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Why is american cheese?
(lemmy.dbzer0.com)
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I'm not sure why you mention government cheese here. Government cheese was cheddar, and not made from waste products/offcuts. It's entirely unrelated, but fascinating story.
The government cheese I'm aware of was American. It was made from cheddar, a mild unaged cheddar, but was processed. Now, maybe there were regional differences, I don't know about that. But I know it was here, and all of the common sources I used to verify my memory specified that it was the low cost/calorie density ratio of American cheese that led to it being distributed.