(1) The general assembly shall annually appropriate by separate line item in the annual general appropriation bill an amount of not less than eight hundred fifty thousand dollars and not more than two million five hundred thousand dollars to the department to allow school food authorities to provide lunches at no charge for children in state-subsidized early childhood education programs administered by public schools or in kindergarten through fifth grade, participating in the school lunch program, who would otherwise be required to pay a reduced price for lunch. The appropriation to the department for the program shall be in addition to any appropriation made by the general assembly pursuant to section 22-54-123 or 22-54-123.5 (1). The department may expend not more than two percent of the moneys annually appropriated for the program to offset the direct and indirect costs incurred by the department in implementing the program pursuant to this article.

(1.5) Commencing in fiscal year 2018-19 and for each fiscal year thereafter, the general assembly shall annually appropriate to the separate line item in the annual general appropriation act for the program an amount of not less than five hundred thousand dollars and not more than seven hundred fifty thousand dollars to the department to allow school food authorities to provide lunches at no charge for children in sixth grade through eighth grade who are participating in the school lunch program and who would otherwise be required to pay a reduced price for lunch. This subsection (1.5) only applies to school food authorities that elect to eliminate the reduced price paid by Colorado students in sixth grade through eighth grade. The appropriation to the department for this subsection (1.5) shall be in addition to any appropriation made by the general assembly pursuant to section 22-54-123 or 22-54-123.5 (1) and pursuant to subsection (1) of this section. In addition to the authority granted the department to expend money appropriated pursuant to subsection (1) of this section to offset the direct and indirect costs incurred by the department in implementing the program, the general assembly may authorize the department to expend a portion of the money appropriated pursuant to this subsection (1.5) to offset any increase in the department's direct and indirect costs incurred by the expansion of the program pursuant to this subsection (1.5).

(2) The department is authorized to seek and accept gifts, grants, and donations from public and private sources for the purposes of this article, but receipt of gifts, grants, and donations shall not be a prerequisite to the implementation of the program.

(3) To the extent permitted by law, the department may, at its discretion, direct other moneys to fund the program.