This bill mandates that school districts with meal programs approved by the United States Department of Agriculture (USDA) implement policies that ensure students with unpaid meal balances are not denied meals or stigmatized. Key provisions include prohibiting schools from serving alternative meals, taking away food already served, or identifying students based on their meal payment status. Additionally, the bill forbids schools from limiting students' participation in activities due to unpaid meal balances and prohibits the use of collections agencies for collecting meal debts. Schools are also required to develop outreach plans to encourage families to apply for free and reduced-price meal programs and can accept voluntary donations to help alleviate meal debt.

Furthermore, the bill requires the Department of Education to cover the school meal debts accrued by students participating in the USDA National School Lunch program by the end of each fiscal year. An appropriation of $1 is made for the biennium ending June 30, 2026, to facilitate this payment. The bill also anticipates the need for the Department of Education to hire a new program specialist to manage the implementation of these policies, although it does not provide funding for this position. Overall, while the bill aims to protect students from the negative impacts of unpaid meal balances, it raises concerns about the potential financial implications for the state and local school districts, with estimated costs exceeding $2.5 million annually.