A recent report from the Government Accountability Office examined the relationship between working‑age beneficiaries of SNAP and Medicaid and the private sector. The study focused on eleven states and assessed how many recipients are also employed, and by which employers.
The findings reveal that most working‑age recipients are already employed, primarily in full‑time roles, and their participation rates are higher than those of non‑beneficiaries. Large retailers and e‑commerce giants, notably Amazon and Walmart, appear as the top employers of these individuals.
The report highlights a surge in gig‑economy work, with app‑based food delivery and ride‑sharing platforms adding significant numbers of workers who qualify for SNAP and Medicaid. Workers at Amazon have also tripled since the previous GAO study.
While Walmart remains the largest employer of Medicaid recipients, it has been surpassed by ride‑sharing gig workers as the leading source of SNAP beneficiaries. McDonald’s and Dollar General also feature among the top employers in both programs.
Large corporations have benefited from substantial tax reductions, with Amazon’s federal income tax bill falling dramatically in 2025, even as profits grew. Walmart’s effective tax rate is estimated at around 23% for the same year.
Corporate statements emphasize competitive pay and comprehensive health coverage from the first day of employment, yet a significant number of their workers still rely on public assistance programs.
A legislative voice has criticized the perceived subsidy of large corporations, arguing that record profits and executive compensation contrast sharply with the ongoing reliance on public programs by their employees.
In the eleven states studied, Walmart employed approximately 16,000 Medicaid recipients and 15,500 SNAP beneficiaries, while Amazon employed about 11,000 Medicaid and 12,000 SNAP recipients.
An analysis of Oregon’s Medicaid enrollment lists identified major national firms—including Walmart, Safeway/Albertsons, Amazon, Fred Meyer/Kroger, and McDonald’s—as top employers of recipients, mirroring the pattern found in SNAP applications.
New Jersey recently enacted a law requiring employers with at least 50 Medicaid employees to pay an annual fee ranging from $345 to $725 per employee, projected to generate $145 million in revenue. The state estimates Amazon and Walmart each have over 10,000 workers and dependents on its Medicaid program.
Similar legislation has been introduced in California, Colorado, and Washington, prompting unions to call on corporations to provide adequate healthcare and to contribute more fairly to state budgets.
The debate underscores a tension between corporate tax strategy, executive compensation, and the provision of essential services to employees who remain dependent on public assistance.
