Dairy Discounts for SNAP? New Bill Earmarks $10M Annually for Milk, Yogurt & Cheese Incentives

The "Dairy Nutrition Incentive Program Act of 2025" aims to make dairy products like milk, yogurt, and cheese more affordable for individuals and families using SNAP (Supplemental Nutrition Assistance Program) benefits. This bill proposes amending the Food and Nutrition Act of 2008 by adding a new section (Section 31) to establish a program designed to test methods for increasing the purchase and consumption of these "naturally nutrient-rich dairy" items. The Secretary of Agriculture would have 180 days from the bill's enactment to get this program rolling, backed by an initial $10 million in guaranteed funding each year, with the potential for an additional $10 million annually.

How the Dairy Dollars Would Flow

So, how would this actually work on the ground? The bill (Sec. 2, adding Sec. 31(c)) directs the Secretary of Agriculture to provide grants or enter into cooperative agreements with eligible entities—think state or local governments, or non-profit organizations. These groups would compete for funding to run projects that offer incentives when SNAP recipients buy dairy. Priority will be given to projects that really maximize the direct financial boost for consumers and use efficient point-of-sale systems to deliver these incentives electronically. For instance, a local food access non-profit could apply for a grant. If successful, they might partner with area grocery stores so when you use your SNAP EBT card to buy a gallon of milk or a container of yogurt (specifically defined as fluid milk, yogurt/cultured milk, or cheese), you could instantly receive a discount or perhaps a coupon for your next dairy purchase. The goal is to make choosing these dairy items easier on the budget.

Making Sure It's Not Just Spilled Milk: Checks and Balances

Naturally, you'd want to know if these incentives are actually making a difference. The bill (Sec. 2, adding Sec. 31(d)) mandates independent evaluations for each project. These studies will dig into whether the incentives genuinely lead to SNAP recipients buying more of the targeted dairy products, using what the bill calls "rigorous methodologies." If a project isn't performing well or doesn't stick to the rules, it can be discontinued. Transparency is also key: the evaluation results are to be made public, and the Secretary of Agriculture will need to report to Congress every two years on how the projects are doing and what the evaluations have found (Sec. 2, adding Sec. 31(e)). This means there's a mechanism to see what works and what doesn't, and to adjust accordingly.

The Fine Print: Funding, Old Programs, and What's Defined as 'Dairy'

Let's talk money and details. The program is set to receive $10 million in mandatory funding each fiscal year (Sec. 2, adding Sec. 31(f)(1)(A)). On top of that, an additional $10 million is authorized to be appropriated for fiscal year 2025 and each year thereafter (Sec. 2, adding Sec. 31(f)(1)(B)), though authorized funds aren't guaranteed. A cap is set so that no more than 7% of the available funds each year can be used for the evaluation costs. It's also important to note that these funds can't be used for projects that restrict how SNAP benefits are otherwise used. For clarity, "naturally nutrient-rich dairy" is specifically defined in the bill as fluid milk, yogurt and other cultured milk products, and cheese (Sec. 2, adding Sec. 31(a)(3)). This isn't starting entirely from scratch either; existing projects under Section 4208 of the Agriculture Improvement Act of 2018 (which focused on healthy fluid milk incentives) will be transitioned into this new, broader Dairy Nutrition Incentive Program, ensuring no interruption. That older section of law will be repealed one year after the Secretary confirms the transition is complete (Sec. 2, adding Sec. 31(g)). The idea is to consolidate efforts and build on what's already been learned, hopefully making it a bit easier for families to access these specific dairy items.