Summary

The U.S. Department of Agriculture (USDA) announced that starting in 2027, students eligible for free or reduced-price school meals will no longer face “processing fees” when paying for school lunches.

Currently, cashless payment systems allow processing companies to charge families fees as high as $3.25 per transaction, disproportionately affecting low-income families.

This policy change aims to reduce costs for families under 185% of the federal poverty line.

USDA Secretary Tom Vilsack emphasized the need for universal free school meals to ensure equitable access to nutrition for all students.