# GAO Reports Low Wages Drive SNAP and Medicaid Eligibility

The Government Accountability Office (GAO) has released a report highlighting that low wages, rather than refusal to work, are the primary factor driving eligibility for SNAP and Medicaid among adults. Many enrolled individuals are employed full-time in low-wage sectors such as food service, retail, and transportation. This insight underscores the critical role of wage levels in public assistance program participation and has implications for workforce and procurement strategies in agencies managing these programs.

- Procurement professionals should consider the impact of low-wage employment trends on service demand and program administration costs for SNAP and Medicaid.
- Agencies may need to evaluate contracts with service providers in sectors employing large numbers of low-wage workers, such as food service and retail, to ensure program accessibility and effectiveness.
- This report signals potential policy shifts or funding adjustments aimed at addressing wage-related eligibility, which could affect future procurement requirements and vendor selection.
- Contractors serving public assistance programs should assess how wage dynamics influence beneficiary populations to tailor service delivery and compliance strategies effectively.

**Jurisdictions:** federal
**Industries:** Public Safety
**Topics:** Policy
**Published:** September 16, 2026

### Government Entities
- Government Accountability Office (GAO)

### Vendors
- Walmart (large employer)
- Amazon (large employer)
- McDonald's (large employer)

### Sources
- [
        Low wages — not refusal to work — driving more eligibility for SNAP, Medicaid | Federal News Network](https://federalnewsnetwork.com/agency-oversight/2026/09/low-wages-not-refusal-to-work-driving-more-eligibility-for-snap-medicaid) - federalnewsnetwork.com