119-hr5731

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5731 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5731

 To amend the Richard B. Russell National School Lunch Act to require 
 the Secretary of Agriculture to make loan guarantees and grants to 
 finance certain improvements to school lunch facilities, to train 
 school food service personnel, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 October 10, 2025

 Mr. DeSaulnier (for himself and Mr. Thompson of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
 Education and Workforce, and in addition to the Committees on 
 Agriculture, and Appropriations, for a period to be subsequently 
 determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To amend the Richard B. Russell National School Lunch Act to require 
 the Secretary of Agriculture to make loan guarantees and grants to 
 finance certain improvements to school lunch facilities, to train 
 school food service personnel, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``School Food Modernization Act''.

SEC. 2. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN IMPROVEMENTS TO 
 SCHOOL LUNCH FACILITIES.

 The Richard B. Russell National School Lunch Act is amended by 
inserting after 

section 26 (42 U.S.C. 1769g) the following:

``

SEC. 27. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN IMPROVEMENTS 
 TO SCHOOL LUNCH FACILITIES.

 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Durable equipment.--The term `durable equipment' 
 means durable food preparation, handling, cooking, serving, and 
 storage equipment greater than $500 in value.
 ``

    (2) Eligible entity.--The term `eligible entity' means--
 ``
        (A) a local educational agency or a school food 
 authority administering or operating a school meal 
 program;
 ``
        (B) a tribal organization; or
 ``
            (C) a consortium that includes a local 
 educational agency or school food authority described 
 in subparagraph
        (A) , a tribal organization, or both.
 ``

    (3) Infrastructure.--The term `infrastructure' means a 
 food storage facility, kitchen, food service facility, 
 cafeteria, dining room, or food preparation facility.
 ``

    (4) Local educational agency.--The term `local 
 educational agency' has the meaning given the term in 

section 8101 of the Elementary and Secondary Education Act of 1965 (20 
 U.S.C. 7801).
 ``

    (5) School food authority.--The term `school food 
 authority' has the meaning given the term in 

section 210.2 of 
 title 7, Code of Federal Regulations (or any successor 
 regulation).
 ``

    (6) Tribal organization.--The term `tribal organization' 
 has the meaning given the term in 

section 4 of the Indian Self-
 Determination and Education Assistance Act (25 U.S.C. 5304).
 ``

    (b) Loan Guarantees for Assistance to Schools for Infrastructure 
Improvements and Durable Equipment Necessary To Provide Healthy Meals 
Through School Meal Programs.--
 ``

    (1) Authority to guarantee loans.--The Secretary shall 
 issue a loan guarantee to an eligible lender for purposes of 
 financing the construction, remodeling, or expansion of 
 infrastructure or the purchase of durable equipment that the 
 Secretary determines will assist the eligible entity in 
 providing healthy meals through a school meal program 
 authorized under this Act.
 ``

    (2) Preferences.--In issuing a loan guarantee under this 
 subsection, the Secretary shall give a preference to an 
 eligible entity that, as compared with other eligible entities 
 seeking a loan guarantee under this subsection, the Secretary 
 determines demonstrates substantial or disproportionate--
 ``
        (A) need for infrastructure improvement; or
 ``
        (B) durable equipment need or impairment.
 ``

    (3) Oversight.--The Secretary, acting through the Under 
 Secretary for Rural Development, shall establish procedures to 
 oversee any project or purchase for which a loan guarantee is 
 issued under this subsection.
 ``

    (4) Guarantee amount.--A loan guarantee issued under this 
 subsection may not guarantee more than 80 percent of the 
 principal amount of the loan.
 ``

    (5) Fees and costs.--
 ``
        (A) In general.--The Secretary shall establish 
 fees for loan guarantees under this subsection that 
 are, to the maximum extent practicable, equal to all 
 costs of the loan guarantees as determined under the 
 Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
 seq.), as determined by the Secretary.
 ``
        (B) Fee shortfall.--To the extent that the 
 Secretary determines that fees described in 
 subparagraph
        (A) are not sufficient to pay for all of 
 the costs for the loan guarantees pursuant to the 
 Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
 seq.), the Secretary may use funds described in 
 paragraph

    (6) to pay for the costs of loan guarantees 
 not paid for by the fees.
 ``

    (6) Funding.--
 ``
        (A) In general.--To provide loan guarantees under 
 this subsection, the Secretary shall reserve 
 $300,000,000 of the loan guarantee authority remaining 
 and unobligated as of the date of enactment of the 
 School Food Modernization Act under the program of 
 community facility guaranteed loans under 

section 306

    (a) of the Consolidated Farm and Rural Development 
 Act (7 U.S.C. 1926

    (a) ).
 ``
        (B) Technical assistance.--The Secretary may use 
 not more than 5 percent of the amount made available to 
 carry out this subsection for each fiscal year to 
 provide technical assistance to applicants and 
 prospective applicants in preparing applications and 
 creating financing packages that leverage a mix of 
 public and private funding sources.
 ``
            (c) Equipment Grants.--
 ``

    (1) Authority to make grants.--Beginning in fiscal year 
 2026 and subject to the availability of appropriations, provide 
 grants to State agencies for competitive subgrants to local 
 educational agencies and schools

    (tribes) to purchase the 
 equipment needed to serve healthy meals, improve food safety, 
 and to help support the establishment, maintenance and 
 expansion of the school.
 ``

    (2) Preferences.--In issuing a grant under this 
 subsection, the State agency shall give a preference to an 
 eligible entity that, as compared with other eligible entities 
 seeking a loan guarantee under this subsection, the State 
 agency determines demonstrates substantial or 
 disproportionate--
 ``
        (A) need for infrastructure improvement; or
 ``
        (B) durable equipment need or impairment.
 ``

    (3) Authorization of appropriations.--
 ``
        (A) In general.--There are authorized to be 
 appropriated $35,000,000 as may be necessary to carry 
 out this subsection for each of fiscal years 2026 
 through 2031.
 ``
        (B) Technical assistance.--The Secretary may use 
 not more than 5 percent of the amount made available to 
 carry out this subsection for each fiscal year to 
 provide technical assistance to applicants and 
 prospective applicants in preparing applications and 
 creating financing packages that leverage a mix of 
 public and private funding sources.''.

SEC. 3. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE 
 PERSONNEL.

 The Richard B. Russell National School Lunch Act is amended by 
inserting after 

section 21 (42 U.S.C. 1769b-1) the following:

``

SEC. 21A. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE 
 PERSONNEL.

 ``

    (a) In General.--The Secretary shall carry out a grant program 
under which the Secretary shall award grants, on a competitive basis, 
to provide support to eligible third-party training institutions 
described in subsection

    (b) to develop and administer training and 
technical assistance for school food service personnel to meet or 
exceed nutrition standards under 

section 4

    (b)

    (3) and improve efficacy 
and efficiency of the school lunch program under this Act and the 
school breakfast program established by 

section 4 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773).
 ``

    (b) Eligible Third-Party Institutions Defined.--For purposes of 
this section, the term `eligible third-party institution' means--
 ``

    (1) a nonprofit organization with demonstrated experience 
 in food or nutrition services training and technical 
 assistance;
 ``

    (2) an institution of higher education as defined in 
 

section 102 of the Higher Education Act of 1965 (20 U.S.C. 
 1002);
 ``

    (3) an area career and technical education school as 
 defined in 

section 3 of the Carl D. Perkins Career and 
 Technical Education Act of 2006 (20 U.S.C. 2302); or
 ``

    (4) a consortium of entities described in paragraphs

    (1) ,

    (2) , and

    (3) .
 ``
            (c) Criteria for Eligible Third-Party Institutions.--The 
Secretary shall establish specific criteria that eligible third-party 
training institutions shall meet to qualify to receive grants under 
this section, which shall include--
 ``

    (1) a demonstrated capacity to administer effective 
 training and technical assistance programming to school food 
 service personnel;
 ``

    (2) prior, successful experience in providing or engaging 
 in training and technical assistance programming or applied 
 research activities involving eligible entities, school food 
 service administrators, or directors;
 ``

    (3) prior, successful experience in developing relevant 
 educational training tools or course materials or curricula on 
 topics addressing child and school nutrition or the updated 
 nutrition standards under 

section 4

    (b)

    (3) ; and
 ``

    (4) the ability to deliver effective and cost-efficient 
 training and technical assistance programming to school food 
 service personnel--
 ``
        (A) at training sites that are located within a 
 proximate geographic distance to schools, central 
 kitchens, or other worksites; or
 ``
        (B) through an online training and assistance 
 program on topics that do not require in-person 
 attendance.
 ``
            (d) Program Assistance.--The Secretary shall assist the 
institutions receiving grants under this section in publicizing and 
disseminating training and other project materials and online tools to 
the maximum extent practicable.
 ``

    (e) Federal Share.--
 ``

    (1) In general.--The Federal share of costs for training 
 and technical assistance funded through a grant awarded under 
 this section shall not exceed 80 percent of the total cost of 
 the training and technical assistance.
 ``

    (2) Matching.--As a condition of receiving a grant under 
 this section, the eligible third-party training institution 
 shall provide matching support in the form of cash or in-kind 
 contributions.
 ``

    (f) Oversight.--The Secretary shall establish procedures to 
enable the Secretary--
 ``

    (1) to oversee the administration and operation of 
 training and technical assistance funded through grants awarded 
 under this section; and
 ``

    (2) to ensure that the training and assistance is 
 operated consistent with the goals and requirements of this 
 Act.
 ``

    (g) Authorization of Appropriations.--
 ``

    (1) In general.--There are authorized to be appropriated 
 $10,000,000 to carry out this section for each of fiscal years 
 2026 through 2031.
 ``

    (2) Technical assistance.--The Secretary may use not more 
 than 5 percent of the amount made available to carry out this 
 section for each fiscal year to provide technical assistance to 
 applicants and prospective applicants in preparing applications 
 and creating financing packages that leverage a mix of public 
 and private funding sources.''.

SEC. 4. REPORT TO CONGRESS.

 Not later than 1 year after funds are made available to carry out 
sections 21A and 27 of the Richard B. Russell National School Lunch Act 
(as added by this Act), and annually thereafter, the Secretary of 
Agriculture shall submit to Congress a report on the progress of the 
Secretary in implementing such sections.

SEC. 5. STUDY AND REPORT TO CONGRESS ON THE USE OF STATE ADMINISTRATIVE 
 EXPENSE FUNDS.

    (a) Study.--The Secretary of Agriculture shall conduct a study on--

    (1) the use of State administrative expense funds by State 
 agencies;

    (2) innovative, effective, replicable, model policies, 
 practices, and training methods that may be implemented using 
 State administrative expense funds;

    (3) factors that interfere with the ability of State 
 agencies to use State administrative expense funds effectively; 
 and

    (4) how State administrative expense funds may be used to 
 encourage the implementation of effective and consistent school 
 nutrition workforce training, with particular emphasis on 
 training and technical assistance to improve the implementation 
 of nutrition standards for all foods sold in schools 
 including--
        (A) nutrition standards for foods sold in schools 
 other than foods provided under the Child Nutrition Act 
 of 1966 and the Richard B. Russell National School 
 Lunch Act;
        (B) local school wellness policies;
            (C) professional standards for school nutrition 
 professionals; and
            (D) other school food service practices, standards, 
 and operational requirements as the Secretary may 
 identify as requiring additional assistance.

    (b) Development and Use of Assessment Tool.--

    (1) In general.--The Secretary of Agriculture shall develop 
 an assessment tool for the purpose of carrying out the study 
 under subsection

    (a) . Such tool shall include a general 
 methodology for evaluating effectiveness of State agencies in 
 providing training and technical assistance using State 
 administrative expense funds.

    (2) Coordination with other entities.--In developing the 
 assessment tool under paragraph

    (1) , the Secretary shall 
 consider public research, stakeholder input, and direct 
 feedback from school nutrition personnel.
            (c) Report to Congress.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall prepare and submit to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Education and Labor of the House of Representatives a 
report containing--

    (1) a summary of the study conducted under subsection

    (a) ;

    (2) any findings and recommendations resulting from such 
 study;

    (3) a plan for disseminating to State agencies best 
 practices on the use of State administrative expense funds for 
 training and technical assistance; and

    (4) recommendations, if any, for the ongoing monitoring and 
 improvement of training and technical assistance carried out by 
 State agencies using State administrative expense funds.
            (d) === Definitions. ===
-In this section:

    (1) State administrative expense funds.--The term ``State 
 administrative expense funds'' means the State administrative 
 expense funds described in part 235 of title 7, Code of Federal 
 Regulations (or any successor regulation).

    (2) State agency.--The term ``State agency'' has the 
 meaning given the term in 

section 235.2 of title 7, Code of 
 Federal Regulations (or any successor regulation).

SEC. 6. OFFSET.

 Of the unobligated balance available for administrative expenses of 
the Department of Education, $45,000,000 is rescinded.
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