This bill amends current law to allow school boards to raise the eligibility threshold for free meals to 200 percent of the federal poverty level. It stipulates that meals served to students who meet federal income eligibility guidelines will continue to receive federal reimbursement, while meals not covered by federal reimbursement will be reimbursed by the state at a rate that covers 50 percent of the difference between federal rates for free and reduced-price meals or paid meals. The Department of Education is tasked with adopting rules to ensure that school districts providing this expanded eligibility offer both online and physical applications for free meals and will provide administrative assistance to those districts.

The bill includes appropriations of $107,000 for administrative costs and $250,000 for reimbursements to school districts for software related to the online application process for free or reduced-price meals for the biennium ending June 30, 2026. It does not provide additional funding for state nutrition reimbursements, leaving the overall fiscal impact uncertain, as it depends on how many school boards opt to raise the eligibility for free meals. The estimated potential reimbursement costs could reach approximately $6.9 million annually, with additional provisions for funding lunch reimbursements for students with family incomes between 185% and 200% of the federal reduced-price guideline, potentially totaling around $4.5 million. The bill introduces new provisions to enhance meal access for students in need but does not include any deletions from current law.

Statutes affected:
Introduced: 189:11-a
As Amended by the Senate: 189:11-a