<P> Government cheese is processed cheese provided to welfare beneficiaries, Food Stamp recipients and the elderly receiving Social Security in the United States, and is still provided to food charities . The processed cheese was used in military kitchens since World War II and in schools since as early as the 1960s . </P> <P> Government cheese is a commodity cheese that was controlled by the U.S federal government from the time World War II ended and into the early 1980s . Government cheese was created to maintain the price of dairy when dairy industry subsidies artificially increased the supply of milk and created a surplus of milk that was then converted into cheese, butter, or powdered milk . The cheese, along with the butter and dehydrated powder, were stored in over 150 warehouses across 35 states . </P> <P> The cheese was bought and stored by the government's Commodity Credit Corporation . Direct distribution of dairy products began in 1982 under the Temporary Emergency Food Assistance Program of the Food and Nutrition Service . According to the government, it "slices and melts well ." The cheese was provided monthly, in unsliced block form, with generic product labeling and packaging . </P>

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