School Nutrition Directors Report Insufficient Reimbursements for Lunch Costs

A recent survey indicated that a majority of school nutrition directors in the United States face challenges with reimbursement rates for school lunches. The survey, conducted by the trade group the School Nutrition Association, involved more than 1,170 directors and was carried out in October 2025.

It found that 69.6% reported insufficient rates to cover costs, up from 67.4% the previous year. More than half of the directors expressed serious concern about the financial sustainability of their programs over the next three years, an increase from 46% in the 2024-2025 school year.

For the 2023-2024 school year, the government provided 4.8 billion lunches to nearly 29.4 million students through the National School Lunch Program, costing $17.7 billion according to U.S. Department of Agriculture data. Reimbursements for free lunches are approximately $4.70 per student per meal.

Recent updates to dietary guidelines, released at the beginning of the year, require schools to eliminate ultra-processed foods and emphasize whole foods, fruits, vegetables, and more protein to continue receiving federal funding. These changes are part of the Make America Healthy Again movement led by the Department of Health and Human Services.

Schools must comply with these standards to maintain funding. This reduction lowers the identified student percentage in schools, potentially decreasing reimbursements for free or reduced-cost meals. Reimbursements increase annually with rising food costs, but additional factors may impact program robustness.

David Ortega, a professor of food economics and policy at Michigan State University, stated that operational issues such as staffing, training, equipment, and infrastructure need addressing through funding to implement the new guidelines. He noted that without increased resources, costs for serving meals could rise, leading schools to face difficult decisions like potential loss of coverage or increased debt.

At a Congressional briefing last month, School Nutrition Association President Stephanie Dillard called for more funding, stating that the $4.70 reimbursement must cover food, supplies, labor, equipment, deliveries, and utilities. She provided an example of a St.

Patrick’s Day menu featuring scratch-prepared Shepherd’s Pie with local beef, which costs about $3 more per pound than alternatives.

Food costs have increased nearly 30% since early 2020 due to the pandemic, geopolitical conflicts like the war in Ukraine, and a tightening labor market in agriculture and food production. Beef prices have risen amid dwindling cattle herd sizes, and more than half of schools report staffing shortages, potentially requiring investments in equipment.

The updated guidelines advocate for more red meat and whole-fat dairy, adding to these challenges. Ortega stated that school meal programs were already stretched thin before the guideline changes. He emphasized that healthy eating involves constraints like price levels, inflation, access, and time costs, which must be addressed for guidelines to translate into behavior.

The Department of Health and Human Services and U.S. Department of Agriculture did not respond to requests for comment.