On January 14, 2026, the federal Whole Milk for Healthy Kids Act of 2025 was signed into law. Passed by the Senate on November 20, 2025, and by the House on December 15, 2025, the new law amends the Richard B. Russell National School Lunch Act, reversing more than a decade-long prohibition on whole and 2% milk as options in the National School Lunch Program.
In addition to reinstating whole and 2% milk options, the law removes fluid milk from the calculation used to determine saturated fat limits for school lunches and expands flexibility for schools to offer nondairy milk substitutes.
Background - Whole Milk In or Out?
The National School Lunch Program was authorized in the National School Lunch Act of 1946 (title later changed to the Richard B. Russell National School Lunch Act) to “safeguard the health and well-being of the Nation’s children and to encourage the domestic consumption of nutritious agricultural commodities and other foods.” Fluid milk has been a required component of the program since its inception. The type of milk permitted, however, has changed over time.
For almost 30 years, whole milk was the standard and only offering. Beginning in the early 1970s, whole milk’s status shifted between required, optional, and, immediately prior to the enactment of this new law, prohibited. These changes resulted from a combination of USDA changing its regulations, and Congress enacting legislation, both reflecting evolving policy considerations related to saturated fat intake, nutritional composition, student preference, school menu flexibility, food waste, and demand for fluid milk.
Schools participating in the NSLP receive reimbursement for qualified meals. To be reimbursable, a meal must comply with statutory requirements and USDA regulations that incorporate the Dietary Guidelines for Americans (DGAs). Beginning in 2012, based on USDA’s interpretation of the DGAs, only fat-free and low-fat (1%) milk was permitted in reimbursable meals. Although schools could offer flavored or unflavored milk, higher-fat varieties, such as whole or 2% milk, were excluded from reimbursement eligibility.
What the New Law Does
The Whole Milk for Healthy Kids Act of 2025 amends the federal Richard B. Russell National School Lunch Act, largely decoupling milk from the DGAs, and -
- Allowing schools to choose to include in their school lunch program, whole milk and 2% milk in addition to the previously allowed low-fat (1%), and fat-free milk, clarifying that milk may be flavored or unflavored and organic or conventional.
- Excluding fluid milk from the saturated-fat calculation used to determine compliance with USDA meal nutrition standards that limit saturated fat to 10% of the total weekly calories.
- Allowing schools to option to provide nondairy beverages for fluid milk substitutes, which were previously allowed only after request. Such beverages must be nutritionally equivalent to fluid milk and meet USDA nutritional standards.
- Requiring schools that are not already providing a nondairy product to provide a substitute upon written request by parents whose child has a disability that restricts their diet. Previously, documentation from a licensed health care professional or registered dietitian was required.
USDA Guidance
Following enactment of the new law, USDA Food and Nutrition Service (FNS) issued a policy memo providing guidance on implementing the updated fluid milk requirements for school lunch
Under the guidance, schools must continue to offer at least two different options of pasteurized fluid milk at lunch each day. Milk may be flavored (subject to added sugar limits) or unflavored. Acceptable milk products include:
- whole, reduced-fat (2%), low-fat (1%) and fat-free (skim) milk;
- lactose-free and lactose-reduced milk;
- cultured milk, such as cultured buttermilk, cultured kefir milk, and cultured acidophilus milk;
- acidified milk, such as acidified kefir milk and acidified acidophilus milk; and
- ultra-high temperature (UHT) milk.
Although the law omits milk from the saturated fat calculation, milk remains subject to USDA limits for calories, sodium and beginning July 1, 2027, added sugar.
FNS stated that it is considering updating regulations in light of the release of the new Dietary Guidelines for Americans, 2025–2030 released in early January.
Conclusion
Schools participating in the National School Lunch Program now have increased flexibility in the milk products and nondairy substitutes they may offer. By restoring whole and 2% milk as allowable options and excluding fluid milk from saturated fat calculations, the new law creates the potential for increased demand for fluid milk and butterfat.
Importantly, the law does not require schools to offer whole milk and allows more flexibility to include nondairy options. Schools retain discretion over which milk options to include, and any changes will depend on local procurement decisions and existing contracts. In addition, producers will be impacted differently depending on geography and milk marketing order.