Appropriates $5 million in recurring funds from the General Fund to the Department of Public Instruction (DPI) to provide all students eligible for reduced-price lunch in a public school unit with lunch at no cost. Requires allocation to units based on the submission of a monthly reimbursement claim that states the number of reduced-price meals served. Authorizes the State Board of Education to allow funds appropriated to the State Aid for Public Schools to supplement funds appropriated in the act if found to be insufficient to implement the act. Directs DPI to include implementation costs in any request submitted to the NCGA for budget adjustments related to enrollment growth.

Enacts GS 115C-264.5 to prohibit schools from engaging in public identification or stigmatization of students who cannot pay for a meal or owe a meal debt in the operation of their nutrition programs, including requiring wristbands or hand stamps. Requires schools to direct that communications about meal debt be only sent to parent or guardian; allows sending a letter addressed to a parent or guardian home with a student.

Effective July 1, 2023, and applies beginning with the 2023-24 school year.