Key points 

• Gov. Hobbs approved a ban on ultraprocessed foods in school lunches

• A related $3.8 million appropriation for reduced-price lunches failed 

• Lawmakers plan to negotiate school lunch funding in the budget  

A proposal to ban ultraprocessed foods in schools received the governor’s approval, leaving a larger conversation about school lunch funding to be addressed in budget negotiations. 

On April 14, Gov. Katie Hobbs signed House Bill 2164, sponsored by Rep. Leo Biasiucci, R-Lake Havasu City, banning the use of eleven additives and dyes from school lunches.

While Biasiuccui’s proposal made it across the finish line, a similar measure, introduced by Rep. Nancy Gutierrez, D-Tucson, stalled out. Her bill would have also added $3.8 million to cover co-pays for students enrolled in federal reduced-price lunch programs in addition to banning ultraprocessed food. 

Despite the bill’s failure, the $3.8 million support for reduced-price lunches remains a priority for the governor and Democrats, with some potential for Republican support, as the budget waits on the horizon. 

In 2024, the Legislature included a $3.8 million one-time appropriation in the state budget to cover copays for students qualifying for the reduced-price lunch program. That state funding came in the wake of a lapse in federal Covid funds which kept the program operating during the prior year. 

However, with the funding set to expire once again, Hobbs made it a priority in her executive budget to continue the same $3.8 million funding in the next fiscal year. 

The co-pay costs 40 cents for lunch and 30 cents for breakfast, equating to an estimated cost of $126 per child per school year, for families between 130% and 185% of the federal poverty line, or about $40,560 to $57,720 annually. 

“That may, to some people, not sound like a lot — 70 cents a day — but if you have more than one child and (are) earning about $42,000 a year for a family of four, (70 cents) is a lot. It just adds up really quickly,” Ashley St. Thomas, director of public policy for the Arizona Food Bank Network, said. “It would be the first time these families would have to pay that co-pay in five years. And we just know it has done a lot already to improve access to meals.”

According to a policy brief by the Arizona State University College of Health Solutions, the number of meals served to students for both breakfast and lunch went up by about 1 million after changes in federal policy and continued state funding. 

Gutierrez’s $3.8 million allocation bill got off to a strong start. The House Education Committee advanced the legislation 9-3, with support from Republicans Rep. Matt Gress, R-Phoenix, and Biasiucci. The House Appropriations Committee also approved it with a 16-2 vote with bipartisan support from committee Chair David Livingston, R-Peoria, and the majority of Republicans on the committee. 

But after successfully navigating two committees, the legislation failed to make it to the floor for a third-read vote. 

Still, Gutierrez says she plans to continue advocating for the appropriation in budget negotiations. She may well see some Republican support, as she did initially, and Biasiucci himself said he would support the appropriation piece.

“That is still alive and well, but it will be a budget negotiation,” Biasiucci said. 

Although the law banning ultraprocessed foods is not expected to have any significant fiscal impact, Biasiucci noted that it is an important piece of the school lunch conversation. 

“I completely supported (Gutierrez) when she did that because I believe that we have to make sure we have the funding available to make sure the meals are being paid for,” Biasiucci said. “I’m always going to support more money going to our food program.”

St. Thomas of the Arizona Food Bank Network emphasized the importance of securing continued funding. 

“We know all of the outcomes that come with kids getting to eat meals in school,” St. Thomas said. “Better attendance, higher test scores, just all the things that go along with not having to worry about eating lunch or breakfast.”