Where I live, private sector food programs are very healthy, and so it seems unlikely this will be much of any local impact beyond retailers’ bottom lines. For example, the Taco Bell drive thru down the street from me has a huge sign “WE TAKE EBT!!!” which I assume corresponds to the local consumers being largely subsidized chalupa eaters. I wonder if chalupas will decline in value from $7 dollars or whatever artificially inflated price they’ve reached, back down to their old timey price of $3? (I’m not sure I have those prices exactly right as I’ve only purchased Taco Bell once or twice since in the past few decades. I confess I don’t get EBT yet, so my perspective is a naive one. It may be the case that chalupas are a better value proposition than Safeway prices in the suburban food desert where I live. There’s certainly a dearth of drive thrus.)

When did EBT start being legal at restaurants? I thought it was only for unprepared food (e.g. grocery store items).

When someone realized that people exist who don't have ready access to kitchens?

I looked this up and it seems like restaurant meals are only available to SNAP users that cannot use a kitchen because they are homeless or too disabled. Programs like meals on wheels have waiting lists now so that might not be an option.

Taco bell seems ridiculous but the alternative is that they eat cat food.

That makes no sense. Who do you think pays the bill for EBT? If entitlement programs are done away with, no one will accept EBT, because it won't exist.