NASHVILLE, Tenn. (WSMV) – A new federal rule will prevent schools from charging low-income families when electronically depositing money into their lunch accounts.

The federal rule will not go into effect until the 2027-2028 school year and will only apply to students eligible for free and reduced-price meals.

This new rule will not affect Metro Nashville Public Schools because these schools offer free school meals through the USDA program and additional funding from the metro government.

But in Wilson County, parents say they pay a 3.5% fee when adding money to their child’s lunch account online.

Some parents told us this could escalate quickly. Isaac Booker, a parent in Wilson County, says this rule will help many families with free and reduced lunch.

“Money that doesn’t leave the house and money that they can keep in their pockets is a good thing,” Booker said.

The Consumer Financial Protection Bureau reports that such fees disproportionately burden low-income households. The report states that this is because these families tend to make smaller and more frequent deposits.

Booker says at a time when budgets are stretched to the limit, even the smallest amount of help can help.

“Any savings is good savings, so I have a family too,” Booker said. “I don’t have to pay a little fee or tax here and there, yeah that’s what I’m trying to get out of.”

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