H.R. 5731

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

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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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