USDA to halt school lunch processing fees for low-income families

The U.S. Department of Agriculture says that students eligible for free or reduced price school meals cannot be charged processing fees beginning in 2027. 

School districts currently work with processing companies to offer cashless payment systems for families. But the companies can charge "processing fees" for each transaction.

By law, students who are eligible for reduced price meals cannot be charged more than 30 cents for breakfast and 40 cents for lunch. With processing fees, however, families can end up paying 10 times that amount. The USDA announced the change Friday.

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