results were reported from HIP?
The HIP evaluation reported positive results for fruit and vegetable consumption and showed that EBT-integrated incentives could work operationally.
Where does the funding for eHIP come from?
Funding uses American Rescue Plan Act (ARPA) resources intended to strengthen and modernize food and agricultural supply chains, with an emphasis on resiliency and improved access to nutritious foods. The funding is tied to Section 1001 of ARPA, which provided USDA with authority and resources for pandemic response and supply chain resiliency efforts.
How much funding is available under this opportunity?
USDA set aside up to $25,000,000 for Electronic Healthy Incentive Projects (eHIP), with a total funding cap of $25,000,000 across all awards.
How many awards did FNS plan to make?
FNS planned to award up to three cooperative agreements. The notice also stated FNS could make more than one award and could use the same competition to support additional awards in the current or subsequent fiscal year if additional funding became available.
Is this a standard federal grant or a different funding instrument?
This opportunity uses a cooperative agreement rather than a standard grant. A cooperative agreement implies substantial federal involvement or collaboration during project implementation.
Who is eligible to apply?
Eligibility is limited to State governments, specifically the 53 State agencies that administer SNAP benefits (typically including States, the District of Columbia, territories, and certain other administering entities).
What is the CFDA number associated with this opportunity?
The opportunity is cataloged under CFDA 10.561.
When was the opportunity posted and what was the original deadline?
The posting listed a creation date of January 19, 2023, and an original application closing date of March 31, 2023.
What kinds of foods are targeted by the incentives described in the opportunity?
The opportunity references fruit and vegetable incentives, reflecting the earlier HIP model focused on qualifying fruits and vegetables and broader goals of improving access to nutritious foods.
How does eHIP relate to supply chain resiliency?
FNS links increased purchases of fruits and vegetables to maintaining and strengthening the delivery and retail infrastructure for perishable healthy foods, supporting broader supply chain resiliency goals described under ARPA and USDA's Framework to Transform the Food System.
How does eHIP fit within other healthy incentive efforts mentioned?
The notice notes several related developments since HIP, including: FY 2022 Gus Schumacher Nutrition Incentive Program (GusNIP) awards totaling $38,700,000 to eight organizations for fruit and vegetable incentive projects; FNS approval of incentive waiver requests enabling independent retailers to run fruit and vegetable incentives across several States; and FNS support for a multi-State healthy milk incentive project funded at $3,000,000. eHIP is positioned as a way to strengthen and standardize incentive delivery at the State level through EBT processors.
Is an evaluation required for eHIP projects?
The notice indicates the final eHIP project would be independently evaluated by an external evaluation contractor selected through an FNS competitive process, to ensure objective findings on administrative cost and operational efficiency.
Are awards guaranteed once selected?
No. The opportunity states awards are contingent on funds being apportioned and made available internally to FNS.
What is SNAP in the context of this opportunity?
SNAP is authorized under the Food and Nutrition Act of 2008 (as amended) and is described as the nation's primary nutrition assistance program, serving roughly 40 million low-income participants and operating through a retail network of more than 250,000 authorized stores.
Why does eHIP emphasize EBT-based delivery instead of coupons or vouchers?
The opportunity highlights EBT integration as a key operational feature because it allows incentives to be calculated and delivered automatically via the State's EBT processor, supporting standardized delivery methods and enabling evaluation of administrative costs and efficiency within State-administered systems.
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