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New federal law restores schools' access to whole milk

On Jan. 14 President Donald Trump signed the Whole Milk for Healthy Kids Act to restore access to whole milk in schools and strengthen support for American dairy producers. On Jan. 13 at the American Farm Bureau Convention, Agriculture Secretary Brooke Rollins announced expanded enrollment for the Dairy Margin Coverage (DMC) program.

The Whole Milk for Healthy Kids Act aligns with the Dietary Guidelines for Americans, 2025–2030, released on Jan. 14, which reintroduced full-fat dairy as part of a healthy dietary pattern. The bill, S. 222, passed the Senate by unanimous consent on Nov. 20, 2025 and the House by a voice vote on Dec. 15.

USDA implementation begins immediately. Following the announcement USDA issued guidance to school nutrition officials to implement the bill. The department said proposed rulemaking will soon commence to ensure schools and nutrition programs can begin offering whole milk as quickly as possible.

The USDA also indicated it would rewrite federal child nutrition programs to ensure school meals are aligned with the Dietary Guidelines for Americans 2025-2030.

Meanwhile, Rollins announced the expanded enrollment for the 2026 DMC program, as well as new commodity purchases

The DMC program provides producers with price support to help offset milk and feed price differences. Starting Jan. 12, dairy producers could enroll in DMC. The enrollment period ends Feb. 26. The One Big Beautiful Bill Act (OBBBA) reauthorized DMC for calendar years 2026 through 2031 and provided substantial program improvements, including establishing new production history and increasing Tier 1 coverage.

DMC’s Tier 1 coverage level increased from five million pounds to six million pounds. All dairy operations that elect to enroll in DMC for 2026 will establish a new production history. Existing dairy operations that started marketing milk on or before Jan. 1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023. New dairy operations that started after Jan. 1, 2023, will use their first year of monthly milk marketings, even for a partial year. Milk marketing statements or production evidence are required to establish a production history.

Dairy operations also have the option to lock-in coverage levels for six years (2026-2031) with premium fees discounted by 25%.

DMC offers different levels of coverage, including an option that is free to producers, minus a $100 administrative fee. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool. 

For more information, visit the DMC webpage or contact your local USDA Service Center.

Agricultural Marketing Service Section 32 Purchases

Rollins also announced USDA’s intent to purchase up to $80 million in specialty crops – almonds, grape juice, pistachios and raisins - from American farmers and producers to distribute to food banks and nutrition assistance programs across the country. These purchases are being made through USDA’s authority under Section 32 of the Agriculture Act of 1935 and will assist producers and communities in need

The Agricultural Marketing Service (AMS) continuously purchases a variety of domestically produced and processed agricultural products. These “USDA Foods” are provided to USDA’s Food and Nutrition Service (FNS) nutrition assistance programs, including food banks that operate The Emergency Food Assistance Program (TEFAP), and are a vital component of the nation’s food safety net.

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