I lived for hot school lunches. They were all prepared by school employees. There was no outsourcing. Cafeteria employees were long term employees, and they baked and prepared items from scratch. They were great. Sure there would be on day out of a 14 day cycle which was nasty, but these were fresh fruits, vegetables, meat, and fresh breads with milk, not pop or colas.
Like Z said we would get some snacks after the meal and returning our trays. Some people would bag lunch. There was no subsidy given to students from low income families which was obvious to the students. My situation at home after my father died was quite disruptive, and the meals at school meant a great deal to me at that time. The workers who had worked there for years were very good at what they did and they took pride in their product. About the early 80s School administrators saw they could save money as they outsourced the cafeteria workers. They made dollar decisions and not nutrition decisions. I do not necessarily agree that the problem needs to be addressed at the federal level, but the outsourcing certainly has led to a significant quality drop at schools. We were so much thinner than kids today, but I simply do not remember anybody drinking pop. It was all milk or water. Sometimes orange juice, but these were incredibly balanced meals and I was lucky not to have been fed the crap they feed kids today.