Statewide free universal school meals demonstration projects

Section 11(a)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by adding at the end the following: (G) Statewide free universal school meals demonstration projects (i) Definitions In this subparagraph: (I) Demonstration project The term demonstration project means a demonstration project carried out under clause (ii). (II) Eligible school (aa) In general The term eligible school means a school that participates in the school lunch program under this Act and the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (bb) Exclusion The term eligible school does not include residential child care institutions (as defined in section 210.2 of title 7, Code of Federal Regulations (or successor regulations)). (III) Identified students The term identified students has the meaning given the term in subparagraph (F)(i). (IV) Selected State The term selected State means a State selected to carry out a demonstration project under clause (iii)(I). (ii) Establishment Not later than July 1, 2026, the Secretary shall carry out demonstration projects in selected States under which school meals are provided at no charge to every student at an eligible school in the selected State. (iii) State selection (I) In general The Secretary shall select not more than 5 States to each carry out a demonstration project. (II) Applications A State seeking to carry out a demonstration project shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. (III) Priority In carrying out subclause (I), the Secretary shall give priority to a State based on— (aa) the level of childhood poverty in the State; (bb) the extent to which the State has implemented subparagraph (F); (cc) the extent to which the direct certification rate of the State meets the required percentage (as defined in section 9(b)(4)(F)(i)); (dd) the extent to which the State demonstrates a commitment to providing technical assistance to local educational agencies that will implement the demonstration project in the State; and (ee) the extent to which the State demonstrates a commitment to providing non-Federal funding under clause (vi)(III). (iv) Start date A demonstration project shall begin in a selected State on the first day of the school year in that State. (v) Special assistance payments (I) First year For each month of the first school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying— (aa) 1.9; and (bb) the percentage of identified students in eligible schools in the State as of the last day of the prior school year, up to a maximum of 100 percent. (II) Subsequent years For each month of the second school year and each subsequent school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying— (aa) 1.9; and (bb) the higher of— (AA) the percentage of identified students in eligible schools as of the last day of the prior school year; and (BB) the percentage of identified students in eligible schools as of the last day of the school year prior to the first school year during which a demonstration project is carried out, up to a maximum of 100 percent. (III) Payment for other meals With respect to the reimbursable meals described in subclauses (I) and (II) for which a selected State is not receiving special assistance payments under this clause, the reimbursement rate shall be the rate provided under section 4. (IV) Payments in lieu of A special assistance payment made under this clause shall be in lieu of any other special assistance payment made under this paragraph. (vi) State implementation (I) Preliminary activities Each selected State shall, in the school year preceding the first school year during which the demonstration project shall be carried out in the State— (aa) identify each eligible school in the State; (bb) in consultation with the Secretary, combine the percentage of identified students across eligible schools for the purpose of calculating the maximum reimbursement rate to ensure that the special assistance payments received under clause (v) are for the maximum amount; (cc) inform local educational agencies of the demonstration project; and (dd) coordinate with local educational agencies to provide information about the demonstration project to parents or guardians of students attending eligible schools. (II) Meal service As part of a demonstration project, an eligible school in a selected State— (aa) shall not collect applications for free and reduced price lunches under this Act; and (bb) shall make school meals available to all children at the school at no charge. (III) Non-Federal funding (aa) In general Each selected State may support the demonstration project using— (AA) funds from State and local sources that are used for the maintenance of the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and (BB) State revenues appropriated or used for program purposes under section 7. (bb) Non-Federal contributions In addition to the funding received under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), each selected State shall provide funding from non-Federal sources to ensure that local educational agencies in the State receive the free reimbursement rate for not less than 90 percent of the meals served at eligible schools. (cc) Continuation of free rate A selected State that receives special assistance payments at the free reimbursement rate under subparagraph (F) for more than 90 percent of the meals served at eligible schools during the school year preceding the first school year during which a demonstration project is carried out shall continue to receive the free reimbursement rate for not less than the same percentage of meals in each school year during which a demonstration project is carried out. (vii) Report (I) In general Not later than September 30, 2030, the Secretary, acting through the Administrator of the Food and Nutrition Service, shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committees on Agriculture and Education and Labor of the House of Representatives a report that evaluates the impact of each demonstration project in a selected State with respect to— (aa) academic achievement, absenteeism, tardiness, the school environment, child food insecurity in the selected State, and other key factors identified in consultation with the Secretary of Education; (bb) the rate of participation in the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) among identified students and other students; (cc) school meal services, finances, and operations in the selected State; (dd) administrative costs to the selected State and the school food authorities participating in the demonstration project; and (ee) the integrity of the operation of the free lunch program under this Act in the selected State. (II) Funding (aa) In general On October 1, 2026, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this clause $3,000,000, to remain available until September 30, 2030. (bb) Receipt and acceptance The Secretary shall be entitled to receive, shall accept, and shall use to carry out this clause the funds transferred under item (aa), without further appropriation..