S. 222 changes National School Lunch Program milk rules by: (1) letting schools offer whole and reduced‑fat (2%), as well as low‑fat (1%) and fat‑free milk, in flavored or unflavored, organic or non‑organic, and lactose‑free forms; (2) allowing nutritionally equivalent nondairy beverages (such as fortified soy milk) to count as milk and be offered to all students, not just on individual request; and (3) excluding the saturated fat from fluid milk only when calculating the weekly 10% saturated‑fat limit for school lunches, while all other nutrients (calories, sodium, added sugars) from milk still count toward the meal standards.
The new milk options and saturated‑fat calculation rules take effect immediately upon enactment—i.e., as of Jan. 14, 2026—according to USDA’s implementation guidance for the National School Lunch Program.
The National School Lunch Program covers nearly 100,000 participating public and nonprofit private schools serving pre‑kindergarten through 12th grade, plus eligible residential child‑care institutions. Any student in a participating school may receive a school lunch; depending on household income, students qualify for free, reduced‑price, or paid (full‑price) meals.
The U.S. Department of Agriculture’s Food and Nutrition Service (USDA FNS) is the federal agency that implements and enforces the new milk requirements, working through state child‑nutrition agencies that monitor school food authorities operating the National School Lunch Program.
Nutrition‑wise, the law relaxes milk standards by (a) bringing back whole and 2% milk—higher in saturated fat and calories than low‑fat or fat‑free milk—and (b) exempting milk’s saturated fat from the weekly 10% saturated‑fat cap for school lunches. Nutrition and health groups warn this may raise children’s saturated‑fat intake and move school meals further from Dietary Guidelines recommendations, potentially increasing long‑term heart‑disease risk, though overall calorie, sodium, and (from 2027) added‑sugar limits for meals still apply. Supporters argue more options could boost milk and nutrient intake, but robust, independent health‑impact data specific to this change are not yet available.
Available evidence suggests S. 222 will have little direct effect on overall government or district budgets. CBO estimates the federal budget impact of allowing whole and reduced‑fat milk in school meals would be negligible, mainly limited to minor USDA administrative costs. At the local level, school food authorities already operate on tight margins; milk is only one cost component, and whole/2% milk is priced similarly to low‑fat options. Any cost change will depend on local milk prices, what options districts choose to buy, and whether student participation and milk consumption change. Current research on school food‑service finances does not show large cost swings tied specifically to milk‑fat type, so the net budget effect for most districts is expected to be small and uncertain.