(1)
(A) Not later than June 1 of each fiscal year, the Secretary shall prescribe income guidelines for determining eligibility for free and reduced price lunches during the 12-month period beginning July 1 of such fiscal year and ending June 30 of the following fiscal year. The income guidelines for determining eligibility for free lunches shall be 130 percent of the applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The income guidelines for determining eligibility for reduced price lunches for any
school year shall be 185 percent of the applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The Office of Management and Budget guidelines shall be revised at annual intervals, or at any shorter interval deemed feasible and desirable.
(B) The revision required by subparagraph (A) of this paragraph shall be made by multiplying
(i) the official poverty line (as defined by the Office of Management and Budget); by
(ii) the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 30 days after the date on which the consumer price index data required to compute the adjustment becomes available.
(2)
(A) Following the determination by the Secretary under paragraph (1) of this subsection of the income eligibility guidelines for each
school year, each State educational agency shall announce the income eligibility guidelines, by family size, to be used by schools in the State in making determinations of eligibility for free and reduced price lunches. Local
school authorities shall, each year, publicly announce the income eligibility guidelines for free and reduced price lunches on or before the opening of
school.
(B) Applications and descriptive material.—
(i) In general.— Applications for free and reduced price lunches, in such form as the Secretary may prescribe or approve, and any descriptive material, shall be distributed to the parents or guardians of children in attendance at the
school, and shall contain only the family size income levels for reduced price meal eligibility with the explanation that households with incomes less than or equal to these values would be eligible for free or reduced price lunches.
(ii) Income eligibility guidelines.—
Forms and descriptive material distributed in accordance with clause (i) may not contain the income eligibility guidelines for free lunches.
(iii) Contents of descriptive material.—
(I) In general.— Descriptive material distributed in accordance with clause (i) shall contain a notification that
(aa) participants in the programs listed in subclause (II) may be eligible for free or reduced price meals; and
(bb) documentation may be requested for verification of eligibility for free or reduced price meals.
(II) Programs.— The programs referred to in subclause (I)(aa) are
(aa) the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (
42 U.S.C.
1786);
(bb) the food stamp program established under the Food Stamp Act of 1977 (
7 U.S.C.
2011 et seq.);
(cc) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (
7 U.S.C.
2013 (b)); and
(dd) a State program funded under the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
42 U.S.C.
601 et seq.).
(3) Household applications.—
(A) Definition of household application.— In this paragraph, the term household application means an application for a child of a household to receive free or reduced price
school lunches under this chapter, or free or reduced price
school breakfasts under the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.), for which an eligibility determination is made other than under paragraph (4) or (5).
(B) Eligibility determination.—
(i) In general.—
An eligibility determination shall be made on the basis of a complete household application executed by an adult member of the household or in accordance with guidance issued by the Secretary.
(ii) Electronic signatures and applications.— A household application may be executed using an electronic signature if
(I) the application is submitted electronically; and
(II) the electronic application filing system meets confidentiality standards established by the Secretary.
(C) Children in household.—
(i) In general.—
The household application shall identify the names of each child in the household for whom meal benefits are requested.
(ii) Separate applications.—
A State educational agency or local educational agency may not request a separate application for each child in the household that attends schools under the same local educational agency.
(D) Verification of sample.—
(i) Definitions.— In this subparagraph:
(I) Error prone application.— The term error prone application means an approved household application that
(aa) indicates monthly income that is within $100, or an annual income that is within $1,200, of the income eligibility limitation for free or reduced price meals; or
(bb) in lieu of the criteria established under item (aa), meets criteria established by the Secretary.
(II) Non-response rate.—
The term non-response rate means (in accordance with guidelines established by the Secretary) the percentage of approved household applications for which verification information has not been obtained by a local educational agency after attempted verification under subparagraphs (F) and (G).
(ii) Verification of sample.— Each
school year, a local educational agency shall verify eligibility of the children in a sample of household applications approved for the
school year by the local educational agency, as determined by the Secretary in accordance with this subsection.
(iii) Sample size.— Except as otherwise provided in this paragraph, the sample for a local educational agency for a
school year shall equal the lesser of
(I) 3 percent of all applications approved by the local educational agency for the
school year, as of October 1 of the
school year, selected from error prone applications; or
(II) 3,000 error prone applications approved by the local educational agency for the
school year, as of October 1 of the
school year.
(iv) Alternative sample size.—
(I) In general.—
If the conditions described in subclause (IV) are met, the verification sample size for a local educational agency shall be the sample size described in subclause (II) or (III), as determined by the local educational agency.
(II) 3,000/3 percent option.— The sample size described in this subclause shall be the lesser of 3,000, or 3 percent of, applications selected at random from applications approved by the local educational agency for the
school year, as of October 1 of the
school year.
(III) 1,000/1 percent plus option.—
(aa) In general.—
The sample size described in this subclause shall be the sum of
(AA) the lesser of 1,000, or 1 percent of, all applications approved by the local educational agency for the
school year, as of October 1 of the
school year, selected from error prone applications; and
(BB) the lesser of 500, or 1/2 of 1 percent of, applications approved by the local educational agency for the
school year, as of October 1 of the
school year, that provide a case number (in lieu of income information) showing participation in a program described in item (bb) selected from those approved applications that provide a case number (in lieu of income information) verifying the participation.
(bb) Programs.—
The programs described in this item are
(AA) the food stamp program established under the Food Stamp Act of 1977 (
7 U.S.C.
2011 et seq.);
(BB) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (
7 U.S.C.
2013 (b)); and
(CC) a State program funded under the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
42 U.S.C.
601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995.
(IV) Conditions.— The conditions referred to in subclause (I) shall be met for a local educational agency for a
school year if
(aa) the nonresponse rate for the local educational agency for the preceding
school year is less than 20 percent; or
(bb) the local educational agency has more than 20,000 children approved by application by the local educational agency as eligible for free or reduced price meals for the
school year, as of October 1 of the
school year, and
(AA) the nonresponse rate for the preceding
school year is at least 10 percent below the nonresponse rate for the second preceding
school year; or
(BB) in the case of the
school year beginning July 2005, the local educational agency attempts to verify all approved household applications selected for verification through use of public agency records from at least 2 of the programs or sources of information described in subparagraph (F)(i).
(v) Additional selected applications.— A sample for a local educational agency for a
school year under clauses (iii) and (iv)(III)(AA) shall include the number of additional randomly selected approved household applications that are required to comply with the sample size requirements in those clauses.
(E) Preliminary review.—
(i) Review for accuracy.—
(I) In general.—
Prior to conducting any other verification activity for approved household applications selected for verification, the local educational agency shall ensure that the initial eligibility determination for each approved household application is reviewed for accuracy by an individual other than the individual making the initial eligibility determination, unless otherwise determined by the Secretary.
(II) Waiver.— The requirements of subclause (I) shall be waived for a local educational agency if the local educational agency is using a technology-based solution that demonstrates a high level of accuracy, to the satisfaction of the Secretary, in processing an initial eligibility determination in accordance with the income eligibility guidelines of the
school lunch program.
(ii) Correct eligibility determination.—
If the review indicates that the initial eligibility determination is correct, the local educational agency shall verify the approved household application.
(iii) Incorrect eligibility determination.— If the review indicates that the initial eligibility determination is incorrect, the local educational agency shall (as determined by the Secretary)
(I) correct the eligibility status of the household;
(II) notify the household of the change;
(III) in any case in which the review indicates that the household is not eligible for free or reduced-price meals, notify the household of the reason for the ineligibility and that the household may reapply with income documentation for free or reduced-price meals; and
(IV) in any case in which the review indicates that the household is eligible for free or reduced-price meals, verify the approved household application.
(F) Direct verification.—
(i) In general.— Subject to clauses (ii) and (iii), to verify eligibility for free or reduced price meals for approved household applications selected for verification, the local educational agency may (in accordance with criteria established by the Secretary) first obtain and use income and program participation information from a public agency administering
(I) the food stamp program established under the Food Stamp Act of 1977 (
7 U.S.C.
2011 et seq.);
(II) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (
7 U.S.C.
2013 (b));
(III) the temporary assistance for needy families program funded under part A of title IV of the Social Security Act (
42 U.S.C.
601 et seq.);
(IV) the State medicaid program under title XIX of the Social Security Act (
42 U.S.C.
1396 et seq.); or
(V) a similar income-tested program or other source of information, as determined by the Secretary.
(ii) Free meals.— Public agency records that may be obtained and used under clause (i) to verify eligibility for free meals for approved household applications selected for verification shall include the most recent available information (other than information reflecting program participation or income before the 180-day period ending on the date of application for free meals) that is relied on to administer
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance under title XIX of the Social Security Act (
42 U.S.C.
1396 et seq.) in
(aa) a State in which the income eligibility limit applied under section 1902(l)(2)(C) of that Act (
42 U.S.C.
1396a (l)(2)(C)) is not more than 133 percent of the official poverty line described in section 1902(l)(2)(A) of that Act (
42 U.S.C.
1396a (l)(2)(A)); or
(bb) a State that otherwise identifies households that have income that is not more than 133 percent of the official poverty line described in section 1902(l)(2)(A) of that Act (
42 U.S.C.
1396a (l)(2)(A)).
(iii) Reduced price meals.— Public agency records that may be obtained and used under clause (i) to verify eligibility for reduced price meals for approved household applications selected for verification shall include the most recent available information (other than information reflecting program participation or income before the 180-day period ending on the date of application for reduced price meals) that is relied on to administer
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance under title XIX of the Social Security Act (
42 U.S.C.
1396 et seq.) in
(aa) a State in which the income eligibility limit applied under section 1902(l)(2)(C) of that Act (
42 U.S.C.
1396a (l)(2)(C)) is not more than 185 percent of the official poverty line described in section 1902(l)(2)(A) of that Act (
42 U.S.C.
1396a (l)(2)(A)); or
(bb) a State that otherwise identifies households that have income that is not more than 185 percent of the official poverty line described in section 1902(l)(2)(A) of that Act (
42 U.S.C.
1396a (l)(2)(A)).
(iv) Evaluation.— Not later than 3 years after June 30, 2004, the Secretary shall complete an evaluation of
(I) the effectiveness of direct verification carried out under this subparagraph in decreasing the portion of the verification sample that must be verified under subparagraph (G) while ensuring that adequate verification information is obtained; and
(II) the feasibility of direct verification by State agencies and local educational agencies.
(v) Expanded use of direct verification.—
If the Secretary determines that direct verification significantly decreases the portion of the verification sample that must be verified under subparagraph (G), while ensuring that adequate verification information is obtained, and can be conducted by most State agencies and local educational agencies, the Secretary may require a State agency or local educational agency to implement direct verification through 1 or more of the programs described in clause (i), as determined by the Secretary, unless the State agency or local educational agency demonstrates (under criteria established by the Secretary) that the State agency or local educational agency lacks the capacity to conduct, or is unable to implement, direct verification.
(G) Household verification.—
(i) In general.— If an approved household application is not verified through the use of public agency records, a local educational agency shall provide to the household written notice that
(I) the approved household application has been selected for verification; and
(II) the household is required to submit verification information to confirm eligibility for free or reduced price meals.
(ii) Phone number.—
The written notice in clause (i) shall include a toll-free phone number that parents and legal guardians in households selected for verification can call for assistance with the verification process.
(iii) Followup activities.—
If a household does not respond to a verification request, a local educational agency shall make at least 1 attempt to obtain the necessary verification from the household in accordance with guidelines and regulations promulgated by the Secretary.
(iv) Contract authority for school food authorities.— A local educational agency may contract (under standards established by the Secretary) with a third party to assist the local educational agency in carrying out clause (iii).
(H) Verification deadline.—
(i) General deadline.—
(I) In general.— Subject to subclause (II), not later than November 15 of each
school year, a local educational agency shall complete the verification activities required for the
school year (including followup activities).
(II) Extension.— Under criteria established by the Secretary, a State may extend the deadline established under subclause (I) for a
school year for a local educational agency to December 15 of the
school year.
(ii) Eligibility changes.—
Based on the verification activities, the local educational agency shall make appropriate modifications to the eligibility determinations made for household applications in accordance with criteria established by the Secretary.
(I) Local conditions.— In the case of a natural disaster, civil disorder, strike, or other local condition (as determined by the Secretary), the Secretary may substitute alternatives for
(i) the sample size and sample selection criteria established under subparagraph (D); and
(ii) the verification deadline established under subparagraph (H).
(J) Individual review.— In accordance with criteria established by the Secretary, the local educational agency may, on individual review
(i) decline to verify no more than 5 percent of approved household applications selected under subparagraph (D); and
(ii) replace the approved household applications with other approved household applications to be verified.
(K) Feasibility study.—
(i) In general.— The Secretary shall conduct a study of the feasibility of using computer technology (including data mining) to reduce
(I) overcertification errors in the
school lunch program under this chapter;
(II) waste, fraud, and abuse in connection with this paragraph; and
(III) errors, waste, fraud, and abuse in other nutrition programs, as determined to be appropriate by the Secretary.
(ii) Report.— Not later than 180 days after June 30, 2004, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing
(I) the results of the feasibility study conducted under this subsection;
(II) how a computer system using technology described in clause (i) could be implemented;
(III) a plan for implementation; and
(IV) proposed legislation, if necessary, to implement the system.
(4) Direct certification for children in food stamp households.—
(A) In general.— Subject to subparagraph (D), each State agency shall enter into an agreement with the State agency conducting eligibility determinations for the food stamp program established under the Food Stamp Act of 1977 (
7 U.S.C.
2011 et seq.).
(B) Procedures.— Subject to paragraph (6), the agreement shall establish procedures under which a child who is a member of a household receiving assistance under the food stamp program shall be certified as eligible for free lunches under this chapter and free breakfasts under the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.), without further application.
(C) Certification.— Subject to paragraph (6), under the agreement, the local educational agency conducting eligibility determinations for a
school lunch program under this chapter and a
school breakfast program under the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.) shall certify a child who is a member of a household receiving assistance under the food stamp program as eligible for free lunches under this chapter and free breakfasts under the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.), without further application.
(D) Applicability.— This paragraph applies to
(i) in the case of the
school year beginning July 2006, a
school district that had an enrollment of 25,000 students or more in the preceding
school year;
(ii) in the case of the
school year beginning July 2007, a
school district that had an enrollment of 10,000 students or more in the preceding
school year; and
(iii) in the case of the
school year beginning July 2008 and each subsequent
school year, each local educational agency.
(6) Use or disclosure of information.—
(A) In general.— The use or disclosure of any information obtained from an application for free or reduced price meals, or from a State or local agency referred to in paragraph (3)(F), (4), or (5), shall be limited to
(i) a person directly connected with the administration or enforcement of this chapter or the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.) (including a regulation promulgated under either this chapter or that Act);
(ii) a person directly connected with the administration or enforcement of
(I) a Federal education program;
(II) a State health or education program administered by the State or local educational agency (other than a program carried out under title XIX or XXI of the Social Security Act (
42 U.S.C.
1396 et seq.;
42 U.S.C.
1397aa et seq.)); or
(III) a Federal, State, or local means-tested nutrition program with eligibility standards comparable to the
school lunch program under this chapter;
(iii)
(I) the Comptroller General of the United States for audit and examination authorized by any other provision of law; and
(II) notwithstanding any other provision of law, a Federal, State, or local law enforcement official for the purpose of investigating an alleged violation of any program covered by this paragraph or paragraph (3)(F), (4), or (5);
(iv) a person directly connected with the administration of the State medicaid program under title XIX of the Social Security Act (
42 U.S.C.
1396 et seq.) or the State childrens health insurance program under title XXI of that Act (
42 U.S.C.
1397aa et seq.) solely for the purposes of
(I) identifying children eligible for benefits under, and enrolling children in, those programs, except that this subclause shall apply only to the extent that the State and the local educational agency or
school food authority so elect; and
(II) verifying the eligibility of children for programs under this chapter or the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.); and
(v) a third party contractor described in paragraph (3)(G)(iv).
(B) Limitation on information provided.—
Information provided under clause (ii) or (v) of subparagraph (A) shall be limited to the income eligibility status of the child for whom application for free or reduced price meal benefits is made or for whom eligibility information is provided under paragraph (3)(F), (4), or (5), unless the consent of the parent or guardian of the child for whom application for benefits was made is obtained.
(C) Criminal penalty.—
A person described in subparagraph (A) who publishes, divulges, discloses, or makes known in any manner, or to any extent not authorized by Federal law (including a regulation), any information obtained under this subsection shall be fined not more than $1,000 or imprisoned not more than 1 year, or both.
(D) Requirements for waiver of confidentiality.— A State that elects to exercise the option described in subparagraph (A)(iv)(I) shall ensure that any local educational agency or
school food authority acting in accordance with that option
(i) has a written agreement with 1 or more State or local agencies administering health programs for children under titles XIX and XXI of the Social Security Act (
42 U.S.C.
1396 et seq. and 1397aa et seq.) that requires the health agencies to use the information obtained under subparagraph (A) to seek to enroll children in those health programs; and
(ii)
(I) notifies each household, the information of which shall be disclosed under subparagraph (A), that the information disclosed will be used only to enroll children in health programs referred to in subparagraph (A)(iv); and
(II) provides each parent or guardian of a child in the household with an opportunity to elect not to have the information disclosed.
(E) Use of disclosed information.—
A person to which information is disclosed under subparagraph (A)(iv)(I) shall use or disclose the information only as necessary for the purpose of enrolling children in health programs referred to in subparagraph (A)(iv).
(7) Free and reduced price policy statement.—
(A) In general.—
After the initial submission, a local educational agency shall not be required to submit a free and reduced price policy statement to a State educational agency under this chapter unless there is a substantive change in the free and reduced price policy of the local educational agency.
(B) Routine change.—
A routine change in the policy of a local educational agency (such as an annual adjustment of the income eligibility guidelines for free and reduced price meals) shall not be sufficient cause for requiring the local educational agency to submit a policy statement.
(8) Communications.—
(A) In general.—
Any communication with a household under this subsection or subsection (d) of this section shall be in an understandable and uniform format and, to the maximum extent practicable, in a language that parents and legal guardians can understand.
(B) Electronic availability.—
In addition to the distribution of applications and descriptive material in paper form as provided for in this paragraph, the applications and material may be made available electronically via the Internet.
(9) Eligibility for free and reduced price lunches.—
(A) Free lunches.—
Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate which does not exceed the applicable family size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), shall be served a free lunch.
(B) Reduced price lunches.—
(i) In general.—
Any child who is a member of a household whose income, at the time the application is submitted, is at an annual rate greater than the applicable family size income level of the income eligibility guidelines for free lunches, as determined under paragraph (1), but less than or equal to the applicable family size income level of the income eligibility guidelines for reduced price lunches, as determined under paragraph (1), shall be served a reduced price lunch.
(ii) Maximum price.—
The price charged for a reduced price lunch shall not exceed 40 cents.
(C) Duration.— Except as otherwise specified in paragraph (3)(E), (3)(H)(ii), and section
1759a (a) of this title, eligibility for free or reduced price meals for any
school year shall remain in effect
(i) beginning on the date of eligibility approval for the current
school year; and
(ii) ending on a date during the subsequent
school year determined by the Secretary.
(12)
(A) A child shall be considered automatically eligible for a free lunch and breakfast under this chapter and the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.), respectively, without further application or eligibility determination, if the child is
(i) a member of a household receiving assistance under the food stamp program authorized under the Food Stamp Act of 1977 (
7 U.S.C.
2011 et seq.);
(ii) a member of a family (under the State program funded under part A of title IV of the Social Security Act (
42 U.S.C.
601 et seq.)) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995;
(iii) enrolled as a participant in a Head Start program authorized under the Head Start Act (
42 U.S.C.
9831 et seq.), on the basis of a determination that the child meets the eligibility criteria prescribed under section 645(a)(1)(B) of the Head Start Act (
42 U.S.C.
9840 (a)(1)(B));
(iv) a homeless child or youth (defined as 1 of the individuals described in section
11434a (2) of this title;
(v) served by the runaway and homeless youth grant program established under the Runaway and Homeless Youth Act (
42 U.S.C.
5701 et seq.); or
(vi) a migratory child (as defined in section
6399 of title
20).
(B) Proof of receipt of food stamps or assistance under the State program funded under part A of title IV of the Social Security Act (
42 U.S.C.
601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1, 1995, or of enrollment or participation in a Head Start program on the basis described in subparagraph (A)(iii), shall be sufficient to satisfy any verification requirement imposed under this subsection.
(13) Exclusion of certain military housing allowances.— The amount of a basic allowance provided under section
403 of title
37 on behalf of a member of a uniformed service for housing that is acquired or constructed under subchapter IV of chapter
169 of title
10, or any related provision of law, shall not be considered to be income for the purpose of determining the eligibility of a child who is a member of the household of the member of a uniformed service for free or reduced price lunches under this chapter.