August 2025
The USDA recently published the cash-in-lieu value for USDA Foods in the Federal Register. For the period of July 1, 2025, to June 30, 2026, the value is 30.50 cents per meal, which is a half-cent increase from the previous school year.
Cash-in-lieu payments are federal funds provided to eligible schools, child care centers, and other institutions that participate in federal nutrition programs, like the Child and Adult Care Food Program (CACFP). Instead of receiving physical USDA Foods (commodities) directly from the government, these institutions receive the monetary equivalent.
For example, a school participating in the CACFP At-Risk Afterschool Program would receive a cash payment of 30.50 cents for each eligible meal served during the 2025-2026 school year. This is in addition to the base rate for the meals — for example, the rate for five-component suppers for the upcoming 2025-2026 school year is $4.60. These funds can then be used to purchase food from local vendors, giving the institutions greater flexibility to meet the specific dietary needs and preferences of the children they serve, as opposed to relying on the food items available through the USDA commodity system.
