The USDA has officially announced updated CACFP reimbursement rates, effective July 1, 2025, through June 30, 2026. These new rates include welcome increases across most meal categories, offering additional support for family child care providers, centers, and sponsoring organizations.

If you’re a KidKare customer, these updates are already reflected in your KidKare Account!

What’s New in the 2025–2026 CACFP Reimbursement Rates

The Child and Adult Care Food Program rates are adjusted annually to account for changes in food costs and economic conditions. For the 2025-2026 program year, providers will see increases across most meal categories, which will help offset rising food and operational costs.

These adjustments are particularly important as they directly impact the financial sustainability of childcare operations and food programs nationwide. The updated rates reflect the USDA’s ongoing commitment to supporting nutritious meals for children and adults in care settings.

CACFP Rate Increases by Program Type

Family Child Care Homes

• Breakfast increased 4 cents (Tier I) and 1 cent (Tier II)
• Lunch/Supper increased 7 cents (Tier I) and 4 cents (Tier II)
• Snack increased 3 cents (Tier I) and no change (Tier II)

These adjustments to the daycare food program rates will provide much-needed additional funding for family childcare providers who play a crucial role in ensuring children receive nutritious meals.

Centers/Afterschool

• Breakfast increased 1 cent (paid) and 9 cents (free and reduced)
• Lunch/Supper increased 2 cents (paid) and 17 cents (free and reduced)
• Snack had no change (paid) and increased 3 cents (reduced) and 5 cents (free)

These increases are particularly significant for centers serving free and reduced-price meals, with lunch and supper seeing the largest boost at 17 cents per meal.

Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes

• Increase of $3 per month for initial 50 homes
• Increase of $3 per month for next 150 homes
• Increase of $2 per month for next 800 homes
• Increase of $2 for each additional home

These administrative rate increases will help sponsoring organizations better support their providers with training, monitoring, and technical assistance.

Why KidKare is the #1 Software for CACFP Management

Beyond staying current with reimbursement rates, KidKare offers comprehensive solutions designed specifically for CACFP sponsors, independent centers, and state agencies. Our software includes powerful features that make food program management more efficient and accurate.

Robust Compliance Management

KidKare helps you stay compliant with CACFP regulations through:

• Real-time policy updates that keep you informed of regulatory changes
• Over 250 automated edit checks that prevent common errors before submission
• 75+ customizable reports for thorough program monitoring and documentation

These tools ensure your program meets all CACFP requirements, reducing the risk of findings during reviews and audits.

Streamlined Claims Processing

Our claims processing features help maximize your CACFP meal reimbursement:

• Electronic submission capabilities that reduce paperwork and processing time
• Error detection features that identify potential issues before submission
• Reimbursement optimization tools to ensure you receive all eligible funding

With KidKare, claims processing becomes faster, more accurate, and less labor-intensive.

Effective Monitoring Tools

KidKare provides powerful monitoring capabilities:

• 24/7 access to program data from any device
• Real-time tracking of operations across multiple sites
• Comprehensive multi-site management capabilities

These features allow sponsors and administrators to maintain oversight of their programs, identify trends, and make data-driven decisions.

Learn More

For Sponsors:

For Independent Centers participating in the Food Program:

Want to simplify more than just CACFP?

If your center is juggling attendance, parent communication, billing, and Food Program tracking across multiple systems, it may be time for a unified solution.

Parachute Childcare Management Software is built specifically for providers and centers like yours—and it’s fully integrated with the KidKare Food Program. From daily operations to CACFP compliance, Parachute puts everything in one place.

Enjoy powerful accounting tools like Time/Space Percentage tracking for family child care providers, and Receipt Capture (coming soon) for centers and Food Program sponsors. It integrates seamlessly with KidKare and is purpose-built for small to mid-sized childcare businesses.

Planning for the 2025-2026 Program Year

With the new CACFP reimbursement rates 2025 now available, providers and sponsors should take the following steps:

1. Review the updated rates for your specific program type and meal categories
2. Update your budget projections for the 2025-2026 program year
3. Communicate changes to relevant staff and stakeholders
4. Ensure your meal tracking and claims systems reflect the new rates

Did you know? CACFP software is an allowable expense in your annual budget. As you prepare for the October 1st submission deadline, now is the perfect time to consider how the right tools can strengthen your organization.

Including KidKare in your budget isn’t just another line item—it’s a strategic investment that pays for itself through increased efficiency, accuracy, and compliance. See KidKare in action before you submit your budget.