Agriculture Secretary Tom Vilsack announced that students eligible for free and reduced-price school meals will not be charged junk fees in addition to the cost of a meal through the School Breakfast Program and National School Lunch Program. This policy, effective in the 2027-2028 school year, aims to reduce costs for families with incomes under 185% of federal poverty guidelines, equivalent to $57,720 for a family of four. The goal is to ensure these families are not burdened by processing fees when purchasing school meals.
The U.S. Department of Agriculture’s Food and Nutrition Service has issued a memo informing schools nationwide about this policy. The implementation date provides schools ample time to adjust systems or establish new contracts, but USDA encourages earlier adoption. The memo also emphasizes that schools must offer all families a free method for making deposits into school meal accounts and ensure they are aware of this option.
“USDA and schools across America share the common goal of nourishing schoolchildren,” said Agriculture Secretary Tom Vilsack. “While today’s action is a major step forward, the most equitable path is offering every child access to healthy school meals at no cost.”
National Economic Advisor Lael Brainard stated, “Today’s announcement reflects the President and Vice President’s broader efforts to lower food costs and eliminate junk fees.”
Last year, the Administration committed to reducing costs by addressing junk fees that increase expenses for customers and stress low-income families financially. In response to a Consumer Protection Financial Bureau report on online payment fees raising costs for families, USDA promised relief.
K-12 schools serve nutritious meals to approximately 30 million children daily. This policy applies specifically to students eligible for free or reduced lunch but benefits over 1 million who receive reduced-price meals directly. By law, these students cannot be charged more than $0.30 for breakfast and $0.40 for lunch; however, some incur additional processing fees when depositing money online into their meal accounts.
The memo includes best practices for informing families about fee-free payment methods.
Advancing access to free healthy school meals aligns with the Biden-Harris Administration's White House National Strategy on Hunger, Nutrition, and Health. Eight states have permanently implemented policies providing no-cost healthy school meals: California, Colorado, Maine, Massachusetts, Michigan, Minnesota, New Mexico, and Vermont.
In other states with high-need areas, many schools provide free meals through the Community Eligibility Provision (CEP). Last year saw an expansion allowing around 3,000 more districts this option.
USDA remains committed to helping children lead healthy lives by bolstering programs offering essential nutrition from infancy through childhood stages. Since 2021 nearly $13.2 billion in extra financial support has been provided nationwide within these initiatives.
Under the Biden-Harris Administration's guidance towards transforming America's food system focus centers upon resilient local production networks alongside fair market conditions ensuring safe nutritional access universally across communities while building new economic opportunities rooted within climate-smart agricultural practices—ultimately striving toward equitable representation throughout departmental structures fostering diversity reflective among broader American society demographics.
For further information visit www.usda.gov
