Another financial burden weighing on parents: School lunch fees

School fees are continuing to rack up. It’s leaving parents feeling as though they are “getting nickel and dimed everywhere right now,” according to Lisa Chastain, a finance coach and mother of two.

“The school lunch platforms are convenient but one more thing we have that we get asked to pay for,” Chastain told FOX Business. 

Her comments came after the Consumer Financial Protection Bureau (CFPB) released a report in July about how “families are paying costly and hard-to-avoid transaction fees” stemming from the payment processing companies that help school districts process children’s school lunch payments.

The report, analyzing the 300 largest public school districts in the U.S., found that “payment processors charge transaction fees of $2.37, or 4.4%, of the total transaction, on average, each time money is added into a payment account.”

“Transaction fees and other types of junk fees can take an economic toll on American families just trying to pay for basic school expenses, including school lunch for kids,” CFPB Director Rohit Chopra said in July.

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As a reprieve, families nationwide can leverage the National School Lunch Program (NSLP), a federal program administered by the USDA’s Food and Nutrition Service (FNS), that offers families free or low-cost lunches. It’s based on a family’s income, and paperwork is required. 

In 2023, Minnesota Gov. Tim Walz signed a program into law that eliminates that requirement, providing free school breakfasts and lunches to all students, regardless of their family’s income. 

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There are also districts around the country that provide free or subsidized lunches, depending on state funding. Chastain said her children’s school district is one of them.

In 2021, the National Education Association (NEA) reported that it had already heard about too many stories of food service workers having to take a hot meal away from a student if the student is unable to pay.

NEA President Becky Pringle told FOX Business on Thursday that “fresh, nutritious meals prepared by educators who know our kids by name are within reach. Universal school meals are a win for everyone. It lowers the costs for middle-class families and means parents have one less thing to worry about when preparing their children for school.” 

Pringle argued that it is “long past time that we make universal school meals a permanent reality for all,” saying that not only is it the right thing to do, but it’s “one of the most effective ways of boosting academic achievement for all students.” 

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Agriculture Secretary Tom Vilsack said the USDA and schools across the country are committed to nourishing the 30 million children that depend on school meals. 

“As part of this commitment, USDA will review its policies and work with schools, state oversight agencies and the payment processors to ensure that all families have a clear and readily-available fee-free payment method,” Vilsack said in a July statement. 

He added that the Biden-Harris administration will also continue its ongoing efforts to crack down on junk fees that are raising meal costs for families.