The intent of this research was to critically examine the purpose and limitations of nutrition regulation in school food environments across Canada. Examining these environments as extensions of the welfare state shows how the neoliberal influence in these spaces makes regulation challenging relative to other countries with a school meal program. Content analysis and semi-structured interviews show that the regulations applied to internal school food environments are unable to achieve their desired outcomes. Factors beyond the scope of the regulations, including unequal access to compliant foods, insufficient enforcement of the regulations, and social and cultural aspects of diet including preference for foods of low nutritional value and access to unregulated spaces near school property, are barriers to effectively implementing a financially viable, healthful school nutrition regulation.