Cincinnati, Ohio-based Kroger has received a $3 million federal grant from the U.S. Department of Health and Human Services (HHS) under its "Make America Healthy Again" (MAHA) program. The grant, awarded on September 30, has drawn criticism from groups who contend it appears to be a taxpayer gift to market the company and facilitate customer data collection.
The MAHA program, spearheaded by Health Secretary Robert F. Kennedy Jr., a lawyer and vaccine skeptic, states its goal is to "build a healthier, stronger America" by encouraging the consumption of whole foods. The grant is part of MAHA’s "Eat Real Food" campaign, which aims to address a significant health crisis in the United States. The Stanford University School of Medicine reports that 60% of calories consumed by U.S. adults and 70% of those eaten by children are ultraprocessed foods. Nutritionists and doctors link high intake of ultraprocessed foods to a 32% higher risk of obesity, a 37% higher risk of type 2 diabetes, a 32% higher risk of hypertension, and a 23% higher risk of pulmonary heart disease.
However, critics argue the grant's true impact extends beyond public health. The independent, nonprofit Center for Responsible Food Business stated that the taxpayer grant appears aimed at boosting the grocery giant’s sales as much as promoting healthy eating. Taylor Warren, of the Center for Responsible Food Business, highlighted concerns, stating, "I don’t think taxpayers want to be funding Kroger’s customer-surveillance program."
The grant explicitly intends to create a statistically significant sales lift in Kroger stores. Program activities include vouchers for whole foods, in-store cooking classes, and local and social media outreach. Measuring progress toward these goals will be conducted by Kroger’s data-gathering subsidiary, 84.51°. The grant documentation specifies that success will be determined through post-event measuring and reporting via Kroger’s 84.51° data platform.
Warren identified a conflict in this arrangement, likening it to Kroger "grading its own homework." He questioned the rationale for subsidizing any part of Kroger's operations given its substantial profitability, noting the company reported a $1.25 billion profit in the fourth quarter of 2025 alone. Critics also point to Kroger CEO Greg Foran’s annual compensation, which exceeds $17 million. In a 2024 trial to block a proposed merger, the Federal Trade Commission presented testimony from a Kroger executive indicating the company increased milk and egg prices above the rate of inflation. Warren expressed that for a company of Kroger's scale and profits, accepting taxpayer money "feels so unfair."
A particularly strong concern from Warren and his group is that the federal grant money could be used to advance Kroger's dynamic pricing capabilities. Dynamic pricing involves rapidly changing prices, often using electronic price tags, similar to those at gas stations. While Kroger stated these labels would reduce labor costs and allow for quick price updates based on supply and demand, skeptics, including U.S. Sen. Elizabeth Warren (D-Mass.) and then-Sen. Bob Casey (D-Penna.), expressed suspicions in 2024 that widespread adoption could enable large grocery stores to squeeze consumers for increased profits.
Kroger’s 84.51° subsidiary already collects data from 63 million loyalty members each time they scan their Kroger card. This platform builds customer profiles estimating income, family size, and pet ownership. It can also monitor customer behavior to make educated guesses about the maximum amount a customer would pay for an item, allowing for dynamic pricing. In 2025, the sale of data gathered by 84.51° to other businesses accounted for 35% of Kroger’s corporate profits, according to Consumer Reports. The $3 million taxpayer grant anticipates engaging between 1.2 million and 1.8 million customers, leading Warren to suggest their data will likely be integrated into Kroger’s existing data operations and commodified. He described this prospect as both "unsavory and concerning."
Beyond the Kroger grant, the broader MAHA program itself has faced criticism. The Center for Science in the Public Interest said MAHA’s initial assessment of public health selectively uses scientific literature to support Kennedy’s predetermined biases, including those against vaccines and exposure to electromagnetic radiation.
Kroger and the U.S. Department of Health and Human Services did not respond to requests for comment for this story.
