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The prime minister has insisted the UK government has provided Welsh ministers with "record levels" of funding.
Visiting Wrexham, Rishi Sunak said that how the Welsh government spends its money was "a matter for them".
Ministers in Cardiff say inflation has cost them £900m, stopping them funding free school meals for eligible children through the summer holidays.
Labour Welsh ministers said that "at best, the prime minister appears to be very badly briefed" on the situation.
Mr Sunak was interviewed by new BBC Wales political editor Gareth Lewis, at an online sports equipment supplier on Wrexham Industrial Estate on Friday.
He was asked if the UK government might provide additional funding to help the Welsh government fund the policy.
He responded: "The UK government has provided record sums to the Welsh government in Barnett consequentials and how they spend that and manage that money is a matter for them."
Barnett consequentials are funds that automatically flow to Wales as a result of spending in England on matters that are devolved to the Welsh government.
A Welsh government spokesperson said: "At best, the prime minister appears to be very badly briefed.
"Our budget is now worth £900m less than when the then chancellor, the current prime minister, set it in October 2021."
'Very challenging' year ahead
In April 2020, Wales became the first part of the UK to offer free school meals for children from lower-income households during the holiday.
The policy, introduced as a result of Covid, was subsequently extended beyond the pandemic and up until the end of the last half-term break.
But ministers said the £15m it would cost to extend the scheme through the upcoming summer holiday was not available.
Earlier this month, First Minister Mark Drakeford said the next year would be "very challenging" with the Welsh government's budget worth £900m less in "purchasing power" than when it was announced before Christmas.
Tata Steel
In Friday's interview in Wrexham, the prime minister was asked how close his government is to agreeing the level of public subsidies for Tata Steel UK to decarbonise its Port Talbot steelworks.
Tata says European competitors receive "billions of pounds" from governments to transition to greener operations and UK ministers have reportedly offered the firm £300m for decarbonisation.
He said: "I can't comment on negotiations with companies about commercially sensitive matters, I think everyone would understand that.
"But what I can tell you is I am committed to our steel industry in the UK, but particularly here in Wales."
Mr Sunak gave a similar answer on the prospects of a new Wylfa nuclear power station.
In May, a cross-party committee of MPs urged UK ministers to show "more concrete commitment" to building one in Anglesey, saying it was "difficult to see" how government nuclear ambitions could be achieved otherwise.
The prime minister said: "We're in the process of selecting the sites and the technologies that might work, so obviously, I can't speculate on the outcome.
"But people should know we're deeply committed to the nuclear industry.
"I know about the site and its opportunities here and I've spoken to the local MP, Virginia [Crosbie] about it at length."
'Pragmatic' and 'proportionate'
The prime minister was also asked about Wrexham football club's use of internal flights, after BBC Sport research showed they took eight domestic return flights to non-league rivals.
He said that while he was dedicated to tackling climate change, "I don't think that we're going to get to net zero by telling everybody that they can't fly anywhere or can't do this or can't do that".
"I'm committed to net zero, of course I am, but we're going to do that in a pragmatic and a proportionate way without unnecessarily adding costs and burdens to families, particularly at a time like now when the cost of living is a challenge for people."
Welsh Secretary David TC Davies, who was with Mr Sunak on the visit, also defended the club.
"They've done a really really good job over the last few years and I'm certainly not going to knock Wrexham Football Club," he said.
"They've taken a lead in promoting football and promoting Wrexham, which they've done really well.
"They are perfectly within their rights, perfectly within the laws. I'm sure they are aware of climate change, but at the end of the day, they've got to play football.
"That's what they do and I think they're doing a great job."
Analysis by BBC Wales political editor Gareth Lewis
Rishi Sunak couldn't resist the lure of the cricket wicket laid out for his arrival at a sports equipment firm in Wrexham.
But what sort of pitch are he and his political opponents going to deliver in the run up to the next general election?
With that election likely to be fought - as things stand - on the cost of living.
The balance between that issue, jobs, health and net zero is a difficult one to strike.
At the moment he is not giving much away - and certainly not extra money for the Welsh government.
Although, as in the by-elections last week, the Conservatives appear to see votes in a version of net zero more driven by individual choice and less by declarations from above.