USDA Announces Policy Change to Eliminate Processing Fees for Students Receiving Free or Reduced-Price Meals
In a landmark decision, the U.S. Department of Agriculture (USDA) is set to implement a significant policy change concerning school meals that will benefit students in need. Starting in 2027, students eligible for free or reduced-price meals will no longer face any processing fees when using cashless payment systems. This decision, announced on Friday by the USDA, aims to alleviate the financial burden on families who rely on these essential school meal programs.
Currently, many school districts partner with processing companies to facilitate cashless payment systems for families. While these systems offer convenience—eliminating the need for students to carry cash—the providers often impose “processing fees” on each transaction. For families already struggling to make ends meet, these additional charges can be overwhelming. In fact, for students who qualify for reduced-price meals—[or_text model=”openai/gpt-4o-mini” prompt=”rewrite this article in a natural language, the style of a news blogger, expand to reach minimum 600 words adding value and context to the content, avoid plagiarism and make it SEO compliant:
NEW YORK (AP) — The U.S. Department of Agriculture says that students eligible for free or reduced-price school meals cannot be charged processing fees beginning in 2027.
School districts currently work with processing companies to offer cashless payment systems for families.
But the companies can charge “processing fees” for each transaction.
By law, students who are eligible for reduced price meals cannot be charged more than 30 cents for breakfast and 40 cents for lunch.
With processing fees, however, families can end up paying 10 times that amount.
The USDA announced the change Friday.
For some students, when classes come to an end in the summer, so do consistent, healthy meals.
“].30 for breakfast and [or_text model=”openai/gpt-4o-mini” prompt=”rewrite this article in a natural language, the style of a news blogger, expand to reach minimum 600 words adding value and context to the content, avoid plagiarism and make it SEO compliant:
NEW YORK (AP) — The U.S. Department of Agriculture says that students eligible for free or reduced-price school meals cannot be charged processing fees beginning in 2027.
School districts currently work with processing companies to offer cashless payment systems for families.
But the companies can charge “processing fees” for each transaction.
By law, students who are eligible for reduced price meals cannot be charged more than 30 cents for breakfast and 40 cents for lunch.
With processing fees, however, families can end up paying 10 times that amount.
The USDA announced the change Friday.
For some students, when classes come to an end in the summer, so do consistent, healthy meals.
“].40 for lunch—these fees can sometimes escalate costs to an alarming tenfold.
This situation highlights the existing discrepancies in the educational food system. Many advocates for food justice argue that charging these fees to low-income families, who are often the same individuals relying on the subsidized meal programs, is wholly unjust. Starting in 2027, such families will benefit from a more equitable system, as the USDA will eliminate these processing fees altogether.
The USDA’s announcement arrives amid growing concerns about child food insecurity in the United States, a problem exacerbated by the COVID-19 pandemic. The startling fact is that millions of children suffer from food insecurity, and schools often represent a critical safety net providing essential meals to these vulnerable students. According to recent data, about 30 million students nationwide participate in school meal programs, and approximately 20 million of them receive free or reduced-price lunch.
By removing processing fees for low-income students, the USDA is not only cutting costs but also making strides toward a more inclusive educational environment. This policy change will undoubtedly encourage greater participation in school meal programs, ensuring that more children have access to nutritious food during the school day. Educators and parents alike have expressed optimism about the impact this decision will have on students’ attendance and overall well-being.
School districts that adopt this new policy will be establishing a more supportive infrastructure for families, allowing them to allocate their financial resources to other pressing needs. Families can now rest assured that their children’s meals will remain affordable without hidden fees complicating their financial planning.
Furthermore, this new rule aligns with broader governmental efforts to combat hunger and improve child health. The USDA is part of a larger initiative that includes expanding access to food assistance programs such as the Supplemental Nutrition Assistance Program (SNAP) and increasing funding for healthy food initiatives across communities.
Looking to the future, advocates for children’s health and nutrition are hopeful that this policy is only the beginning. As states and local governments push for similar reforms, the focus will need to remain on securing funding to sustain these meal programs and eliminating barriers that prevent families from accessing them.
In addition, the financial implications of processing fees extend beyond individual families; they impact school districts as well. Schools increasingly face budget constraints where every dollar counts. By alleviating fees, they can channel resources more directly into enriching students’ learning environments and supporting various educational programs.
As we move closer to 2027, it is essential for communities, educators, and stakeholders to stay engaged in the conversation initiated by the USDA’s announcement. By advocating for fair and accessible meal programs, we ensure a brighter future for our children—one where no student has to face the indignity of hunger in the classroom or navigate unexpected fees at lunchtime.
The elimination of processing fees for school meals represents a collective step forward in the fight against child food insecurity, striving for a country where every child has access to healthy, nutritious meals, regardless of their family’s financial situation. This moment marks a significant victory for advocates of child welfare and a commitment to fostering an educational environment that promotes well-being alongside academic success.
