The General Assembly Raised Bill No. 7273 introduces a tax on certain sweetened beverages, syrups, and powders, with the revenue earmarked for a universal free school meals program. Starting October 1, 2025, distributors will be required to pay a tax of two cents per fluid ounce on these products, with specific exemptions for sales to government entities and personal use. The bill mandates monthly tax returns to the Department of Revenue Services and stipulates that the collected revenue will be deposited into a universal free school meals account. The Commissioner of Revenue Services is empowered to adopt regulations for the tax's implementation and must contract with academic researchers to assess its impact over the first five years.

In addition to the tax provisions, the bill establishes a universal free school meals program that will provide reimbursement grants to local and regional boards of education for offering free breakfasts and lunches to all public school students starting in the 2026 school year. The Commissioner of Education will determine the reimbursement rates and guidelines while ensuring that schools do not seek reimbursement for meals funded through existing federal programs. Annual reports detailing tax revenue, reimbursement grants, and the number of meals reimbursed will be submitted by the Commissioners of Education and Revenue Services, promoting transparency and accountability in the program aimed at combating food insecurity and enhancing student health.