Struggling families pay as much as 60 cents per dollar in fees when paying for school lunches electronically, according to CFPB report.

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.