S. 1021 — Dairy Nutrition Incentive Program Act of 2025

This section establishes a dairy nutrition incentive program to develop and test point-of-purchase incentives that increase purchases and consumption of naturally nutrient-rich dairy (i.e., fluid milk, yogurt and other cultured cow's milk dairy products, and cheese made from cow's milk) by Supplemental Nutrition Assistance Program (SNAP) households. (As background, this expands on prior healthy fluid milk incentive projects, which were limited to unflavored, unsweetened pasteurized cow's milk consistent with dietary guidelines and packaged with vitamins A and D.) The Secretary of Agriculture must implement the program not later than 180 days after enactment by awarding competitive grants or cooperative agreements to state or local governments and nonprofit organizations based on publicly available criteria incorporating scientifically based strategies to improve diet quality and nutrition. In awarding funds, the Secretary must prioritize projects that (1) maximize the percentage of funds for direct participant incentives, (2) provide incentives only for naturally nutrient-rich dairy purchases using SNAP benefits that are redeemable solely for such dairy, (3) target SNAP households, and (4) use electronic point-of-sale systems; eligible entities may also receive separate funds to offset initial electronic benefits transfer setup costs. The Secretary must conduct independent project evaluations using rigorous methodologies (e.g., random assignment), publicly disseminate results, discontinue noncompliant or unsatisfactory projects, and submit biennial reports to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture beginning December 31 of the first full calendar year after program establishment. The section appropriates $10 million in mandatory funding for each fiscal year.