The “junk” charges for electronic deposits into school meal accounts will be prohibited starting in the 2027-2028 academic year for those eligible for free and reduced-price lunches.

Summary

A new USDA rule will prohibit schools from charging transaction fees to low-income families depositing funds in student lunch accounts, effective in the 2027-2028 school year.

This change benefits students eligible for free or reduced-price meals, sparing families extra costs when adding money to accounts.

Advocates and lawmakers, including Sen. Elizabeth Warren, support the ban, calling it a victory against “greedy” fees.

Agriculture Secretary Tom Vilsack praised the move, stating that USDA aims to eliminate fees for all families regardless of income level.