42 million Americans enrolled in the government’s SNAP program are at risk of missing their monthly benefits.
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The lingering government shutdown comes at a high cost for low-income families relying on federal assistance programs for critical benefits. Starting November 1, the 42 million Americans enrolled in the government’s SNAP program are at risk of missing federal food and nutrition benefits. Families have said they intend to forego meals or turn to food pantries if their November food stamps are delayed or fail to be delivered entirely.
Propel, a fintech startup based in Brooklyn whose app helps low-income families with everything from easily checking their SNAP balance to finding savings, announced a $10 million emergency relief fund on Wednesday to address the gap. The government shutdown threatens the flow of $8 billion in monthly federal payments, “a massive amount of money that we can’t hope to backstop through philanthropy or food banks,” says CEO and cofounder Jimmy Chen.
Together with New York nonprofit GiveDirectly, Propel plans to distribute one-time $50 cash payments through their app.
The Propel app, which currently serves 5 million SNAP households across the country, will give priority to recipients of the highest SNAP allotment, identified as the lowest-income families, with household eligibility occurring on the day of the missed November deposit. All SNAP benefit recipients can sign up for the app for free and become eligible for the cash transfers.
So far, Propel has contributed $1 million to the emergency fund and intends to raise another $9 million by garnering support from partners and donors to help the families most impacted by the shutdown.
Founded in 2014, Propel was designed to solve challenges Chen had encountered firsthand during his childhood–problems that he says existed outside the parameters and “traditional sweet spots of Silicon Valley.”
“I felt like consumer tech was making life a lot better for 25-year-old software engineers living in San Francisco, but not doing as much for the average American or for my parents growing up who were struggling financially,” he said.
Beyond the cash payments, Propel users can benefit from established partnerships with grocery and food delivery platforms such as Instacart to access exclusive savings during the shutdown.
“It’s impossible to replace SNAP in its scale and impact,” wrote Chen in the company’s press release on Wednesday. “But we need to do our part to help SNAP participants navigate this unprecedented challenge.”
Source: https://www.forbes.com/sites/juliegoldenberg/2025/10/30/fintech-company-propel-announces-10-million-fund-for-food-stamp-recipients-affected-by-government-shutdown/
