Judge Paul Gardephe
Grocery store operator 3607 Broadway Food Center Inc. was disqualified from the USDA-funded Women, Infants, Children supplemental nutrition program (WIC) for six years based on a pattern of claiming reimbursement for sales of food items exceeding inventory. Based thereon, USDA suspended 3607′s participation in the Supplemental Nutrition Assistance Program (SNAP) for six years. The court granted the government judgment in 3607′s challenge of its SNAP disqualification. Citing 7 CFR §278.6(e)(8)(iii)(C), 7 USC §2021(g)(2), and Simone Enterprises v. U.S. Dept. of Agric. the court found itself deprived of jurisdiction to review a reciprocal SNAP disqualification premised on earlier WIC disqualification. However, refusal to impose a civil monetary policy in lieu of disqualification presented a separate issue. In finding that the penalty imposed on 3607 was mandated by governing regulation and that the USDA’s Food and Nutrition Service did not act arbitrarily and capriciously in imposing the six-year suspension, the court noted undisputed evidence that numerous stores close to 3607 accept SNAP benefits. Thus, there was no evidence that 3607′s suspension from the SNAP program presented a hardship to the community.
