Federal rule will block transaction fees on school meals for some families
The federal rule won’t go into effect until the 2027-2028 school year.
NASHVILLE, Tenn. (WSMV) - A new federal rule will stop schools from charging low-income families fees when electronically depositing funds in their lunch accounts.
The federal rule won’t go into effect until the 2027-2028 school year and will only apply to students eligible for free and reduced meals.
This new rule won’t impact Metro Nashville Public Schools because they offer free school meals through a USDA program and supplemental funding from the metro government.
However, in Wilson County, parents say they pay a 3.5% fee when adding money to their children’s lunch account online.
Some parents told us that can add up fast. One Wilson County parent, Isaac Booker, says this rule will help many families with free and reduced lunch.
“Any money that’s not going out of the household and money that they can keep in their pocket is a good thing,” Booker said.
The Consumer Financial Protection Bureau reported these types of fees disproportionately burden lower-income households. The report says that’s because those families tend to make smaller, more frequent deposits.
With budgets pushed to the limit, Booker says any little bit will help.
“Any savings is good savings I mean I have a family too,” Booker said. “I don’t have to pay a little fee or tax here and there yeah I’m trying to get out of it too.”
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