1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
House Bill 3435
Ordered by the House March 20
Including House Amendments dated March 20
Sponsored by Representatives NERON, PHAM H, JAVADI, BOWMAN, MUNOZ, OWENS, Senator REYNOLDS;
Representatives DOBSON, FRAGALA, GOMBERG, HUDSON, NGUYEN H, RUIZ, Senator MEEK
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: Makes school meals available at no cost. (Flesch Readability Score: 75.5).
Phases in the requirement that school districts offer lunch and breakfast to students at no
charge, regardless of household income. Provides exceptions.
Requires school districts that make breakfast accessible at a school site to make breakfast ac-
cessible at the school site after the beginning of the day. Provides exceptions.
Prescribes nutrition standards for reimbursable meals that are paid for by state sources.
Directs the Department of Education to apply for statewide participation in federal programs
and projects that expand the availability of free or reduced price meals.
Appropriates moneys to the Department of Education from the General Fund for the purposes
of paying any costs owed by parents or guardians for costs previously incurred for a reimbursable
meal and assisting school districts in purchasing or upgrading equipment necessary to comply with
the expanded provision of free lunches and breakfasts.
Declares an emergency, effective July 1, 2025.
A BILL FOR AN ACT
Relating to school meals; creating new provisions; amending ORS 327.531, 327.535 and 327.545; and
declaring an emergency.
Whereas during the COVID-19 pandemic, the provision of school meals at no cost was widely
used by students and supported by parents, teachers, administrators and school nutrition profes-
sionals;and
Whereas school meals at no cost in this state resulted in improved academic and social out-
comes, attendance and health outcomes while reducing food insecurity and behavioral discipline
rates;and
Whereas more than 98 percent of schools in this state that are eligible to serve school meals
at no cost have opted to do so; and
Whereas compared to the free and reduced price meal model, school meals at no cost reduce
administrative costs and overhead and result in investing in higher quality ingredients, preparation
and service; and
Whereas Oregon currently reimburses many participating schools through the Community El-
igibility Provision Incentive Reimbursement Program at only 90 percent of the federal reimburse-
ment rate, resulting in reduced meal quality and lower worker pay; and
Whereas the most effective strategies to reduce food waste are to serve higher quality meals
that students want to eat and to ensure that students have ample time to eat the food they are
served;and
Whereas universal meal programs remove the stigma of school meals and often result in more
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 816 A-Eng. HB 3435
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
meals being served; and
Whereas additional meals being served can result in longer meal service times, less seat time
for students and more food waste; and
Whereas ensuring that schools have the equipment to implement universal meal programs en-
sures that students are served quickly and have time to eat and reduces food waste; and
Whereas nonprofit school meal programs have limited grant options for equipment improvements
that would result in more scratch cooking, quicker meal service, better meals and longer seat time;
and
Whereas the 2012 nutrition standards for school meals promulgated by the United States De-
partment of Agriculture were estimated to save up to $792 million in health care related costs over
10 years; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 327.531 is amended to read:
327.531. (1)(a) A school or school district that meets the eligibility requirements of the special
provisions of the United States Department of Agriculture’s National School Lunch Program or
School Breakfast Program may apply to the Department of Education to offer reimbursable
breakfasts, lunches or both at no charge and without consideration of individual eligibility [by ap-
plying to the Department of Education].
(b) If the school or school district is approved under paragraph (a) of this subsection, the school
or school district must offer breakfasts, lunches or both to all students of the school or school dis-
trict at no charge to the student.
(c) For each breakfast or lunch that a school or school district provides at no charge as de-
scribed in this subsection, the Department of Education shall provide reimbursement pursuant to
ORS 327.545 (2).
(2)(a) If a school or school district does not offer reimbursable breakfasts or lunches as de-
scribed in subsection (1) of this section, the school district:
(A) May require that each school of the school district:
(i) Offers lunch at no charge to students.
(ii) Offers breakfast at no charge to students.
(B) If the school district does not elect to provide breakfast and lunch as described in
subparagraph (A) of this paragraph, must ensure that each school of the school district:
[(A)] (i) Offers lunch at no charge to students from households with incomes that do not exceed
300 percent of the federal poverty guidelines.
[(B)] (ii) Offers breakfast at no charge to students from households with incomes that do not
exceed 300 percent of the federal poverty guidelines[, if breakfast must be offered pursuant to ORS
327.535].
(b) For each breakfast or lunch that a school or school district provides at no charge as de-
scribed in this subsection, the Department of Education shall provide reimbursement pursuant to
ORS 327.545 (3).
(3) Notwithstanding subsections (1) and (2) of this section, a school or school district is not re-
quired to provide breakfast or lunch at no charge to students if:
(a) The Department of Education has insufficient funds to provide reimbursement pursuant to
ORS 327.545 (2) or (3). The State Board of Education shall adopt rules that describe:
[(a)] (A) The method for determining when the department has insufficient funds;
[(b)] (B) The content and timing of the notice to be provided to school districts when the de-
[2] A-Eng. HB 3435
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
partment determines that the department has insufficient funds; and
[(c)] (C) The procedures the school or school district must follow upon receiving notice of in-
sufficientfunds.
(b) The Department of Education determines, based on criteria established by the State
Board of Education by rule, that providing breakfast or lunch at no charge to students would
create a financial hardship for the school or school district due to changes in federal law
related to eligibility requirements for providing reimbursable breakfast and lunch at no
charge to all students without consideration of individual eligibility for free or reduced price
meals.
(c) The school site operates on a schedule that does not include a traditional service time
for breakfast or lunch, as determined by the Department of Education based on criteria es-
tablished by the State Board of Education by rule.
(4) To the greatest extent practicable, the Department of Education shall apply for
statewide participation in federal programs and projects that expand the availability of free
or reduced price meals for the students of this state.
SECTION 2. ORS 327.545 is amended to read:
327.545. (1) For school districts with schools that provide United States Department of Agricul-
ture reimbursable meals to students as described in ORS 327.531 and 327.535, the Department of
Education shall reimburse the school districts for costs incurred by the school districts in providing
the meals. The amounts of the reimbursements may not exceed the amounts prescribed by sub-
sections (2) and (3) of this section.
(2) For schools that offer reimbursable breakfast and lunch at no charge to all students of the
school without consideration of individual eligibility for free or reduced price meals as described in
ORS 327.531 (1), the amount of reimbursements provided under this section may not exceed the dif-
ference between:
(a) The free reimbursement rate established by the United States Department of Agriculture for
reimbursable meals; and
(b) Any amounts otherwise reimbursed or paid by state, federal or other sources.
(3) For schools that offer reimbursable breakfast and lunch at no charge to students [from
households with incomes that do not exceed 300 percent of the federal poverty guidelines] as described
in ORS 327.531 (2), the amount of reimbursements provided under this section [may not exceed]shall
equal the difference between:
(a) The free reimbursement rate established by the United States Department of Agriculture for
reimbursable meals; and
(b) Any amounts otherwise reimbursed or paid by state, federal or other sources.
(4) The State Board of Education may adopt any rules necessary for making reimbursements
under this section.
SECTION 3. ORS 327.531, as amended by section 1 of this 2025 Act, is amended to read:
327.531. (1)(a) A school or school district that meets the eligibility requirements of the special
provisions of the United States Department of Agriculture’s National School Lunch Program or
School Breakfast Program [may] must apply to the Department of Education to offer reimbursable
breakfasts, lunches or both at no charge and without consideration of individual eligibility.
(b) If the school or school district is approved under paragraph (a) of this subsection, the school
or school district must offer breakfasts, lunches or both to all students of the school or school dis-
trict at no charge to the student.
[3] A-Eng. HB 3435
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
(c) For each breakfast or lunch that a school or school district provides at no charge as de-
scribed in this subsection, the Department of Education shall provide reimbursement pursuant to
ORS 327.545 (2).
(2)(a) If a school or school district does not offer reimbursable breakfasts or lunches as de-
scribed in subsection (1) of this section, the school district[:]
[(A) May] must require that each school of the school district:
[(i)] (A) Offers lunch at no charge to students.
[(ii)] (B) Offers breakfast at no charge to students.
[(B) If the school district does not elect to provide breakfast and lunch as described in subpara-
graph (A) of this paragraph, must ensure that each school of the school district:]
[(i) Offers lunch at no charge to students from households with incomes that do not exceed 300
percent of the federal poverty guidelines.]
[(ii) Offers breakfast at no charge to students from households with incomes that do not exceed 300
percent of the federal poverty guidelines, if breakfast must be offered pursuant to ORS 327.535.]
(b) For each breakfast or lunch that a school or school district provides at no charge as de-
scribed in this subsection, the Department of Education shall provide reimbursement pursuant to
ORS 327.545 (3).
(3) Notwithstanding subsections (1) and (2) of this section, a school or school district is not re-
quired to provide breakfast or lunch at no charge to students if:
(a) The Department of Education has insufficient funds to provide reimbursement pursuant to
ORS 327.545 (2) or (3). The State Board of Education shall adopt rules that describe:
(A) The method for determining when the department has insufficient funds;
(B) The content and timing of the notice to be provided to school districts when the department
determines that the department has insufficient funds; and
(C) The procedures the school or school district must follow upon receiving notice of insufficient
funds.
(b) The Department of Education determines, based on criteria established by the State Board
of Education by rule, that providing breakfast or lunch at no charge to students would create a fi-
nancial hardship for the school or school district due to changes in federal law related to eligibility
requirements for providing reimbursable breakfast and lunch at no charge to all students without
consideration of individual eligibility for free or reduced price meals.If the department makes a
determination under this paragraph, a school district must ensure that each school of the
schooldistrict:
(A) Offers lunch at no charge to students from households with incomes that do not ex-
ceed 300 percent of the federal poverty guidelines.
(B) Offers breakfast at no charge to students from households with incomes that do not
exceed 300 percent of the federal poverty guidelines.
(c) The school site operates on a schedule that does not include a traditional service time for
breakfast or lunch, as determined by the Department of Education based on criteria established by
the State Board of Education by rule.
(4) To the greatest extent practicable, the Department of Education shall apply for statewide
participation in federal programs and projects that expand the availability of free or reduced price
meals for the students of this state.
SECTION 4. ORS 327.535 is amended to read:
327.535. (1) As used in this section, “eligible student” means a student who is eligible for free
[4] A-Eng. HB 3435
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
or reduced price meals under the United States Department of Agriculture’s National School Lunch
Program or School Breakfast Program.
(2) A school district may make breakfast accessible at any school site and shall make breakfast
accessible if required by this section.
(3) Subject to [subsections (4) and (5)] subsection (4) of this section, a school district that pro-
vides lunch at any school site shall make breakfast accessible as part of a breakfast program if 25
percent or more of the students at the school site are eligible students or the school site qualifies
for assistance under Chapter I of Title I of the federal Elementary and Secondary Education Act
of1965.
(4) A school district that makes breakfast accessible as provided under subsection (3) of this
section may apply to the Department of Education for a waiver for all or for particular grade levels
if the school district is financially unable to implement a breakfast program. The department may
grant a waiver to the school district for a period not to exceed two years, after which the school
district must reestablish its claim of financial hardship if the waiver is to be extended.
[(5) If the per meal federal reimbursement for the breakfast program falls below the 1991 re-
imbursement levels, a school district may elect to discontinue the program until federal funding is re-
stored to those levels. No waiver is required for such election.]
[(6)] (5) A school district that makes breakfast accessible at any school site shall make breakfast
accessible at that school site at no charge as provided by ORS 327.531 (1) or (2). The department
shall provide reimbursement to the school district for each breakfast provided at no charge as pro-
vided by ORS 327.545.
[(7)(a)] (6)(a) Except as provided by [subsection (8) of this section] paragraph (e) of this sub-
section, a school district that makes breakfast accessible at a school site [may choose to] must
make breakfast accessible at that school site after the beginning of the school day.
(b) Time spent by students consuming breakfast is considered instructional time when students
consume breakfast in the students’ classroom and instruction is being provided while students are
consuming breakfast. No more than 15 minutes may be considered instructional time when students
are consuming breakfast.
[(8)(a) If 70 percent or more of the students at a school site are eligible students, the school district
must make breakfast accessible at that school site after the beginning of the school day.]
[(b)] (c) A school district that [is required to make breakfast accessible as prescribed by para-
graph (a) of this subsection] makes breakfast accessible must ensure that breakfast is:
(A) Accessible to all students after the beginning of the school day, regardless of grade or ar-
rival time; and
(B) Provided at no charge to all students[, regardless of whether a student is an eligible
student].
[(c)] (d) The department shall provide technical assistance to school districts to meet the re-
quirements of this subsection.Technical assistance may include the development of breakfast de-
liverymodels.
[(d)] (e) [Notwithstanding paragraph (a) of this subsection,] If a school district can demonstrate
that 70 percent or more of the [eligible] students at a school site who regularly receive lunch at
the school site also regularly receive breakfast at the school site without the school district com-
plying with paragraph (a) of this subsection, the school district is not required to comply with par-
agraph (a) of this subsection.
[(9)(a)] (7)(a) The department may award grants or enter into contracts to enable school dis-
[5] A-Eng. HB 3435
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
tricts to make breakfast accessible as required under subsection [(8)](6) of this section. Each grant
or contract may not exceed $5,000 per school site and must be used to purchase or upgrade neces-
sary equipment required to provide breakfast after the beginning of the school day.
(b) The department may enter into a contract with a public or private entity for the purposes
of the entity providing:
(A) Technical assistance to applicants for and recipients of grants; and
(B) Administration of the grant program.
[(10)] (8) The State Board of Education may adopt any rules necessary for the implementation
of this section.
SECTION 5. ORS 327.545, as amended by section 2 of this 2025 Act, is amended to read:
327.545. (1) For school districts with schools that provide United States Department of Agricul-
ture reimbursable meals to students as described in ORS 327.531 and 327.535, the Department of
Education shall reimburse the school districts for costs incurred by the school districts [in providing
the meals. The amounts of the reimbursements may not exceed the amounts prescribed by subsections
(2) and (3) of this section.] as provided by this section.
(2) Reimbursement shall be provided by state sources to school districts:
(a) For meals that meet the stricter of the following nutrition standards:
(A) The nutrition standards prescribed by federal law for reimbursable meals; or
(B) The nutrition standards prescribed by 7 C.F.R. 210.10 and 220.8, as required to be
implemented by July 1, 2027, as in effect on July 1, 2024.
(b) In amounts that do not exceed the amounts prescribed by subsections (3) and (4) of
thissection.
[(2)] (3) For schools that offer reimbursable breakfast and lunch at no charge to all students of
the school without consideration of individual eligibility for free or reduced price meals as described
in ORS 327.531 (1), the amount of reimbursements provided under this section may not exceed the
differencebetween:
(a) The free reimbursement rate established by the United States Department of Agriculture for
reimbursable meals; and
(b) Any amounts otherwise reimbursed or paid by state, federal or other sources.
[(3)] (4) For schools that offer reimbursable breakfast and lunch at no charge to students as
described in ORS 327.531 (2), the amount of reimbursements provided under this section shall equal
the difference between:
(a) The free reimbursement rate established by the United States Department of Agriculture for
reimbursable meals; and
(b) Any amounts otherwise reimbursed or paid by state, federal or other sources.
[(4)] (5) The State Board of Education may adopt any rules necessary for making reimburse-
ments under this section.
SECTION 6. (1) The amendments to ORS 327.531, 327.535 and 327.545 by sections 3 to 5
of this 2025 Act become operative on July 1, 2026.
(2) The amendments to ORS 327.531, 327.535 and 327.545 by sections 3 to 5 of this 2025
Act first apply to the 2026-2027 school year.
SECTION 7.In addition to and not in lieu of any other appropriation, there is appropri-
ated to the Department of Education, for the biennium beginning July 1, 2025, out of the
General Fund, the amount of $4,000,000, which may be expended for:
(1) Paying any costs owed by parents or guardians for costs incurred before the effective
[6] A-Eng. HB 3435
1
2
3
4
5
6
7
8
date of this 2025 Act for a reimbursable meal; and
(2) Assisting school districts in purchasing or upgrading equipment necessary to ensure
compliance with the amendments to ORS 327.531 and 327.535 by sections 3 and 4 of this 2025
Act.
SECTION 8. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
July 1, 2025.
[7]