Committee told universal meals have scaled rapidly but face a funding gap; LESC asks lawmakers to consider $48M for FY26

LESC staff and the Public Education Department told lawmakers the Healthy Universal School Meals program is operating at scale across New Mexico but that program costs continue to outpace appropriations.

Conner L. Hicks, policy analyst for LESC, said 902 schools applied to participate and that 95% of schools now operate under the Community Eligibility Provision following a USDA eligibility change. “To ensure continued successful implementation of the Healthy Universal School Meals program, the legislature could consider appropriating at least $48,000,000 in categorical funding for FY26,” Hicks said, explaining LESC’s cost model projects at least $48 million and higher costs if participation rises.

Why it matters: free, universal meals affect broad populations—LESC and PED linked the program to attendance, nutrition and equity goals—and the program’s expansion changes the state’s reimbursement and budgeting math. LESC staff showed FY24 meals served remain below pre-pandemic peaks but have generally trended up as students returned to classrooms; PED reported serving over 55 million meals in FY24 and projected about 58 million meals for the coming school year.

Implementation and quality standards: Deputy Director Laura Henry with PED’s Student Success and Wellness Bureau summarized a certification rule requiring that, beginning July 1, 2025, 50% of weekly meal components (excluding milk) be freshly prepared for schools to continue receiving full state reimbursement; schools that do not meet certification would be reimbursed at the federal paid rate. PED has created a $20 million kitchen-infrastructure grant program and earmarked $1.7 million to support New Mexico grown procurement and training.

Operational challenges and feedback: school nutrition leaders told LESC staff that staffing shortages, training needs for scratch cooking, student acceptance of some lower-sodium items and logistical constraints (time for seated lunch, breakfast-after-the-bell models) are the primary hurdles to full program success. Several districts have begun creative practices—shared tables, partnerships with food pantries, and new service models—to reduce waste and increase participation.

Budget outlook and next steps: LESC proposed $48 million for FY26 as a baseline; PED’s projections align with that estimate but also forecast $55 million if participation and USDA rates change. Committee members asked PED about logistical support, outreach, and whether tribal or BIE schools opted out—Henry said tribally controlled schools may opt out under statute and that Pine Hill chose not to participate for reasons the school did not provide. The committee requested follow-up budget reconciliation between LESC and PED ahead of the next session.