ARLINGTON, VA – The nonprofit School Nutrition Association (SNA) is calling for the release of federal funds to address a growing financial crisis for school meal programs. In a letter today, SNA asked the Office of Management and Budget (OMB) to urge USDA use of Section 32 funds for emergency per-meal reimbursements, beginning in Fiscal Year 2027, to offset unprecedented cost increases.
SNA’s letter to OMB Director Russell Vought included a petition to federal leaders, signed by more than 3,500 school nutrition professionals during SNA’s annual conference. The petition details widespread funding gaps and pleads for support to meet evolving regulatory requirements:
Rising food, labor, transportation, equipment, and operating costs have outpaced federal reimbursement rates, leaving many programs struggling to cover the actual cost of preparing and serving meals that meet federal nutrition standards.
Two new USDA studies confirm this growing funding shortfall:
- A September 2026 report found that meal revenues (federal reimbursements, paid meals, and a la carte sales) covered an average of only 81 percent of program expenses.
- A July 2026 report revealed 35 percent of programs operated at a deficit at the end of SY 2023-24, up from 18 percent in SY 2021–22.
- As USDA and HHS urge state Governors to sign the Pledge for Healthier School Meals, USDA warns that “a challenging and uncertain budgeting environment threatens to pressure [Food Service Directors] toward more heat-and-serve meals.”
To address ongoing challenges, USDA and HHS recently announced new farm to school and kitchen infrastructure grants totaling $75 million. Together with previously appropriated grants, these funds will support just a fraction of school meal programs and fall short of addressing the extensive needs of a $25 billion program serving nearly 4.9 billion lunches and 2.6 billion breakfasts each year.
“School nutrition professionals appreciate the Administration’s recognition of the need to increase investments in school meals programs; but when thousands working on the frontlines in America’s school cafeterias sound the alarm, the response must match the magnitude of the crisis,” said SNA CEO Patricia Montague, FASAE, CAE. “The Administration and Congress have a responsibility to increase federal reimbursements to ensure all schools have the necessary resources to improve school meal programs for the children they serve.”
Since passage of the Agriculture Adjustment Act of 1935, Section 32 has directed 30% of customs receipts to support domestic agriculture and has provided a permanent appropriation to support child nutrition programs. Excess tariff revenues, projected to be available to the programs in FY 2027, present a critical opportunity to address the shortfall in meal program reimbursements at a time when schools are being called on to do more.
SNA’s SY 2025-26 School Nutrition Trends Report, an analysis of survey responses from 1,240 school meal program directors nationwide, revealed:
- Nearly all respondents reported their programs are challenged by the cost of food (98%), labor (95%) and equipment (95%).
- 70% of respondents reported the reimbursement rate is insufficient to cover the cost of producing a school lunch, up from 64% in School Year (SY) 2023-24.
- More than half (51%) expressed “serious concern” about the financial sustainability of their program in three years, up from 45% in SY 2023-24.
SNA’s 2026 Position Paper urges Congress to increase school meal funding and ensure updates to school nutrition standards are operationally feasible for schools.
About School Nutrition Association:
The School Nutrition Association (SNA) is a national, non-profit professional organization representing 50,000 school nutrition professionals across the country. Founded in 1946, SNA and its members are dedicated to making healthy school meals and nutrition education available to all students. For more information on school meals, visit www.SchoolNutrition.org/SchoolMeals.
Related Articles
