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Gilroy Unified renews Sodexo contract as child‑nutrition program grows; USDA lawsuit flagged as risk
Summary
Board approved a one‑year renewal and CPI‑based amendment with Sodexo for 2026–27, while Sodexo outlined expanded universal lunch participation, farm‑to‑table plans and food‑waste reductions. Trustees were warned a pending USDA challenge could affect federal reimbursements for universal meals.
The Gilroy Unified School District board approved a one‑year renewal amendment to its contract with Sodexo for the 2026–27 fiscal year, a district staff presentation said, and heard a status update on child‑nutrition operations and risks to federal reimbursement.
District staff introduced the contract amendment as the fourth automatic renewal under a competitive RFP. The amendment includes an annual adjustment—described in board materials as roughly a 2.7% change—driven by a CPI index update; staff said the blended price per meal remains consistent with the original 2022 agreement and that the amendment adjusts for inflationary pressures.
Nalani Battaglia, who presented the food‑service update on behalf of Sodexo, said the district continues to operate universal lunch at all school sites and is expanding scratch cooking, salad bars and fresh produce procured from local farmers. Battaglia said participation has been increasing and that NutriSlice (the district’s menu and allergy tool) helps manage nutrition information and allergens.
Trustees asked about food waste, summer meals and the financial model. Battaglia said surplus or shareable food items are placed on “shared tables” so other students can take them; per‑site production records are kept to manage ordering and minimize waste. She confirmed summer meal sites will be open and that the program is offered to the community at qualifying locations.
A trustee raised a regulatory concern: a USDA policy change enacted on 12/31/2025 is the subject of ongoing litigation that could challenge California’s universal free‑meal implementation and jeopardize federal reimbursements. District staff said the case remains pending; they estimated more than $6 million of potential federal reimbursement is at stake for the districts involved but reported no immediate change to reimbursements at this time.
What this means: The district said the contract renewal maintains program continuity while staff prepare the RFP process for the next full procurement cycle; the USDA litigation introduces fiscal uncertainty that the district is tracking.
Actions taken: The board moved and approved the renewal amendment and accepted the Sodexo update on program operations.
Quote: "This allows every student 1 free breakfast and 1 free lunch every day," Sodexo’s Battaglia said, noting California’s universal‑meal policy.
Next steps: District staff will bring RFP options forward as the current contract term ends and will continue to monitor the federal case and participation/reimbursement trends.
