This bill proposes changes to education finance in Minnesota, specifically regarding school meal policies and funding for local schools. The key provisions include:

1. Increasing Local Optional Aid for Schools – Provides additional funding to schools through local optional aid.

2. Limiting State-Paid Free School Lunches – Restricts free school lunches paid by the state to families with incomes at or below 500% of the federal poverty level.

3. School Meals Policy Requirements – Updates Minnesota Statutes to require schools participating in the National School Lunch Program to:

   • Adopt a written school meals policy and post it online.
   • Clearly communicate meal charges and prohibit practices like lunch shaming.
   • Address how schools handle unpaid meal debt (including the use of collection agencies).
   • Ensure meals are not withdrawn from students once served.
   • Require that students eligible for free or reduced-price meals always receive a reimbursable meal.
   • Ensure third-party meal service providers adhere to the school's meal policy.

4. New Meal Categories – Introduces an "enhanced school meal" category for students from families with incomes between 185% and 500% of the federal poverty guideline.

5. Application for Educational Benefits – Defines criteria for determining eligibility for free, reduced-price, and enhanced school meals, including an application process.

This bill aims to adjust school meal funding eligibility and ensure clear, equitable policies for meal distribution in Minnesota schools.