Summary
This notice announces the annual adjustments to the national average payments, the amount of money the federal government provides states for lunches, afterschool snacks, and breakfasts served to children participating in the National School Lunch and School Breakfast Programs; to the maximum reimbursement rates, the maximum per lunch rate from federal funds that a state can provide a school food authority for lunches served to children participating in the National School Lunch Program; and to the rate of reimbursement for a half-pint of milk served to non-needy children in a school or institution that participates in the Special Milk Program for Children. The annual payments and rates adjustments for the National School Lunch and School Breakfast Programs reflect changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers. The annual rate adjustment for the Special Milk Program reflects changes in the Producer Price Index for Fluid Milk Products. Further adjustments are made to these rates to reflect higher costs of providing meals in Alaska, Guam, Hawaii, Puerto Rico, and Virgin Islands. The payments and rates are prescribed on an annual basis each July.
Dates
These rates are in effect from July 1, 2024, through June 30, 2025.
Adjusted Payments
The following specific section 4, section 11, and section 17A National Average Payment Factors and maximum reimbursement rates for lunch, the afterschool snack rates, and the breakfast rates are in effect from July 1, 2024, through June 30, 2025. Due to a higher cost of living, the average payments and maximum reimbursements for Alaska, Guam, Hawaii, Puerto Rico, and Virgin Islands are higher than those for all other states. The District of Columbia uses figures specified for the contiguous states. These rates do not include the value of USDA Foods or cash-in-lieu of USDA Foods which schools receive as additional assistance for each meal served to participants under the Program. A notice announcing the value of USDA Foods and cash-in-lieu of USDA Foods is published separately in the Federal Register.
Adjustments to the national average payment rates for all lunches served under the National School Lunch Program, breakfasts served under the School Breakfast Program, and afterschool snacks served under the National School Lunch Program are rounded down to the nearest whole cent.
Special Milk Program Payments
For the period July 1, 2024, through June 30, 2025, the rate of reimbursement for a half pint of milk served to a non-needy child in a school or institution that participates in the Special Milk Program is 27.00 cents. This change is based on the 2.91 percent increase in the Producer Price Index for Fluid Milk Products from May 2023 to May 2024.
As a reminder, schools or institutions with pricing programs that elect to serve milk free to eligible children continue to receive the average cost of a half pint of milk (the total cost of all milk purchased during the claim period divided by the total number of purchased half pints) for each half pint served to an eligible child.
National School Lunch Program Payments
Overall, payments for the National School Lunch Program and the Afterschool Snack Program increased due to a 4.03 percent increase in the national average payment rates for schools and residential child care institutions for the period July 1, 2024, through June 30, 2025 in the Consumer Price Index for All Urban Consumers for the Food Away From Home series during the 12-month period May 2023 to May 2024 (from a level of 352.892 in May 2023, as previously published in the Federal Register to 367.099 in May 2024).
These changes are reflected below.
Section 4 National Average Payment Factors —In school food authorities that served less than 60 percent free and reduced-price lunches in school year (SY) 2022-23, the payments for meals served are: Contiguous states —paid rate—42 cents (2 cents increase from the 2023-24 rate), free and reduced price rate—42 cents (2 cents increase), maximum rate—50 cents (2 cents increase); Alaska —paid rate—69 cents (3 cents increase), free and reduced price rate—69 cents (3 cents increase), maximum rate—79 cents (3 cents increase); Guam, Hawaii, Puerto Rico, and Virgin Islands —paid rate—55 cents (2 cents increase), free and reduced price rate—55 cents (2 cents increase), maximum rate—64 cents (3 cents increase).
In school food authorities that served 60 percent or more free and reduced price lunches in school year 2022-23, payments are: Contiguous states —paid rate—44 cents (2 cents increase), free and reduced price rate—44 cents (2 cents increase), maximum rate—50 cents (2 cents increase); Alaska —paid rate—71 cents (3 cents increase), free and reduced price rate— 71 cents (3 cents increase), maximum rate—79 cents (3 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —paid rate—57 cents (2 cents increase), free and reduced price rate—57 cents (2 cents increase), maximum rate—64 cents (3 cents increase).
School food authorities certified to receive the performance-based cash assistance will receive an additional 9 cents (adjusted annually) added to the above amounts as part of their section 4 payments.
Section 11 National Average Payment Factors — Contiguous states —free lunch—4 dollars and 1 cent (16 cents increase from the SY 2023-24 rate), reduced price lunch—3 dollars and 61 cents (16 cents increase); Alaska —free lunch—6 dollars and 49 cents (25 cents increase), reduced price lunch—6 dollars and 9 cents (25 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —free lunch—5 dollars and 21 cent (20 cents increase), reduced price lunch—4 dollars and 81 cents (20 cents increase).
Afterschool Snacks in Afterschool Care Programs —The payments are: Contiguous states —free snack—1 dollar and 21 cents (4 cents increase from the SY 2023-24), reduced price snack—60 cents (2 cents increase), paid snack—11 cents (1 cent increase); Alaska —free snack—1 dollar and 97 cents (8 cent increase), reduced price snack—98 cents (4 cents increase), paid snack—18 cents (1 cent increase); Guam, Hawaii, Puerto Rico and Virgin Islands —free snack—1 dollar and 58 cents (6 cents increase), reduced price snack—79 cents (3 cents increase), paid snack—14 cents (1 cent increase).
School Breakfast Program Payments
Overall, payments for the National School Breakfast Program increased due to a 4.03 percent increase in the national average payment rates for schools and residential child care institutions for the period July 1, 2024 through June 30, 2025 in the Consumer Price Index for All Urban Consumers in the Food Away from Home series during the 12-month period May 2023 to May 2024 (from a level of 352.892 in May 2023, as previously published in the Federal Register to 367.099 in May 2024).
These changes are reflected below.
For schools “not in severe need” the payments are: Contiguous states —free breakfast—2 dollars and 37 cents (9 cents increase from the SY 2023-24 rate), reduced price breakfast—2 dollars and 7 cents (9 cents increase), paid breakfast—39 cents (1 cent increase); Alaska free breakfast—3 dollars and 80 cents (14 cents increase), reduced price breakfast—3 dollars and 50 cents (14 cents increase), paid breakfast—60 cents (2 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —free breakfast—3 dollars and 6 cents (11 cents increase), reduced price breakfast—2 dollars and 76 cents (11 cents increase), paid breakfast—49 cents (2 cents increase).
For schools in “severe need” the payments are: Contiguous states —free breakfast—2 dollars and 84 cents (11 cents increase from the SY 2023-24), reduced price breakfast—2 dollars and 54 cents (11 cents increase), paid breakfast—39 cents (1 cent increase); Alaska —free breakfast—4 dollars and 56 cents (17 cents increase), reduced price breakfast—4 dollars and 26 cents (17 cents increase), paid breakfast—60 cents (2 cents increase); Guam, Hawaii, Puerto Rico and Virgin Islands —free breakfast—3 dollars and 67 cents (14 cents increase), reduced price breakfast—3 dollars and 37 cents (14 cents increase), paid breakfast—49 cents (2 cents increase).