Science1 distinct publisher2 min readUpdated
An NBER working paper puts the effect at about 34 fewer cans a year per recipient. The substitution argument economists made survives, but not in the form they made it.
The Scientist · Science desk
Compiled by The ScientistSomething wrong?How this is made
Run the study's two headline numbers against each other and the baseline they imply is about 283 cans a year, a little over five a week [1][2][1]. The restriction takes roughly one can every eleven days out of that [2]. It is a real change in a purchasing habit, and it is small enough that a household can undo most of it by reaching for something the state left off its list.
Which is close to what the data show. The authors report that up to 39% of the money not spent on soda went to other sugary drinks and fruit juices that the state restrictions do not cover [6]. On a dollar basis that leaves about 61% of the nominal reduction standing, putting the effective cut in sugary-drink spending nearer 7% than 12% [3]. Notowidigdo's own reading is that scope is the binding variable: "If the goal is to reduce sugar consumption, you want the ban to be more comprehensive, not less" [7]. The leakage economists predicted did happen [16]. It went sideways into juice rather than back into soda bought with cash.
The national figures inherit the same shape. Paarlberg, who called the study sound, notes it is a 12% cut for the 12% of Americans who use SNAP [14]. If those households buy soda at roughly the national rate, the bans move about 1.4% of US soda purchases [4]. The billion dollars a year in health system savings Notowidigdo cites works out to about 0.02% of the $5.3 trillion the US spent on health care in 2024 [4][5][5]. He calls it a drop in the bucket himself, then points out that it recurs annually [4].
His alternative, per Paarlberg, is a tax: Philadelphia's cut consumption 31% across all groups rather than benefit recipients alone, and raised revenue that could offset the regressivity [15]. Worth registering that the study was funded by a Bloomberg Philanthropies grant, and Bloomberg Philanthropies has worked to tax sugary beverages in the US and elsewhere [17]. That does not make a 12% estimate wrong. It does mean the comparison the finding invites is the funder's preferred instrument.
The evidence is thin in the ways early working papers are thin: six months of 2026 purchase data covering 15,000 SNAP households, of which 3,291 were in restricted states, about 22% of the sample [10][6]. Chrisinger, at Tufts, cautions that it may not represent SNAP recipients generally [11]. And the survey finding sits outside the ledger entirely. His point is that stigma cannot be compared with health indicators, which means the trade-off this policy asks for is one nobody can price [13].
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A National Bureau of Economic Research study, not yet peer-reviewed, found soda purchases fell about 12% among SNAP recipients after bans took effect in 10 states.
The study says the 12% drop translates to a person drinking about 34 fewer 12-ounce cans of soda per year.
The authors estimate the drop would reduce the risk of developing type 2 diabetes by 2.6% over the next 10 years, about 34,000 fewer new US cases.
Co-author Matt Notowidigdo of the University of Chicago Booth School of Business said the reduction "leads to a billion dollars of savings for the health care system," adding that it is "a drop in the bucket" but "on the other hand, it's $1 billion a year."
The study's authors note SNAP recipients used up to 39% of the money they did not spend on soda to buy other sugary drinks and fruit juices not covered by state restrictions.
Evidence-backed comparisons of source perspectives and observed adoption signals. Read the methodology
Which Builder, Operator, and Investor concerns the observed source mix emphasized—not a truth score.
Evidence, demonstrated adoption, hype gap, incentives, and confidence are assessed independently, each on its own current evidence. How these are measured.
Real purchase panel, single source, pre-peer-review
The core effect comes from observed grocery purchase data on 15,000 SNAP households over six months of 2026, which is stronger than survey or projection alone, but only about 22% of the panel sits in restricted states, the paper is an NBER working paper that has not been peer-reviewed, one cited expert questions representativeness, and only one publisher covers it. The health and dollar figures are modeled projections rather than observed outcomes.
Policy live in most waiver states, partly enjoined
This is not a pilot: 23 states hold USDA waivers, 10 had restrictions in force during the measurement window, and real purchase behavior across 15,000 households is observable. Adoption is discounted because restricted-product lists vary state to state and the bans are suspended in five waiver states by court order, so coverage is uneven and legally unsettled.
Headline generalizes a SNAP-only, partly leaked effect
The framing that 'Americans bought 12% less soda' overstates a change confined to SNAP recipients in 10 states: about 1.4% of national soda purchases on a proportional reading, with up to 39% of freed spending rotating into unrestricted juices and sugary drinks, and projected savings of $1 billion a year equal to roughly 0.02% of US health spending. The gap is moderate rather than large because the article itself carries the substitution caveat, the co-author's own 'drop in the bucket' hedge, and two academics disputing the magnitude and stigma trade-off.
Advocacy funder behind both study and coverage, disclosed
Bloomberg Philanthropies funded the study and also funds the publisher's chronic health coverage, and it has campaigned to tax sugary beverages, which aligns with the paper's conclusion that broader restrictions and, in the quoted expert's view, taxes work better. The score is mid-range rather than high because the funding relationship is explicitly disclosed twice, the outlet states the funder has no editorial role, and the piece platforms critics of the policy's value.
One publisher, one unreplicated working paper
The reported facts are internally consistent and the derived arithmetic follows directly from the article's own figures, but everything rests on a single publisher relaying a single non-peer-reviewed paper, with acknowledged representativeness limits and no independent confirmation of the effect size, the projections, or the Philadelphia comparator.
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1 article · August 23, 2026