Current:Home > MyUSDA sets rule prohibiting processing fees on school lunches for low-income families-DB Wealth Institute B2 Expert Reviews
USDA sets rule prohibiting processing fees on school lunches for low-income families
View Date:2024-12-23 15:03:46
The U.S. Department of Agriculture announced a new rule Friday prohibiting schools from adding so-called "junk fees" on the school lunch accounts of low-income students.
The rule, set to take effect in the 2027-2028 school year, stops schools from charging families that qualify for the School Breakfast Program and National School Lunch Program fees for adding money to cashless payment options, among other charges.
"While today’s action to eliminate extra fees for lower income households is a major step in the right direction, the most equitable path forward is to offer every child access to healthy school meals at no cost," Agriculture Secretary Tom Vilsack said in a press release announcing the rule.
The rule will cover families with an income under 185% of federal poverty guidelines − approximately $57,720 per year for a family of four.
Processing fees hit low-income families
The USDA pointed to a study from the Consumer Financial Protection Bureau that showed that families paid more than $100 million annually in fees to add money to school lunch accounts.
The study estimates that low-income families pay $0.60 to payment processing companies for each $1 they spend on school lunch.
"This financial burden on low-income families is compounded, because such families generally add money to their child(ren)’s school meal account(s) more frequently compared to families who can afford to add greater amounts at a time," the USDA said in a memo to schools on the new rule.
The USDA said that the lead time on the rule allows districts to modify payment systems, but encouraged schools to adhere to the rule as soon as possible.
veryGood! (7925)
Related
- Homes of Patrick Mahomes, Travis Kelce burglarized, per reports
- Ralph Lauren takes the Hamptons for chic fashion show with Jill Biden, H.E.R., Usher, more
- Audit finds Vermont failed to complete steps to reduce risk from natural disasters such as flooding
- Ben Affleck’s Surprising Family Connection to The Secret Lives of Mormon Wives
- Walmart Planned to Remove Oven Before 19-Year-Old Employee's Death
- A parent's guide to 'Beetlejuice Beetlejuice': Is it appropriate for kids?
- LL Flooring, formerly Lumber Liquidators, closing all 400-plus stores amid bankruptcy
- Jennifer Lopez Rocks Revenge Dress at TIFF Premiere of Her and Ben Affleck’s Film Amid Divorce
- Ryan Reynolds Makes Dream Come True for 9-Year-Old Fan Battling Cancer
- The Daily Money: Are cash, checks on the way out?
Ranking
- NCT DREAM enters the 'DREAMSCAPE': Members on new album, its concept and songwriting
- Report: Connor Stalions becomes interim football coach at a Detroit high school
- Proof Taylor Swift and Travis Kelce Are Closer Than Ever After Kansas City Chiefs Win
- Ashton Kutcher Shares How Toxic Masculinity Impacts Parenting of His and Mila Kunis’ Kids
- When is 'The Golden Bachelorette' finale? Date, time, where to watch Joan Vassos' big decision
- North Carolina court orders RFK Jr.'s name to be removed just before ballots are sent
- Apple juice sold at Walmart, Aldi, Walgreens, BJ's, more recalled over arsenic levels
- 150 cats rescued from hoarding home in Missouri after authorities conduct welfare check
Recommendation
-
Vermont man is fit to stand trial over shooting of 3 Palestinian college students
-
Bull that escaped from Illinois farm lassoed after hours on the run
-
Swirling federal investigations test New York City mayor’s ability to govern
-
Cheeseheads in Brazil: Feeling connected to the Packers as Sao Paulo hosts game
-
Lane Kiffin puts heat on CFP bracket after Ole Miss pounds Georgia. So, who's left out?
-
Unstoppable Director Addresses Awkwardness Ahead of Jennifer Lopez, Ben Affleck Film Premiere
-
Supreme Court Justice Alito reports German princess gave him $900 concert tickets
-
Saying goodbye to 'Power Book II': How it went from spinoff to 'legendary' status