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Manor ISD staff warns potential federal changes could shrink free-meal eligibility; district currently CEP-eligible
Summary
Staff told trustees that under the Community Eligibility Provision (CEP) the district currently provides free meals at most campuses; pending discussions to raise the CEP eligibility threshold could force some campuses to return to free-and-reduced-price programs and increase administrative burden and potential general-fund exposure.
District nutrition staff told Manor ISD trustees on May 5 that the district currently operates under the Community Eligibility Provision (CEP), which allows participating campuses to offer free breakfast and lunch to all students and receive federal reimbursement based on an identified-student percentage.
Staff said the district’s identified-student percentage used for CEP reimbursement had been set at 25% after a 2023 change expanded eligibility, and that nearly all campuses qualify under current rules (staff said one or two small exceptions had been combined to qualify). They cautioned that a White House-level discussion to raise the CEP threshold from 25% to 60% could reduce the number of campuses eligible for CEP in Manor ISD — staff estimated that, under that higher threshold, only about four campuses might remain eligible based on current percentages.
Staff described CEP benefits the district currently experiences: free meals for all students, higher student participation, reduced stigma, no student meal applications and lower administrative burden. They warned that returning to the previous free-and-reduced-price application process for ineligible campuses would increase administrative work (annual income verification) and could reduce participation. Staff also noted that if the child nutrition program runs a deficit, the district’s general fund is required to replenish negative balances under current rules.
Trustees asked for historical data showing how much the district has previously covered from the general fund for child-nutrition deficits; staff said Mr. Nieves had prepared projections for fund-balance scenarios and that current preliminary projections anticipate a district fund balance around $3.2 million at year end and a required minimum reserve of about 90 days of operations.
Staff presented program figures tied to the preliminary budget: a district-wide preliminary total budget figure for all funds was presented elsewhere in the workshop as about $149.1 million; staff described the child nutrition program’s preliminary revenue and expenditure numbers and explained the program is non-profit and must maintain required reserves. Trustees were advised to monitor pending federal policy discussions and state/federal guidance and staff offered to return with additional reports if rules change.
No board action on the child nutrition program or changes to CEP was recorded in the workshop portion of the transcript.
