Recent updates to school nutrition standards could increase school lunch costs by an estimated 3 cents on average. Photo: Shutterstock
The cost of producing school lunches is expected to get even higher, according to a Congressional Research Service report.
The estimated cost increase comes just under two months after the U.S. Department of Agriculture (USDA) released a final rule with changes that would, for the first time, limit added sugars in school lunches and further reduce sodium in meals.
According to the CRS report, the USDA estimates that the changes will increase costs for school nutrition programs by an average of 3 cents per meal, totaling $206 million per year nationwide.
The largest source of increased costs will be the new added sugars regulations, which are estimated to cost school districts $110 million a year.
Under the revised standards, sugar restrictions in school lunches will be phased in over several years. The first phase would begin in the 2025-26 school year and impose product-based limits on added sugars on grain-based desserts, breakfast cereals, yogurt and flavoured milk. Phase 2, beginning in fall 2027, will limit added sugars to less than 10% of average calories per meal for both breakfast and lunch. This weekly limit is in addition to the limits included in Phase 1.
Revisions to the amount of sodium allowed in school lunches will also contribute to increased costs. From July 2027, schools will have to reduce salt in school meals by a further 15%, and salt in school breakfasts by a further 10%. The CMS report estimates these changes will cost $86 million annually.
In addition, the changes are estimated It costs an average of $16 million in administrative costs each year.
The report notes that federal funds have not been used to implement these changes. In recent years, school nutrition administrators have called for an increase in the amount of federal funding school nutrition programs receive for each meal served through the National School Lunch Program and the School Breakfast Program.
For example, the School Nutrition Association (SNA) has asked Congress to increase federal meal subsidies by 40 cents per lunch meal and 15 cents per breakfast meal as part of its 2024 policy statement. These lower rates were also a major topic at the SNA’s Legislative Action Conference in March.
A survey released by SNA earlier this year included responses from 1,343 school food program directors across the U.S.Nationwide, nearly all respondents (99.3%) said rising costs were a challenge, and only 17% said current reimbursement rates were sufficient to cover the cost of preparing lunches. Additionally, 91.6% of respondents expressed concern about the financial sustainability of their programs over the next three years.
Last year, a federal bill was passed to increase reimbursement rates. 45 cents per lunch meal and 28 cents per breakfast meal, adjusted annually. Introduced U.S. Representative James P. McGovernThe bill never passed the House of Representatives.
