DPI Says Federal Rules Bar Whole/2% Milk From Reimbursable School Meals; Sponsor Seeks Bulk‑dispensing Option

Representative Dawson Holly introduced House Bill 1132 to permit schools to offer whole and 2% milk through bulk milk dispensers, arguing federal limits on milk fat in school meals have reduced student milk consumption and that allowing bulk dispensers would expand student choice and could create markets for local milk processors.

Holly said the bill would not mandate schools to adopt the change but would allow them to offer whole and 2% milk through bulk dispensers. "This bill is not also about nutrition. It doesn't mandate that a school would put this whole milk or 2% milk in schools through their bulk milk dispenser. It just allows them," he said.

Lynelle Johnson, director of Child Nutrition and Food Distribution at the North Dakota Department of Public Instruction, testified that the National School Lunch and Breakfast Programs are administered under USDA regulations (7 CFR 210 for lunch, 7 CFR 220 for breakfast) and that those programs require schools to offer two varieties of milk that may be flavored or unflavored and must meet the USDA meal pattern for reimbursable meals. "Under USDA guidelines, 2% and whole milk cannot be included as part of the reimbursable meal," Johnson said. She added that products may be offered as additional items at no cost but that items sold separately during the school day also must meet USDA Smart Snacks guidelines, and schools using a bulk method must ensure students take a full 8‑ounce serving.

Committee members asked practical questions about serving sizes, student choice and waste; Johnson noted schools are not required to force students to take milk (offer versus serve rules apply) and that lactose‑free milks and medically documented substitutions are allowed when they meet nutritional profiles.

Representatives discussed why the sponsor focused on bulk dispensers rather than cartons; Holly and others said Tennessee used a similar approach to allow different milk options under federal rules by offering milk outside the reimbursable tray flow.

The hearing record shows the Department of Public Instruction’s position that federal regulations constrain what counts as a reimbursable meal item and that any local change must be implemented in a way that preserves federal reimbursement eligibility for students who rely on the meal programs.

Ending: The hearing closed after DPI provided clarifying guidance to the committee; no committee vote was recorded during the session.