USDA Adjusts Income Guidelines for Free School Meals Starting July
Published Date: 4/9/2026
Notice
Summary
Starting July 1, 2026, the USDA updates the income rules that decide who can get free or cheaper school meals, milk, and summer food benefits. These changes help make sure kids who need help the most get it, based on the latest cost of living. Schools, care centers, and tribal groups will use these new guidelines through June 2027 to support families better without changing paperwork or costs.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Which programs use the new guidelines
Starting July 1, 2026, the USDA's updated Income Eligibility Guidelines apply through June 30, 2027 to determine who can get free and reduced-price school meals, free milk, Summer Food Service Program benefits, the Child and Adult Care Food Program, and Summer EBT for Children. Schools, institutions, State agencies, and Indian Tribal Organizations participating in these programs must use these guidelines for that period.
How eligibility is calculated (130% / 185%)
The guidelines set eligibility for free meals at 130% of the 2026 Federal poverty guidelines and for reduced-price meals at 185% (multiplying the poverty guidelines by 1.30 and 1.85 and rounding up). Income may be judged on annual, monthly, twice-monthly (24/year), every-two-weeks (26/year), or weekly (52/year) bases using the formulas described in the notice.
Child nutrition benefits not counted as income
The notice states that the value of meals, milk, or Summer EBT benefits provided to children under these programs shall not be considered as household income for other Federal benefit programs, in accordance with statutory prohibitions.
What counts as household income
For these guidelines, 'income' means money before deductions and explicitly includes wages, net self-employment (farm and nonfarm), Social Security, dividends and interest, rental income, public assistance, unemployment, pensions and retirement, private pensions or annuities, alimony or child support, regular contributions from non-household members, net royalties, and other cash income (including withdrawals from savings or investments).
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