1.1 A bill for an act
1.2 relating to education finance; increasing local optional aid for schools; limiting
1.3 state-paid free school lunches to families with incomes at or below 500 percent of
1.4 the federal poverty level; appropriating money; amending Minnesota Statutes
1.5 2024, sections 124D.111, subdivisions 1, 1a, 1c, 1d, 4, by adding a subdivision;
1.6 124E.20, subdivision 1; 126C.10, subdivision 2e.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 124D.111, subdivision 1, is amended to read:
1.9 Subdivision 1.School meals policies; definitions.(a) Each Minnesota participant in
1.10the national school lunch program must adopt and post to its website, or the website of the
1.11organization where the meal is served, a school meals policy.
1.12 (b) The policy must be in writing and clearly communicate student meal charges when
1.13payment cannot be collected at the point of service. The policy must be reasonable and
1.14well-defined and maintain the dignity of students by prohibiting lunch shaming or otherwise
1.15ostracizing the student.
1.16 (c) The policy must address whether the participant uses a collections agency to collect
1.17unpaid school meals debt.
1.18 (d) The policy must ensure that once a participant has placed a meal on a tray or otherwise
1.19served the meal to a student, the meal may not be subsequently withdrawn from the student
1.20by the cashier or other school official, whether or not the student has an outstanding meals
1.21balance.
1Section 1.
REVISOR CR/KR 25-0437202/27/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2201
NINETY-FOURTH SESSION
Authored by Myers, Nadeau, Bakeberg and Witte03/12/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 (e) The policy must ensure that a student who has been determined eligible for free and
2.2reduced-price meals must always be served a reimbursable meal even if the student has an
2.3outstanding debt.
2.4 (f) If a school contracts with a third party for its meal services, it must provide the vendor
2.5with its school meals policy. Any contract between the school and a third-party provider
2.6entered into or modified after July 1, 2021, must ensure that the third-party provider adheres
2.7to the participant's school meals policy.
2.8 (g) For purposes of this section the following terms have the meanings given:
2.9 (1) "full paid meal" means a meal served to a participating student whose family does
2.10not qualify for a free or reduced-price meal under the national school lunch program;
2.11 (2) "free meal" means a meal served to a participating student whose family qualifies
2.12for a free meal under the national school lunch program;
2.13 (3) "reduced-price meal" means a meal served to a participating student whose family
2.14qualifies for a reduced-price meal under the national school lunch program;
2.15 (4) "enhanced school meal" means a meal served to a participating student whose family
2.16income meets the enhanced meal eligibility standard;
2.17 (5) "federal poverty guidelines" means the poverty guidelines by family size published
2.18by the United States Department of Human Services for that school year;
2.19 (6) "enhanced meal eligibility standard" means a student whose family income is between
2.20185 percent and 500 percent of the federal poverty guideline for that school year; and
2.21 (7) "application for educational benefits" means an online or paper application appropriate
2.22for determining a student's eligibility for school meals and other educational benefits. A
2.23student may qualify for a free, reduced-price, or enhanced school meal based on the
2.24application for educational benefits or through the direct certification process.
2.25 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
2.26 Sec. 2. Minnesota Statutes 2024, section 124D.111, subdivision 1a, is amended to read:
2.27 Subd. 1a.School lunch aid amounts.(a) The school lunch state aid for a participant in
2.28the national school lunch program is the sum of the amount in paragraph (b) and the amount
2.29calculated under subdivision 1d.
2.30 (b) Each school year, the state must pay participants in the national school lunch program
2.31either:
2Sec. 2.
REVISOR CR/KR 25-0437202/27/25 3.1 (1) the amount of 12.5 cents for each full paid and free student lunch and 52.5 cents for
3.2each reduced-price lunch served to students; or
3.3 (2) if the school participates in the free school meals program under subdivision 1c, the
3.4sum of: (i) 12.5 cents for each full paid, reduced-price, and free student lunch; and (ii) the
3.5amount specified in subdivision 1d.
3.6 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
3.7 Sec. 3. Minnesota Statutes 2024, section 124D.111, subdivision 1c, is amended to read:
3.8 Subd. 1c.Free Enhanced school meals program.(a) The free enhanced school meals
3.9program is created within the Department of Education.
3.10 (b) Each school that participates in the United States Department of Agriculture National
3.11School Lunch program and has an Identified Student Percentage below the federal percentage
3.12determined for all meals to be reimbursed at the free rate via the Community Eligibility
3.13Provision must participate in the free enhanced school meals program.
3.14 (c) Each school that participates in the United States Department of Agriculture National
3.15School Lunch program and has an Identified Student Percentage at or above the federal
3.16percentage determined for all meals to be reimbursed at the free rate must participate in the
3.17federal Community Eligibility Provision in order to participate in the free enhanced school
3.18meals program.
3.19 (d) Each school that participates in the free enhanced school meals program must:
3.20 (1) participate in the United States Department of Agriculture School Breakfast Program
3.21and the United States Department of Agriculture National School Lunch Program; and
3.22 (2) provide to all eligible students at no cost up to two federally reimbursable meals per
3.23school day, with a maximum of one free breakfast and one free lunch.
3.24 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
3.25 Sec. 4. Minnesota Statutes 2024, section 124D.111, subdivision 1d, is amended to read:
3.26 Subd. 1d.Free Enhanced school meals program aid amount.The department must
3.27provide to every Minnesota school participating in the free enhanced school meals program
3.28state funding for each school lunch and breakfast served to a an eligible student, with a
3.29maximum of one breakfast and one lunch per eligible student per school day. The state aid
3.30equals the difference between the applicable federal reimbursement rate at that school site
3.31for a free an enhanced school meal, as determined annually by the United States Department
3Sec. 4.
REVISOR CR/KR 25-0437202/27/25 4.1of Agriculture, and the actual federal reimbursement received by the participating school
4.2for the breakfast or lunch served to the student.
4.3 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
4.4 Sec. 5. Minnesota Statutes 2024, section 124D.111, is amended by adding a subdivision
4.5to read:
4.6 Subd. 1e.Transfers from other funds.A participant in the national school lunch
4.7program may set a school meal eligibility standard higher than the enhanced meal eligibility
4.8standard and may transfer other school funds into its school nutrition account to pay for the
4.9costs of these meals.
4.10 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
4.11 Sec. 6. Minnesota Statutes 2024, section 124D.111, subdivision 4, is amended to read:
4.12 Subd. 4.No fees.A participant that receives school lunch aid under this section must
4.13make lunch available without charge and must not deny a school lunch to all eligible
4.14participating students who qualify for free or meals, reduced-price meals, or enhanced school
4.15meals whether or not that student has an outstanding balance in the student's meals account.
4.16 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
4.17 Sec. 7. Minnesota Statutes 2024, section 124E.20, subdivision 1, is amended to read:
4.18 Subdivision 1.Revenue calculation.(a) General education revenue must be paid to a
4.19charter school as though it were a district. The general education revenue for each adjusted
4.20pupil unit is the state average general education revenue per pupil unit, plus the referendum
4.21equalization aid allowance and the first and second tier local optional aid allowance
4.22allowances in the pupil's district of residence, minus an amount equal to the product of the
4.23formula allowance according to section 126C.10, subdivision 2, times .0466, calculated
4.24without declining enrollment revenue, local optional revenue, basic skills revenue, extended
4.25time revenue, pension adjustment revenue, transition revenue, and transportation sparsity
4.26revenue, plus declining enrollment revenue, basic skills revenue, pension adjustment revenue,
4.27and transition revenue as though the school were a school district.
4.28 (b) For a charter school operating an extended day, extended week, or summer program,
4.29the general education revenue in paragraph (a) is increased by an amount equal to 25 percent
4.30of the statewide average extended time revenue per adjusted pupil unit.
4Sec. 7.
REVISOR CR/KR 25-0437202/27/25 5.1 (c) Notwithstanding paragraph (a), the general education revenue for an eligible special
5.2education charter school as defined in section 124E.21, subdivision 2, equals the sum of
5.3the amount determined under paragraph (a) and the school's unreimbursed cost as defined
5.4in section 124E.21, subdivision 2, for educating students not eligible for special education
5.5services.
5.6 EFFECTIVE DATE.This section is effective for fiscal year 2026 and later.
5.7 Sec. 8. Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:
5.8 Subd. 2e.Local optional revenue.(a) For fiscal year 2026 and later, a district's first
5.9tier local optional allowance equals $92.
5.10 (b) For fiscal year 2026 and later, a district's second tier local optional allowance equals
5.11$300.
5.12 (c) For fiscal year 2026 and later, a district's third tier local optional allowance equals
5.13$424.
5.14 (d) Local optional revenue for a school district equals the sum of the district's first tier
5.15local optional revenue and, second tier local optional revenue, and third tier local optional
5.16revenue. A district's first tier local optional revenue equals $300 the first tier local optional
5.17allowance times the adjusted pupil units of the district for that school year. A district's
5.18second tier local optional revenue equals the second tier local optional allowance times the
5.19adjusted pupil units of the district for that school year. A district's second third tier local
5.20optional revenue equals $424 the third tier local optional allowance times the adjusted pupil
5.21units of the district for that school year.
5.22 (b) (e) A district's local optional levy equals the sum of the first second tier local optional
5.23levy and the second third tier local optional levy.
5.24 (c) (f) A district's first second tier local optional levy equals the district's first second
5.25tier local optional revenue times the lesser of one or the ratio of the district's referendum
5.26market value per resident pupil unit to $880,000.
5.27 (d) For fiscal year 2023, a district's second tier local optional levy equals the district's
5.28second tier local optional revenue times the lesser of one or the ratio of the district's
5.29referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's
5.30second tier local optional levy equals the district's second tier local optional revenue times
5.31the lesser of one or the ratio of the district's referendum market value per resident pupil unit
5.32to $510,000. (g) For fiscal year 2025, a district's second third tier local optional levy equals
5.33the district's second third tier local optional revenue times the lesser of one or the ratio of
5Sec. 8.
REVISOR CR/KR 25-0437202/27/25 6.1the district's referendum market value per resident pupil unit to $626,450. For fiscal year
6.22026, a district's second third tier local optional levy equals the district's second third tier
6.3local optional revenue times the lesser of one or the ratio of the district's referendum market
6.4value per resident pupil unit to $642,038. For fiscal year 2027 and later, a district's second
6.5third tier local optional levy equals the district's second third tier local optional revenue
6.6times the lesser of one or the ratio of the district's referendum market value per resident
6.7pupil unit to $671,345.
6.8 (e) (h) The local optional levy must be spread on referendum market value. A district
6.9may levy less than the permitted amount.
6.10 (f) (i) A district's local optional aid equals its local optional revenue minus its local
6.11optional levy. If a district's actual levy for first or second or third tier local optional revenue
6.12is less than its maximum levy limit for that tier, its aid must be proportionately reduced.
6.13 EFFECTIVE DATE.This section is effective for revenue for fiscal year 2026 and later.
6.14 Sec. 9. APPROPRIATIONS.
6.15 Subdivision 1.Department of Education.The sums indicated in this section are
6.16appropriated from the general fund to the Department of Education in the fiscal years
6.17designated.
6.18 Subd. 2.Local optional aid.For additional general education aid under Minnesota
6.19Statutes, section 126C.19:
2026............6.20 $
2027............6.21 $
6.22 Subd. 3.School lunch.For school lunch aid under Minnesota Statutes, section 124D.111:
2026............6.23 $
2027............6.24 $
6Sec. 9.
REVISOR CR/KR 25-0437202/27/25