FY2026 SNAP Healthy Fluid Milk Incentives - Cooperative Agreement

The USDA Food and Nutrition Service is soliciting applications for cooperative agreements to implement incentive programs that increase fluid milk purchases among low-income SNAP participants, with applications due July 16, 2026. This is a single-award opportunity with an award ceiling of $4 million.

Eligible applicants are state, local, territory, and tribal governmental entities and 501(c)(3) nonprofit organizations. A minimum of 50 percent of grant funds must support financial incentives at the point of sale; the Agency prioritizes applications proposing at least 65 percent for incentives.

Applicants must select one of two primary incentive delivery models: Automatic Discount (immediate point-of-purchase reductions on qualifying fluid milk for SNAP households) or EBT Integration (earned incentives deposited directly into beneficiaries' EBT accounts through state systems). Coupon models may supplement but not replace primary models. Applicants must establish partnerships with SNAP-authorized retailers and submit letters of commitment from each participating retailer.

All proposals must include six required objectives: increasing fluid milk purchases through incentives, partnering with retailers, communicating with SNAP households, training retailers, facilitating evaluation participation, and providing nutrition education. Projects targeting Tribal Nations, rural communities, persistent poverty counties, low-income/low-access census tracts, or partnering directly with dairy farmers qualify for up to 15 bonus points.

The period of performance runs from September 2026 through September 30, 2029 (not exceeding 4.5 years). The anticipated award date is September 2026. Qualifying fluid milk is defined as pasteurized cow's milk without flavoring or sweeteners, packaged in liquid form, and fortified with vitamins A and D per FDA, state, and local standards.

Grant funds may not be used to limit SNAP benefits, provide access to ineligible items, engage in SNAP recruitment activities, or employ personnel for SNAP enrollment. The program operates under CFDA 10.530.