Dairy Nutrition Incentive Program Act of 2023

S 1474 creates the Dairy Nutrition Incentive Program to encourage SNAP (Supplemental Nutrition Assistance Program) recipients to buy common dairy products like milk, yogurt, and cheese using their benefits. The program provides point-of-sale incentives at grocery stores for purchasing "naturally nutrient-rich dairy" (defined as milk, yogurt, and cheese made from cow’s milk) when SNAP benefits are used. It allocates $10 million annually to fund competitive grants for state/local governments or nonprofits to run pilot projects, requiring projects to prioritize direct incentives for SNAP users and use electronic point-of-sale systems. The bill also transitions existing dairy incentive projects from a 2018 law into this new program, ensuring no disruption to current efforts.