This study examined the impact of deimplementing universal free school meal (UFSM) policies compared with continuing UFSM at the state level. A cross-sectional survey was conducted in spring 2023 with 941 school food authorities (SFAs) across eight U.S. states, assessing outcomes such as meal participation, foodservice revenues, staffing needs, administrative burdens, stigma, and student meal debt. Findings revealed significant differences between states that maintained UFSM and those that discontinued it. SFAs in states that deimplemented UFSM reported sharp declines in school meal participation and foodservice revenues, with 73% noting decreases compared to only 15% in states continuing UFSM (P < .001). Deimplementation was also linked to substantial increases in student meal debt (76% vs 5%) and heightened stigma for low-income students (26% vs 5%). Conversely, states that ended UFSM reported fewer staffing challenges, likely due to reduced participation rates. Overall, results suggest that discontinuing UFSM negatively affects both SFAs and students, undermining participation, financial stability, and equity. Reimplementing UFSM could reduce stigma, alleviate meal debt, and expand access to nutritious meals. Future strategies should focus on sustaining UFSM policies while addressing staffing shortages to ensure equitable, healthy school nutrition nationwide.