Starting in 2027, students eligible for free or reduced-price school meals will not incur processing fees, which can significantly raise meal costs for low-income families.
Currently, processing companies can charge up to 4%-5% per transaction, leading families to pay disproportionately high fees—up to 60 cents per dollar spent on electronic lunch payments.
Agriculture Secretary Tom Vilsack emphasized the importance of removing these fees, stating that the ultimate goal is to provide every child with free access to healthy meals.
The new policy aims to alleviate financial burdens on families that qualify for reduced-price meals and is seen as a step toward equitable meal access for all children.
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