New report says student meals at American schools are getting overpriced from junk fees

WASHINGTON — A new report by the U.S. Consumer Financial Protection Bureau analyzed 300 of the largest school districts in America.

The report found that millions of families are being hit with junk fees for their kids’ in-school meals. On top of that, the report found that many parents have no control over fee rates and don’t have the opportunities to shop around for cheaper options.

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“We are talking about fees that are impacting the ability of kids to get meals at school,” Meredith Dodson, Coalition on Human Needs, told Channel 2 Washington Correspondent Nicole D’Antonio. “As both an advocate, but honestly as a parent, this was really alarming to me.”

According to the report, many payment processors charge a fee of $2.37 every time money is added to an account.

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The CFPB report said that digital payment options add fees every time a student charges a meal to their cafeteria account. Those fees are impacting nearly 30 million children who depend on school meals for food security in the United States.

All together, that adds up to about $100 million in extra charges per year.

“As a parent, it’s heartbreaking to me that some children feel shamed for whether or not they can access a full meal,” Dodson said. “So anything that makes it tougher for kids just to feel like they are included, that they belong, and get fed, that’s something that’s really concerning to me.”

Schools that participate in the National School Lunch Program are required to provide fee-free ways to pay for lunch, but researchers say these options are not always well-advertised or accessible.

As a result of the report from the CFPB, the U.S. Department of Agriculture said it’s now reviewing its policies and working with schools and payment processors to crack down on junk fees.

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