Amounts appropriated by the state legislature for school districts to start up, improve and expand breakfast and lunch programs shall be awarded on a competitive basis. School districts, if eligible, shall first apply for any available USDA grants to start up, improve and expand breakfast and lunch programs prior to making application for state grants for these purposes. School districts, if eligible, shall also apply for the USDA severe need breakfast reimbursement prior to making applications for state grants to start up, improve, and expand breakfast and lunch programs. A state grant to start up, improve, and expand a school district breakfast or lunch program may be used for the following purposes which are listed in order of importance:

(1) Purchase food service equipment.

(2) Provide staff training.

(3) Disseminate program information to students, families and school staff to encourage program participation.

(4) Improve efficiency in the food service area.

(5) Improve sanitation in the food service area.

(6) Improve safety in the food service area.

State start up, improvement, and expansion grants shall not be used for the acquisition of land or existing buildings, improvement of grounds, construction of buildings, additions to buildings, or the remodeling of buildings to be consistent with 7 C.F.R. Part 210.14(a).