The U.S. Department of Agriculture (USDA) has introduced a new policy to remove transaction fees for families receiving free or reduced-price school meals. Starting in the 2027-2028 school year, these families will no longer face extra charges when using cashless payment systems for meals. This change aims to ease the financial strain on households with incomes up to 185% of the federal poverty level, which includes families earning up to $57,720 for a family of four. At present, families pay transaction fees ranging from $3.25 to 5%, which make meal payments more expensive than the subsidized rates of 30 cents for breakfast and 40 cents for lunch. The USDA’s policy also addresses monopolistic practices in the payment processing industry, where companies like MySchoolBucks and SchoolCafe dominate the market. According to the USDA, 87% of school districts have contracts with these companies, resulting in an average fee of $2.37 per transaction. The USDA aims to help school districts negotiate better terms or adopt systems with no fees, ensuring that low-income students can access nutritious meals without financial barriers.