H.R. 5731 — School Food Modernization Act

This section establishes a new program under the Richard B. Russell National School Lunch Act to provide loan guarantees and grants for infrastructure improvements (i.e., food storage facilities, kitchens, food service facilities, cafeterias, dining rooms, or food preparation facilities) and durable equipment (i.e., food preparation, handling, cooking, serving, and storage equipment valued over $500) to eligible entities—including local educational agencies, school food authorities, tribal organizations, or consortia—to support healthy meals in school meal programs. (1) Loan guarantees.—The Secretary of Agriculture must issue guarantees to eligible lenders, covering up to 80% of loan principal, for such improvements; reserves $300 million in unobligated authority from the community facility guaranteed loan program (7 U.S.C. 1926(a)) as of enactment for this purpose; gives preference to entities with substantial infrastructure or equipment needs; and may use up to 5% of funds annually for technical assistance. (2) Equipment grants.—Beginning in FY2026 and subject to appropriations, the Secretary provides grants to state agencies for competitive subgrants to eligible entities to purchase equipment for healthy meals and food safety; authorizes $35 million annually for FY2026 through FY2031; gives subgrant preference to entities with substantial needs; and may use up to 5% of funds annually for technical assistance.

This section establishes a competitive grant program under which the Secretary awards grants to eligible third-party training institutions (i.e., nonprofits experienced in food/nutrition training, institutions of higher education as defined in 20 U.S.C. 1002, area career and technical education schools as defined in 20 U.S.C. 2302, or their consortia) to develop and administer training and technical assistance for school food service personnel to meet or exceed nutrition standards and improve the efficacy and efficiency of school lunch and breakfast programs. Grants require recipients to meet specified criteria (e.g., prior experience in training school food service administrators and ability to deliver training in-person or online); provide matching funds for at least 20% of costs; and undergo USDA oversight. The section authorizes $10 million annually for FY2026 through FY2031, of which up to 5% may be used for technical assistance to grant applicants.

This section directs the Secretary of Agriculture to submit to Congress, not later than one year after funds are made available to carry out sections 21A and 27 of the Richard B. Russell National School Lunch Act (as added by this Act) and annually thereafter, a report on progress implementing those sections.

This section directs the Secretary of Agriculture to conduct a study on state agencies' use of state administrative expense (SAE) funds—federal reimbursements under 7 CFR part 235 for administrative costs of child nutrition programs (i.e., National School Lunch Program and other programs under the Child Nutrition Act of 1966 and Richard B. Russell National School Lunch Act)—including innovative practices, barriers to effective use, and strategies to promote school nutrition workforce training on standards such as competitive foods, local wellness policies, and professional standards. For the study, the Secretary must develop an assessment tool, informed by stakeholder input, to evaluate state agencies' effectiveness in providing such training and technical assistance. Not later than 18 months after enactment, the Secretary must submit a report to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Education and Labor containing the study summary, findings and recommendations, a plan to disseminate best practices, and suggestions for ongoing monitoring and improvement.