This bill amends RSA 189:11-a to raise the eligibility threshold for free meals in schools 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 covering 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 provide both online and physical applications for free meals and will offer administrative assistance to those districts. The bill also includes appropriations of $107,000 for administrative costs and $250,000 for reimbursements related to software for the online application process, with the governor authorized to draw from the treasury for these amounts.

Additionally, the bill introduces a new funding mechanism to support lunch reimbursements for students whose family income is between 185% and 200% of the federal reduced-price guidelines, proposing a state payment of $2.00 per lunch for approximately 12,464 students over 180 school days, totaling an estimated $4,487,040. It also aims to cover the reimbursement difference between reduced-price and free lunches for 6,384 eligible students, estimated at $229,824. The bill includes provisions for hiring two positions to manage the new eligibility determination process and assist schools in setting up online systems, with funding allocated for one of these positions in FY 2026. The overall fiscal impact at the local school district level remains indeterminate, as it will depend on individual district decisions regarding eligibility for free meals and associated costs.

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