H.R. 2496: Dairy Nutrition Incentive Program Act of 2025

The Dairy Nutrition Incentive Program Act of 2025 aims to create a program within the Food and Nutrition Act of 2008 to promote the purchase and consumption of dairy products among households receiving benefits from the Supplemental Nutrition Assistance Program (SNAP). Here are the main components of the bill:

Definitions

• Dairy Product: A product where cow's milk is either the first or second ingredient.
• Eligible Entity: A state or local government entity or a nonprofit organization can participate in the program.
• Fluid Milk: Any pasteurized cow's milk in liquid form that meets specific vitamin standards.
• Naturally Nutrient-Rich Dairy: Includes fluid milk, yogurt, and cheese made from cow's milk.

Establishment of the Program

The Secretary of Agriculture is required to establish the dairy nutrition incentive program within 180 days of the bill's enactment. This program will incentivize buyers to purchase naturally nutrient-rich dairy products by offering benefits directly at the point of purchase for SNAP participants.

Funding and Grants

The Secretary will distribute grants or enter cooperative agreements with eligible entities on a competitive basis. These projects must comply with the goals of the program, which include:

• Maximizing funds used for direct incentives for SNAP participants.
• Using incentive systems that ensure rewards can only be spent on eligible dairy products.
• Incorporating technology for electronic transactions to facilitate these incentives.

Evaluation and Reporting

Independent evaluations will be conducted to assess the effectiveness of the program. The Secretary must publicize the results of these evaluations and submit reports outlining the programs' status and findings to congressional committees at specified intervals.

Funding

• $10 million is allocated annually from the Treasury for the program’s implementation.
• Additional funds may be authorized for subsequent years to maintain the program.

Transition from Existing Programs

The Secretary will also transition existing dairy incentive projects from previous legislation seamlessly into this new program while ensuring no interruption in services.

Limitations

Funds allocated for this initiative cannot be used to limit the use of SNAP benefits, ensuring participants maintain their purchasing power while accessing these incentives.

Relevant Companies

• DAR: Dairy Farmers of America may see a boost in demand for their products as this program promotes milk consumption among SNAP participants.
• MDLZ: Mondelez International, the parent company of various dairy snack brands, might benefit from increased sales of yogurt and cheese products.
• PEP: PepsiCo, which owns brands like Quaker and Tropicana, may experience changes in customer purchasing patterns if incentives lead consumers toward dairy snack products.