USDA Expands SNAP Dairy Nutrition Incentives with New Grant to Auburn University

The $2.99 million grant will help expand the Healthy Fluid Milk Incentives (HFMI) program to 169 SNAP-authorized retail stores in nine states.

Apr. 2, 2026 at 5:23pm

Got story updates? Submit your updates here. ›

The U.S. Department of Agriculture (USDA) has awarded Auburn University's Hunger Solutions Institute (HSI) a $2.99 million grant to expand the SNAP Healthy Fluid Milk Incentives (HFMI) program across 169 SNAP-authorized retail stores in nine states. The award includes 75 new HFMI locations in Arkansas, Georgia, Kansas, Minnesota, and Oklahoma, along with the renewal of 94 existing sites in Alabama, California, and South Dakota.

Why it matters

The HFMI program aims to encourage SNAP households to purchase more nutrient-dense fluid milk, which is one of the most under-consumed foods identified in the Dietary Guidelines for Americans. By scaling this targeted SNAP incentive, USDA is equipping more retailers to help SNAP families access essential dairy products and improve their overall diet quality and health.

The details

The HFMI program, also known as 'Add Milk', provides SNAP participants with incentives to purchase fat-free and low-fat milk, reducing cost barriers at the point of purchase and encouraging repeat purchases of healthier options. Between May 2023 and September 2025, the program has driven more than $4.3 million in skim and 1% milk purchases using SNAP benefits, with SNAP households using $2.39 million in HFMI incentives. The program has also seen strong engagement from participating retailers, with 95% redemption rates for incentive coupons at select locations.

  • The $2.99 million grant from USDA to Auburn University's Hunger Solutions Institute was awarded in April 2026.
  • The HFMI program has been expanding since 2020 and now operates in more than 1,270 retail stores across 33 states.

The players

U.S. Department of Agriculture (USDA)

The federal agency that oversees the Supplemental Nutrition Assistance Program (SNAP) and is providing the $2.99 million grant to expand the HFMI program.

Auburn University's Hunger Solutions Institute (HSI)

The recipient of the USDA grant, which will use the funding to expand the HFMI program to 169 SNAP-authorized retail stores in nine states.

International Dairy Foods Association (IDFA)

The trade association that welcomed the USDA's announcement and highlighted the HFMI program as a proven approach to encouraging healthier food choices through SNAP.

Patrick Penn

The deputy under secretary for food, nutrition and consumer services at USDA, who expressed the department's pleasure in partnering with Auburn University's College of Human Sciences to improve fluid milk consumption.

Alicia Powers

The managing director of the Hunger Solutions Institute and principal investigator of the HFMI program, who noted the importance of the program's continuation and expansion.

Got photos? Submit your photos here. ›

What they’re saying

“SNAP dairy incentives are one important way we can help to make America healthy again. We appreciate Congress's investment in HFMI and USDA's strong implementation of the program to help families choose more nutrient-dense dairy foods, support healthier diets, and deliver real value for taxpayers—all while supporting America's dairy farmers and processors.”

— Michael Dykes, President and CEO of IDFA

“The U.S. Department of Agriculture is pleased to partner with Auburn University's College of Human Sciences to improve consumption of fluid milk. Milk, especially whole milk, is paramount to the recently released Dietary Guidelines for Americans, 2025-2030. The Department looks forward to the Hunger Solutions Institute encouraging not only more milk consumption, but how to better use the incentive to purchase other healthful, less processed SNAP-eligible items.”

— Patrick Penn, Deputy Under Secretary for Food, Nutrition and Consumer Services at USDA

“The continuation and expansion of HFMI represents an important step forward. The most recent cooperative agreement is the first to demonstrate sustainability of participating retailers across multiple funding cycles, indicating proven successes at the program, retailer, and household levels. The recent award also continues expanding HFMI to additional retailers, communities, and households ensuring this work makes a lasting difference nationwide.”

— Alicia Powers, Managing Director, Hunger Solutions Institute and Principal Investigator of HFMI

What’s next

IDFA continues to advocate for Congress to appropriate funding to continue and launch new HFMI projects, as well as to expand HFMI into a broader Dairy Nutrition Incentives Projects (DNIP) that incentivizes the purchase of all varieties of milk, as well as cheese, yogurt and cultured dairy products. The 2026 Farm Bill passed out of the House Agriculture Committee this month included DNIP, and IDFA encourages the Senate to similarly include DNIP in its Farm Bill when it takes up the legislation.

The takeaway

The USDA's expansion of the HFMI program through a $2.99 million grant to Auburn University's Hunger Solutions Institute represents a significant investment in improving access to nutrient-dense dairy products for SNAP households. By scaling this targeted incentive program, the USDA aims to encourage healthier food choices and support better overall diet quality and public health outcomes.