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FY 2025 SNAP HEALTHY FLUID MILK INCENTIVE

ID: USDA-FNS-SNAP-HFMI-2025 • Type: Posted

Description

The United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) certifies low-income Americans to participate in the program and authorizes and monitors retailers to accept SNAP benefits for eligible food products. Currently, around 42 million low-income Americans receive SNAP benefits, and more than 250,000 retailers are authorized to accept SNAP benefits.

Section 4208 of the Agricultural Improvement Act of 2018 (P.L. 115-334), as amended, authorizes USDA, on a competitive basis, to enter cooperative agreements with governmental entities or nonprofit organizations to carry out Healthy Fluid Milk Incentives (HFMI) projects. The Full-Year Continuing Appropriations and Extensions Act, 2025, (P.L. 119-4) provides $3,000,000 for HFMI for fiscal year (FY) 2025.

The primary purpose of the HFMI project is to develop and test methods to increase the purchase and consumption of qualifying fluid milk by SNAP households by providing them with an incentive at the point of purchase at authorized retailer locations. Qualifying fluid milk includes all varieties of pasteurized cow's milk that (1) is without flavoring or sweeteners, (2) is consistent with the most recent dietary recommendations, (3) is packaged in liquid form, and (4) contains vitamins A and D at levels consistent with the Food and Drug Administration, State, and local standards for fluid milk. Additionally, through this project, FNS hopes to identify and further strengthen strategies to encourage healthy choices, healthy outcomes, and healthy families.

Background
The United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) certifies low-income Americans to participate in the Supplemental Nutrition Assistance Program (SNAP) and authorizes retailers to accept SNAP benefits for eligible food products.

The Healthy Fluid Milk Incentives (HFMI) project aims to increase the purchase and consumption of qualifying fluid milk by SNAP households through financial incentives at the point of purchase. This initiative is authorized under Section 4208 of the Agricultural Improvement Act of 2018, with a funding allocation of $3,000,000 for fiscal year 2025.

Grant Details
The HFMI project involves developing and testing methods to incentivize SNAP households to purchase qualifying fluid milk. Key tasks include:
1. Providing financial incentives at the point of purchase using Electronic Benefit Transfer (EBT) integration or automatic discounts.
2. Partnering with selected SNAP-authorized retailers to operate the incentive solution in compliance with SNAP regulations.
3. Communicating and promoting HFMI incentive availability to SNAP households.
4. Providing training and technical support to participating retailers.
5. Facilitating participation in HFMI evaluations through data collection and sharing.
6. Educating on the nutritional value of cow’s milk according to Dietary Guidelines.

Eligibility Requirements
Eligible applicants include governmental entities (State, local, territory, or tribal agencies) and nonprofit organizations with a valid IRS 501(c)(3) determination letter. Applicants must demonstrate experience in reducing food insecurity or working with SNAP, fiscal accountability, data collection capabilities, and a willingness to share information with stakeholders.

Period of Performance
The anticipated period of performance for this project is from September 26, 2025, to September 30, 2028.

Grant Value
$3,000,000 total funding available for FNS to support this program in FY 2025; individual grant awards may vary but cannot exceed this total.

Place of Performance
The project will be implemented in various geographic locations where SNAP households reside, specifically targeting areas that have not been previously tested under HFMI initiatives.

Overview

Category of Funding
Food and Nutrition
Funding Instruments
Cooperative Agreement
Grant Category
Discretionary
Cost Sharing / Matching Requirement
False
Source
On 7/7/25 Food and Nutrition Service posted grant opportunity USDA-FNS-SNAP-HFMI-2025 for FY 2025 SNAP HEALTHY FLUID MILK INCENTIVE with funding of $3.0 million. The grant will be issued under grant program 10.551 Supplemental Nutrition Assistance Program. It is expected that one grant will be made worth between $1 and $3.0 million.

Timing

Posted Date
July 7, 2025, 12:00 a.m. EDT
Closing Date
Aug. 6, 2025, 12:00 a.m. EDT Due in 12 Days
Last Updated
July 7, 2025, 1:24 p.m. EDT
Version
1
Archive Date
Sept. 5, 2025

Eligibility

Eligible Applicants
Others (see text field entitled "Additional Information on Eligibility" for clarification)
Additional Info
The following are eligible entities: • Governmental entities (State, local, territory, or tribal agencies) • All non-profit organizations must include their 501(c)(3) determination letter issued by the Internal Revenue Service (IRS). See the RFA for full information on eligibility.

Award Sizing

Ceiling
$3,000,000
Floor
$1
Estimated Program Funding
$3,000,000
Estimated Number of Grants
1

Contacts

Contact
Dawn Washington Grants Officer
Contact Phone
(703) 305-2450

Documents

Posted documents for USDA-FNS-SNAP-HFMI-2025

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