As millions of Americans face uncertainty over the continuation of SNAP (Supplemental Nutrition Assistance Program) benefits, a stark paradox looms: nearly $400 billion worth of food is wasted in the U.S. annually.
The crisis underscores the nation’s troubling divide between food insecurity and the massive surplus that never reaches those in need.
According to a 2025 report from ReFED, a nonprofit focused on food waste reduction, $382 billion in surplus food was generated in 2023 alone.
Despite millions struggling to afford groceries, 40% of the nation’s total food production ends up discarded. “It’s like standing in front of your fridge and throwing away half of what’s inside,” said Chris MacAulay, head of North American operations for the surplus food marketplace Too Good to Go.
Too Good to Go connects restaurants and grocery stores with consumers looking for discounted meals that would otherwise be tossed out.
Through its app, users can purchase “surprise bags” of unsold food at 50–60% discounts, with the platform saving about eight meals every second.
“Americans are feeling more pressure on grocery budgets as SNAP benefits face possible lapses,” MacAulay said, emphasizing the importance of affordable solutions amid rising economic strain.
The current SNAP crisis follows broader funding cuts tied to the Trump administration’s tax policies, leaving millions at risk of losing crucial food assistance.
As government aid falters, private innovation and environmental entrepreneurship are stepping in to fill the void – transforming food waste into both opportunity and sustenance.
The food waste reduction sector has seen a surge in investor interest. Effram Kaplan, of Brown Gibbons Lang & Company, notes that waste management has evolved into a stable, profitable market.
“After 25 years in this field, I can say it’s been undervalued for too long,” he said. With investors increasingly viewing waste as a steady-return asset, new technologies are reshaping the landscape.
Startups like Mill, backed by $100 million, have created smart kitchen bins that dry and shrink food scraps. Metafoodx, funded with $9.4 million, uses AI-powered 3D scanners to monitor waste in commercial kitchens.
These innovations are part of a growing ecosystem tackling food loss from homes to restaurants.
Even small-scale entrepreneurs are finding success. Tyler Frank, founder of Garbage to Garden, began with just $300 and one truck in Maine.
His compost collection service now serves 50,000 subscribers and partners with cities like Boston to turn food waste into usable soil. “This is a recession-resilient business and an idea whose time has come,” Frank said.
Ironically, those most affected by SNAP cuts are also the least wasteful. Ben Scharadin, an economist at Colby College, notes that “lower-income households typically waste less because they can’t afford to.”
As higher-income families discard more, lower-income consumers carefully plan meals and use every resource available.
While technology and entrepreneurship are helping to reduce waste, experts agree that the ultimate solution lies in preventing food loss at its source.
As the nation grapples with hunger and economic strain, bridging the gap between waste and want has never been more urgent.
