Budget & Finance

As Student Meal Debt Soars, School Districts Launch Their Own Fundraisers

By Caitlynn Peetz Stephens — September 30, 2026 4 min read
Collage of various articles of clothing with clipped clothing descriptions and prices. Partial face of a kindergarten male eating a piece of fruit with other food items clipped such as pizza, bananas, and an apple. Subtle typography in the background shows menu items with prices.
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When students and their families cannot pay their school meal balances, districts are often left to foot the bill. In many places, that tab is bigger than districts can afford, prompting some to launch fundraisers to cut down the balance.

In Maryland’s largest school district, a newly established online merchandise store allows community members to buy items emblazoned with the school district’s name and logo, with all proceeds going toward paying down more than $1 million in student meal debt.

The fundraiser, run by the 160,000-student Montgomery County public schools, is one of many initiatives aimed at paying down unpaid balances. The store is also among the first fundraising efforts the district has undertaken directly, rather than relying solely on community organizations to fundraise or donate.

The online store is small—offering just a handful of items ranging from long-sleeved T-shirts and polos to a baby onesie—and doesn’t bring in much money, said district spokesperson Chris Cram, but “every penny counts when you’re talking about kids’ meals.”

As food prices rise, forcing districts to increase the cost of meals, and new federal restrictions cut down the number of American families eligible for food assistance and Medicaid—meaning fewer schools can provide universal free meals—experts say lunch debt will likely surge.

“We’re going to see school districts continue to have to look at how to make things affordable for families … and support families facing financial challenges,” said Ann Levett, senior vice president of the Center for Leadership and Learning at AASA, The School Superintendents Association. “When we see school meal debt as an impediment to young people having access to meals or their ability to learn, then we need to act.”

Historically, fundraisers to offset districts’ accrued meal debts have been led by community members or organizations, rather than the districts themselves.

But some, like Montgomery County public schools, have started to enter the fray.

“Making sure kids are fed is foundational to respecting them as human beings, and making sure they’re not hungry when they’re in class so they can learn,” Cram said. “That’s why we, and others in the community, have stepped forward.”

All money collected goes toward paying down the overall district meal debt total, rather than deciding which school or student receives funds, Cram said.

Elsewhere, in Dubuque, Iowa, district leaders have spent weekends volunteering as guest bartenders at a local event, donating all their tips toward students’ meal debt.

The Ankeny, Iowa, district runs an effort called “Fill the Fund” which relies on community donations online or by check to cover unpaid balances.

Meanwhile, Idaho’s West Ada schools in 2023 ran a similar fundraising effort that allowed donors to sponsor a day, week, or longer of the cost to feed a student. A month of lunches for a student at the time cost just under $60, according to local reporting.

District-led fundraisers can help create bonds between the school district and the community by signaling to the public that the district truly values students’ well-being because it’s taking action, said Levett of AASA.

Districts’ approach to collecting meal debt has evolved over time

Student meal debt isn’t new, but methods for managing that debt have evolved.

In decades past, districts commonly denied students with negative balances a meal. While some districts still offer students an alternate meal when they accrue significant debt—typically a cold sandwich instead of a hot meal—many have shifted away from the practice, citing research on the importance of proper nutrition for learning and the psychological harm caused by singling out students.

“We have this evidence, so we try to step in and support the students so they can be comfortable and perform in school and be open to learning, rather than shaming [them],” said Levett.

Instead, schools increasingly provide the same meal while reaching out to families about negative balances. However, restrictions often bar students with meal debt from buying extra snacks or drinks a la carte. Sometimes, districts send families’ debts to a third-party collection agency.

Changes to meal prices, free meal eligibility straining families

In recent months, several districts have had to increase the cost of student meals—in many cases for the first time in years—due to soaring food and fuel costs.

Although school meal prices generally remain low—a school lunch for secondary students is now $3.10 in Montgomery County after a 30 cent increase in May—any increase can put additional strain on families, Cram said.

It can also be difficult to convince low-income families to fill out the necessary paperwork to qualify for free or reduced-price meals, he said, a perennial problem compounded by heightened fears surrounding registering for public programs.

That’s especially challenging at schools that were previously able to provide free school meals to all students, regardless of their family’s income, but have had to switch to paid meals due to changes in federal eligibility, Cram said.

“People have been used to the free meals, then all of the sudden, they have to pay,” Cram said. “That’s a significant change for a lot of people.”

Ultimately, the school district doesn’t think its merch store will eliminate meal debt, Cram said, and leaders intend to focus on working with individual families, and encouraging those who qualify to register for free and reduced-price meals. But he said he expects the store will continue to chip away at that debt, changing offerings for different seasons and focusing on “having the right items and making sure people understand it’s for a good cause.”

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