Dairy Nutrition Incentive Program Act of 2025

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

In this section:

The term dairy product means a product for which cow’s milk is listed as—

(A) the first ingredient on the labeled ingredients list of the product; or

(B) the second ingredient on the labeled ingredients list of the product, if the first listed ingredient is water.

The term eligible entity means—

(A) a State or local governmental entity; and

(B) a nonprofit organization.

The term fluid milk means any variety of pasteurized cow’s milk that—

(A) is packaged in liquid form; and

(B) contains vitamins A and D at levels consistent with the Food and Drug Administration standards, and applicable State and local standards, for fluid milk.

The term naturally nutrient-rich dairy means—

(A) fluid milk;

(B) yogurt and other cultured cow’s milk dairy products; and

(C) cheese (including nonstandardized cheese) made from cow’s milk.

The term program means the dairy nutrition incentive program established under subsection (b).

Not later than 180 days after the date of enactment of this section, the Secretary shall establish a dairy nutrition incentive program under which the Secretary shall develop and test methods to increase the purchase and consumption of naturally nutrient-rich dairy by members of households that receive benefits under the supplemental nutrition assistance program by providing an incentive for the purchase of naturally nutrient-rich dairy at the point of purchase to members of households purchasing food using those benefits.

To carry out the program, the Secretary shall enter into cooperative agreements with, or provide grants to, eligible entities, on a competitive basis, for projects that meet the purpose of the program described in subsection (b).

An eligible entity seeking to enter into a cooperative agreement or receive a grant under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

The Secretary shall develop and make public criteria for evaluating proposed projects in applications submitted under paragraph (2), which shall incorporate a scientifically based strategy designed to improve diet quality and nutritional outcomes through the increased purchase of naturally nutrient-rich dairy.

In entering into cooperative agreements and awarding grants under the program, the Secretary shall give priority to projects that—

(A) maximize the percentage of funds used for direct incentives for participants in the supplemental nutrition assistance program;

(B) include a project design—

(i) that provides incentives when naturally nutrient-rich dairy is purchased using benefits under the supplemental nutrition assistance program; and

(ii) in which the incentives earned may be used only to purchase naturally nutrient-rich dairy;

(C) include project sites that serve members of households that participate in the supplemental nutrition assistance program; and

(D) incorporate the use of point-of-sale systems that can electronically issue incentives earned under the program.

An eligible entity may request funds from the Secretary, pursuant to section 16, to offset initial costs to enable electronic benefits transfer technology for electronic point-of-sale systems described in paragraph (4)(D) for projects sites selected under the program.

The Secretary shall provide for an independent evaluation of each project carried out under the program that measures, to the maximum extent practicable, the effect of incentives on purchases of naturally nutrient-rich dairy by members of households that receive benefits under the supplemental nutrition assistance program.

The independent evaluation under paragraph (1) shall use rigorous methodologies, such as random assignment or other methods that are capable of producing scientifically valid information regarding activities that are effective.

Except as provided in subparagraph (B), subject to availability of funds, nothing in this section shall limit the continuation of a project carried out under the program.

The Secretary may discontinue a project or close a project site under the program if the project—

(i) does not comply with the requirements under this section;

(ii) does not comply with the requirements of the grant awarded or cooperative agreement entered into under the program, as applicable; or

(iii) if the Secretary determines that the results of the independent evaluation of the project under paragraph (1) are not satisfactory.

The Secretary shall make publicly available the results of each independent evaluation carried out under paragraph (1).

Not later than December 31 of the first full calendar year following the date of establishment of the program, and biennially thereafter, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that includes a description of—

(1) the status of each project carried out under the program; and

(2) the results of each completed evaluation under paragraph (1) during the period covered by the report.

There is appropriated to the Secretary, out of any funds in the Treasury not otherwise appropriated, $10,000,000 for each fiscal year to carry out this section.

In addition to the funds made available under paragraph (1), there is authorized to be appropriated to the Secretary to carry out this section $10,000,000 for fiscal year 2026 and each fiscal year thereafter.

With respect to any funds made available under subparagraph (A), only funds appropriated in advance specifically to carry out this section shall be available to carry out this section.

Of the funds made available to carry out this section for a fiscal year, the Secretary shall use not more than 7 percent to carry out subsection (d).

Funds made available to carry out this section shall not be used for any project that limits the use of benefits under the supplemental nutrition assistance program.

The Secretary of Agriculture (referred to in this subsection as the Secretary) shall transition projects carried out under section 4208 of the Agriculture Improvement Act of 2018 (7 U.S.C. 2026a) to be carried out as part of the dairy nutrition incentive program established under section 31 of the Food and Nutrition Act of 2008.

In carrying out paragraph (1), the Secretary shall ensure that—

(A) there is no interruption in projects being carried out under section 4208 of the Agriculture Improvement Act of 2018 (7 U.S.C. 2026a) during the transition described in that paragraph; and

(B) any additional authorities or flexibilities under the dairy nutrition incentive program established under section 31 of the Food and Nutrition Act of 2008 shall be applied to the projects described in subparagraph (A).

Effective 1 year after the date on which the Secretary certifies that the Secretary has completed carrying out paragraph (1), section 4208 of the Agriculture Improvement Act of 2018 (7 U.S.C. 2026a) is repealed.