Opportunity Information: Apply for USDA FNS SNAP HFMI 2023
SNAP HFMI-2023 is a USDA Food and Nutrition Service (FNS) competitive funding opportunity that supports projects designed to increase the purchase and consumption of healthy fluid milk among households participating in the Supplemental Nutrition Assistance Program (SNAP). SNAP, authorized under the Food and Nutrition Act of 2008 (as amended), is a central part of the US nutrition safety net, serving roughly 40 million low-income Americans. FNS both certifies eligible participants and authorizes and oversees more than 250,000 retailers that accept SNAP benefits for eligible foods. This grant opportunity focuses specifically on how to motivate SNAP households to buy more qualifying milk at the retail point of purchase.
The authority for the Healthy Fluid Milk Incentives (HFMI) initiative comes from Section 4208 of the Agricultural Improvement Act of 2018 (the 2018 Farm Bill, P.L. 115-334), which allows USDA to enter into cooperative agreements (not standard grants) with governmental entities or nonprofit organizations to carry out HFMI projects. For FY 2023, Congress provided $4,000,000 for HFMI through the Further Consolidated Appropriations Act, 2023 (P.L. 117-328). FNS announced up to $4,000,000 in total funding under this Request for Applications, with the intent to make as many as two cooperative agreement awards (meaning recipients should expect substantial federal involvement and collaboration during project execution, rather than a fully hands-off pass-through grant).
Eligible applicants include government agencies (state, local, territorial, or tribal) and nonprofit organizations. The basic idea is to work with SNAP-authorized retailers in additional regions to test incentive models that directly lower the cost of qualifying fluid milk for SNAP shoppers at the time they buy groceries. FNS has been building this work over several years. Starting in 2020, HFMI projects were piloted in West Texas (Lowe's Food King Supermarkets). In 2021, the work expanded to Wakefern ShopRite stores in New Jersey and one Jubilee grocery store in West Texas. In 2022, the program broadened significantly to include multiple retailers across several states, including Alabama, California, Georgia, and South Dakota. The 2023 competition is meant to continue that expansion while improving the way incentives are delivered.
A major distinguishing feature of the FY 2023 competition is a specific design constraint: FNS is limiting proposals to approaches that deliver incentives automatically, rather than primarily relying on paper coupons. Earlier HFMI pilots mainly evaluated dollar-for-dollar paper coupon incentives, with limited testing of electronic delivery either through retailer loyalty accounts or as an automatic register discount. For 2023, applicants must propose projects that provide HFMI incentives either (1) as an automatic discount at the point of purchase (for example, instant savings triggered at checkout when qualifying milk is purchased with SNAP benefits) or (2) by integrating with a state Electronic Benefit Transfer (EBT) system so that earned incentives are automatically deposited back onto a household's EBT card. In practice, this pushes projects toward scalable, lower-friction methods that reduce administrative burden for shoppers and retailers and improve consistency in how the benefit is applied.
The purpose of the HFMI project is straightforward: test methods that increase purchasing and consumption of qualifying fluid milk by SNAP households through point-of-purchase incentives at authorized retailers. "Qualifying fluid milk" is defined narrowly to align with dietary guidance and regulatory standards. It includes pasteurized cow's milk in liquid form that is unflavored and contains no sweeteners, is consistent with the most recent dietary recommendations, and contains vitamins A and D at levels consistent with FDA and relevant state and local standards. This definition is intended to focus incentives on standard, healthier milk options rather than sweetened or flavored products.
Key administrative details from the opportunity listing include that it is a discretionary funding opportunity administered by USDA FNS, using the cooperative agreement instrument type, in the Food and Nutrition activity area (CFDA 10.551). The opportunity was posted July 20, 2023, with an original application closing date of September 5, 2023. The total available funding is capped at $4,000,000, and FNS anticipated making up to two awards, meaning proposed projects would likely need to be sizable, operationally credible, and capable of working across retailers and/or EBT infrastructure to demonstrate results and produce transferable lessons for SNAP nutrition incentive design.Apply for USDA FNS SNAP HFMI 2023
- The Department of Agriculture, Food and Nutrition Service in the food and nutrition sector is offering a public funding opportunity titled "SNAP HFMI-2023" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.551.
- This funding opportunity was created on Jul 20, 2023.
- Applicants must submit their applications by Sep 05, 2023. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $4,000,000.00 in funding.
- The number of recipients for this funding is limited to 2 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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FAQs: USDA FNS SNAP Healthy Fluid Milk Incentives (HFMI) - FY 2023 (SNAP HFMI-2023)
What is SNAP HFMI-2023?
SNAP HFMI-2023 is a USDA Food and Nutrition Service (FNS) competitive funding opportunity to support projects that increase the purchase and consumption of healthy, qualifying fluid milk among households participating in the Supplemental Nutrition Assistance Program (SNAP). The focus is on motivating SNAP households to buy more qualifying milk at the retail point of purchase using incentives.
Which federal agency is administering this opportunity?
The opportunity is administered by the U.S. Department of Agriculture (USDA), Food and Nutrition Service (FNS).
Is this a grant or a cooperative agreement?
This opportunity uses a cooperative agreement, not a standard grant. Applicants should expect substantial federal involvement and collaboration during project execution.
What is the legal authority for the HFMI initiative?
The authority comes from Section 4208 of the Agricultural Improvement Act of 2018 (the 2018 Farm Bill, P.L. 115-334), which allows USDA to enter into cooperative agreements with governmental entities or nonprofit organizations to carry out HFMI projects.
How much funding is available under this FY 2023 competition?
FNS announced up to $4,000,000 in total funding under this Request for Applications.
How many awards does FNS expect to make?
FNS indicated an intent to make as many as two cooperative agreement awards.
What does it mean that this is a competitive funding opportunity?
It means eligible applicants submit applications under a Request for Applications (RFA), and FNS selects awardees through a competitive review process, rather than funding being distributed automatically.
Who is eligible to apply?
Eligible applicants include government agencies (state, local, territorial, or tribal) and nonprofit organizations.
What types of projects is HFMI-2023 trying to support?
Projects are intended to test incentive models at SNAP-authorized retailers that directly lower the cost of qualifying fluid milk for SNAP shoppers at the time they purchase groceries, with the goal of increasing purchasing and consumption of qualifying fluid milk.
What is the specific focus area of these projects?
The focus is on point-of-purchase incentives at SNAP-authorized retailers to motivate SNAP households to buy more qualifying fluid milk.
What is the major design constraint for FY 2023 proposals?
FNS is limiting proposals to approaches that deliver incentives automatically, rather than primarily relying on paper coupons.
Are paper coupons allowed?
The opportunity description indicates that FY 2023 proposals are limited to approaches that deliver incentives automatically and are not primarily reliant on paper coupons.
What incentive delivery methods are allowed for FY 2023?
Applicants must propose projects that provide HFMI incentives in one of these ways: (1) an automatic discount at the point of purchase (such as instant savings triggered at checkout when qualifying milk is purchased with SNAP benefits), or (2) integration with a state Electronic Benefit Transfer (EBT) system so earned incentives are automatically deposited back onto a household's EBT card.
What does "automatic discount at the point of purchase" mean in this context?
It refers to a register or checkout discount that applies instantly when qualifying fluid milk is purchased using SNAP benefits, without requiring the shopper to present a paper coupon.
What does it mean to integrate incentives with a state EBT system?
It means earned incentives are automatically deposited back onto a household's EBT card through integration with the state EBT system, rather than requiring manual redemption steps.
Why is FNS emphasizing automatic incentive delivery?
Based on the opportunity description, the intent is to move toward scalable, lower-friction methods that reduce administrative burden for shoppers and retailers and improve consistency in how the incentive is applied.
What is meant by "qualifying fluid milk" for this opportunity?
"Qualifying fluid milk" is defined narrowly. It includes pasteurized cow's milk in liquid form that is unflavored and contains no sweeteners, aligns with the most recent dietary recommendations, and contains vitamins A and D at levels consistent with FDA and relevant state and local standards.
Does qualifying milk include flavored or sweetened milk products?
No. The definition provided specifies unflavored milk with no sweeteners, reflecting a focus on standard, healthier milk options rather than sweetened or flavored products.
Does the opportunity specify what type of milk animal source is included?
Yes. The definition provided specifies pasteurized cow's milk in liquid form.
What activity area and program classification is associated with this opportunity?
The activity area is Food and Nutrition. The listing references CFDA 10.551.
What is the instrument type and funding type described in the listing?
The instrument type is a cooperative agreement, and it is described as a discretionary funding opportunity.
What is SNAP and why is it relevant to this opportunity?
SNAP is authorized under the Food and Nutrition Act of 2008 (as amended) and is a central part of the U.S. nutrition safety net, serving roughly 40 million low-income Americans. HFMI projects specifically target SNAP households and SNAP-authorized retailers to influence purchasing behavior.
How does FNS relate to SNAP operations?
FNS both certifies eligible SNAP participants and authorizes and oversees more than 250,000 retailers that accept SNAP benefits for eligible foods.
Do projects need to involve retailers?
Yes. The basic idea described is to work with SNAP-authorized retailers in additional regions to test incentive models that lower the cost of qualifying fluid milk at the retail point of purchase.
Is this program new, or has it been piloted before?
It has been piloted and expanded over several years. Pilots began in 2020 in West Texas (Lowe's Food King Supermarkets), expanded in 2021 to Wakefern ShopRite stores in New Jersey and one Jubilee grocery store in West Texas, and broadened in 2022 to include multiple retailers across several states (including Alabama, California, Georgia, and South Dakota).
What is the intent of the FY 2023 competition compared with prior years?
The intent is to continue expanding HFMI into additional regions while improving how incentives are delivered, with a specific shift toward automatic incentive delivery approaches.
When was the opportunity posted and what was the original closing date?
The opportunity was posted on July 20, 2023, with an original application closing date of September 5, 2023.
Given the funding level and expected number of awards, what scale of projects does this opportunity imply?
With total funding capped at $4,000,000 and up to two awards anticipated, the opportunity implies projects are expected to be sizable, operationally credible, and capable of working across retailers and/or EBT infrastructure to demonstrate results and produce transferable lessons for SNAP nutrition incentive design.
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