$10M Annual Dairy Incentive Program Proposed for SNAP: Extra Bucks for Milk, Yogurt, Cheese Purchases

This bill, the Dairy Nutrition Incentive Program Act of 2025, aims to carve out a new section in the Food and Nutrition Act of 2008. The core idea? To establish a dedicated program, backed by an initial $10 million annual appropriation, specifically designed to encourage SNAP recipients to buy more 'naturally nutrient-rich dairy' – think fluid cow's milk, yogurt, and cheese. The Secretary of Agriculture is tasked with getting this program up and running within 180 days.

How the Dairy Dollars Flow

So, how does this actually get more milk in shopping carts? The bill directs the Secretary to give out grants or enter into agreements with state governments, local agencies, or non-profits. These groups would compete for funding to design and run projects offering direct incentives to SNAP participants when they purchase those specific dairy products. Critically, the extra incentive dollars earned could only be spent on more of those same eligible dairy items. The bill prioritizes projects that maximize these direct incentives and acknowledges that implementing this might require tech upgrades; it allows entities to request funds to help offset the costs of setting up compatible point-of-sale (POS) systems.

Tracking the Impact and Transition

To figure out if this actually works, the legislation mandates independent evaluations for each project. These studies are meant to rigorously measure how much the incentives impact dairy purchases among SNAP households, with evaluation costs capped at 7% of the annual funding. The results, along with project updates, have to be reported to Congress every two years. The bill also ensures a smooth handover for existing dairy incentive pilot projects currently running under a 2018 law (Section 4208 of the Agriculture Improvement Act), transitioning them into this new program structure without interruption before eventually repealing the older section.

The Real-World Ripple

What does this mean on the ground? For SNAP participants, it could translate to extra purchasing power specifically for milk, yogurt, or cheese at participating retailers. For the dairy industry, it represents a targeted effort to boost consumption of their products via a major federal nutrition program. State and local groups get access to new potential funding streams. However, the definition of 'naturally nutrient-rich dairy' is currently limited to cow's milk products, meaning incentives wouldn't apply to plant-based milks or other non-dairy alternatives, potentially leaving out those with dietary restrictions or preferences. The program relies on an annual $10 million federal appropriation, with the possibility of another $10 million authorized from 2026 onwards, representing a taxpayer investment aimed at shifting nutritional choices within the SNAP framework.