A group of senators, including Sen. Elizabeth Warren and Sen. Bernie Sanders, are demanding that U.S. officials prohibit transaction fees on school meal accounts because private payment processors are unnecessarily raising costs for families. The senators argue that the fees imposed by these companies are unfair and should not exist, especially when it comes to providing meals for schoolchildren. The fees disproportionately burden low-income households and can add up significantly over the course of a school year. The senators are calling on the Agriculture Department to take immediate action to stop these fees and ensure that families are not being exploited in order for their children to access school meals.
The Consumer Financial Protection Bureau report revealed that school meal payment processors collect more than $100 million in transaction fees annually. This money could have been used to purchase millions of additional school lunches or breakfasts for students in need. The senators are emphasizing that these junk fees on school meals should not be allowed to continue and that it is time for the USDA to step in and protect families from being taken advantage of by payment processors. They are urging the USDA to withdraw the exemption that allows for these fees and ensure that families have access to fee-free payment options for school meals.
In addition to addressing the issue of transaction fees, the senators are also working to combat food insecurity among students. Last week, legislation was introduced to expand college students’ eligibility for SNAP benefits. Furthermore, Senator John Fetterman led a Senate subcommittee hearing on the benefits of providing free school meals to all students, regardless of their families’ incomes. This approach was temporarily implemented nationwide during the pandemic to eliminate barriers for struggling families. Anti-hunger advocates are calling for a return to universal school meals to ensure that all children have access to nutritious meals without additional costs and fees.
Research has shown that school lunch is often the most nutritious meal of the day for U.S. schoolchildren, making it essential for their health and well-being. However, the return to pre-pandemic meal formats has led to an increase in unpaid school meal debts. The senators are emphasizing the importance of ensuring that school meals are free for all students and that judgment and stigma associated with meal assistance are eliminated. They are working to address the rising food insecurity faced by families, especially those with low incomes who struggle to afford additional costs and fees associated with providing meals for their children. The senators are committed to protecting families from being exploited by payment processors in order to ensure that children have access to the meals they need to thrive.
