Child Care Nutrition Bill Adds 10 Cents Per Meal to Federal Reimbursements, Streamlining Payments for Day Care Homes

The aptly named Child Care Nutrition Enhancement Act of 2025 is a straightforward piece of legislation designed to give a financial boost to providers feeding children and adults through a key federal program. Starting the first day of the month after it becomes law, every single meal or snack served under the Child and Adult Care Food Program (CACFP)—which is part of the larger National School Lunch Act—will receive an extra 10 cents in federal reimbursement. This is a direct increase to the rate providers currently receive, and the bill ensures this new 10-cent amount will be adjusted for inflation later on, just like the existing rates.

The Quarter-Per-Kid Boost

For providers, this 10-cent increase per serving might sound small, but it adds up quickly, especially when food costs seem to climb every month. Think of a child care center feeding 50 kids breakfast, lunch, and an afternoon snack—that’s 150 servings per day. This bill means an extra $15 per day, or about $300 more per month, just for that single center. This extra cash is intended to help providers absorb rising grocery bills and continue offering nutritious meals without cutting corners. The bill is clear that this new reimbursement must be added to the standard rates for all providers, including those running family or group day care homes.

Cutting the Red Tape for Home Providers

The other major focus of this bill is administrative simplification, specifically for family or group day care homes. These smaller operations often rely on sponsoring organizations to handle the paperwork and process their reimbursements. The bill overhauls how those payments are calculated by renaming the section dealing with “Tier I” homes and removing several specific exceptions and conditions that currently complicate the process. Essentially, it’s streamlining the formula for sponsoring organizations, making it easier and cleaner for them to pass payments along to the home providers. This simplification is paired with the mandate that the new 10-cent boost must also be included in these updated day care home calculations, ensuring the benefit reaches the smallest providers efficiently.