FY2026 SNAP Healthy Fluid Milk Incentives Cooperative Agreement

The Healthy Fluid Milk Incentives Cooperative Agreement is administered by the U.S. Department of Agriculture through its Food and Nutrition Administration, which is responsible for overseeing federal nutrition assistance programs such as the Supplemental Nutrition Assistance Program. This funding opportunity is designed to support innovative approaches that improve nutrition outcomes among low-income populations. The agency’s broader mission is to enhance food security while promoting healthier dietary habits and supporting American agricultural systems, particularly domestic dairy production. The purpose of this program is to increase the purchase and consumption of qualifying fluid milk among SNAP participants by offering financial incentives at the point of purchase. These incentives are intended to reduce cost barriers and encourage healthier consumption patterns. The program emphasizes the development and implementation of systems that can deliver incentives efficiently, such as automatic discounts at checkout or integration with Electronic Benefit Transfer systems. Projects must focus specifically on qualifying fluid milk, defined as pasteurized cow’s milk without added sweeteners and aligned with federal dietary guidelines. Funding under this opportunity totals 4000000 dollars for fiscal year 2026, with an expectation of a single award. The project period is anticipated to run from September 2026 through September 2029. Awardees must allocate a significant portion of funding, preferably at least 65 percent and no less than 50 percent, toward direct incentives for SNAP participants. Allowable uses of funds include incentive payments, certain system upgrades, promotional activities tied to program awareness, and administrative costs necessary to implement and manage the project. Restrictions include prohibitions on using funds for hardware purchases, recruitment into SNAP, or unrelated promotional activities. Eligible applicants include governmental entities such as state, local, territorial, and tribal agencies, as well as nonprofit organizations with valid 501(c)(3) status. Applicants must demonstrate the capacity to implement complex, multi-partner projects involving retailers and potentially state SNAP agencies. Partnerships with SNAP-authorized retailers are required, and applicants must secure formal commitments from participating retailers. Additional partnerships, including those with dairy producers or community organizations, are encouraged and may improve competitiveness during the review process. Applications must be submitted electronically through Grants.gov and include a comprehensive package of required forms and documents. These include standard federal forms such as SF-424 series documents, a detailed project narrative, budget and budget narrative, letters of commitment from partners, and supporting documentation such as resumes and nonprofit verification letters. The proposal must clearly describe project design, implementation methodology, evaluation plans, and alignment with program objectives. Applicants must also outline training, outreach, and data collection strategies to support program monitoring and evaluation. Applications are evaluated based on several criteria, including project design, implementation and monitoring capacity, sustainability, budget appropriateness, and staff qualifications. Additional bonus points are awarded for projects that align with agency priorities, such as partnerships with dairy farmers or targeting high food insecurity areas. The review process involves technical evaluation by a panel and final selection by agency leadership, with consideration given to geographic distribution and strategic priorities. The application period opened on June 16, 2026, and closes on July 16, 2026. Awards are expected to be announced in September 2026, with project implementation beginning shortly thereafter. The program is not described as recurring, and no pre-application requirements such as letters of intent are specified. Applicants are encouraged to begin registration processes early due to federal system requirements. For questions, applicants may contact the designated USDA grant officer via email.

Emphasize incentive allocation above 65 percent; demonstrate strong retailer partnerships; align project design clearly with required objectives; target priority populations and dairy partnerships for bonus points