The Senate Education Committee advanced a bill sponsored by Senate Majority Leader M. Teresa Ruiz and Senate President Nick Scutari that requires a board of education or school district to offer students, parents, and guardians a no-fee option for making direct payments for school meals, field trips, activity fees, or other goods or services.

“Online payment systems are a convenient way for parents to provide their child with lunch money, but the transaction fees — often called ‘junk fees’— are an extra financial burden for families struggling to make ends meet. These families frequently make smaller contributions and must pay unnecessary fees each time,” said Majority Leader Ruiz (D-Essex/Hudson). “Requiring a no-fee option will help alleviate this strain so that every child has equitable access to nutritious meals at school.” 

“For many parents, ensuring their child has everything they need for a successful day at school already comes with a hefty price tag. Hidden fees for online payments for school meals just add to these costs,” said Senate President Scutari (D-Union/Somerset). “Providing a no-fee option for school meals will give our hardworking families a break regardless of their income or payment method.” 

The bill, S-3961, requires any communication from a board of education or school  district requesting payment for school meals, field trips, or other activities to include a direct payment option and outline any fees associated with using any online payment processing platform.  

Any contract between a board of education or school district and a third-party vendor for a payment platform must require the platform to clearly show users: (1) all fees charged, (2) the average annual fees for users, and (3) whether there is a no-fee option for making direct payments to the board or school district.

The bill advanced out of committee in a 5-0 vote.