USDA Raises Income Caps for Kids' Free Lunches and Milk
Published Date: 3/13/2025
Notice
Summary
Starting July 1, 2025, the USDA is updating the income rules that decide who can get free or cheaper school meals, milk, and summer food benefits. These changes help make sure kids from families who need it most get the right support, reflecting cost-of-living changes. Schools, care centers, and tribal groups will use these new guidelines through June 2026 to keep feeding hungry kids.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
New income cutoffs for free/reduced meals
Starting July 1, 2025 through June 30, 2026, USDA updated the Income Eligibility Guidelines used to decide who gets free or reduced-price school meals, free milk, and Summer EBT benefits. For example, for a family of four in the 48 contiguous States (and DC, Guam, and territories) the annual cutoff for free meals is $41,795 and for reduced-price meals is $59,478; for a one-person household the free-meal cutoff is $20,345 and the reduced-price cutoff is $28,953. The notice states the numbers for a family of four represent a 3.0 percent increase over last year and that these guidelines apply to the National School Lunch Program, School Breakfast Program, Special Milk Program, Child and Adult Care Food Program, Summer Food Service Program, and Summer EBT Program.
What counts as household income
The notice defines "income" for eligibility as income before deductions and explicitly lists included sources: wages/salaries/commissions, net farm and nonfarm self‑employment income, Social Security, dividends/interest, net rental income, public assistance/welfare, unemployment compensation, government or private pensions and retirement, alimony/child support, regular contributions from non-household members, net royalties, and other cash income (including withdrawals from savings, investments, or trust accounts). It also says income does not include Federal program benefits that statute excludes and that the value of meals, milk, or EBT benefits to children shall not be counted as household income for other benefit programs.
How income is converted and rounded
Income is converted to monthly, twice-monthly, biweekly, or weekly amounts using set formulas: monthly = annual ÷ 12; twice per month = annual ÷ 24; every two weeks = annual ÷ 26; weekly = annual ÷ 52. All calculated numbers are rounded upward to the next whole dollar; the notice covers these rules for the July 1, 2025–June 30, 2026 period.
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