CHICAGO, August 3, 2026 – The following is a roundup of regulatory developments affecting the food-away-from-home business, including policy changes that are part of the Administration's Make America Healthy Again (MAHA) initiative. The report is compiled and written by Dr. Joy Dubost, a renowned food scientist and registered dietitian with strong knowledge of what's happening on the regulatory front.
USDA
Grants
A federal judge has ruled that the Trump administration cannot terminate previously awarded USDA grants solely because they no longer align with the Administration's policy priorities. The decision clarifies that federal agencies must honor the terms and conditions in place when grant agreements were executed and cannot retroactively apply new agency priorities to justify cancellation. The lawsuit was brought by 23 states and the District of Columbia and has implications for billions of dollars in federal grant funding across multiple agencies. The ruling halts additional grant cancellations based on shifting policy priorities but does not restore funding for grants that have already been terminated. The decision affects a range of USDA programs supporting farmers, agricultural research, local and regional food systems, and food access initiatives. The administration is also pursuing broader changes to the Office of Management and Budget's (OMB) Uniform Guidance (2 CFR Part 200), which, if finalized, could expand agencies' authority to terminate future grant awards and may prompt additional legal challenges.
Educational Resources Published
USDA's Team Nutrition has released new resources highlighting the importance of offering a variety of meats and meat alternates (M/MA) in school meals and child nutrition programs. The resource encourages schools and childcare providers to incorporate nutrient-dense protein foods, including lean meats, poultry, seafood, eggs, beans, lentils, yogurt, tofu, nuts, and seeds using healthy preparation methods such as baking, grilling, roasting, and broiling. The guidance also showcases innovative “sea-to-school” initiatives in Maine, Virginia, and Alaska that connect local seafood producers with school meal programs to expand access to fresh, locally sourced protein options. Also find standardized recipes for schools and childcare at the Institute of Child Nutrition’s Child Nutrition Recipe Box.
The update also includes practical resources for menu planning, crediting requirements, and procurement. USDA reminds program operators that meats and meat alternates are credited in ounce equivalents and provides updated guidance for products such as tofu, soy yogurt, and surimi seafood. USDA encourages the use of the Food Buying Guide for Child Nutrition Programs to check yields and crediting information for all M/MA items. For a quick reference, check out the Crediting Meats/Meat Alternates in the Child Nutrition Programs Tip Sheet. In addition, USDA launched a new Child Nutrition Programs Food Industry Toolkit to help manufacturers understand meal pattern requirements and product documentation, while encouraging local producers to participate in Farm to School programs. Schools and childcare organizations are also encouraged to order Team Nutrition educational materials before the start of the 2026–2027 school year.
SNAP Restrictions
Despite continued support from many MAHA advocates, congressional momentum to establish nationwide restrictions on Supplemental Nutrition Assistance Program (SNAP) purchases appears limited. The issue gained renewed attention after a federal judge vacated USDA-approved SNAP waiver restrictions in Colorado, Iowa, Nebraska, Tennessee, and West Virginia, raising questions about the long-term viability of the state waiver approach.
Several Republican lawmakers expressed continued support for limiting SNAP purchases of foods such as candy and sugar-sweetened beverages but acknowledged there is little appetite to pursue federal legislation at this time. Senate Agriculture Committee Chairman John Boozman (R-AR) indicated he does not plan to include such provisions in the Farm Bill, citing the issue’s bipartisan divisiveness and the need to preserve support for broader farm legislation. Senators Tommy Tuberville (R-AL), Ron Johnson (R-WI), and Rand Paul (R-KY) have voiced support for federal action, while Senate HELP Committee Chairman Bill Cassidy (R-LA) and Senator Roger Marshall (R-KS) indicated procedural and political concerns have delayed legislative efforts. For now, the administration’s strategy continues to rely primarily on state SNAP waivers, although recent litigation and the absence of a clear legislative path create uncertainty regarding the future of the initiative.
FEDERAL
FLMA 2026
Sens. Richard Blumenthal (D-Conn.) and Cory Booker (D-N.J.) have reintroduced the Food Labeling Modernization Act of 2026 (FLMA), comprehensive legislation aimed at modernizing federal food labeling requirements and improving consumer access to nutrition information. The bill would direct the Secretary of Health and Human Services to establish a single, standardized front-of-package (FOP) nutrition labeling system for all packaged foods required to bear Nutrition Facts labeling, require nutrition information to be displayed for foods sold through online retailers, and address the use and definition of labeling terms such as “Ultra-Processed” and “Not Ultra-Processed” as noted in the press release. However, the Senate bill text for FLMA 2026 has not been posted on Congress.gov or GovInfo, even though Sens. Blumenthal and Booker announced its introduction.
The legislation is a companion to a House bill introduced in April by Reps. Frank Pallone (D-N.J.) and Rosa DeLauro (D-Conn.). In addition to establishing a national FOP labeling system, the House measure includes broad reforms to food labeling, including updates to requirements for claims such as “natural” and “healthy,” new formatting requirements for ingredient statements and principal display panels, online food labeling requirements, warning labels for sugar alcohols and allulose, and expanded allergen labeling provisions.
The FLMA has been introduced in several previous sessions of Congress but has not advanced. While its prospects in the current Congress remain uncertain, the legislation reflects continued congressional interest in expanding food labeling transparency and aligns with broader federal efforts to modernize nutrition labeling and address consumer interest in ultra-processed foods. This is one to continue to monitor.
Industry Coalition Unites
More than 260 food, agriculture, retail, and consumer product organizations have sent a letter to Congress urging lawmakers to establish a uniform federal framework for food ingredient regulation and labeling. The coalition argues that “without a clear federal framework, states will continue to fill the policy vacuum with divergent ingredient review, use, labeling, and disclosure requirements that undermine the national consistency consumers, regulators, and food producers depend upon.”
The organizations called on Congress to pursue food policy reforms that reinforce the FDA’s role as the primary federal authority for food ingredient safety, approvals, labeling, and oversight. While the letter emphasizes the need for a consistent national regulatory framework, it does not explicitly call for federal preemption of state food laws. Instead, the coalition advocates for science- and risk-based decision making at the federal level to avoid conflicting state requirements, reduce regulatory complexity, and provide consumers with consistent information nationwide.
The letter also highlights the economic implications of an increasingly fragmented regulatory landscape, noting that state-specific ingredient disclosure requirements enacted in 2025 could increase grocery costs by as much as 12% due to reformulation, labeling, and supply chain challenges. The letter argues that a uniform federal approach would support innovation, strengthen supply chain efficiency, and help maintain consumer confidence while ensuring food ingredient regulation remains grounded in scientific evidence. The effort reestablishes the advocacy efforts of the recently launched Americans for Ingredient Transparency (AFIT) campaign, which advocates for nationwide consistency in food ingredient regulation while supporting reforms to ingredient oversight, front-of-package labeling, and greater consumer transparency through tools such as QR codes.
FDA
Reorganization
FDA has published a Federal Register notice outlining a broad organizational restructuring designed to centralize administrative functions and strengthen operational efficiency across the agency. Through a new “shared services” model, the FDA will consolidate functions such as human resources, financial management, acquisitions, information technology, facilities, security, and other mission support activities within the Office of Operations. According to the agency, the changes are intended to reduce duplication, improve consistency, streamline decision-making, and allow FDA’s product centers to focus more directly on their public health missions.
The reorganization formalizes administrative and operational changes implemented over the past several months and is part of the FDA’s broader “Simple Reform” initiative included in the agency’s FY 2027 budget proposal. FDA stated that centralizing administrative support will create more standardized business processes, improve resource allocation, and enhance coordination across the agency while maintaining support for its regulatory responsibilities. The agency noted that the reorganization is intended to improve efficiency and better position the FDA to serve the public through more unified operations.
MAHA
Real Food Show
HHS Secretary Kennedy has launched The Real Food Show, a new online cooking series designed to demonstrate that preparing nutritious meals at home can be both affordable and accessible. The series supports the Administration’s MAHA initiative by encouraging Americans to cook more meals using whole, minimally processed ingredients and aims to keep recipes under $5 per serving whenever possible.
The premiere episode features Kennedy and chef Andrew Gruel preparing wild Alaskan salmon cakes with an apple, white bean, and greens salad while discussing practical cooking techniques and budget-friendly meal preparation. Kennedy said the show was created in response to concerns that healthier eating is more expensive than fast food, arguing that home cooking can be both more economical and more nutritious.
MAHA Gatekeeper
Recently, The Atlantic profiled Dr. Heidi Overton, a senior White House Domestic Policy Council adviser, as one of the most influential figures shaping the Trump administration’s MAHA agenda. HHS Secretary Kennedy serves as the public face of the movement; however, Overton is noted as the central coordinator responsible for ensuring health policies are scientifically supported, legally defensible, and aligned across federal agencies. She has reportedly played a leading role in initiatives ranging from the 2025–2030 Dietary Guidelines for Americans and food policy to vaccine recommendations and regenerative agriculture. The profile also details growing tensions between some MAHA advocates, who criticized Overton for slowing or moderating proposals involving psychedelics, peptides, marijuana rescheduling, and nutrition policy. White House officials, including Chief of Staff Susie Wiles and Secretary Kennedy, defended Overton’s role, arguing that her rigorous review process is essential for producing durable federal policy rather than pursuing rapid but legally vulnerable reforms. Overton is among the finalists being considered to lead the FDA, a move that would further expand her influence over the administration’s food and health policy agenda.
Oz’s Growing Influence
Recent reports have highlighted the expanding role of Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), as one of the Trump administration’s most influential health policy leaders. While HHS Secretary Kennedy remains the public face of the MAHA agenda, Oz has taken on an increasingly prominent role overseeing Medicare drug price negotiations, advancing efforts to reduce healthcare fraud, and advising President Trump on a broad range of health policy issues. His collaborative approach and operational focus have positioned him as a key figure in implementing the administration’s healthcare priorities. Over the course of the last two months there is growing speculation that Oz could eventually succeed Kennedy as HHS Secretary if a leadership transition were to occur. Although the White House and HHS have publicly dismissed reports of an imminent change, Oz’s expanding responsibilities underscore his increasing influence over federal health policy.
CDC
CDC Director Nominee Advances
The Senate Health, Education, Labor and Pensions (HELP) Committee voted 13-10 to advance Dr. Erica Schwartz’s nomination to serve as Director of the Centers for Disease Control and Prevention (CDC), sending her nomination to the full Senate for consideration. The vote followed support from HELP Committee Chairman Sen. Bill Cassidy (R-La.), who said the administration addressed his concerns about maintaining scientific integrity and public confidence in the agency. During her confirmation hearing, Schwartz pledged to lead the agency based on science and evidence while working to rebuild public trust. If confirmed, Schwartz would become CDC’s first permanent director in nearly a year and will oversee the agency as it continues its work on infectious disease surveillance, chronic disease prevention, food safety, and other public health priorities. A final Senate confirmation vote is expected after the August recess.
Stay informed with our page tracking key federal and state policies impacting food-away-from-home. Get timely updates on issues like ultra-processed food definitions and submit feedback to ensure our industry’s voice is heard.
Regulatory & Legislative Developments