New USDA rule will limit school lunch ‘Junk Fees’

Low-income families will soon pay less when adding money to students’ school lunch accounts.

The U.S. Department of Agriculture recently announced a new rule banning schools from charging junk fees for adding funds to school lunch accounts of families that qualify for free or reduced breakfast and lunch. The USDA says it will examine fees charged to families with the goal of eliminating online junk fees for all families regardless of income level to further remove barriers to accessing healthy meals.

One study from the Consumer Financial Protection Bureau estimates that low-income families pay 60 cents in processing fees for each dollar they spend on school lunches. School districts are encouraged to adhere to the new rule as soon as possible. It officially takes effect in the 2027 to 2028 school year.

K-12 schools serve nutritious meals to about 30 million children every school day. While this policy applies to all students eligible for free or reduced lunch, it will most directly benefit the more than 1 million students who receive reduced-price school meals.