FY2026 SNAP Healthy Fluid Milk Incentives – Cooperative Agreement | Apply Online

FY2026 SNAP Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement - FAQs

What is the FY2026 SNAP Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement?

The FY2026 SNAP Healthy Fluid Milk Incentives (HFMI) Cooperative Agreement is a discretionary funding opportunity from the USDA Food and Nutrition Service (FNS) (CFDA 10.530). It is intended to increase the amount of qualifying fluid milk purchased by households participating in the Supplemental Nutrition Assistance Program (SNAP), primarily by applying incentives at the point of purchase.

What problem is this opportunity trying to solve?

The opportunity is focused on increasing SNAP participants' purchases of fluid milk. The basic idea is that when a SNAP shopper buys qualifying fluid milk, an incentive is applied in real time (or provided as an immediate benefit linked to that transaction), making it easier and more appealing to choose milk within a limited food budget.

What is the main goal of the program?

The main goal is to raise the amount of fluid milk purchased by SNAP households. The incentive approach is meant to influence purchasing decisions where they actually happen: at checkout or as an immediate transaction-tied benefit.

How are incentives expected to be delivered to shoppers?

The opportunity emphasizes incentives applied directly at the point of purchase. That means the incentive should be delivered in real time at checkout or as an immediate benefit that is clearly tied to the qualifying milk purchase transaction.

Is this a grant or something else?

This award is structured as a cooperative agreement rather than a standard grant. In general, a cooperative agreement signals a more hands-on relationship between the recipient and USDA during planning, implementation, and oversight.

Why does it matter that this is a cooperative agreement?

Because it is a cooperative agreement, applicants should expect active USDA involvement as the project is planned, implemented, and overseen. The intent is not only to operate an incentive program, but also to build the kinds of systems, tracking, and evidence USDA would need to understand effectiveness and potential replication.

What types of activities does the project emphasize?

The project emphasis is twofold: (1) running a fluid milk incentive program for SNAP participants in real purchasing environments, and (2) developing, improving, or modernizing the systems needed to deliver those incentives efficiently, track them accurately, and evaluate results credibly.

Does the opportunity support technology or system modernization?

Yes. The opportunity specifically highlights developing, improving, or modernizing the systems that make point-of-purchase incentives possible. This can include updated technologies and operational processes to deliver incentives efficiently and to support accurate tracking and evaluation.

Can existing incentive approaches be expanded or strengthened?

Yes. The opportunity notes that projects can include strengthening or scaling existing approaches that encourage healthier choices, as well as building updated technologies and operational processes.

Who is eligible to apply?

Eligible applicants include governmental entities such as state, local, territorial, or tribal agencies, as well as non-profit organizations.

How many awards does USDA expect to make?

The opportunity anticipates a single award (ExpectedAwards: 1). This suggests USDA intends to support one lead organization to run a substantial initiative, potentially across multiple sites or in a way that is scalable, rather than funding several smaller pilots.

What is the maximum award amount?

The award ceiling is $4,000,000.

What is the application deadline?

The application deadline (OriginalClosingDate) is July 16, 2026.

When was the opportunity posted/created?

The opportunity was created on June 16, 2026.

What is the funding opportunity number and title?

The funding opportunity number is USDA FNS SNAP HFMI 2026, and the title is FY2026 SNAP Healthy Fluid Milk Incentives - Cooperative Agreement.

What does "discretionary funding opportunity" mean in this context?

The opportunity is described as discretionary, meaning it is a competitive funding opportunity administered by USDA FNS rather than a formula allocation. Applications are expected to be evaluated and selected based on the program's goals and requirements described in the funding notice.

What does USDA want applicants to build beyond the incentive itself?

Beyond running the incentive program, USDA is looking for the infrastructure and evidence needed to judge effectiveness and replication potential. That includes systems for delivery at checkout, integration with retailers or point-of-sale environments, accurate tracking, and credible evaluation.

How important is retailer and point-of-sale integration?

Retailer and point-of-sale integration appears central. Strong proposals are expected to address how the incentive will be delivered at checkout and how retailers or point-of-sale systems will be integrated so incentives can be applied reliably in real purchasing environments.

What kinds of operational risks should an applicant plan for?

The opportunity explicitly calls out the need to minimize fraud and error. Applicants should be prepared to explain how their systems and processes will reduce these risks while still delivering incentives efficiently at the point of purchase.

What outcomes should the project measure?

The opportunity highlights outcomes tied to purchasing behavior and program performance, such as changes in purchasing patterns, redemption rates, and program reach among the intended SNAP population.

What does USDA mean by "real purchasing environments"?

Based on the description, "real purchasing environments" refers to actual retailer or venue settings where SNAP participants buy groceries and where incentives can be applied at checkout or as an immediate transaction-linked benefit.

How does this opportunity align with USDA priorities?

The opportunity is described as aligning with USDA priorities around strengthening healthier food systems and supporting healthier families. It also reinforces demand for U.S. agricultural products by increasing purchases of fluid milk.

What should a strong proposal generally address, based on the notice summary?

Based on the information provided, strong proposals will typically address: how the incentive will be delivered at checkout; how participating retailers or point-of-sale systems will be integrated; how fraud and error will be minimized; and how outcomes will be measured, including changes in purchasing patterns, redemption rates, and program reach.