Uncle Sam Boosts Lunch Money for Daycares, Extra for Hawaii's High Prices
Published Date: 7/24/2025
Notice
Summary
Starting July 1, 2025, the Child and Adult Care Food Program is raising payment rates for meals and snacks in child care centers, day care homes, and adult day care centers to keep up with rising food costs. These changes also include extra boosts for places like Alaska and Hawaii where food is pricier. This means sponsors and providers will get more money to help feed kids and adults better for the next year.
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Higher Meal Payments for Care Centers
Starting July 1, 2025, the national average payment rates for meals and snacks served in child care centers, outside-school-hours care centers, at-risk afterschool care centers, and adult day care centers will increase for the period July 1, 2025 through June 30, 2026 to reflect changes in the Consumer Price Index. This means centers and their meal providers will receive higher federal payments for served meals and snacks during that year.
Higher Payments for Day Care Home Meals
Effective July 1, 2025 through June 30, 2026, food service payment rates for meals and snacks served in day care homes are increased to reflect changes in the Consumer Price Index. Day care home providers will receive increased per-meal payments from the Child and Adult Care Food Program during that period.
Higher Admin Reimbursements for Sponsors
For July 1, 2025 through June 30, 2026, administrative reimbursement rates for sponsoring organizations of day care homes are increased to reflect changes in the Consumer Price Index. Sponsoring organizations will receive higher administrative reimbursements during that year.
Extra Rate Adjustments for Territories and States
The notice applies additional adjustments for higher meal-provision costs in Alaska, Guam, Hawaii, Puerto Rico, and the Virgin Islands for the period July 1, 2025 through June 30, 2026. Providers and sponsors operating in those places will receive these higher geographically adjusted rates.
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