The bill establishes a two-year pilot program in New Hampshire aimed at incentivizing schools to purchase locally sourced food from New Hampshire and New England producers. The program, administered by the Department of Agriculture, Markets, and Food, will offer grants to reimburse school administrative units that participate in the National School Lunch Program for their expenditures on local food. The grant application process will be open and aims to select one applicant from each county in the state. A selection committee with expertise in agriculture, school food service, nutrition, and farm-to-school processes will review proposals. If a county is not represented, the committee may award a second grant to another school in a different county. The program will prioritize a variety of school sizes, locations, and socioeconomic backgrounds, and participating schools are expected to be involved for the entire two-year duration.

The bill specifies that foods purchased must originate in New Hampshire and can include a range of products such as dairy, fish, pork, beef, poultry, eggs, fruits, vegetables, cider, and maple syrup. Schools can serve these foods in breakfast, lunch, or fresh fruit and vegetable programs and will be reimbursed at a rate of 33.3 percent for eligible purchases. Any unspent funds after the first year will be reallocated among participating schools for the second year. If a school drops out, a new request for applications will be issued. The Department may contract with New Hampshire Farm to School for program support, and an evaluation report will be provided to relevant committees in the New Hampshire House of Representatives and Senate at the end of each fiscal year. The bill appropriates $120,500 for each of the fiscal years ending June 30, 2025, and June 30, 2026, to fund the program, and it will take effect 60 days after its passage.