TRENTON – Following the Senate’s concurrence with General Assembly amendments, a bill sponsored by Senate Majority Leader M. Teresa Ruiz and Senate President Nick Scutari, requiring boards of education to provide students, parents, and guardians with a no-fee option to make direct payments for school meals and activities, now heads to Governor Murphy’s desk for his signature.
“While online payment systems have simplified the process for parents to provide their child with lunch money, the transaction fees associated with these payments impose an additional financial burden, particularly for families with lower incomes who frequently make smaller contributions,” said Majority Leader Ruiz (D-Essex/Hudson). “Requiring a no-fee option will help alleviate this strain on families 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 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 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.
In recent years, schools have adopted online payment systems to streamline transactions, with many of these third-party payment systems charging a fee to process each transaction. A 2024 Consumer Financial Protection Bureau report found that these fees average $2.37 per payment and cost families upwards of $100 million annually.