Uncle Sam’s latest bright idea: Make poor families wait until 2027 to stop getting gouged on school lunch fees. Because apparently, hungry kids can wait!
At a Glance
- USDA to eliminate processing fees for free/reduced-price school meals starting 2027-2028
- Current fees can be as high as $3.25 or 4-5% per transaction
- Families with incomes under 185% of poverty level ($57,720 for family of four) affected
- School lunch fees cost families over $100 million annually
No More Gouging Lunch Money — 3 Years from Now
Uncle Sam is stepping in to save more money for people who deserve it — but not for three more years.
The USDA recently announced they will no longer allow processing companies to charge nickel-and-dime fees to low-income families for school lunches. That’s great, obviously, but it’s not going to kick in for a while, starting with the 2027-28 school year.
The processing fees that are in place now can charge as much as 5% per transaction, or as much as $3.25. That’s a lot of money to be charged in fees, as it basically is money that’s going nowhere. That essentially serves as a huge tax on a segment of the population that is struggling with money to begin with.
‘Free’ Lunch with Hidden Fees on the Side
Families who have income less than 185% of the federal poverty line — which equates to $57,720 for a family of four — can qualify for free or reduced-price meals. These students should be charged no more than 30 cents for breakfast and 40 cents for lunch, by law. But those “reduced prices” suddenly become expensive when figuring in hidden fees.
Three companies dominate the market for processing fees — LINQ Connect, SchoolCafe and MySchoolBucks. They charge these fees so that there is a contactless payment system set up. And while that’s very convenient for families, it can also get extremely expensive.
USDA Kicks the Can Down the Road
In total, this problem is costing families more than $100 million every year. The solution — announcing a fix that won’t even take effect for three more years.
“USDA and schools across America share the common goal of nourishing schoolchildren and giving them the fuel they need to learn, grow and thrive,” Agriculture Secretary Tom Vilsack said in a statement last week. “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. We will continue to work with Congress to move toward that goal so all kids have the nutrition they need to reach their full potential.”
Why not put an end to this legalized extortion immediately? That would probably be too simple and easy — especially for the government.