The General Assembly Raised Bill No. 5537 proposes a new tax on certain sweetened beverages, syrups, and powders, with the revenue earmarked for a universal free school meals program. Starting October 1, 2026, distributors will be required to pay a tax of two cents per fluid ounce on these products, although sales to specific entities such as state and federal governments, or for personal use, will be exempt. The bill outlines the administrative responsibilities for distributors, including tax return filings and electronic payments, and mandates that the collected revenue be deposited into a dedicated universal free school meals account. Furthermore, the Commissioner of Revenue Services is authorized to adopt regulations for the tax's implementation, and an evaluation of its impact on behavior, health, and economic outcomes will be conducted by academic researchers over the first five years.

The bill establishes a universal free school meals program in Connecticut, set to commence in the 2027 school year, which will provide reimbursement grants to local and regional boards of education for free breakfasts and lunches for all public school students. The funding will derive from the newly imposed tax on sweetened beverages, and the Commissioner of Education will oversee the determination of reimbursement rates and program guidelines. Schools will not be able to request reimbursements for meals funded through existing federal programs. Additionally, the bill requires annual reports from the Commissioners of Education and Revenue Services on tax revenue, reimbursement grants, and the program's effectiveness, which will be shared with legislative committees and made available on departmental websites.