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The Department of Agriculture Food and Nutrition Service awarded the North Carolina Department of Health & Human Services $87.709 million on October 1, 2025, through the National School Lunch Program (CFDA 10.555), a formula grant providing cash subsidies and USDA Foods to support nutritionally balanced, low-cost or no-cost lunches in public and nonprofit private schools and residential child care institutions throughout North Carolina.

The award funds reimbursable meals served to eligible children in participating schools, with school food authorities receiving cash subsidies for each qualifying meal and access to USDA commodity foods. Participating schools must serve lunches meeting federal meal pattern requirements, offer meals at free or reduced prices to eligible children, and maintain records of nonprofit food service operations including finances, menu planning, and meal counting. The program covers the period October 1, 2025, through September 30, 2026, with performance statewide in North Carolina.

The North Carolina Department of Health & Human Services, acting as the state agency administering the National School Lunch Program, reviews school eligibility determinations, establishes written agreements with participating schools and institutions, and oversees compliance with federal meal pattern and record-keeping requirements. Schools and residential child care institutions operate as sub-recipients, with school food authorities submitting applications and managing day-to-day meal service operations.