Associate Education Minister David Seymour said the programme cuts will save about $130 million a year, and some savings will allow up to 10,000 preschoolers access through a contract with KidsCan.
Principal Maia Cooper said the change meant the school would lose about $700 a week in funding.
As a result, she said jobs will go and the community - with a population less than 2000 people - will suffer.
Seventy five % - 114 out of 152 - of Northland’s schools are part of the Ka Ora, Ka Ako lunch in schools programme.
According to NZ education union Te Riu Roa, the programme had previously required all staff to be paid at least the living wage of $26.
Now schools wanting to keep staff on their current pay and hours would pull teachers or support staff away from their primary roles.
Cooper said school staff will have the added strain of picking up the workload and relationships within the community will be impacted.
She praised the “amazing” job the kitchen aunties do, providing “really good” meals for students.
Sean Teddy, Ministry of Education Hautū (Leader) of operations and integration, said the Government was focused on providing high quality but affordable meals.
But Tai Tokerau Principals' Association spokesman Pat Newman said $3 was “ridiculous”.
“You can’t make a sandwich on it.”
Newman, principal of Hora Hora Primary School, said Northland students receiving a healthy lunch was essential but the scale of the need spoke to a bigger issue.
“I find it absolutely deplorable that we have got to this state in this country that it’s an absolute necessity that our children get fed [at school].”