Education Funding

Citing Supply Chain Issues, Inflation, USDA Boosts Funding for School Meals

By Evie Blad — January 10, 2022 2 min read
Second grader Amado Soto eats his lunch socially distanced from his fellow students in the cafeteria at Perez Elementary School during the coronavirus pandemic on Dec. 3, 2020, in Brownsville, Texas.
  • Save to favorites
  • Print

The U.S. Department of Agriculture will offer an unusual midyear increase to the reimbursements it provides for school meals, citing challenges related to inflation and supply chain interruptions that have made it difficult for schools to purchase food.

Schools will receive an additional 25 cents per lunch, the agency announced Friday, an increase of about $750 million nationally.

The move comes as school meal programs face unprecedented challenges related to the COVID-19 pandemic, including recruiting and retaining staff and work force interruptions caused by quarantines. Those concerns combined with the logistical issues of serving meals while maintaining virus precautions have strained schools’ nutrition departments, which operated on thin margins before the national crisis.

The funding boost comes on top of a previous waiver granted in April that allowed schools to collect reimbursements at the higher rates set for summer meal programs during the school year—raising the money they get per meal served by about 15 percent.

Under federal regulations, those summer rates adjust for inflation every January. This year, that means schools will see the effects of the shift immediately instead of the following summer. Combined, the changes mean schools will get about 22 percent more per school lunch than they would in a typical school year, the USDA said in a news release.

“USDA understands that balancing the pressures of the pandemic with the need to feed children healthy and nutritious meals continue to be a priority for schools across the country,” U.S. Agriculture Secretary Tom Vilsack said in a statement.

The change is one of several the agency has made during the pandemic, including providing waivers that allow schools to essentially serve universal free meals and flexibility in how closely they adhere to federal nutrition standards. In December, the USDA provided $1.5 billion to states and school districts to work with local suppliers as they tackle supply chain issues.

As Education Week reported last month, the same supply chain issues that have made it difficult for districts to purchase items like paper and classroom furniture have also affected their ability to buy food.

“In a national survey by the School Nutrition Association, 98 percent of food service directors said their top three problems right now are a lack of available menu items, lack of packaging and supplies, and menu items getting discontinued by suppliers,” that story said. “Three-quarters of respondents said that higher costs of items—a sign of inflationary pressures in the economy—are creating significant challenges for them, too.”

The School Nutrition Association, which represents cafeteria directors around the country, praised the USDA reimbursement change Friday.

“This rate adjustment delivers desperately-needed relief to school meal programs, struggling with tight budgets that are stressed by rising pandemic costs and supply chain disruptions,” SNA President Beth Wallace said in a statement.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Federal Tax Credits for K-12 Scholarships: What We Know (and Don't)
The Trump administration is preparing to issue rules for its new, ambitious school choice program.
11 min read
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump s Education Freedom Tax Credit on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich.
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump's tax-credit scholarship program on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich., where she urged Michigan Gov. Gretchen Whitmer to opt her state in. The Trump administration, through the Department of the Treasury, is expected to release regulations for the program in the coming days. Several governors have said they're awaiting those regulations before deciding whether their states participate.
Katy Kildee/The Detroit News via TNS
Education Funding Trump's Education Funding Maneuvers Were Illegal, Judges Rule
Judges ruled in suits about teacher-training grant cancellations and withheld education research money.
4 min read
Collage of Trump signing an executive order, money, desks, torn paper, legal pad.
Collage by Laura Baker/Education Week with Getty + Evan Vucci/AP
Education Funding What 'Returning Ed. to the States' Looks Like as the Ed. Dept. Awards Grants
State leaders face requests for letters of endorsement from grant applicants under new priorities.
TahSoGhay Collah, right, teaches a third-grade English learners class at the 700-student intermediate school that serves grades 3 through 5, in Worthington, Minn., on Oct. 22, 2024.
TahSoGhay Collah, right, teaches a 3rd grade English learners class in Worthington, Minn., on Oct. 22, 2024. Researchers seeking federal grant funding to train more teachers to work with English learners requested letters of support from state leaders to submit competitive applications this year.
Jessie Wardarski/AP
Education Funding Ed. Dept. Risks Letting $180 Million for Research Expire as Deadline Looms
Spending by the agency's research arm has lagged most significantly compared with previous years.
6 min read
Russell Vought, Director of the Office of Management and Budget (OMB) testifies on the OMB budget during a House Appropriations Financial Services and General Government Subcommittee hearing on Capitol Hill in Washington, DC, on June 4, 2025.
Russell Vought, director of the White House Office of Management and Budget, testifies during a House Appropriations subcommittee hearing on Capitol Hill in Washington on June 4, 2025. OMB has been slow to release congressionally appropriated funding to the Institute of Education Sciences, the U.S. Department of Education's research arm. IES now has just weeks to spend $180 million before it expires.
SAUL LOEB / AFP via Getty Images