New Law Sets Aside $10M Annually to Give SNAP Users Incentives for Buying Milk, Yogurt, and Cheese

The Dairy Nutrition Incentive Program Act of 2025 is setting up a brand new federal program designed to get more healthy dairy products into the homes of people who use SNAP benefits. Essentially, the government is putting money on the table—$10 million minimum every year—to fund pilot projects that offer a direct financial incentive to SNAP households when they buy specific dairy items. The goal isn't just to hand out money, but to figure out the most effective, science-backed ways to boost consumption of what the bill calls “naturally nutrient-rich dairy,” which includes fluid milk, yogurt, cultured milk products, and cheese made from cow’s milk (Sec. 2).

The Dairy Discount: How the Incentives Work

This isn’t a blanket dairy subsidy. The program is specifically structured to test different incentive models through competitive grants given to state agencies, local governments, or nonprofits (Sec. 2). If you’re a SNAP user, the idea is that when you buy qualifying dairy—like a gallon of milk or a container of yogurt—you’ll earn a credit or discount only usable for buying more of that same nutrient-rich dairy. The bill prioritizes projects that keep the incentive money dedicated to dairy and that use electronic point-of-sale systems to give out those incentives immediately (Sec. 2).

For the average family, this means a potential break on one of the most common grocery staples. If a project offers a 50% match on dairy purchases, a family spending $20 a month on milk might suddenly have $10 extra to spend on cheese or yogurt. This directly targets the nutritional challenges many lower-income households face, making essential nutrients more affordable and accessible. The bill makes it clear that the Secretary must prioritize projects that put the highest percentage of the funds directly into the hands of SNAP participants as incentives, rather than administrative overhead.

Putting Policy Under the Microscope

One of the most important elements of this legislation is the requirement for rigorous evaluation. The Secretary must hire an independent group to evaluate every single project, using strong research methods like “random assignment” to measure how much the incentives actually changed what SNAP households bought (Sec. 2). If you've ever been part of a user group or a randomized study at work, you know this means they want solid data, not just anecdotes. This focus on scientific validation is key; it means the government is serious about finding out what works before potentially scaling up the program.

However, this focus on dairy is worth noting. While the bill’s intent is clearly beneficial for nutrition, it does create a dedicated stream of funding and incentives focused on one specific food group. For the dairy industry, this is a clear win, as it creates guaranteed demand and subsidizes their products for a large consumer base. For other food assistance programs, this new, dedicated funding stream ($10 million mandatory annually, plus potential authorization for more) represents a significant commitment, potentially raising questions about whether other healthy food groups might eventually require similar specific incentive programs.

Keeping the Lights On for Existing Programs

If you’re currently involved in an existing dairy incentive project—perhaps one started under the 2018 Farm Bill—this new law ensures there’s no gap in service. The Secretary is required to seamlessly transition all those existing projects into this new structure, guaranteeing that the incentives keep flowing without interruption (Sec. 2). The old law authorizing those projects will be repealed only after the transition is complete. This smooth handoff is crucial for the nonprofits and local agencies running these programs, ensuring they don't have to halt operations while waiting for new grants. It’s a smart move that respects the ongoing work already being done in communities.