GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 774 Short Title: School Breakfast for All. (Public) Sponsors: Representatives Biggs, Lambeth, Pickett, and Cotham (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Education - K-12, if favorable, Appropriations, if favorable, Rules, Calendar, and Operations of the House April 7, 2025 *H774 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO PROVIDE BREAKFAST TO PUBLIC SCHOOL STUDENTS AT NO COST TO 2 THE STUDENTS AND TO ESTABLISH THE FARM-TO-TABLE INITIATIVE. 3 Whereas, one in five kids goes hungry every day in North Carolina, putting them at 4 risk of poor health and educational outcomes; and 5 Whereas, hunger negatively impacts a child's ability to learn, concentrate, and 6 perform well in school; and 7 Whereas, research shows that students who eat a nutritious breakfast demonstrate 8 higher academic achievement, improved behavior, and increased school attendance; and 9 Whereas, the economic benefits of school breakfast at no cost to the student and 10 family include reduced absenteeism, lower healthcare costs, and long-term workforce 11 productivity; and 12 Whereas, North Carolina is home to a rich agricultural industry, and sourcing locally 13 grown fruits, vegetables, dairy, and proteins for school meals stimulates economic growth in 14 rural communities; and 15 Whereas, partnerships between schools, farmers, and food distributors create new 16 market opportunities for North Carolina's agricultural sector while ensuring students receive 17 nutritious meals; and 18 Whereas, funding and policy support within School Breakfast for All legislation 19 would align with North Carolina's goals for economic sustainability, public health, and student 20 success; Now, therefore, 21 The General Assembly of North Carolina enacts: 22 SECTION 1.(a) G.S. 115C-263(a) reads as rewritten: 23 "(a) As a part of the function of the public school system, local boards of education public 24 school units shall have a school food authority to provide to the extent practicable school nutrition 25 services in the schools under their jurisdiction. The school food authority shall provide breakfast 26 service at no cost to students in accordance with G.S. 115C-263.5 and may offer other nutrition 27 services to the extent practicable. All school nutrition services made available under this authority 28 shall be provided in accordance with federal guidelines established by the Food and Nutrition 29 Service of the United States Department of Agriculture." 30 SECTION 1.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is 31 amended by adding a new section to read: 32 "§ 115C-263.5. Universal breakfast program. 33 General Assembly Of North Carolina Session 2025 Page 2 House Bill 774-First Edition (a) To the extent funds are made available for the purpose, the Department of Public 1 Instruction shall allocate sufficient funds to public schools to provide breakfast at no cost to 2 students attending the school in prekindergarten through grade 12 who elect to receive breakfast. 3 State and federal reimbursements for the universal breakfast program shall not exceed one 4 hundred percent (100%) of the federal free rate of meals served. These funds shall supplement 5 and not supplant any federal funds provided for the same purposes. 6 (b) Schools are encouraged to implement innovative breakfast service models, including 7 breakfast in the classroom, grab-and-go breakfast, and second chance breakfast. 8 (c) No later than February 15 of each year that funds are made available for purposes of 9 this section, the Department of Public Instruction shall report to the Joint Legislative Education 10 Oversight Committee, at a minimum, on participation rates, costs, and program effectiveness as 11 measured by impact on student health, academic performance, and overall school participation." 12 SECTION 1.(c) G.S. 115C-264 reads as rewritten: 13 "§ 115C-264. Operation. 14 (a) Local boards of education operating school nutrition programs shall participate in the 15 federal School Breakfast Program, National School Lunch Program established by the federal 16 government. and, if eligible, the Community Eligibility Provision Program. School nutrition 17 programs shall be under the jurisdiction of the Division of School Nutrition of the Department 18 of Public Instruction. 19 … 20 (c) All school nutrition services shall be operated on a nonprofit basis, and any earnings 21 therefrom over and above the cost of operation as defined herein shall be used to reduce the cost 22 of food, to serve more nutritious food, or to provide free or reduced-price meals to economically 23 disadvantaged children and for no other purpose. The term "cost of operation" means the actual 24 cost incurred in the purchase and preparation of food, the salaries of all personnel directly 25 engaged in providing nutrition services, and the cost of nonfood supplies as outlined under 26 standards adopted by the State Board of Education. "Personnel" means school nutrition 27 supervisors or directors, bookkeepers or other staff directly engaged in nutrition services record 28 keeping, and those persons directly involved in preparing and serving food. School nutrition 29 personnel shall be paid from the funds of the school nutrition program only for services rendered 30 on behalf of the school nutrition program. Any cost incurred in the provisions and maintenance 31 of school nutrition services over and beyond the cost of operation shall be included in the budget 32 request filed annually by local boards of education with boards of county commissioners. Local 33 boards of education are not required to comply with G.S. 115C-522(a) in the purchase of supplies 34 and food for such school nutrition services. 35 …." 36 SECTION 1.(d) Part 2 of Article 17 of Chapter 115C of the General Statutes is 37 amended by adding a new section to read: 38 "§ 115C-264.6. Farm-to-table initiative. 39 (a) The Department of Public Instruction shall develop a farm-to-table initiative to 40 incorporate locally sourced and fresh ingredients into the universal breakfast program under 41 G.S. 115C-263.5. 42 (b) Schools shall be encouraged to partner with local farmers and food producers to 43 procure fresh, seasonal, and nutritional food options. 44 (c) The initiative shall provide education opportunities for students to learn about 45 agriculture, nutrition, and sustainable food systems." 46 SECTION 2.(a) G.S. 115C-150.14 is amended by adding a new subsection to read: 47 "(a1) A school governed by this Article shall provide school nutrition services in 48 accordance with Part 2 of Article 17 of this Chapter." 49 SECTION 2.(b) G.S. 115C-218.75 is amended by adding a new subsection to read: 50 General Assembly Of North Carolina Session 2025 House Bill 774-First Edition Page 3 "(p) A charter school shall provide school nutrition services in accordance with Part 2 of 1 Article 17 of this Chapter." 2 SECTION 2.(c) G.S. 115C-238.72(b) reads as rewritten: 3 "(b) Food Nutrition Service. – The local school administrative unit identified by resolution 4 shall provide, to the extent practicable, school food provide school nutrition services to the 5 regional school. school in accordance with Part 2 of Article 17 of this Chapter. For purposes of 6 federal funding through the National School Lunch Program or other federally supported food 7 nutrition service programs, the local school administrative unit identified by resolution shall be 8 permitted to include eligible students enrolled in the regional school. Other participating units 9 shall not include students enrolled in the regional school for purposes of federally supported food 10 nutrition service programs." 11 SECTION 2.(d) G.S. 116-239.8(b)(4)c. reads as rewritten: 12 "c. Food Nutrition services. – The laboratory school shall strive to ensure 13 that one hundred percent (100%) muscadine grape juice is made 14 available to students as a part of the school's nutrition program or 15 through the operation of the school's vending facilities. Laboratory 16 schools shall provide school nutrition services in accordance with Part 17 2 of Article 17 of Chapter 115C of the General Statutes. Upon request, 18 the local school administrative unit in which the laboratory school is 19 located shall administer the National School Lunch Program for the 20 laboratory school in accordance with G.S. 115C-264.school." 21 SECTION 3. There is appropriated from the General Fund to the Department of 22 Public Instruction the sum of thirty-nine million dollars ($39,000,000) in recurring funds for the 23 2025-2026 fiscal year, thirty-four million dollars ($34,000,000) of which shall be allocated to 24 public school units to provide a universal breakfast program as required under G.S. 115C-263.5, 25 as enacted by this act, and five million dollars ($5,000,000) of which shall be allocated to public 26 school units to support farm-to-table initiatives pursuant to G.S. 115C-264.6, as enacted by this 27 act. 28 SECTION 4. This act becomes effective July 1, 2025, and applies beginning with 29 the 2025-2026 school year. 30