H.R. 7542 — Kids Need Lunch Act

This section revises reimbursement payments to states under the National School Lunch Program by (1) replacing the national average lunch payment rate of 10.5 cents (as adjusted pursuant to section 1759a(a)) with a national average payment rate for each free lunch of $4.86, adjusted annually for inflation based on the Consumer Price Index for food away from home for all urban consumers using the most recent 12-month period available, and rounded to the nearest lower cent on July 1, 2027, and annually thereafter; and (2) striking the additional reimbursement provision requiring the Secretary to promulgate regulations updating meal patterns and nutrition standards.

This section eliminates income eligibility requirements for free lunches under the National School Lunch Program by providing that all children enrolled in a participating school are eligible for free lunch. It retains prior-law eligibility requirements for free and reduced-price school breakfasts under the Child Nutrition Act of 1966 and makes conforming amendments, including (1) striking references to reduced-price lunches in sections 9(c) and 9(e) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758); (2) repealing provisions in section 11(a) (42 U.S.C. 1759a(a)) related to reduced-price lunch assistance, direct certification, and eligibility applications; and (3) striking subsection (b) of section 28 (42 U.S.C. 1769i), which concerns income eligibility verification for program grants.

This section amends Section 12 of the Richard B. Russell National School Lunch Act by (1) striking subparagraph (l)(4)(D) and redesignating subparagraphs (E) through (M) as subparagraphs (D) through (L), respectively; (2) striking subsection (p); and (3) redesignating subsections (q) and (r) as subsections (p) and (q), respectively.

This section establishes a reimbursement program under which the Secretary of Agriculture reimburses schools participating in the National School Lunch Program—providing low-cost or free lunches to over 30 million children daily—for all delinquent debts owed by parents or guardians for meals served as of the effective date specified in section 2. The Secretary must establish the program and distribute a data collection form to state agencies within 60 days of the effective date, complete all reimbursements within 180 days, and the Comptroller General must report to Congress within two years on the program's successes and challenges; such sums as are necessary are authorized to be appropriated.

This section prohibits schools participating in the school lunch program under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) from collecting any debt owed for unpaid lunch charges, effective on the date of enactment as a condition of program participation, while requiring schools to continue accruing such debts (1) for reimbursement purposes under section 201 of this Act and (2) until the effective date specified in section 2. It further revises subsection (d) of section 9 of the Act (42 U.S.C. 1758(d)) to codify the prohibition on debt collection. (Thus, the federally reimbursed National School Lunch Program—which provides meals to over 30 million children annually, including free or reduced-price meals to low-income students—shields families from school billing or collection actions for unpaid charges.)