Quarterly Policy Update: July 2025

Head Start Funds

The Office of Head Start announced that Head Start grant recipients can request supplemental funds to promote nutrition services and healthy eating for enrolled children and families. This funding was created in responses to hearing that lack of funding is a barrier to improving or expanding nutrition services in Head Start programs.

The memo outlines allowable uses of supplemental funds. The funds can only be used to cover costs not already (currently) covered by USDA funding – including CACFP reimbursement, School Equipment Grants, the Leahy Farm to School Grant or WIC. The memo does not specify any maximum funding request

Head Start Grant recipients must apply through the Head Start Enterprise System (HSES) by Friday, August 22^nd.

 

USDA Updates

USDA Announces Reorganization Plan

Agriculture Secretary Brooke Rollins announced the reorganization of the USDA. Over the next two years, USDA plans to consolidate the FNS Regional Offices from seven to five hubs. The offices will be located in:

• Raleigh, North Carolina
• Kansas City, Missouri
• Indianapolis, Indiana
• Fort Collins, Colorado
• Salt Lake City, Utah

During this process, USDA aims to reduce the number of employees in the DC area from 4,600 individuals to 2,000.

USDA and HHS Notice: CNPs and Head Start as Federal Public Benefit

All Child Nutrition Programs and Head Start are now interpreted as “Federal Public Benefits,” which are restricted to U.S. citizens and "qualified aliens." However, CNPs are excluded from the requirement to verify citizenship or immigration status. Head Start, on the other hand, may be required to verify citizenship or immigration status of participants, but no further guidance has been released from the Office of Head Start.

Rescinded: Guidance on Interpretation of Discrimination Based on Sex

The USDA released a memo rescinding 2022 guidance regarding the interpretation of discrimination based on “sex.” The 2022 guidance redefined the definition of “sex” to include gender identity and sexual orientation. Therefore, the rescission of this guidance will revert USDA’s definition back to its previous interpretation and omit mention of gender identity and sexual orientation.

Enhancing Child Nutrition Program Meal Standards

The USDA released a memo stating that they support and encourage states and school districts to experiment with meals to provide interesting, healthy, and diverse meals. USDA encourages States to implement stronger state-level requirements for child nutrition programs. In particular, USDA encourages States to limit Ultra-Processed Foods (UPFs), food additives and sugar.

However, USDA does clarify that state agencies cannot withhold federal reimbursement based on state-level requirements.

Using Federal Funds to Purchase Local Foods

USDA released a memo to remind schools, sponsors, and institutions participating in any Child Nutrition Program of the many ways they can purchase local foods to serve in Program meals. This memo does not include any new regulations or guidance but simply restates the current capabilities CNPs have to purchase local.

 

Executive Actions

Make Our Children Healthy Again Assessment

White House published the Make Our Children Healthy Again Assessment which provides an overview of the current state of child health in the United States. The Assessment was created in response to an executive order that established the President’s Make America Healthy Again Commission. The Assessment will be used to create a Make Our Children Healthy Again Strategy which is required to be published by August of this year.

The Assessment identifies four potential drivers of childhood chronic disease:

• Poor Diet
• Aggregation of Environmental Chemicals
• Lack of Physical Activity and Chronic Stress
• Overmedicalization

 

Research

Second Study of Nutrition and Activity in CACFP

USDA released their second report on the Study of Nutrition and Activity in Child Care Settings (SNACS-II), which follow their first in 2022. SNACS-II uses data from program year 2022-23 to assess how well children’s diets and CACFP meals align with the Dietary Guidelines for Americans.

Families Demand Child Care Investment

A recent study by our partners at Child Care Aware® of America reveals that parents across the nation are struggling to find affordable, high-quality child care. The survey shows that parents are piecing together multiple care arrangements and facing challenges balancing work and caregiving. The majority of parents believe that expanding access to affordable, quality child care should be a top priority for policymakers.

2025 Early Childhood Nutrition Report

The CDC’s 2025 Early Childhood Nutrition Report gives us a big picture look at how young children in the U.S. are eating and growing. It focuses on kids from birth to age 5 and shares important facts about breastfeeding, starting solid foods, eating healthy and how states support good nutrition. The report shows where we’re doing well—and where we need to do better—to help all children grow up healthy and strong.

 

For more information contact policy@cacfp.org.