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USDA rule prohibiting processing fees on school lunches for low-income families

Summary

The U.S. Department of Agriculture (USDA) has announced a new rule that prohibits schools from imposing processing fees on school lunch accounts for low-income families. This rule is set to take effect in the 2027-2028 school year and aims to alleviate the financial burden on families who qualify for the School Breakfast Program and National School Lunch Program.

The USDA’s initiative responds to concerns that low-income families often face significant costs associated with adding money to their children’s school lunch accounts. A study from the Consumer Financial Protection Bureau indicated that families collectively pay over $100 million annually in processing fees, with low-income households disproportionately affected due to their more frequent transactions. Agriculture Secretary Tom Vilsack highlighted that while eliminating these fees is a positive step, the ultimate goal should be to provide all children with access to healthy school meals at no cost. This policy change reflects a broader effort to ensure equitable access to nutrition for all students, particularly those from economically disadvantaged backgrounds.

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