More Amazon and gig workers are turning to SNAP and Medicaid to make ends meet, study finds

Public Assistance Usage Surges Among Amazon and Gig Economy Employees

Earthguardiansonline.com – A recent Government Accountability Office investigation reveals that an increasing number of workers employed by Amazon and various gig economy platforms are depending on government support programs to cover basic necessities like nutrition and healthcare. The analysis, published on Wednesday, highlights how low earnings in these sectors have pushed more employees toward public assistance despite being employed.

Significant Growth in Benefit Enrollment

According to Vermont Senator Bernie Sanders, who commissioned both the current and previous analyses, the count of Amazon personnel utilizing food stamps and Medicaid nearly tripled between 2020 and the present. Within the eleven states reviewed by the GAO—representing approximately twenty percent of the U.S. population—almost 12,350 Amazon workers were enrolled in food assistance programs while roughly 11,350 held Medicaid coverage.

Gig Companies Join Traditional Retail as Major Benefit Recipients

Five years ago, rideshare and food delivery firms were not prominent among employers whose staff received these safety net programs. Today, companies such as Uber, Lyft, DoorDash, Grubhub, and Instacart rank among the leading employers of SNAP and Medicaid recipients across multiple states. Walmart maintained its position as one of the top employers for benefit recipients in every state examined, consistent with its 2020 standing. Additionally, FedEx experienced substantial growth, with Medicaid enrollment more than tripling and food stamp participation nearly doubling during the same timeframe.

Corporate Responses and Context

Senator Sanders, a longstanding critic of corporate compensation practices, emphasized in a statement that employees of highly profitable corporations should not experience poverty. Amazon contested the report’s conclusions, asserting that its compensation structure ranks among the strongest in the sector. The company noted that full-time, regular employees receive health insurance starting on their first day for just five dollars weekly for individual coverage.

Eligibility for both SNAP and Medicaid is based on total household income and family size, not individual wages or benefits – so employers that offer part-time options for those who want them, like we do, are likely to have more people who are eligible.

Rachael Lighty, an Amazon spokesperson, provided this explanation regarding the enrollment patterns.

Recent Investment and Wage Increases

Since the onset of the pandemic, Amazon has significantly expanded its workforce. In late 2025, the company announced a one billion dollar commitment aimed at raising compensation and lowering healthcare expenses for fulfillment and transportation workers across the United States. This initiative raised the average base hourly rate above twenty-three dollars. Walmart, recognized as the nation’s largest private employer with numerous entry-level positions, has boosted starting wages for associates by ninety-three percent since 2015. Current average hourly compensation stands at eighteen dollars. CNN has contacted FedEx and Flex, an industry organization representing ridesharing and delivery applications, for additional commentary.

National Statistics and Eligibility Thresholds

The GAO examination incorporated 2024 Census information, revealing that approximately fourteen million adults who worked at some point during that year were enrolled in Medicaid, while ten point six million adults resided in households receiving Supplemental Nutrition Assistance Program benefits. Most of these individuals maintained full-time schedules, with a majority employed in five primary occupations including transportation and food preparation and serving. Comparing these figures to the earlier GAO report based on 2020 Census data shows growth from twelve million Medicaid recipients and nine million SNAP participants. To qualify for food stamps, applicants must earn below one hundred thirty percent of the federal poverty level, which translates to roughly forty-two thousand dollars annually for a family of four, though certain states maintain higher limits. Medicaid eligibility requires earnings not exceeding one hundred thirty-eight percent of the federal poverty threshold, approximately twenty-two thousand dollars for an individual, with some non-expansion states setting lower thresholds.

New Work Requirements Under Federal Legislation

This GAO report emerges as tens of millions of SNAP and Medicaid recipients face new obligations under President Donald Trump’s One Big Beautiful Bill Act, signed into law last summer. The legislation mandates that recipients work, volunteer, attend school, or participate in job training programs for at least eighty hours monthly to preserve their eligibility. Republicans contend that these work requirements will promote self-sufficiency and help low-income Americans escape poverty. Conversely, critics warn the mandates could result in increased hunger and uninsured populations among vulnerable groups. Existing SNAP work requirements have already taken effect, contributing to millions of recipients losing their benefits according to advocacy organizations. The inaugural federal Medicaid work mandate will commence in January across most states.