Taxpayers 'Subsidising Starvation Wages' as Amazon Spends $200bn on AI Whilst Food Stamps Triple

A US Government Accountability Office report commissioned by Senator Bernie Sanders found that the number of Amazon workers enrolled in the Supplemental Nutrition Assistance Programme nearly tripled since 2020, reaching 12,346, as the company plans to spend $200 billion on artificial intelligence infrastructure in 2026. Senator Sanders criticized the situation as taxpayers subsidizing 'starvation wages' while Amazon and other large corporations post record profits, calling on companies like Amazon and Walmart to pay living wages.

Taxpayers 'Subsidising Starvation Wages' as Amazon Spends $200bn on AI Whilst Food Stamps Triple A US report reveals Amazon workers' SNAP enrolment has tripled since 2020, sparking criticism from Senator Sanders amidst the company's $200 billion AI investment plans. The number of Amazon workers enrolled in the federal Supplemental Nutrition Assistance Programme has nearly tripled since 2020, according to a newly commissioned US government report, just as the retailer prepares to spend $200 billion on artificial intelligence infrastructure https://www.ibtimes.co.uk/us-employers-reassess-ai-resume-hiring-1810927 in 2026. The report was released following an investigation requested to Government Accountability Office by Senator Bernie Sanders https://www.ibtimes.co.uk/bernie-sanders-billionaire-wealth-minimum-wage-1810699 and the study analyses enrollment data across 11 states representing roughly a fifth of the United States population. The data highlights that many workers rely on public assistance whilst corporate profits reach unprecedented heights. The findings highlight a stark paradox: while corporate revenues and profits reach historic highs, thousands of logistics and warehouse staff still rely on taxpayer-funded safety net programmes to make ends meet. As Amazon prepares to inject staggering capital into advanced artificial intelligence systems, the political fallout places intense pressure on corporate leadership regarding worker compensation and living wages. Amazon Workers Relying on SNAP Benefits Triples Investigators found that 12,346 Amazon workers were enrolled in SNAP, whilst 11,338 were covered by Medicaid. These figures represent a near threefold increase compared to the agency's previous report in 2020. Nationally, the government estimates 13.8 million working Americans are currently enrolled in Medicaid, up from 12 million in 2020, and 10.6 million receive SNAP benefits. Amazon ranked second among traditional employers for public assistance reliance, trailing only Walmart. The supermarket giant saw 16,055 of its workers turn to Medicaid, marking a 55 percent jump, alongside 15,515 claiming nutrition benefits. Interestingly, gig platforms such as Uber, Lyft, DoorDash, Grubhub, and Instacart collectively overtook Walmart to become the largest single category of SNAP recipients, illustrating how contract labour relies on federal aid. Sanders Criticises Corporate Welfare and Starvation Wages Senator Sanders was sharply critical of the findings in a public statement. 'American taxpayers should not be forced to subsidise the starvation wages of large corporations like Walmart and Amazon,' the Vermont independent said. 'No one who works for a company making billions in profits should be living in poverty.' He further argued that it is unacceptable for these corporations to receive corporate welfare from the federal government. 'It is time for the Walton family, worth $485 billion, and Mr Bezos, worth $257 billion, to get off of welfare and pay their workers a living wage with good benefits,' Sanders stated. He noted this was especially true after these companies received massive tax breaks under the previous administration. Amazon Defends Flexible Work Schedules Amidst Scrutiny The Seattle-based retailer pushed back against the conclusions drawn by the government office. Company spokeswoman Rachael Lighty told CNN in a statement that eligibility for SNAP and Medicaid is calculated based on total household income and family size, rather than individual wages alone. She noted that the structure of their workforce naturally influences these figures. 'Employers that offer part-time options for those who want them, like we do, are likely to have more people who are eligible,' Lighty explained. The retailer also highlighted a $1 billion investment announced late in 2025, which is designed to boost pay and lower healthcare costs for its fulfilment and transportation staff, pushing the average base rate above $23 an hour. Record Profits Fund Massive AI Infrastructure Spending The political scrutiny lands at a moment when Amazon's financial position https://www.ibtimes.co.uk/amazon-layoffs-ai-team-capital-expenditure-1810202 has never looked stronger. The company posted annual revenues of $716.9 billion for fiscal 2025, alongside an operating income of $79.9 billion. Over the exact period covered by the government study, the firm's annual profit surged from $11.6 billion to $77.7 billion. Now, the corporation is heavily reinvesting those profits into future technology. During a fourth-quarter 2025 earnings call, Chief Executive Andy Jassy told investors the company plans to spend approximately $200 billion on capital expenditures in 2026. This represents a roughly 60 percent increase from 2025, with the funds primarily allocated to expand AWS infrastructure and meet surging AI compute demand. © Copyright IBTimes 2025. All rights reserved.