Funding for school safety increased, local optional aid for schools increased, state-paid free school lunches limited to families with incomes at or below 500 percent of the federal poverty guidelines, and money appropriated.

A bill for an act

relating to education finance; increasing funding for school safety; increasing local

optional aid for schools; limiting state-paid free school lunches to families with

incomes at or below 500 percent of the federal poverty guidelines; appropriating

money; amending Minnesota Statutes 2024, sections 124D.111, subdivisions 1,

1c, 1d, 4, by adding a subdivision; 126C.10, subdivision 2e; 126C.44; Minnesota

Statutes 2025 Supplement, sections 124D.111, subdivision 1a; 124E.20, subdivision

1; Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision

4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School meals policies
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; definitions
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.

(a) Each Minnesota participant in

the national school lunch program must adopt and post to its website, or the website of the

organization where the meal is served, a school meals policy.

(b) The policy must be in writing and clearly communicate student meal charges when

payment cannot be collected at the point of service. The policy must be reasonable and

well-defined and maintain the dignity of students by prohibiting lunch shaming or otherwise

ostracizing the student.

(c) The policy must address whether the participant uses a collections agency to collect

unpaid school meals debt.

(d) The policy must ensure that once a participant has placed a meal on a tray or otherwise

served the meal to a student, the meal may not be subsequently withdrawn from the student

by the cashier or other school official, whether or not the student has an outstanding meals

balance.

(e) The policy must ensure that a student who has been determined eligible for free and

reduced-price meals must always be served a reimbursable meal even if the student has an

outstanding debt.

(f) If a school contracts with a third party for its meal services, it must provide the vendor

with its school meals policy. Any contract between the school and a third-party provider

entered into or modified after July 1, 2021, must ensure that the third-party provider adheres

to the participant's school meals policy.

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(g) For purposes of this section:

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(1) "application for educational benefits" means an online or paper application appropriate

for determining a student's eligibility for school meals and other educational benefits. A

student may qualify for free, reduced-price, or enhanced meals based on the application for

educational benefits or through the direct certification process;

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(2) "enhanced student eligibility standard" means a student whose family income is

between 185 percent and 500 percent of the federal poverty guideline for that school year;

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(3) "enhanced student meal" means a meal served to a student whose family income

meets the enhanced student eligibility standard;

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(4) "federal poverty guidelines" means the poverty guidelines by family size published

by the United States Department of Health and Human Services for that school year;

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(5) "free meal" means a meal served to a student whose family qualifies for a free meal

under the national school lunch program;

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(6) "full paid meal" means a meal served to a student whose family does not qualify for

a free or reduced-price meal under the national school lunch program; and

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(7) "reduced-price meal" means a meal served to a student whose family qualifies for a

reduced-price meal under the national school lunch program.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 2.

Minnesota Statutes 2025 Supplement, section 124D.111, subdivision 1a, is amended

to read:

Subd. 1a.

School lunch aid amounts.

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(a) The school lunch state aid for a participant in

the national school lunch program is the sum of the amounts in paragraphs (b) and (c) and

the amount calculated under subdivision 1d.

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(a)
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(b)
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For fiscal years 2025 through 2027, the state must pay participants in the national

school lunch program either:

(1) the amount of 12.5 cents for each full paid and free student lunch and 52.5 cents for

each reduced-price lunch served to students; or

(2) if the school participates in the free school meals program under subdivision 1c, the

sum of: (i) 12.5 cents for each full paid, reduced-price, and free student lunch; and (ii) the

amount specified in subdivision 1d.

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(b)
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(c)
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For fiscal year 2028 and later, the state must pay participants in the national

school lunch program either:

(1) the amount of 6.25 cents for each full paid and free student lunch and 46.25 cents

for each reduced-price lunch served to students; or

(2) if the school participates in the free school meals program under subdivision 1c, the

sum of:

(i) 6.25 cents for each full paid, reduced-price, and free student lunch; and

(ii) the amount specified in subdivision 1d.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 3.

Minnesota Statutes 2024, section 124D.111, subdivision 1c, is amended to read:

Subd. 1c.

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Free
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Enhanced
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school meals program.

(a) The
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free
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enhanced
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school meals

program is created within the Department of Education.

(b) Each school that participates in the United States Department of Agriculture National

School Lunch program and has an Identified Student Percentage below the federal percentage

determined for all meals to be reimbursed at the free rate via the Community Eligibility

Provision must participate in the
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free
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enhanced
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school meals program.

(c) Each school that participates in the United States Department of Agriculture National

School Lunch program and has an Identified Student Percentage at or above the federal

percentage determined for all meals to be reimbursed at the free rate must participate in the

federal Community Eligibility Provision in order to participate in the
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free
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enhanced
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school

meals program.

(d) Each school that participates in the
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free
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enhanced
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school meals program must:

(1) participate in the United States Department of Agriculture School Breakfast Program

and the United States Department of Agriculture National School Lunch Program; and

(2) provide to all
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eligible
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students at no cost up to two federally reimbursable meals per

school day, with a maximum of one free breakfast and one free lunch.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 4.

Minnesota Statutes 2024, section 124D.111, subdivision 1d, is amended to read:

Subd. 1d.

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Free
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Enhanced
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school meals program aid amount.

The department must

provide to every Minnesota school participating in the
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free
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enhanced
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school meals program

state funding for each school lunch and breakfast served to
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a
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an eligible
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student, with a

maximum of one breakfast and one lunch per
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eligible
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student per school day. The state aid

equals the difference between the applicable federal reimbursement rate at that school site

for
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a free
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an enhanced
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meal, as determined annually by the United States Department of

Agriculture, and the actual federal reimbursement received by the participating school for

the breakfast or lunch served to the student.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 5.

Minnesota Statutes 2024, section 124D.111, is amended by adding a subdivision

to read:

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Subd. 1e.

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Transfers from other funds.

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A participant in the national school lunch

program may set a student meal eligibility standard higher than the enhanced student

eligibility standard and may transfer other school funds into the participant's school nutrition

account to pay for the costs of these meals.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 6.

Minnesota Statutes 2024, section 124D.111, subdivision 4, is amended to read:

Subd. 4.

No fees.

A participant that receives school lunch aid under this section must

make lunch available without charge and must not deny a school lunch to all
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eligible
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participating students who qualify for free
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or
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meals,
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reduced-price meals,
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or enhanced

student meals
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whether or not that student has an outstanding balance in the student's meals

account.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 7.

Minnesota Statutes 2025 Supplement, section 124E.20, subdivision 1, is amended

to read:

Subdivision 1.

Revenue calculation.

(a) General education revenue must be paid to a

charter school as though it were a district. The general education revenue for each adjusted

pupil unit is the state average general education revenue per pupil unit, plus the referendum

equalization aid allowance and
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the
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first
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and second
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tier local optional aid
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allowance
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allowances
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in the pupil's district of residence, minus an amount equal to the product of the

formula allowance according to section
126C.10, subdivision 2
, times .0466, calculated

without declining enrollment revenue, local optional revenue, basic skills revenue, extended

time revenue, pension adjustment revenue, transition revenue, and transportation sparsity

revenue, plus declining enrollment revenue, basic skills revenue, pension adjustment revenue,

and transition revenue as though the school were a school district.

(b) For a charter school operating an extended day, extended week, or summer program,

the general education revenue in paragraph (a) is increased by an amount equal to 25 percent

of the statewide average extended time revenue per adjusted pupil unit.

(c) Notwithstanding paragraph (a), the general education revenue for an eligible special

education charter school as defined in section
124E.21, subdivision 2
, equals the sum of

the amount determined under paragraph (a) and the school's unreimbursed cost as defined

in section
124E.21, subdivision 2
, for educating students not eligible for special education

services.

(d) A charter school's general education revenue under paragraphs (a) to (c) is increased

by $132 times the adjusted pupil units for that fiscal year.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 8.

Minnesota Statutes 2024, section 126C.10, subdivision 2e, is amended to read:

Subd. 2e.

Local optional revenue.

(a)
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For fiscal year 2027 and later, a district's first

tier local optional allowance equals $90.
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(b) For fiscal year 2027 and later, a district's second tier local optional allowance equals

$300.

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(c) For fiscal year 2027 and later, a district's third tier local optional allowance equals

$424.

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(d)
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Local optional revenue for a
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school
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district equals the sum of the district's first tier

local optional revenue
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and
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,
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second tier local optional revenue
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, and third tier local optional

revenue
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. A district's first tier local optional revenue equals
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$300
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the first tier local optional

allowance times the adjusted pupil units of the district for that school year. A district's

second tier local optional revenue equals the second tier local optional allowance
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times the

adjusted pupil units of the district for that school year. A district's
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second
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third
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tier local

optional revenue equals
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$424
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the third tier local optional allowance
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times the adjusted pupil

units of the district for that school year.

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(b)
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(e)
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A district's local optional levy equals the sum of the
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first
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second
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tier local optional

levy and the
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second
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third
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tier local optional levy.

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(c)
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(f)
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A district's
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first
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second
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tier local optional levy equals the district's
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first
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second
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tier local optional revenue times the lesser of one or the ratio of the district's referendum

market value per resident pupil unit to $880,000.

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(d) For fiscal year 2023, a district's second tier local optional levy equals the district's

second tier local optional revenue times the lesser of one or the ratio of the district's

referendum market value per resident pupil unit to $548,842. For fiscal year 2024, a district's

second tier local optional levy equals the district's second tier local optional revenue times

the lesser of one or the ratio of the district's referendum market value per resident pupil unit

to $510,000.

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(g)
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For fiscal year 2025, a district's
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second
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third
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tier local optional levy equals the district's
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second
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third
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tier local optional revenue times the lesser of one or the ratio of the district's

referendum market value per resident pupil unit to $626,450. For fiscal year 2026, a district's
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second
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third
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tier local optional levy equals the district's
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second
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third
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tier local optional

revenue times the lesser of one or the ratio of the district's referendum market value per

resident pupil unit to $642,038. For fiscal year 2027 and later, a district's
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second
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third
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tier

local optional levy equals the district's
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second
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third
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tier local optional revenue times the

lesser of one or the ratio of the district's referendum market value per resident pupil unit to

$671,345.

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(e)
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(h)
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The local optional levy must be spread on referendum market value. A district

may levy less than the permitted amount.

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(f)
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(i)
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A district's local optional aid equals its local optional revenue minus its local

optional levy. If a district's actual levy for
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first or
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second
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or third
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tier local optional revenue

is less than its maximum levy limit for that tier, its aid must be proportionately reduced.

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EFFECTIVE DATE.

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This section is effective for revenue for fiscal year 2027 and later.

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Sec. 9.

Minnesota Statutes 2024, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS REVENUE.

Subdivision 1.

Safe schools revenue for school districts.

A
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school district's
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school's
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safe schools revenue equals
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the sum of
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its safe schools levy
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and its safe schools aid
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.

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Subd. 1a.

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Safe schools aid for school districts.

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Safe schools aid for a school district

equals $36 times the district's adjusted pupil units for that year.

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Subd. 1b.

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Safe schools aid for a charter school.

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Safe schools aid for a charter school

equals $36 times the charter school's adjusted pupil units for that year.

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Subd. 1c.

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Safe schools aid for a Tribal contract school.

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Safe schools aid for a Tribal

contract school eligible for aid under section 124D.83 equals $36 times the Tribal contract

school's pupil units for that school year computed under section 124D.83, subdivision 2.

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Subd. 1d.

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Safe schools aid for a cooperative unit.

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(a) Safe schools aid for a cooperative

unit, as defined in section 123A.24, subdivision 2, that directly serves students equals the

greater of $20,000 or $36 times the cooperative unit's fall enrollment for the previous fiscal

year.

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(b) Safe schools aid for a cooperative unit must be paid directly to the cooperative unit

in the form and manner specified by the commissioner.

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Subd. 1e.

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Safe schools aid for a nonpublic school.

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Safe schools aid for a nonpublic

school equals $36 times the nonpublic school's enrollment for the previous school year. For

purposes of this subdivision, a nonpublic school has the meaning given in section 123B.41,

subdivision 9. A nonpublic school must report enrollment and other necessary information

to the commissioner in the form and manner specified by the commissioner. The

commissioner must establish a payment schedule for safe schools aid for nonpublic schools.

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Subd. 2.

School district safe schools levy.

A school district's safe schools levy equals

$36 times the district's adjusted pupil units for the school year.

Subd. 3.

Safe schools revenue for intermediate school districts.

A school district that

is a member of an intermediate school district may include in its levy authority under this

section the costs associated with safe schools activities authorized under this section for

intermediate school district programs. This authority must not exceed the product of $15

and the adjusted pupil units of the member districts. This authority is in addition to any

other authority authorized under this section. Revenue raised under this subdivision must

be transferred to the intermediate school district.

Subd. 4.

Use of safe schools revenue.

(a) Safe schools revenue must be reserved and

used for directly funding the following purposes or for reimbursing the cities and counties

who contract with the district for the following purposes:

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace

officers and sheriffs for liaison in services in the district's schools;

(2) to pay the costs for a drug abuse prevention program as defined in section
609.101,

subdivision 3
, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the district's

schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,

voluntary opt-in suicide prevention tools, and violence prevention measures taken by the

school district;

(6) to pay costs for licensed school counselors, licensed school nurses, licensed school

social workers, licensed school psychologists, and licensed alcohol and substance use

disorder counselors to help provide early responses to problems;

(7) to pay for facility security enhancements including laminated glass, public

announcement systems, emergency communications devices, and equipment and facility

modifications related to violence prevention and facility security;

(8) to pay for costs associated with improving the school climate;

(9) to pay costs for colocating and collaborating with mental health professionals who

are not district employees or contractors; or

(10) to pay for the costs of cybersecurity measures, including updating computer hardware

and software, other systems upgrades, and cybersecurity insurance costs.

(b) For expenditures under paragraph (a), clause (1), the district must initially attempt

to contract for services to be provided by peace officers or sheriffs with the police department

of each city or the sheriff's department of the county within the district containing the school

receiving the services. If a local police department or a county sheriff's department does

not wish to provide the necessary services, the district may contract for these services with

any other police or sheriff's department located entirely or partially within the school district's

boundaries.

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EFFECTIVE DATE.

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This section is effective for fiscal year 2027 and later.

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Sec. 10.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 4,

is amended to read:

Subd. 4.

School lunch.

For school lunch aid under Minnesota Statutes, section
124D.111
,

including the amounts for the free school meals program:

$

264,162,000

.....

2026

$

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276,392,000

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.......

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.....

2027

Sec. 11.
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APPROPRIATIONS; EDUCATION PROGRAMS.
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Subdivision 1.

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Department of Education.

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The sums indicated in this section are

appropriated from the general fund to the Department of Education in the fiscal years

designated.

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Subd. 2.

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Safe schools aid.

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For safe schools aid under Minnesota Statutes, section

126C.44:

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$

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.......

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.....

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2027

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Subd. 3.

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Additional local optional aid.

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For additional general education aid under

Minnesota Statutes, section 126C.10:

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$

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.......

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.....

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2027

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