Thu Sep 19 09:00:00 UTC 2024: ## Senators Demand End to School Lunch Payment Fees, Citing Unfair Burden on Families
A group of senators, led by Elizabeth Warren and Bernie Sanders, has called on the U.S. Department of Agriculture (USDA) to ban transaction fees charged by payment processors on school meal accounts. The senators argue that these fees, which can total over $100 million annually, unfairly burden families, especially those with lower incomes.
The call to action comes after a report by the Consumer Financial Protection Bureau found that payment processing companies charge families significant fees for depositing money into their children’s lunch accounts. These fees often amount to a flat fee per transaction, disproportionately affecting low-income families who tend to make smaller, more frequent deposits.
“Greedy payment processing companies are ripping off working families,” the senators wrote in a letter to Agriculture Secretary Tom Vilsack. “It is unacceptable that parents face exorbitant fees just so their children can eat school lunch, and USDA should prohibit these sham fees.”
The senators point out that while the USDA prohibits schools from adding fees to meal prices, they have allowed an exemption for online payment processors since 2014. This exemption has allowed many districts to implement fee-charging systems, with inadequate notification to parents about available fee-free alternatives.
The senators urged the USDA to withdraw the 2014 exemption and ensure that all families have access to fee-free payment methods. They also highlighted the ongoing issue of food insecurity among students, calling for a return to universal free school meals for all children.
The USDA has responded by stating that they are “pursuing additional actions to crack down on junk fees that are raising school meal costs for families.”
This issue underscores the growing concerns about hidden fees and their impact on struggling families. The senators’ call to eliminate these fees reflects a broader push to address food insecurity and ensure that all children have access to nutritious meals.
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