New York City Stores Allegedly Process EBT Payments for Kratom

An undercover investigation by James O'Keefe's O'Keefe Media Group recorded clerks in several New York City bodegas and smoke shops attempting to process purchases of kratom—a psycho‑active herbal product not permitted under the federal SNAP program—using Electronic Benefit Transfer (EBT) cards. Transactions were entered as “EBT Food” or “EBT Cash,” which would treat the drug as a grocery item or cash withdrawal, both contrary to 7 CFR 278 and USDA SNAP regulations that prohibit the use of SNAP benefits for drugs, alcohol, tobacco, or other non‑food items.

Store employees denied wrongdoing when confronted, and a SNAP program representative confirmed that while EBT cards cannot directly purchase drugs, cash withdrawn from an EBT account can be spent without restriction. The findings suggest possible fraud and raise concerns about oversight of the welfare benefit system in New York City.