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Funding for the Supplemental Nutrition Assistance Program, which covers some grocery costs for low-income Americans, could be slashed by as much as $230 billion over the next 10 years.
At the same time, at least 11 states have proposed banning using SNAP benefits to buy soda, candy or other junk food.
If implemented, those changes would impact millions of U.S. shoppers and the retailers and food and beverage companies that sell to them.

Shoppers at the Walmart Supercenter in Burbank in Burbank Thursday, Nov. 21, 2024.
Allen J. Schaben | Los Angeles Times | Getty Images

For millions of low-income Americans — already rattled by the threat of tariffs and higher prices — changes to a program that helps with grocery costs could make life more expensive.
House Republicans are seeking to cut $230 billion of the U.S. Department of Agriculture’s budget over the next decade to pay for tax cuts. The Senate version of the bill calls for at least $1 billion in USDA cuts. Most, or all, of those savings would come from cutting funding for the Supplemental Nutrition Assistance Program, formerly known as food stamps.

The proposed cut, if approved, would be three times steeper than the largest previous reduction ever made, after adjusting the average annual cut for inflation, according to UnidosUS, which advocates for Latinos in the U.S.
Still, the plan faces hurdles: Congress still needs to reconcile the two very different bills passed by the House of Representatives and the Senate, and it could ultimately toss out the potential reductions to the food assistance funding to avoid losing critical votes needed to pass the farm bill.
But the changes could threaten sales for major retailers or divert spending to lower-priced brands at a time when consumers have already shown signs of financial stress.
In a statement, the USDA defended the cut and said the Trump administration “is attempting to right size the program.”
“The Supplemental Nutrition Assistance Program is just that, supplemental,” the statement said. “It was never intended to be a windfall for food companies and retailers, rather a temporary safety net for families and communities in need.”

The number of people participating in SNAP has historically fluctuated with the state of the economy and rules around eligibility, but the cohort is a significant sales driver.
Shoppers who use the benefits tend to come from larger households and spend 20% more on their monthly groceries compared with non-SNAP shoppers, according to Numerator, a market research firm that surveys U.S. consumers.
SNAP accounts for about $112.8 billion, or 4% of the total U.S. food spending, according to an Evercore ISI analysis of USDA data. For the likes of Walmart, Kroger, General Mills and PepsiCo, the sales from SNAP shoppers meaningfully add to their top lines every quarter.
On the state level, changes could be coming, too. At least 11 states have proposed limits on what families could buy with funding from the SNAP program, such as bans on using the government funding to buy soda, candy or other junk food. On Tuesday, Arkansas and Indiana both formally requested to prohibit the use of SNAP funds for such products.
Those state-level efforts to ban sugary and less-nutritious food and beverages from the program look likely to move forward, given support from the Trump administration. The proposals have gotten a boost from Health and Human Services Secretary Robert F. Kennedy Jr. and his campaign to fight chronic diseases, dubbed “Make America Healthy Again,” or “MAHA” for short.
“I’m working with [Secretary of Agriculture Brooke Rollins] and governors now in 24 states for advancing MAHA legislation to get soda pops off of the food stamp program, off the SNAP program,” Kennedy said during a Cabinet meeting at the White House on April 10.
While Kennedy doesn’t have the authority to approve those changes, Rollins has already said that she will sign waivers that states need to ban those purchases using SNAP benefits.

Already stretched

About 42.1 million people per month used SNAP benefits to buy their groceries in fiscal 2023, according to data from the USDA. That translates to roughly 1 out of every 8 people living in the U.S., based on U.S. Census data.
For low-income families who rely on SNAP benefits to buy groceries, the proposed funding cuts come at a time when grocery budgets are already stretched by inflationary pricing.
Dollar General, which caters to lower-income shoppers, has noticed strain among its customer base, CEO Todd Vasos said on a mid-March earnings call.
“Our customers continue to report that their financial situation has worsened over the last year as they have been negatively impacted by ongoing inflation,” he said on the call. “Many of our customers report that only have enough money for basic essentials with some noting that they have had to sacrifice even on the necessities.”
Walmart — the nation’s largest grocer — said consumer spending patterns have looked bumpier in recent months. Its Chief Financial Officer John David Rainey said during the company’s investor day in Dallas last week, “the uncertainty and decline in consumer sentiment has led to a little more sales volatility week to week, and frankly, day to day.”
More recently, tariffs on imported goods from across the globe, including clothing, furniture and shoes, have fueled concerns that prices will rise again and force Americans to pick and choose where and what to buy.
Consumer sentiment this month came in worse across all demographics, including age, income and political affiliation, according to Joanne Hsu, the director of the closely watched University of Michigan survey.
Even recent sales results of luxury retailers, including Restoration Hardware and Tiffany & Co. and Louis Vuitton parent LVMH, have reflected a slowdown.

Benefits at risk

As rising prices and potential SNAP cuts eat into grocery spending, food and beverage makers like Hershey and Monster Beverage could feel the sting.
Nearly 9% of food-at-home spending comes from SNAP recipients, according to Bernstein Research estimates.
Widescale cuts to SNAP would hit General Mills the hardest, thanks to its cereal lineup, according to Bernstein analyst Alexia Howard. J.M. Smucker is the next-most exposed, fueled by its frozen Uncrustables and sweet snacks portfolio resulting from its acquisition of Hostess. Then there’s Kraft Heinz, with its lunch meats, and Tyson Foods, with its meats and frozen options.
Beverage companies would also likely be affected by any belt-tightening. About 5% of SNAP benefits are spent on soda alone, according to USDA studies. More broadly, about 9% of SNAP spending goes toward “sweetened beverages,” which also includes sports drinks, energy drinks, juices and powder mixes.
That leaves beverage company Monster at risk, given its high exposure to the energy drink category and lower-income consumers, according to Citi Research analyst Filippo Falorni. Beverage giants Coca-Cola and PepsiCo would likely see their sales take a hit, too, but their diversified portfolios and away-from-home demand puts the risk to global sales at roughly 1.5%, according to a Citi Research note from late March.

Walmart did not comment on potential changes to SNAP at its investor day last week. The big-box retailer, known for its low-priced, no frills approach, has attracted wealthier shoppers in recent years.
Yet the retailer is still the top grocer for consistent SNAP shoppers, with nearly 26% market share as of late July, according to Numerator, and CEO Doug McMillon told reporters at the investor event that the big-box retailer remains focused on having “opening price points” on items that families need, such as offering alternatives to national brands with its own cheaper private label versions.
The top three grocers for SNAP shoppers are rounded out by Kroger, which captures about 9% of the group’s annual grocery spend, and Albertsons, with nearly 7%, according to the market researcher’s data.
The total amount that Walmart and others make from the taxpayer-funded food program is unclear. The USDA doesn’t release data on the amount of money grocers and retailers receive from SNAP. The Supreme Court in 2019 ruled to keep that data from the public after the Food Industry Association, then called the Food Marketing Institute, an industry group that represents grocers and food manufacturers, fought to keep it private.

Dollars stores like Dollar General and Dollar Tree are most exposed to any changes in SNAP benefits, according to Bernstein retail analyst Zhihan Ma.
“If you’re a dollar store, your full value proposition is predicated on servicing the lower-income consumers,” Ma said.
About 60% of Dollar General’s overall sales come from households with an annual income of less than $30,000 per year, CEO Vasos said at a Goldman Sachs’ retail conference last year.
Shifting behavior at the dollar store can ripple back to food and beverage companies.
Since dollar stores rely on SNAP shoppers, they are more likely to make changes on their shelves to serve those customers, Ma said. If Utah consumers can no longer use their SNAP benefits to buy soda, for example, dollar stores in that states might prioritize stocking other products.
“They’re smaller box, and they have more limited shelf space,” Ma said. “It may be a move in the right direction from a health and wellness perspective, but could be a double whammy for some of the food manufacturers, on the other side of things.”
If low-income households have less money from SNAP to cover their grocery bills, that means they’ll have less to spend on housing, electricity or other expenses outside of the grocery aisles, said Lauren Bauer, a fellow in economic studies at the Brookings Institution.
Shoppers that receive SNAP funding turn to low-priced retailers for non-grocery purchases, too. About 95% of SNAP shoppers purchased non-grocery items at Walmart in the past year and spent an average of $1,878 during that time, according to Numerator. Dollar Tree and Dollar General also win many non-food purchases from the group, the firm found.
And, Bauer added, if customers have less grocery money, they may be able to afford fewer healthy items like lean meats and fresh fruits and vegetables because those tend to be pricier than processed and packaged food.

Challenges in cutting

Despite the support of the Trump administration, states still face an uphill battle to ban sugary drinks and junk food from SNAP. For starters, there is opposition from the suppliers.
“You’re not cutting the program, you’re just dictating what certain people can and cannot purchase and putting government in the business of picking winners and losers in the grocery store and deciding for consumers,” said Merideth Potter, senior vice president of public affairs for the American Beverage Association.
Previous attempts to ban soda or candy from SNAP on the state level have failed, no matter who is sitting in the White House. The previous Trump administration denied a waiver because of the added cost to administer the restrictions, according to Potter.
To restrict certain products from SNAP after a request from a governor, a state would have to institute a cost-neutral pilot, which would have to include a trial period, evaluation and a start and end date.
Court challenges to the USDA’s legal authority to grant state waivers are also possible, Deutsche Bank analyst Steve Powers wrote in a note to clients in late March.
Shrinking the program could also have economic implications, since it would reduce the money flowing to retailers, farmers markets and other businesses that accept SNAP across communities, said Bauer of the Brookings Institution.
In the past, funding for the program has increased during challenging economic times.
The U.S. increased SNAP funding to get more dollars into the hands of needy Americans during the Great Recession and the Covid-19 pandemic.
“It’s stimulus,” Bauer said. “It creates economic activity and it especially creates economic activity during economic downturns.” More

Supplies of new and used vehicles for sale are declining rapidly as consumers flock to stores ahead of potential price increases due to tariffs.
The days’ supply of new vehicles – calculated by an estimated daily retail sales rate – dropped from 91 days at the beginning of March to 70 days this month, according to Cox Automotive.
There’s concern that the sales could come to a grinding halt once automakers and dealers sell out of their tariff-free inventories.

Brand new KIA cars are displayed on the sales lot at Serramonte Kia on March 26, 2025 in Colma, California. 
Justin Sullivan | Getty Images

DETROIT – Supplies of new and used vehicles for sale in the U.S. are declining rapidly as consumers flock to purchase cars and trucks ahead of potential price increases due to tariffs, according to auto dealers and industry analysis.
The days’ supply of new vehicles – calculated by an estimated daily retail sales rate – dropped from 91 days at the beginning of March to 70 days this month, according to Cox Automotive. Used vehicle days’ supply, which had already been low, declined by four days to 39 days, the company said.

“Consumers are trying to get ahead of tariffs on imports,” Cox’s chief economist, Jonathan Smoke, said Tuesday during an online update. “The decline in [new] days’ supply was one of the largest drops we’ve seen in several years.”
That compares with a typical monthly days’ supply move in a normal market of roughly five days to seven days, according to Cox.
New vehicle sales are running 22% above the seasonally adjusted pace of last year and are up more than 8% on a year-to-date volume basis, Smoke said. In the used vehicle market, Cox estimates sales are “up sharply,” with a 7% increase thus far this year compared with 2024.
Increased sales are good for the automotive industry, which many analysts expected to be roughly level heading into the year. But there’s concern that the sales could come to a grinding halt once automakers and dealers sell out of their tariff-free inventories.
Auto advisory firm Telemetry expects the higher costs for production, parts and other factors to result in upward of 2 million fewer vehicles sold annually in the U.S. and Canada, in part due to higher costs and associated price increases.

Automakers and suppliers may be able to bear some of the cost increases, but they’re also expected to pass them along to U.S. consumers, which could in turn lower sales, according to analysts.
Many automakers built up inventories of imported cars and trucks before President Donald Trump’s 25% tariffs on imported vehicles went into effect on April 3. But some have altered imports, held vehicles in ports or completely halted them, as in the case of Jaguar Land Rover.
General Motors has been strategically increasing some U.S. production, including upping output at a pickup truck plant in Indiana as well as canceling previously announced downtime next month at a facility in Tennessee.
Ryan Rohrman, CEO of Indiana-based Rohrman Automotive Group, last week said April started off “pretty strong,” signaling a mix of tariff- and fear-purchasing along with improved inventories compared with recent years.
“Business right now is actually pretty strong,” said Rohrman, whose group has 22 franchises. “March was really good, and it hasn’t slowed down.”
Automakers Ford Motor and Chrysler parent Stellantis have taken the tariffs as an opportunity to sell down inventories by offering customers “employee pricing” deals.
Nick Anderson, general manager of a Ford dealership in Missouri, said that unique discount and concern that prices could soon go up in response to tariffs have both helped push price-conscious consumers to his showroom. That’s good for sales but has negatively impacted the store’s gross profits.
“We’re pacing to match or beat last year,” he said. “The majority of people we’re seeing are definitely more price-conscious. … Our volume is there but the gross is down. It’s just a different type of clientele.”
Anderson said he’s optimistic about sales this year but “a lot of it will just depend on the next 60 to 90 days — what happens to the tariffs.”
Trump on Monday said he is looking to “help some of the car companies” but didn’t elaborate on what that could entail.
Stellantis Chairman John Elkann said during the automaker’s annual meeting Tuesday that he was “encouraged” by Trump’s comment, noting the 25% tariff on imported vehicles and stringent emissions regulations in Europe are putting both car markets “at risk.”

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United Airlines said international- and premium-cabin revenue rose during the first quarter while domestic coach sales dropped.
The carrier still beat earnings expectations for the period.
United Airlines warned that a recession could drive down its adjusted annual earnings to $7 to $9 a share from its currently projected $11.50 to $13.50.

A United Airlines Boeing 767 passenger aircraft approaches Newark Liberty International Airport as trucks travel near the Port Jersey Container Terminal in Jersey City, New Jersey, on April 8, 2025.
Charly Triballeau | Afp | Getty Images

United Airlines maintained its full-year forecast on Tuesday but took an unusual step of offering a second forecast should the U.S. slip into a recession, calling the economy “impossible to predict.” Either way, it expects to turn a profit.
The carrier warned alongside its first-quarter earnings that a recession could drive down profits this year, but said booking trends are stable.

The company left in place expectations issued in January for adjusted earnings per share of $11.50 to $13.50, but said that in a recession, it would expect to earn between $7 per share and $9 per share on an adjusted basis.
“The Company’s outlook is dependent on the macro environment which the Company believes is impossible to predict this year with any degree of confidence,” it said in a securities filing.
United Airlines said Tuesday that it plans to cut flights starting this summer to match disappointing domestic travel demand while bookings for pricier, international trips remain strong. The carrier plans to trim domestic capacity by about 4% starting in the third quarter. Rival Delta Air Lines is also slowing its growth plans this year.
United Airlines CEO Scott Kirby said the airline “will continue to execute our multiyear plan that has allowed United to thrive in any demand environment.”
“It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times,” he said in an earnings release.

For the first quarter, United Airlines swung to a $387 million profit, or $1.16 a share, from a $124 million loss, or a loss of 38 cents per share, a year earlier. Adjusted earnings of 91 cents per share, which exclude one-time gains related to aircraft sale-leasebacks, outpaced Wall Street’s expectations of 76 cents per share.
Unit revenue for domestic flights fell 3.9% from last year during the first quarter, while unit sales from international routes rose more than 5%. Revenue of $13.21 billion was up more than 5% from a year ago, and came in slightly below the $13.26 billion that analysts expected, according to LSEG. Capacity was up almost 5% from the first quarter of 2024.
United Airlines shares were up more than 5% in after-hours trading.
Future bookings over the past two weeks have been stable, the company said, adding that premium-cabin bookings are up 17% from the same point last year and international bookings are up 5%, though the carrier did not provide a figure on domestic coach-cabin demand.
United Airlines said it expects to post second-quarter adjusted earnings per share of $3.25 to $4.25, in line with estimates, citing strong demand for premium-cabin bookings and international travel.
Here is what United Airlines reported for the quarter that ended March 31 compared with what Wall Street was expecting, based on estimates compiled by LSEG:

Earnings per share: 91 cents adjusted vs. 76 cents expected
Revenue: $13.21 billion vs. $13.26 billion expected

The latest trend shows how profitable airlines such as United and Delta are capitalizing on demand from travelers willing to pay more for pricier seats and other higher-end products, even as economic concerns weigh on consumer sentiment amid President Donald Trump’s trade war, mass government layoffs and other factors.
Delta last week said it could not reaffirm its full-year outlook, citing uncertainty in the market.

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Universal’s Epic Universe theme park opens May 22, the first major theme park development in Florida in 25 years.
The 750-acre amusement park is expected to generate $2 billion for the state of Florida in its first year of operation.
Epic Universe is projected to create more than 17,500 new jobs in its first year of opening.

The entrance portal to the Epic Universe theme park in Orlando, Florida, on April 5, 2025.
Bloomberg | Getty Images

Epic things are coming to Orlando.
In a little more than a month, Universal will officially open the doors of its newest theme park, the first major theme park in the Florida area in 25 years, spurring a major shift in Orlando’s tourism industry.

Epic Universe is the largest of all Universal properties at 750 acres and features five themed worlds: The Wizarding World of Harry Potter – The Ministry of Magic, Super Nintendo World, How to Train Your Dragon – The Isle of Berk, Celestial Park and Dark Universe.
It will join Universal Studios and Walt Disney World in theme park mecca Orlando.
Tourism has long been the leading sector in central Florida, drawing both domestic and international visitors. More than 74 million people journeyed to Orlando in 2023, contributing around 50% of the total sales tax collected in Orange County.
Epic Universe is not only expected to bolster theme park revenues for Universal, as well as its rival just down the highway, Disney, but it will also bring in billions of dollars to the local economy.
“This is the first major, entirely new theme park in the U.S. in 25 years. This is a compelling reason to visit Orlando,” said Casandra Matej, CEO of Visit Orlando, a tourism trade association. “So, when you see a major milestone project such as Epic Universe, you know it’s going to have definitely a domino effect of economic benefits for our community.”

An actor dressed as Astrid Hofferson, right, with dragon Stormfly, performs in the How to Train Your Dragon – Isle of Berk area, at the Epic Universe theme park in Orlando, Florida, on April 5, 2025.
Bloomberg | Getty Images

Epic Universe, first announced in 2019, represents the largest single investment Universal’s parent company Comcast has ever made in its theme parks business and in Florida overall, Comcast CEO Brian Roberts said at the time. That figure is rumored to be around $7 billion.
This massive endeavor, which officially opens May 22, is a way for Universal to showcase and monetize its diverse library of franchises and bolster its amusements business. It currently operates Islands of Adventure and Universal Studios, as well as Volcano Bay, a water park, about a mile down the road.
Universal Orlando generated $44 billion in economic impact between 2019 and 2023, according to a report from Sean Snaith, director of the University of Central Florida’s Institute for Economic Forecasting, that was solicited by the media company.
Universal’s newest theme park is already making waves. Snaith determined that Universal’s direct investment in Epic Universe has resulted in $11 billion of economic impact nationwide in the form of construction and operational expenditures, as well as the hiring of new employees.

The Monsters Unchained: The Frankenstein Experiment amusement ride in the Dark Universe area, at the Epic Universe theme park in Orlando, Florida, on April 5, 2025.
Bloomberg | Getty Images

Universal Orlando generated 94,000 jobs across the country in 2023, including engineers, software specialists, artists, architects and set designers, according to Snaith’s study. About 65,000 jobs were created just to construct Epic Universe, the company said.
Snaith’s research also found that Epic Universe will likely generate around $2 billion for the state of Florida in its first year of operation. It is projected to create more than 17,500 new jobs in its first year of opening, according to Snaith’s research.
“The labor market in Florida is quite strong right now,” Snaith said. “So it’s sort of the rich get richer here. We’re projecting that Florida will continue to outpace the national economy, both in terms of economic growth and job growth.”
Once the park opens, visitors will stay at local hotels, rent cars, go shopping and visit restaurants, boosting revenues for other local businesses.
“You see the zone around Epic Universe actually boosting since that construction,” said Jakob Wahl, CEO of the International Association of Amusement Parks and Attractions. “You see new infrastructure. You see new housing. You see new hotels being built. You see new restaurants being build. It’s a boost for the whole area.”
Theme park experts told CNBC that other destinations in the area, including Disney, will likely see a bump from Epic Universe’s opening.
“When Disneyland Paris opened in ’92, there were concerns from the theme parks around Paris,” said Wahl. “But the opposite actually happened. They increased their audience. And that is something which is likely to happen also in Orlando because it strengthens the destination.”
New developments, whether they be parks, lands or rides, also spark competition between the companies to create more compelling and innovative attractions to lure in guests.
“It’s a rising tide that lifts all boats,” said Matej.
Typically, both Universal and Disney receive patronage from those visiting Orlando, especially from guests who are traveling from out of state or from other countries. Having the additional park means many will extend their vacations to allow more time to experience Epic Universe alongside Disney’s four theme parks and Universal’s other amusement locations.
“What we do know is every day that someone extends their stay, that is millions of dollars worth of economic impact for our community,” Matej said.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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For decades politicians in Washington might have been mistaken for lobbyists for American companies in China. They pushed for the country to be opened up to American banks, planes and fast-food chains. Boeing, an American plane manufacturer, for example, began receiving orders from China just after Richard Nixon visited the country in 1972. Now many American executives in China believe they are witnessing their government dismantle much of that work. More

American Airlines plans to offer inflight Wi-Fi for free in 2026.
The service follows similar moves by JetBlue Airways, Delta Air Lines and, most recently, United Airlines.
The complimentary service, sponsored by AT&T, will be available for members of American Airlines’ AAdvantage loyalty program.

An American Airlines plane on the runway at Miami International Airport in Miami, Florida, on Oct. 25, 2024.
Joe Raedle | Getty Images

American Airlines plans to offer Wi-Fi for free starting in January as more carriers opt for complimentary internet service for their loyalty program members, increasing pressure on holdouts.
The free Wi-Fi will be sponsored by AT&T and is available for members of American Airlines’ AAdvantage loyalty program, the airline said Tuesday.

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American Airlines’ inflight Wi-Fi routinely tops $20 per flight. The carrier said that starting in January, the free service will be available on its planes outfitted with Intelsat and Viasat satellite Wi-Fi, which will account for about 90% of its fleet by next year. Some of American’s older Boeing wide-bodies won’t have the service for free but will still have Wi-Fi available.
American Airlines had been testing the service on certain routes. It is also planning to install high-speed internet service on 500 regional planes by the end of next year, the airline said.
Southwest Airlines, one of the outliers in the industry, has not said whether it is considering free Wi-Fi on board. More

Shares of automakers jumped during midday trading Monday following President Donald Trump saying he is looking to “help some of the car companies.”
The comments pushed stocks such as Ford Motor, General Motors and Chrysler parent Stellantis higher, swinging from trading level or negative to being up between 3% and 6%.
Trump’s comments come after he implemented automotive tariffs on imported vehicles of 25% on April 3.

A cargo truck loaded with new pickups heads to U.S. at the Otay Commercial crossing in Tijuana, Baja California state, Mexico on March 27, 2025.
Guillermo Arias | AFP | Getty Images

DETROIT — Shares of automakers closed higher Monday after President Donald Trump said he is looking to “help some of the car companies” amid his 25% auto tariffs.
The automakers “need a little bit of time” to move their production to the U.S., Trump said during a meeting Monday with Salvadoran President Nayib Bukele in the Oval Office.

“I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time because they’re going to make them here,” Trump said without elaborating on the potential plans. “But they need a little bit of time, so I’m talking about things like that.”
The comments pushed stocks such as Ford Motor, General Motors and Chrysler parent Stellantis higher, with each rising between 3% and 6% after previously trading flat or negative. Shares of Rivian Automotive closed Monday up by 4.9%, while shares of Tesla were level.
Shares of other automakers such as Toyota Motor, Honda Motor and EV startup Lucid Group closed up by between 1.5% and 2%.
A senior automotive industry executive described Trump’s comments as “some recognition that this is getting tough for the industry.”
Trump’s remarks Monday come nearly two weeks after he implemented automotive tariffs on imported vehicles of 25% on April 3.

Despite reducing tariffs on most countries last week and giving tech companies such as Apple exemptions from the levies over the weekend, the automotive tariffs have remained in effect.
Automakers have responded to the tariffs in a variety of ways. Manufacturers that are mostly domestic, such as Ford and Stellantis, have announced temporary deals for employee pricing, while others, such as British carmaker Jaguar Land Rover, have ceased U.S. shipments. Hyundai Motor also has said it would not raise prices for at least two months to ease consumer concerns.
GM has been strategically increasing some U.S. production, including upping output at a pickup truck plant in Indiana as well as canceling previously announced downtime next month at a facility in Tennessee.
“The company continues to update and revise production schedules as part of their standard process of evaluating and managing vehicle inventory as needed,” plant leadership said in a message to workers viewed by CNBC. “The previously announced downtime for the week of May 12th is being rescinded, which means full production in Vehicle Assembly will run as normal.”
A GM spokesman on Monday confirmed the change in plans for the Tennessee plant, which produces several Cadillac crossovers.

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Pfizer said it would end development of its experimental daily weight loss pill after a patient experienced a liver injury that was potentially caused by the drug in a trial. 
The patient’s liver enzymes “recovered rapidly” after they stopped taking the pill, which is an oral GLP-1 drug called danuglipron.
The patient had elevated liver enzymes, which often indicate damage to cells in the liver, but did not experience any liver-related symptoms or side effects, a Pfizer spokesperson told CNBC.
The announcement adds to a string of setbacks in the company’s bid to win a slice of the booming market for GLP-1s, which mimic gut hormones to tamp down appetite and regulate blood sugar. 

Nikos Pekiaridis | Lightrocket | Getty Images

Pfizer on Monday said it would end development of its experimental daily weight loss pill after a patient experienced a liver injury that was potentially caused by the drug in a trial. 
The patient did not experience any liver-related symptoms or side effects, a Pfizer spokesperson said in a statement. They added that the patient’s liver enzymes “recovered rapidly” after they stopped taking the pill, which is an oral GLP-1 drug called danuglipron. The statement suggests that the patient’s liver enzymes were elevated, which often indicates damage to cells in the organ and is an issue that has been linked to some other obesity drugs.

The case occurred in a trial that quickly increased the dose of the pill over a short period of time, the spokesperson said. Pfizer’s decision to halt development of the drug came after “a review of the totality of information, including all clinical data generated to date for danuglipron and recent input from regulators,” according to a release.
“While we are disappointed to discontinue the development of danuglipron, we remain committed to evaluating and advancing promising programs in an effort to bring innovative new medicines to patients,” Dr. Chris Boshoff, Pfizer’s chief scientific officer, said in the release. He added that the company is still developing other weight loss drugs.
The announcement adds to a string of setbacks in the company’s bid to win a slice of the booming market for GLP-1s, which mimic certain gut hormones to tamp down appetite and regulate blood sugar. Pfizer is among several drugmakers racing to bring a more convenient weight loss medicine to a space dominated by weekly injections, but it is years behind competitors such as Eli Lilly and Novo Nordisk.
Some Wall Street analysts expect the GLP-1 industry to be worth more than $150 billion by the early 2030s. Oral GLP-1s could grow to be worth $50 billion of that total, while injections would account for the rest, according to some analyst estimates.

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This is not Pfizer’s first set back with danuglipron, specifically, either. The company discontinued a twice-daily version of the pill in December 2023 after patients had trouble tolerating the drug in a mid-stage study.

But Pfizer appeared to be confident in the once-daily form of danuglipron back in July, when it said it would start conducting studies in the second half of the year to evaluate multiple doses of the pill.
Despite its decision to scrap the drug, Pfizer on Monday said those studies met key goals and confirmed a certain form and dose of the pill with the potential to deliver “competitive efficacy and tolerability” in late-stage trials.
The company also noted that the rate of elevated liver enzymes in people who have taken danuglipron is in line with approved GLP-1 drugs, which is based on a safety database of more than 1,400 patients who have taken Pfizer’s pill.
Pfizer scrapped a different once-daily obesity pill back in June 2023 after patients who took that drug had higher liver enzyme levels in a mid-stage trial. Investors have been pessimistic about the company’s potential in the GLP-1 space ever since.
Still, Pfizer has other experimental obesity drugs in its pipeline in the early stages of development that appear to work differently from its now-discontinued treatments. That includes an oral drug that blocks another gut hormone called GIPR, which entered phase two trials last year, and an additional once-daily oral GLP-1 in phase one trials.
Pfizer believes a drug targeting GIPR could be more effective and easier for patients to tolerate, former Chief Scientific Officer Mikael Dolsten, who has since left the company, told investors in October. He added that “there are so many applications for GLP-1s.”
Pfizer’s danuglipron promotes weight loss by targeting GLP-1, which is also how Novo Nordisk’s weight loss injection Wegovy and diabetes treatment Ozempic work. Eli Lilly’s weight loss injection Zepbound and diabetes shot Mounjaro target GLP-1 but also activate another gut hormone called GIP.
The only oral GLP-1 approved by the Food and Drug Administration so far is Novo Nordisk’s Rybelsus, which treats Type 2 diabetes and raked in about $3.38 billion in sales in 2024.
Pfizer’s announcement Monday comes as the company regains its footing and recovers its share price after the rapid decline of its Covid business. Pfizer is betting on its pipeline of cancer drugs to deliver long-term growth, but has emphasized that obesity is a key focus. 

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