JPMorgan Chase-Backed Propel Launches $20M SNAP Relief Fund As Millions Of Families Wait For Food Benefits During Government Shutdown

Fintech company Propel launched an emergency fund on Oct. 28 to deliver direct cash assistance to families affected by the government shutdown's disruption of $8 billion in monthly Supplemental Nutrition Assistance Program payments.

The company aims to raise $20 million to help low-income households bridge the gap while federal food benefits remain delayed. Propel said the relief effort will channel immediate $50 transfers to eligible SNAP recipients through its app, providing short-term support as families await the resumption of benefits.

Don't Miss:

Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen

Serena Williams And Kevin Durant Join Fight Against Food Insecurity

Brooklyn-based Propel received backing from tennis champion Serena Williams, NBA star Kevin Durant, and venture capital firms Andreessen Horowitz, NYCA Partners, Salesforce Ventures, Kleiner Perkins, as well as JPMorgan Chase & Co (NYSE:JPM), according to Propel.

The startup initially contributed $1 million to establish the emergency fund. Support from Robin Hood Foundation, Share Our Strength, The Leon Levine Foundation, Babylist, and other partners helped grow the fund to more than $5 million within days, Propel says on its website.

The company began distributing the one-time $50 cash payments through its mobile app on Nov. 1, with families receiving the maximum SNAP allotment being offered priority for these transfers. These families were identified as households with the smallest financial reserves.

Trending: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform

Jimmy Chen Transforms Childhood Challenges Into Fintech Innovation

Propel co-founder and CEO Jimmy Chen established the company in 2014 after observing financial challenges during his childhood. Chen told Forbes he wanted to address problems existing outside what he called the traditional focus areas of Silicon Valley technology companies.

“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,” Chen said.

The free Propel app serves more than 5 million SNAP households nationwide. Users can check their electronic benefit transfer balance, access exclusive savings, and receive updates about their benefits. The platform has received more than 900,000 five-star ratings, according to the company's website.

Story Continues

Data Reveals Growing Crisis Among SNAP Recipients

Information from Propel’s app showed that by Oct. 28, more than half of users had less than $10 remaining on their EBT card. This balance represents the complete grocery budget for these families until deposits resume, according to the company.

“I work 40 hours a week and still SNAP doesn’t cover all my food," a SNAP recipient, Chastity, told Propel. "The little we do get helps me feed my son.”

Another SNAP recipient told the company, “Without SNAP benefits paying for groceries to feed my children, I have to now choose between paying a bill or going without food,” according to Propel's website.

See Also: Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom

The United States Department of Agriculture confirmed on Nov. 3 that it would pay partial SNAP benefits at 50%, though these payments will experience delays. Deposits will still arrive days or weeks late for millions of households, and recipients will receive less than their full allotment needed to purchase adequate food.

“It’s impossible to replace SNAP in its scale and impact," Chen said in a company statement. "But we need to do our part to help SNAP participants navigate this unprecedented challenge.”

Propel Offers Additional Support Through Grocery Partnerships

Propel joined forces with New York–based nonprofit GiveDirectly to manage the distribution of emergency cash assistance through its app. The company said that SNAP recipients can download the free app to access eligibility for the transfers. Each household becomes eligible on the date their November SNAP deposit would normally arrive, allowing funds to reach families immediately when benefits are delayed.

The fintech company also established partnerships with grocery and food delivery platforms, including Instacart, to provide special savings for EBT households during the shutdown. Propel and partner brands jointly fund these discount offers designed to help stretch limited food budgets.

Read Next: The ‘ChatGPT of Marketing' Just Opened a $0.81/Share Round — 10,000+ Investors Are Already In

Image: Shutterstock

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

This article JPMorgan Chase-Backed Propel Launches $20M SNAP Relief Fund As Millions Of Families Wait For Food Benefits During Government Shutdown originally appeared on Benzinga.com

© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

View Comments