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The Trump administration was sued by a group of state attorneys general on Tuesday for “illegally” suspending Supplemental Nutrition Assistance Program (SNAP) benefits during the ongoing U.S. government shutdown.
The lawsuit was filed by governors and attorneys general from 25 states in the U.S. District Court in Massachusetts. “Suspending SNAP benefits in these circumstances is both contrary to law and arbitrary and capricious under the Administrative Procedure Act,” the states said in the lawsuit.
The AGs, governors, and the District of Columbia argued that the U.S. Department of Agriculture should use approximately $6 billion in contingency funding to keep SNAP operational for as long as possible in light of the ongoing government shutdown.
According to government data, more than 42 million people depend on SNAP to buy groceries.
“Because of USDA’s actions, SNAP benefits will be delayed for the first time since the program’s inception. Worse still, USDA suspended SNAP benefits even though, on information and belief, it has funds available to it that are sufficient to fund all, or at least a substantial portion, of November SNAP benefits,” the lawsuit stated.
The U.S. government shutdown has now entered its 28th day, with no end in sight.
According to an NBC News report, the Senate failed for the 13th time to pass a Republican-backed bill that would fund the government temporarily.
Meanwhile, U.S. equities rose in Tuesday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.29%, the Invesco QQQ Trust ETF (QQQ) gained 0.6%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.81%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
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