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31

RICHARD B. RUSSELL NATIONAL SCHOOLLUNCH ACT

[As Amended Through P.L. 111296, Effective Dec. 13, 2010]

TABLE OF CONTENTS

U.S.C. Act Sec. Page

42 U.S.C.1751 note 1. Short title ........................................................ 33

1751 2. Declaration of policy ....................................... 33

1752 3. Appropriations authorized ............................. 33

1753 4. Apportionments to States .............................. 33

1754 5. Nutrition promotion ....................................... 35

1755 6. Direct Federal expenditures .......................... 37

1756 7. Payments to States ......................................... 39

1757 8. State disbursement to schools ....................... 310

1758 9. Nutritional and other program require-ments.

310

1758b 9A. Local school wellness policy ........................ 335

1759 10. Disbursement to schools by the Secretary 336

1759a 11. Special assistance ......................................... 337

1760 12. Miscellaneous provisions and definitions ... 3481761 13. Summer food service program for children 356

1762a 14. Commodity distribution program ................ 369

1765 16. Election to receive cash payments .............. 372

1766 17. Child and adult care food program ............. 372

1766a 17A. Meal supplements for children in after-school care.

397

1769 18. Pilot projects ................................................. 398

1769a 19. Fresh fruit and vegetable program ............. 3104

1769b 20. Department of Defense overseas depend-

ents schools.

3107

1769b1 21. Training, technical assistance, and foodservice management institute.

3108

1769c 22. Compliance and accountability .................... 3111

1769d 23. Childhood hunger research .......................... 3116

1769e 24. State childhood hunger challenge grants ... 3121

1769f 25. Duties of the Secretary relating to non-procurement debarment.

3124

1769g 26. Information clearinghouse ........................... 3127

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32RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

TABLE OF CONTENTSContinued

1769i 28. Program evaluation ...................................... 3128

1769j 29. Ensuring safety of school meals .................. 3129

Table of contents, bracketed material, and footnotes did not appearin Acts.

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33 Sec. 4RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

11P.L. 79396, 60 Stat. 230, June 4, 1946.

[Chapter 281]

AN ACT

To provide assistance to the States in the establishment, mainte-nance, operation, and expansion of school lunch programs,and for other purposes.

Be it enacted by the Senate and House of Representatives of theUnited States of America in Congress assembled, 42 U.S.C. 1751note That this Act may be cited as the Richard B. Russell Na-tional School Lunch Act. 11

DECLARATION OF POLICY

SEC. 2. 42 U.S.C. 1751 It is hereby declared to be the policyof Congress, as a measure of national security, to safeguard thehealth and well-being of the Nations children and to encourage thedomestic consumption of nutritious agricultural commodities andother food, by assisting the States, through grants-in-aid and other

means, in providing an adequate supply of foods and other facilitiesfor the establishment, maintenance, operation, and expansion ofnonprofit school lunch programs.

APPROPRIATIONS AUTHORIZED

SEC. 3. 42 U.S.C. 1752 For each fiscal year there is herebyauthorized to be appropriated, out of money in the Treasury nototherwise appropriated, such sums as may be necessary to enablethe Secretary of Agriculture (hereinafter referred to as the Sec-retary) to carry out the provisions of this Act, other than sections13 and 17. Appropriations to carry out the provisions of this Actand of the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)]for any fiscal year are authorized to be made a year in advance of

the beginning of the fiscal year in which the funds will becomeavailable for disbursement to the States. Notwithstanding anyother provision of law, any funds appropriated to carry out the pro-visions of such Acts shall remain available for the purposes of the

Act for which appropriated until expended.

APPORTIONMENTS TO STATES

SEC. 4. 42 U.S.C. 1753 (a) The sums appropriated for any fis-cal year pursuant to the authorizations contained in section 3 ofthis Act shall be available to the Secretary for supplying agricul-tural commodities and other food for the program in accordancewith the provisions of this Act.

(b)(1) The Secretary shall make food assistance payments to

each State educational agency each fiscal year, at such times as theSecretary may determine, from the sums appropriated for such pur-pose, in a total amount equal to the product obtained bymultiplying

(A) the number of lunches (consisting of a combination offoods which meet the minimum nutritional requirements pre-scribed by the Secretary under section 9(a) of this Act) servedduring such fiscal year in schools in such State which partici-pate in the school lunch program under this Act under agree-ments with such State educational agency; by

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34Sec. 4 RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

(B) the national average lunch payment prescribed in para-graph (2) of this subsection.(2) The national average lunch payment for each lunch served

shall be 10.5 cents (as adjusted pursuant to section 11(a) of thisAct) except that for each lunch served in school food authorities inwhich 60 percent or more of the lunches served in the school lunch

program during the second preceding school year were served freeor at a reduced price, the national average lunch payment shall be2 cents more.

(3) ADDITIONAL REIMBURSEMENT.(A) REGULATIONS.

(i) PROPOSED REGULATIONS.Notwithstanding sec-tion 9(f), not later than 18 months after the date of en-actment of this paragraph, the Secretary shall promul-gate proposed regulations to update the meal patternsand nutrition standards for the school lunch programauthorized under this Act and the school breakfastprogram established by section 4 of the Child Nutrition

Act of 1966 (42 U.S.C. 1773) based on recommenda-tions made by the Food and Nutrition Board of the Na-tional Research Council of the National Academy ofSciences.

(ii) INTERIM OR FINAL REGULATIONS.(I) IN GENERAL.Not later than 18 months

after promulgation of the proposed regulationsunder clause (i), the Secretary shall promulgate in-terim or final regulations.

(II) D ATE OF REQUIRED COMPLIANCE.The Sec-retary shall establish in the interim or final regu-lations a date by which all school food authoritiesparticipating in the school lunch program author-

ized under this Act and the school breakfast pro-gram established by section 4 of the Child Nutri-tion Act of 1966 (42 U.S.C. 1773) are required tocomply with the meal pattern and nutrition stand-ards established in the interim or final regula-tions.(iii) REPORT TO CONGRESS.Not later than 90 days

after the date of enactment of this paragraph, andeach 90 days thereafter until the Secretary has pro-mulgated interim or final regulations under clause (ii),the Secretary shall submit to the Committee on Edu-cation and Labor of the House of Representatives and

the Committee on Agriculture, Nutrition, and Forestryof the Senate a quarterly report on progress made to-ward promulgation of the regulations described in thissubparagraph.(B) PERFORMANCE-BASED REIMBURSEMENT RATE IN-

CREASE.Beginning on the later of the date of promulga-tion of the implementing regulations described in subpara-graph (A)(ii), the date of enactment of this paragraph, orOctober 1, 2012, the Secretary shall provide additional re-imbursement for each lunch served in school food authori-ties determined to be eligible under subparagraph (D).

(C) ADDITIONAL REIMBURSEMENT.

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(i) IN GENERAL.Each lunch served in school foodauthorities determined to be eligible under subpara-graph (D) shall receive an additional 6 cents, adjustedin accordance with section 11(a)(3), to the nationallunch average payment for each lunch served.

(ii) DISBURSEMENT.The State agency shall dis-

burse funds made available under this paragraph toschool food authorities eligible to receive additional re-imbursement.(D) ELIGIBLE SCHOOL FOOD AUTHORITY.To be eligible

to receive an additional reimbursement described in thisparagraph, a school food authority shall be certified by theState to be in compliance with the interim or final regula-tions described in subparagraph (A)(ii).

(E) F AILURE TO COMPLY.Beginning on the later of thedate described in subparagraph (A)(ii)(II), the date of en-actment of this paragraph, or October 1, 2012, school foodauthorities found to be out of compliance with the meal

patterns or nutrition standards established by the imple-menting regulations shall not receive the additional reim-bursement for each lunch served described in this para-graph.

(F) ADMINISTRATIVE COSTS.(i) IN GENERAL.Subject to clauses (ii) and (iii),

the Secretary shall make funds available to States forState activities related to training, technical assist-ance, certification, and oversight activities of this para-graph.

(ii) PROVISION OF FUNDS.The Secretary shall pro-vide funds described in clause (i) to States admin-istering a school lunch program in a manner propor-tional to the administrative expense allocation of eachState during the preceding fiscal year.

(iii) FUNDING.(I) IN GENERAL.In the later of the fiscal year

in which the implementing regulations describedin subparagraph (A)(ii) are promulgated or the fis-cal year in which this paragraph is enacted, and inthe subsequent fiscal year, the Secretary shall usenot more than $50,000,000 of funds made avail-able under section 3 to make payments to Statesdescribed in clause (i).

(II) RESERVATION.In providing funds to

States under clause (i), the Secretary may reservenot more than $3,000,000 per fiscal year to sup-port Federal administrative activities to carry outthis paragraph.

SEC. 5. 42 U.S.C. 1754 NUTRITION PROMOTION.

(a) IN GENERAL.Subject to the availability of funds madeavailable under subsection (g), the Secretary shall make paymentsto State agencies for each fiscal year, in accordance with this sec-tion, to promote nutrition in food service programs under this Actand the school breakfast program established under the Child Nu-trition Act of 1966 (42 U.S.C. 1771 et seq.).

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(b) TOTAL AMOUNT FOR EACH FISCAL YEAR.The total amountof funds available for a fiscal year for payments under this sectionshall equal not more than the product obtained by multiplying

(1) 12 cent; by(2) the number of lunches reimbursed through food service

programs under this Act during the second preceding fiscal

year in schools, institutions, and service institutions that par-ticipate in the food service programs.(c) P AYMENTS TO STATES.

(1) ALLOCATION.Subject to paragraph (2), from theamount of funds available under subsection (g) for a fiscal year,the Secretary shall allocate to each State agency an amountequal to the greater of

(A) a uniform base amount established by the Sec-retary; or

(B) an amount determined by the Secretary, based onthe ratio that

(i) the number of lunches reimbursed through food

service programs under this Act in schools, institu-tions, and service institutions in the State that partici-pate in the food service programs; bears to

(ii) the number of lunches reimbursed through thefood service programs in schools, institutions, and serv-ice institutions in all States that participate in the foodservice programs.

(2) REDUCTIONS.The Secretary shall reduce allocations toState agencies qualifying for an allocation under paragraph(1)(B), in a manner determined by the Secretary, to the extentnecessary to ensure that the total amount of funds allocatedunder paragraph (1) is not greater than the amount appro-priated under subsection (g).

(d) USE OF PAYMENTS.(1) USE BY STATE AGENCIES.A State agency may reserve,

to support dissemination and use of nutrition messages andmaterial developed by the Secretary, up to

(A) 5 percent of the payment received by the State fora fiscal year under subsection (c); or

(B) in the case of a small State (as determined by theSecretary), a higher percentage (as determined by the Sec-retary) of the payment.(2) DISBURSEMENT TO SCHOOLS AND INSTITUTIONS.Subject

to paragraph (3), the State agency shall disburse any remain-ing amount of the payment to school food authorities and insti-

tutions participating in food service programs described in sub-section (a) to disseminate and use nutrition messages and ma-terial developed by the Secretary.

(3) SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.In ad-dition to any amounts reserved under paragraph (1), in thecase of the summer food service program for children estab-lished under section 13, the State agency may

(A) retain a portion of the funds made available undersubsection (c) (as determined by the Secretary); and

(B) use the funds, in connection with the program, todisseminate and use nutrition messages and material de-veloped by the Secretary.

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(e) DOCUMENTATION.A State agency, school food authority,and institution receiving funds under this section shall maintaindocumentation of nutrition promotion activities conducted underthis section.

(f) REALLOCATION.The Secretary may reallocate, to carry outthis section, any amounts made available to carry out this section

that are not obligated or expended, as determined by the Secretary.(g) AUTHORIZATION OF APPROPRIATIONS.There are authorizedto be appropriated such sums as are necessary to carry out this sec-tion, to remain available until expended.

DIRECT FEDERAL EXPENDITURES

SEC. 6. 42 U.S.C. 1755 (a) The funds provided by appropria-tion or transfer from other accounts for any fiscal year for carryingout the provisions of this Act, and for carrying out the provisionsof the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)], otherthan section 3 thereof[(42 U.S.C. 1772)], less

(1) not to exceed 312 per centum thereof which per centumis hereby made available to the Secretary for the Secretarys

administrative expenses under this Act and under the ChildNutrition Act of 1966;

(2) the amount apportioned by the Secretary pursuant tosection 4 of this Act and the amount appropriated pursuant tosections 11 and 13 of this Act and sections 4 and 7 of the ChildNutrition Act of 1966 [(42 U.S.C. 1773 and 1776)]; and

(3) not to exceed 1 per centum of the funds provided forcarrying out the programs under this Act and the programsunder the Child Nutrition Act of 1966, other than section 3,which per centum is hereby made available to the Secretary tosupplement the nutritional benefits of these programs throughgrants to States and other means for nutritional training and

education for workers, cooperators, and participants in theseprograms, for pilot projects and the cash-in-lieu of commoditiesstudy required to be carried out under section 18 of this Act,and for necessary surveys and studies of requirements for foodservice programs in furtherance of the purposes expressed insection 2 of this Act and section 2 of the Child Nutrition Actof 1966 [(42 U.S.C. 1771)],

shall be available to the Secretary during such year for direct ex-penditure by the Secretary for agricultural commodities and otherfoods to be distributed among the States and schools and service in-stitutions participating in the food service programs under this Actand under the Child Nutrition Act of 1966 in accordance with theneeds as determined by the local school and service institution au-

thorities. Except as provided in the next 2 sentences, any schoolparticipating in food service programs under this Act may refuse toaccept delivery of not more than 20 percent of the total value of ag-ricultural commodities and other foods tendered to it in any schoolyear; and if a school so refuses, that school may receive, in lieu ofthe refused commodities, other commodities to the extent that othercommodities are available to the State during that year. Any schoolfood authority may refuse some or all of the fresh fruits and vegeta-bles offered to the school food authority in any school year and shallreceive, in lieu of the offered fruits and vegetables, other more de-sirable fresh fruits and vegetables that are at least equal in valueto the fresh fruits and vegetables refused by the school food author-

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ity. The value of any fresh fruits and vegetables refused by a schoolunder the preceding sentence for a school year shall not be used todetermine the 20 percent of the total value of agricultural commod-ities and other foods tendered to the school food authority in theschool year under the second sentence. The provisions of law con-tained in the proviso of the Act of June 28, 1937 [; 15 U.S.C. 713c],

facilitating operations with respect to the purchase and dispositionof surplus agricultural commodities under section 32 of the Act ap-proved August 24, 1935, [; 7 U.S.C. 612c] shall, to the extent notinconsistent with the provisions of this Act, also be applicable to ex-penditures of funds by the Secretary under this Act. In making pur-chases of such agricultural commodities and other foods, the Sec-retary shall not issue specifications which restrict participation oflocal producers unless such specifications will result in significantadvantages to the food service programs authorized by this Act andthe Child Nutrition Act of 1966.

(b) The Secretary shall deliver, to each State participating inthe school lunch program under this Act, commodities valued at thetotal level of assistance authorized under subsection (c) for each

school year for the school lunch program in the State, not laterthan September 30 of the following school year.

(c)(1)(A) The national average value of donated foods, or cashpayments in lieu thereof, shall be 11 cents, adjusted on July 1,1982, and each July 1 thereafter to reflect changes in the PriceIndex for Food Used in Schools and Institutions. The Index shall becomputed using 5 major food components in the Bureau of LaborStatistics Producer Price Index (cereal and bakery products, meats,poultry and fish, dairy products, processed fruits and vegetables,and fats and oils). Each component shall be weighed using the samerelative weight as determined by the Bureau of Labor Statistics.

(B) The value of food assistance for each meal shall be adjusted

each July 1 by the annual percentage change in a 3-month averagevalue of the Price Index for Foods Used in Schools and Institutionsfor March, April, and May each year. Such adjustment shall becomputed to the nearest 14 cent.

(C) For each school year, the total commodity assistance orcash in lieu thereof available to a State for the school lunch pro-gram shall be calculated by multiplying the number of lunchesserved in the preceding school year by the rate established by sub-paragraph (B). After the end of each school year, the Secretaryshall reconcile the number of lunches served by schools in eachState with the number of lunches served by schools in each Stateduring the preceding school year and increase or reduce subsequentcommodity assistance or cash in lieu thereof provided to each State

based on such reconciliation.(D) Among those commodities delivered under this section, theSecretary shall give special emphasis to high protein foods, meat,and meat alternates (which may include domestic seafood commod-ities and their products).

(E) Notwithstanding any other provision of this section, not lessthan 75 percent of the assistance provided under this subsectionshall be in the form of donated foods for the school lunch program.

(2) To the maximum extent feasible, each State agency shalloffer to each school food authority under its jurisdiction that partici-pates in the school lunch program and receives commodities, agri-cultural commodities and their products, the per meal value of

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which is not less than the national average value of donated foodsestablished under paragraph (1). Each such offer shall include thefull range of such commodities and products that are available fromthe Secretary to the extent that quantities requested are sufficientto allow efficient delivery to and within the State.

(d) Beginning with the school year ending June 30, 1981, the

Secretary shall not offer commodity assistance based upon the num-ber of breakfasts served to children under section 4 of the ChildNutrition Act of 1966 [(42 U.S.C. 1773)].

(e)(1) Subject to paragraph (2), in each school year the Sec-retary shall ensure that not less than 12 percent of the assistanceprovided under section 4, this section, and section 11 shall be in theform of

(A) commodity assistance provided under this section, in-cluding cash in lieu of commodities and administrative costs forprocurement of commodities under this section; or

(B) during the period beginning October 1, 2003, and end-ing September 30, 2020, commodities provided by the Secretaryunder any provision of law.

(2) If amounts available to carry out the requirements of thesections described in paragraph (1) are insufficient to meet the re-quirement contained in paragraph (1) for a school year, the Sec-retary shall, to the extent necessary, use the authority providedunder section 14(a) to meet the requirement for the school year.

PAYMENTS TO STATES

SEC. 7. 42 U.S.C. 1756 (a)(1) Funds appropriated to carry outsection 4 of this Act during any fiscal year shall be available forpayment to the States for disbursement by State educational agen-cies in accordance with such agreements, not inconsistent with theprovisions of this Act, as may be entered into by the Secretary and

such State educational agencies for the purpose of assisting schoolswithin the States in obtaining agricultural commodities and otherfoods for consumption by children in furtherance of the school lunchprogram authorized under this Act. For any school year, such pay-ments shall be made to a State only if, during such school year, theamount of the State revenues (excluding State revenues derivedfrom the operation of the program) appropriated or used specificallyfor program purposes (other than any State revenues expended forsalaries and administrative expenses of the program at the Statelevel) is not less than 30 percent of the funds made available tosuch State under section 4 of this Act for the school year beginningJuly 1, 1980.

(2) If, for any school year, the per capita income of a State is

less than the average per capita income of all the States, theamount required to be expended by a State under paragraph (1) forsuch year shall be an amount bearing the same ratio to the amountequal to 30 percent of the funds made available to such State undersection 4 of this Act for the school year beginning July 1, 1980, asthe per capita income of such State bears to the average per capitaincome of all the States.

(b) The State revenues provided by any State to meet the re-quirement of subsection (a) shall, to the extent the State deemspracticable, be disbursed to schools participating in the school lunchprogram under this Act. No State in which the State educationalagency is prohibited by law from disbursing State appropriated

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funds to private schools shall be required to match Federal fundsmade available for meals served in such schools, or to disburse, tosuch schools, any of the State revenues required to meet the re-quirements of subsection (a).

(c) The Secretary shall certify to the Secretary of the Treasury,from time to time, the amounts to be paid to any State under this

section and shall specify when such payments are to be made. TheSecretary of the Treasury shall pay to the State, at the time ortimes fixed by the Secretary, the amounts so certified.

(d) Notwithstanding any other provision of law, the Secretarymay enter into an agreement with a State agency, acting on the re-quest of a school food service authority, under which funds payableto the State under section 4 or 11 may be used by the Secretaryfor the purpose of purchasing commodities for use by the schoolfood service authority in meals served under the school lunch pro-gram under this Act.

STATE DISBURSEMENT TO SCHOOLS

SEC. 8. 42 U.S.C. 1757 (a) Funds paid to any State during

any fiscal year pursuant to section 4 shall be disbursed by the Stateeducational agency, in accordance with such agreements approvedby the Secretary as may be entered into by such State agency andthe schools in the State, to those schools in the State which theState educational agency, taking into account need and attendance,determines are eligible to participate in the school lunch program.

(b) The agreements described in subsection (a) shall be perma-nent agreements that may be amended as necessary.

(c) The State educational agency may suspend or terminate anysuch agreement in accordance with regulations prescribed by theSecretary.

(d) Use of funds paid to States may include, in addition to the

purchase price of agricultural commodities and other foods, the costof processing, distributing, transporting, storing, or handling there-of.

(e) In no event shall such disbursement for food to any schoolfor any fiscal year exceed an amount determined by multiplying thenumber of lunches served in the school in the school lunch programunder this Act during such year by the maximum per meal reim-bursement rate for the State, for the type of lunch served, as pre-scribed by the Secretary.

(f) In any fiscal year in which the national average paymentper lunch determined under section 4 is increased above theamount prescribed in the previous fiscal year, the maximum permeal reimbursement rate for the type of lunch served, shall be in-

creased by a like amount.(g) Lunch assistance disbursements to schools under this sec-tion and under section 11 of this Act may be made in advance orby way of reimbursement in accordance with procedures prescribedby the Secretary.

NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

SEC. 9. 42 U.S.C. 1758 (a)(1)(A) Lunches served by schoolsparticipating in the school lunch program under this Act shall meetminimum nutritional requirements prescribed by the Secretary onthe basis of tested nutritional research, except that the minimumnutritional requirements

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(i) shall not be construed to prohibit the substitution offoods to accommodate the medical or other special dietaryneeds of individual students; and

(ii) shall, at a minimum, be based on the weekly averageof the nutrient content of school lunches.(B) The Secretary shall provide technical assistance and train-

ing, including technical assistance and training in the preparationof lower-fat versions of foods commonly used in the school lunchprogram under this Act, to schools participating in the school lunchprogram to assist the schools in complying with the nutritional re-quirements prescribed by the Secretary pursuant to subparagraph(A) and in providing appropriate meals to children with medicallycertified special dietary needs. The Secretary shall provide addi-tional technical assistance to schools that are having difficultymaintaining compliance with the requirements.

(2) FLUID MILK.(A) IN GENERAL.Lunches served by schools partici-

pating in the school lunch program under this Act

(i) shall offer students a variety of fluid milk. Suchmilk shall be consistent with the most recent DietaryGuidelines for Americans published under section 301of the National Nutrition Monitoring and Related Re-search Act of 1990 (7 U.S.C. 5341);

(ii) may offer students flavored and unflavoredfluid milk and lactose-free fluid milk; and

(iii) shall provide a substitute for fluid milk forstudents whose disability restricts their diet, on receiptof a written statement from a licensed physician thatidentifies the disability that restricts the students dietand that specifies the substitute for fluid milk.(B) SUBSTITUTES.

(i) STANDARDS FOR SUBSTITUTION.A school maysubstitute for the fluid milk provided under subpara-graph (A), a nondairy beverage that is nutritionallyequivalent to fluid milk and meets nutritional stand-ards established by the Secretary (which shall, amongother requirements to be determined by the Secretary,include fortification of calcium, protein, vitamin A, andvitamin D to levels found in cows milk) for studentswho cannot consume fluid milk because of a medical orother special dietary need other than a disability de-scribed in subparagraph (A)(iii).

(ii) NOTICE.The substitutions may be made if the

school notifies the State agency that the school is im-plementing a variation allowed under this subpara-graph, and if the substitution is requested by writtenstatement of a medical authority or by a students par-ent or legal guardian that identifies the medical orother special dietary need that restricts the studentsdiet, except that the school shall not be required toprovide beverages other than beverages the school hasidentified as acceptable substitutes.

(iii) E XCESS EXPENSES BORNE BY SCHOOL FOOD AU-THORITY.Expenses incurred in providing substi-tutions under this subparagraph that are in excess of

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expenses covered by reimbursements under this Actshall be paid by the school food authority.(C) RESTRICTIONS ON SALE OF MILK PROHIBITED.A

school that participates in the school lunch program underthis Act shall not directly or indirectly restrict the sale ormarketing of fluid milk products by the school (or by a per-

son approved by the school) at any time or any place(i) on the school premises; or(ii) at any school-sponsored event.

(3) Students in senior high schools that participate in theschool lunch program under this Act (and, when approved by thelocal school district or nonprofit private schools, students in anyother grade level) shall not be required to accept offered foods theydo not intend to consume, and any such failure to accept offeredfoods shall not affect the full charge to the student for a lunchmeeting the requirements of this subsection or the amount of pay-ments made under this Act to any such school for such lunch.

(4) PROVISION OF INFORMATION.(A) GUIDANCE.Prior to the beginning of the school

year beginning July 2004, the Secretary shall issue guid-ance to States and school food authorities to increase theconsumption of foods and food ingredients that are rec-ommended for increased serving consumption in the mostrecent Dietary Guidelines for Americans published undersection 301 of the National Nutrition Monitoring and Re-lated Research Act of 1990 (7 U.S.C. 5341).

(B) RULES.Not later than 2 years after the date ofenactment of this paragraph, the Secretary shall promul-gate rules, based on the most recent Dietary Guidelines for

Americans, that reflect specific recommendations, ex-pressed in serving recommendations, for increased con-

sumption of foods and food ingredients offered in school nu-trition programs under this Act and the Child NutritionAct of 1966 (42 U.S.C. 1771 et seq.).

(C) PROCUREMENT AND PROCESSING OF FOOD SERVICEPRODUCTS AND COMMODITIES.The Secretary shall

(i) identify, develop, and disseminate to State de-partments of agriculture and education, school food au-thorities, local educational agencies, and local proc-essing entities, model product specifications and prac-tices for foods offered in school nutrition programsunder this Act and the Child Nutrition Act of 1966 (42U.S.C. 1771 et seq.) to ensure that the foods reflect themost recent Dietary Guidelines for Americans pub-

lished under section 301 of the National NutritionMonitoring and Related Research Act of 1990 (7 U.S.C.5341);

(ii) not later than 1 year after the date of enact-ment of this subparagraph

(I) carry out a study to analyze the quantityand quality of nutritional information available toschool food authorities about food service productsand commodities; and

(II) submit to Congress a report on the resultsof the study that contains such legislative rec-ommendations as the Secretary considers nec-

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essary to ensure that school food authorities haveaccess to the nutritional information needed formenu planning and compliance assessments; and(iii) to the maximum extent practicable, in pur-

chasing and processing commodities for use in schoolnutrition programs under this Act and the Child Nutri-

tion Act of 1966 (42 U.S.C. 1771 et seq.), purchase thewidest variety of healthful foods that reflect the mostrecent Dietary Guidelines for Americans.

(5) WATER.Schools participating in the school lunch pro-gram under this Act shall make available to children free ofcharge, as nutritionally appropriate, potable water for con-sumption in the place where meals are served during mealservice.(b)(1)(A) Not later than June 1 of each fiscal year, the Secretary

shall prescribe income guidelines for determining eligibility for freeand reduced price lunches during the 12-month period beginningJuly 1 of such fiscal year and ending June 30 of the following fiscalyear. The income guidelines for determining eligibility for free

lunches shall be 130 percent of the applicable family size incomelevels contained in the nonfarm income poverty guidelines pre-scribed by the Office of Management and Budget, as adjusted annu-ally in accordance with subparagraph (B). The income guidelines fordetermining eligibility for reduced price lunches for any school yearshall be 185 percent of the applicable family size income levels con-tained in the nonfarm income poverty guidelines prescribed by theOffice of Management and Budget, as adjusted annually in accord-ance with subparagraph (B). The Office of Management and Budgetguidelines shall be revised at annual intervals, or at any shorter in-terval deemed feasible and desirable.

(B) The revision required by subparagraph (A) of this para-

graph shall be made by multiplying(i) the official poverty line (as defined by the Office of Man-agement and Budget); by

(ii) the percentage change in the Consumer Price Indexduring the annual or other interval immediately preceding thetime at which the adjustment is made.

Revisions under this subparagraph shall be made not more than 30days after the date on which the consumer price index data re-quired to compute the adjustment becomes available.

(2)(A) Following the determination by the Secretary underparagraph (1) of this subsection of the income eligibility guidelinesfor each school year, each State educational agency shall announcethe income eligibility guidelines, by family size, to be used by

schools in the State in making determinations of eligibility for freeand reduced price lunches. Local school authorities shall, each year,publicly announce the income eligibility guidelines for free and re-duced 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 pre-scribe or approve, and any descriptive material, shallbe distributed to the parents or guardians of childrenin attendance at the school, and shall contain only thefamily size income levels for reduced price meal eligi-bility with the explanation that households with in-

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comes less than or equal to these values would be eligi-ble for free or reduced price lunches.

(ii) INCOME ELIGIBILITY GUIDELINES.Forms anddescriptive material distributed in accordance withclause (i) may not contain the income eligibility guide-lines for free lunches.

(iii) CONTENTS OF DESCRIPTIVE MATERIAL.(I) IN GENERAL.Descriptive material distrib-uted in accordance with clause (i) shall contain anotification that

(aa) participants in the programs listed insubclause (II) may be eligible for free or re-duced price meals; and

(bb) documentation may be requested forverification of eligibility for free or reducedprice meals.(II) PROGRAMS.The programs referred to in

subclause (I)(aa) are(aa) the special supplemental nutrition

program for women, infants, and children es-tablished by section 17 of the Child Nutrition

Act of 1966 (42 U.S.C. 1786);(bb) the supplemental nutrition assistance

program established under the Food and Nu-trition Act of 2008 (7 U.S.C. 2011 et seq.);

(cc) the food distribution program on In-dian reservations established under section4(b) of the Food and Nutrition Act of 2008 (7U.S.C. 2013(b)); and

(dd) a State program funded under theprogram of block grants to States for tem-

porary assistance for needy families estab-lished under part A of title IV of the Social Se-curity 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 ap-plication for a child of a household to receive free or re-duced price school lunches under this Act, or free or re-duced price school breakfasts under the Child Nutrition

Act of 1966 (42 U.S.C. 1771 et seq.), for which an eligibilitydetermination is made other than under paragraph (4) or(5).

(B) ELIGIBILITY DETERMINATION.

(i) IN GENERAL.An eligibility determination shallbe made on the basis of a complete household applica-tion executed by an adult member of the household orin accordance with guidance issued by the Secretary.

(ii) ELECTRONIC SIGNATURES AND APPLICATIONS.Ahousehold application may be executed using an elec-tronic signature if

(I) the application is submitted electronically;and

(II) the electronic application filing systemmeets confidentiality standards established by theSecretary.

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(C) CHILDREN IN HOUSEHOLD.(i) IN GENERAL.The household application shall

identify the names of each child in the household forwhom meal benefits are requested.

(ii) SEPARATE APPLICATIONS.A State educationalagency or local educational agency may not request a

separate application for each child in the householdthat attends schools under the same local educationalagency.(D) VERIFICATION OF SAMPLE.

(i) DEFINITIONS.In this subparagraph:(I) ERROR PRONE APPLICATION.The term

error prone application means an approvedhousehold application that

(aa) indicates monthly income that iswithin $100, or an annual income that is with-in $1,200, of the income eligibility limitationfor free or reduced price meals; or

(bb) in lieu of the criteria established

under item (aa), meets criteria established bythe Secretary.(II) NON-RESPONSE RATE.The term non-re-

sponse rate means (in accordance with guidelinesestablished by the Secretary) the percentage of ap-proved household applications for whichverification information has not been obtained bya local educational agency after attemptedverification under subparagraphs (F) and (G).(ii) VERIFICATION OF SAMPLE.Each school year, a

local educational agency shall verify eligibility of thechildren in a sample of household applications ap-

proved for the school year by the local educationalagency, as determined by the Secretary in accordancewith this subsection.

(iii) S AMPLE SIZE.Except as otherwise provided inthis paragraph, the sample for a local educationalagency for a school year shall equal the lesser of

(I) 3 percent of all applications approved bythe local educational agency for the school year, asof October 1 of the school year, selected from errorprone applications; or

(II) 3,000 error prone applications approved bythe local educational agency for the school year, asof October 1 of the school year.

(iv) ALTERNATIVE SAMPLE SIZE.(I) IN GENERAL.If the conditions described insubclause (IV) are met, the verification sample sizefor a local educational agency shall be the samplesize described in subclause (II) or (III), as deter-mined by the local educational agency.

(II) 3,000/3 PERCENT OPTION.The sample sizedescribed in this subclause shall be the lesser of3,000, or 3 percent of, applications selected at ran-dom from applications approved by the local edu-cational agency for the school year, as of October1 of the school year.

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(III) 1,000/1 PERCENT PLUS OPTION.(aa) IN GENERAL.The sample size de-

scribed in this subclause shall be the sum of(AA) the lesser of 1,000, or 1 percent

of, all applications approved by the localeducational agency for the school year, as

of October 1 of the school year, selectedfrom error prone applications; and(BB) the lesser of 500, or 12 of 1 per-

cent of, applications approved by the localeducational agency for the school year, asof October 1 of the school year, that pro-vide a case number (in lieu of income in-formation) showing participation in a pro-gram described in item (bb) selected fromthose approved applications that provide acase number (in lieu of income informa-tion) verifying the participation.(bb) PROGRAMS.The programs described

in this item are(AA) the supplemental nutrition as-

sistance program established under theFood and Nutrition Act of 2008 (7 U.S.C.2011 et seq.);

(BB) the food distribution program onIndian reservations established under sec-tion 4(b) of the Food and Nutrition Act of2008 (7 U.S.C. 2013(b)); and

(CC) a State program funded underthe program of block grants to States fortemporary assistance for needy families

established under part A of title IV of theSocial Security Act (42 U.S.C. 601 et seq.)that the Secretary determines complieswith standards established by the Sec-retary that ensure that the standardsunder the State program are comparableto or more restrictive than those in effecton June 1, 1995.

(IV) CONDITIONS.The conditions referred toin subclause (I) shall be met for a local educationalagency for a school year if

(aa) the nonresponse rate for the localeducational agency for the preceding school

year is less than 20 percent; or(bb) the local educational agency has morethan 20,000 children approved by applicationby the local educational agency as eligible forfree or reduced price meals for the school year,as of October 1 of the school year, and

(AA) the nonresponse rate for the pre-ceding school year is at least 10 percentbelow the nonresponse rate for the secondpreceding school year; or

(BB) in the case of the school year be-ginning July 2005, the local educational

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agency attempts to verify all approvedhousehold applications selected forverification through use of public agencyrecords from at least 2 of the programs orsources of information described in sub-paragraph (F)(i).

(v) ADDITIONAL SELECTED APPLICATIONS.A sam-ple for a local educational agency for a school yearunder clauses (iii) and (iv)(III)(AA) shall include thenumber of additional randomly selected approvedhousehold applications that are required to complywith 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 appli-cations selected for verification, the local edu-cational agency shall ensure that the initial eligi-bility determination for each approved household

application is reviewed for accuracy by an indi-vidual other than the individual making the initialeligibility determination, unless otherwise deter-mined by the Secretary.

(II) WAIVER.The requirements of subclause(I) shall be waived for a local educational agencyif the local educational agency is using a tech-nology-based solution that demonstrates a highlevel of accuracy, to the satisfaction of the Sec-retary, in processing an initial eligibility deter-mination in accordance with the income eligibilityguidelines of the school lunch program.

(ii) CORRECT ELIGIBILITY DETERMINATION

.If thereview indicates that the initial eligibility determina-tion is correct, the local educational agency shall verifythe approved household application.

(iii) INCORRECT ELIGIBILITY DETERMINATION.Ifthe review indicates that the initial eligibility deter-mination is incorrect, the local educational agencyshall (as determined by the Secretary)

(I) correct the eligibility status of the house-hold;

(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 re-

duced-price meals, notify the household of the rea-son for the ineligibility and that the householdmay reapply with income documentation for freeor reduced-price meals; and

(IV) in any case in which the review indicatesthat the household is eligible for free or reduced-price meals, verify the approved household appli-cation.

(F) DIRECT VERIFICATION.(i) IN GENERAL.Subject to clauses (ii) and (iii), to

verify eligibility for free or reduced price meals for ap-proved household applications selected for verification,

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the local educational agency may (in accordance withcriteria established by the Secretary) first obtain anduse income and program participation informationfrom a public agency administering

(I) the supplemental nutrition assistance pro-gram established under the Food and Nutrition

Act of 2008 (7 U.S.C. 2011 et seq.);(II) the food distribution program on Indianreservations established under section 4(b) of theFood and Nutrition Act of 2008 (7 U.S.C. 2013(b));

(III) the temporary assistance for needy fami-lies program funded under part A of title IV of theSocial 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 etseq.); or

(V) a similar income-tested program or othersource of information, as determined by the Sec-

retary.(ii) FREE MEALS.Public agency records that maybe obtained and used under clause (i) to verify eligi-bility for free meals for approved household applica-tions selected for verification shall include the most re-cent available information (other than information re-flecting program participation or income before the180-day period ending on the date of application forfree meals) that is relied on to administer

(I) a program or source of information de-scribed in clause (i) (other than clause (i)(IV)); or

(II) the State plan for medical assistanceunder title XIX of the Social Security Act (42U.S.C. 1396 et seq.) in

(aa) a State in which the income eligibilitylimit applied under section 1902(l)(2)(C) ofthat Act (42 U.S.C. 1396a(l)(2)(C)) is not morethan 133 percent of the official poverty linedescribed in section 1902(l)(2)(A) of that Act(42 U.S.C. 1396a(l)(2)(A)); or

(bb) a State that otherwise identifieshouseholds that have income that is not morethan 133 percent of the official poverty linedescribed in section 1902(l)(2)(A) of that Act(42 U.S.C. 1396a(l)(2)(A)).

(iii) REDUCED PRICE MEALS.Public agency recordsthat may be obtained and used under clause (i) toverify eligibility for reduced price meals for approvedhousehold applications selected for verification shallinclude the most recent available information (otherthan information reflecting program participation orincome before the 180-day period ending on the date ofapplication for reduced price meals) that is relied on toadminister

(I) a program or source of information de-scribed in clause (i) (other than clause (i)(IV)); or

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(II) the State plan for medical assistanceunder title XIX of the Social Security Act (42U.S.C. 1396 et seq.) in

(aa) a State in which the income eligibilitylimit applied under section 1902(l)(2)(C) ofthat Act (42 U.S.C. 1396a(l)(2)(C)) is not more

than 185 percent of the official poverty linedescribed in section 1902(l)(2)(A) of that Act(42 U.S.C. 1396a(l)(2)(A)); or

(bb) a State that otherwise identifieshouseholds that have income that is not morethan 185 percent of the official poverty linedescribed 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 thedate of enactment of this subparagraph, the Secretaryshall complete an evaluation of

(I) the effectiveness of direct verification car-

ried out under this subparagraph in decreasingthe portion of the verification sample that must beverified under subparagraph (G) while ensuringthat adequate verification information is obtained;and

(II) the feasibility of direct verification byState agencies and local educational agencies.(v) E XPANDED USE OF DIRECT VERIFICATION.If the

Secretary determines that direct verification signifi-cantly decreases the portion of the verification samplethat must be verified under subparagraph (G), whileensuring that adequate verification information is ob-tained, and can be conducted by most State agencies

and local educational agencies, the Secretary may re-quire a State agency or local educational agency to im-plement direct verification through 1 or more of theprograms described in clause (i), as determined by theSecretary, unless the State agency or local educationalagency demonstrates (under criteria established by theSecretary) that the State agency or local educationalagency lacks the capacity to conduct, or is unable toimplement, direct verification.(G) HOUSEHOLD VERIFICATION.

(i) IN GENERAL.If an approved household applica-tion is not verified through the use of public agency

records, a local educational agency shall provide to thehousehold 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 forfree or reduced price meals.(ii) PHONE NUMBER.The written notice in clause

(i) shall include a toll-free phone number that parentsand legal guardians in households selected forverification can call for assistance with the verificationprocess.

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(iii) FOLLOWUP ACTIVITIES.If a household doesnot respond to a verification request, a local edu-cational agency shall make at least 1 attempt to obtainthe necessary verification from the household in ac-cordance with guidelines and regulations promulgatedby the Secretary.

(iv) CONTRACT AUTHORITY FOR SCHOOL FOOD AU-THORITIES.A local educational agency may contract(under standards established by the Secretary) with athird party to assist the local educational agency incarrying 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 localeducational agency shall complete the verificationactivities required for the school year (includingfollowup activities).

(II) EXTENSION.Under criteria established by

the Secretary, a State may extend the deadline es-tablished under subclause (I) for a school year fora local educational agency to December 15 of theschool year.(ii) ELIGIBILITY CHANGES.Based on the

verification activities, the local educational agencyshall make appropriate modifications to the eligibilitydeterminations made for household applications in ac-cordance with criteria established by the Secretary.(I) LOCAL CONDITIONS.In the case of a natural dis-

aster, civil disorder, strike, or other local condition (as de-termined by the Secretary), the Secretary may substitute

alternatives for(i) the sample size and sample selection criteria es-tablished under subparagraph (D); and

(ii) the verification deadline established under sub-paragraph (H).(J) INDIVIDUAL REVIEW.In accordance with criteria

established by the Secretary, the local educational agencymay, on individual review

(i) decline to verify no more than 5 percent of ap-proved household applications selected under subpara-graph (D); and

(ii) replace the approved household applicationswith 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 lunchprogram under this Act;

(II) waste, fraud, and abuse in connection withthis paragraph; and

(III) errors, waste, fraud, and abuse in othernutrition programs, as determined to be appro-priate by the Secretary.

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(ii) REPORT.Not later than 180 days after thedate of enactment of this paragraph, the Secretaryshall submit to the Committee on Education and theWorkforce of the House of Representatives and theCommittee on Agriculture, Nutrition, and Forestry ofthe Senate a report describing

(I) the results of the feasibility study con-ducted 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 im-

plement the system.(4) DIRECT CERTIFICATION FOR CHILDREN IN SUPPLEMENTAL

NUTRITION ASSISTANCE PROGRAM HOUSEHOLDS.(A) IN GENERAL.Subject to subparagraph (D), each

State agency shall enter into an agreement with the Stateagency conducting eligibility determinations for the supple-

mental nutrition assistance program established under theFood and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).(B) PROCEDURES.Subject to paragraph (6), the agree-

ment shall establish procedures under which a child whois a member of a household receiving assistance under thesupplemental nutrition assistance program shall be cer-tified as eligible for free lunches under this Act and freebreakfasts under the Child Nutrition Act of 1966 (42U.S.C. 1771 et seq.), without further application.

(C) CERTIFICATION.Subject to paragraph (6), underthe agreement, the local educational agency conducting eli-gibility determinations for a school lunch program underthis Act and a school breakfast program under the Child

Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall certifya child who is a member of a household receiving assist-ance under the supplemental nutrition assistance programas eligible for free lunches under this Act and free break-fasts under the Child Nutrition Act of 1966 (42 U.S.C. 1771et 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 of25,000 students or more in the preceding school year;

(ii) in the case of the school year beginning July2007, 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 edu-cational agency.(E) PERFORMANCE AWARDS.

(i) IN GENERAL.Effective for each of the schoolyears beginning July 1, 2011, July 1, 2012, and July1, 2013, the Secretary shall offer performance awardsto States to encourage the States to ensure that allchildren eligible for direct certification under this para-graph are certified in accordance with this paragraph.

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(ii) REQUIREMENTS.For each school year de-scribed in clause (i), the Secretary shall

(I) consider State data from the prior schoolyear, including estimates contained in the reportrequired under section 4301 of the Food, Conserva-tion, and Energy Act of 2008 (42 U.S.C. 1758a);

and (II) make performance awards to not morethan 15 States that demonstrate, as determined bythe Secretary

(aa) outstanding performance; and(bb) substantial improvement.

(iii) USE OF FUNDS.A State agency that receivesa performance award under clause (i)

(I) shall treat the funds as program income;and

(II) may transfer the funds to school food au-thorities for use in carrying out the program.(iv) FUNDING.

(I) IN GENERAL.On October 1, 2011, andeach subsequent October 1 through October 1,2013, out of any funds in the Treasury not other-wise appropriated, the Secretary of the Treasuryshall transfer to the Secretary

(aa) $2,000,000 to carry out clause(ii)(II)(aa); and

(bb) $2,000,000 to carry out clause(ii)(II)(bb).(II) RECEIPT AND ACCEPTANCE.The Secretary

shall be entitled to receive, shall accept, and shalluse to carry out this clause the funds transferred

under subclause (I), without further appropriation.(v) P AYMENTS NOT SUBJECT TO JUDICIAL REVIEW. A determination by the Secretary whether, and inwhat amount, to make a performance award underthis subparagraph shall not be subject to administra-tive or judicial review.(F) CONTINUOUS IMPROVEMENT PLANS.

(i) DEFINITION OF REQUIRED PERCENTAGE.In thissubparagraph, the term required percentage means

(I) for the school year beginning July 1, 2011,80 percent;

(II) for the school year beginning July 1, 2012,90 percent; and

(III) for the school year beginning July 1,2013, and each school year thereafter, 95 percent.(ii) REQUIREMENTS.Each school year, the Sec-

retary shall(I) identify, using data from the prior year, in-

cluding estimates contained in the report requiredunder section 4301 of the Food, Conservation, andEnergy Act of 2008 (42 U.S.C. 1758a), States thatdirectly certify less than the required percentageof the total number of children in the State whoare eligible for direct certification under this para-graph;

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91Effective July 1, 2005, paragraphs (5) through (8) added by section 104(b)(1) of P.L.108265, 118 Stat. 734, June 30, 2004. End quotation marks and the following period atthe end of paragraph (5)(A) were struck to effectuate the probable intent of Congress.

92So in original. Probably should be an additional closed parenthesis.

(II) require the States identified under sub-clause (I) to implement a continuous improvementplan to fully meet the requirements of this para-graph, which shall include a plan to improve directcertification for the following school year; and

(III) assist the States identified under sub-

clause (I) to develop and implement a continuousimprovement plan in accordance with subclause(II).(iii) F AILURE TO MEET PERFORMANCE STANDARD.

(I) IN GENERAL.A State that is required todevelop and implement a continuous improvementplan under clause (ii)(II) shall be required to sub-mit the continuous improvement plan to the Sec-retary, for the approval of the Secretary.

(II) REQUIREMENTS.At a minimum, a contin-uous improvement plan under subclause (I) shallinclude

(aa) specific measures that the State will

use to identify more children who are eligiblefor direct certification, including improve-ments or modifications to technology, informa-tion systems, or databases;

(bb) a timeline for the State to implementthose measures; and

(cc) goals for the State to improve directcertification results.

(G) WITHOUT FURTHER APPLICATION.(i) IN GENERAL.In this paragraph, the term

without further application means that no action isrequired by the household of the child.

(ii) CLARIFICATION

.A requirement that a house-hold return a letter notifying the household of eligi-bility for direct certification or eligibility for free schoolmeals does not meet the requirements of clause (i).

(5) 91 DISCRETIONARY CERTIFICATION.Subject to para-graph (6), any local educational agency may certify any child aseligible for free lunches or breakfasts, without further applica-tion, by directly communicating with the appropriate State orlocal agency to obtain documentation of the status of the childas

(A) a member of a family that is receiving assistanceunder the temporary assistance for needy families programfunded under part A of title IV of the Social Security Act

(42 U.S.C. 601 et seq.) that the Secretary determines com-plies with standards established by the Secretary that en-sure that the standards under the State program are com-parable to or more restrictive than those in effect on June1, 1995;

(B) a homeless child or youth (defined as 1 of the indi-viduals described in section 725(2) of the McKinney-VentoHomeless Assistance Act (42 U.S.C. 11434a(2)); 92

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(C) served by the runaway and homeless youth grantprogram established under the Runaway and Homeless

Youth Act (42 U.S.C. 5701 et seq.);(D) a migratory child (as defined in section 1309 of the

Elementary and Secondary Education Act of 1965 (20U.S.C. 6399)); or

(E)(i) a foster child whose care and placement is the re-sponsibility of an agency that administers a State planunder part B or E of title IV of the Social Security Act (42U.S.C. 621 et seq.); or

(ii) a foster child who a court has placed with a care-taker household.(6) USE OR DISCLOSURE OF INFORMATION.

(A) IN GENERAL.The use or disclosure of any informa-tion obtained from an application for free or reduced pricemeals, or from a State or local agency referred to in para-graph (3)(F), (4), or (5), shall be limited to

(i) a person directly connected with the adminis-

tration or enforcement of this Act or the Child Nutri-tion Act of 1966 (42 U.S.C. 1771 et seq.) (including aregulation promulgated under either Act);

(ii) a person directly connected with the adminis-tration or enforcement of

(I) a Federal education program;(II) a State health or education program ad-

ministered by the State or local educational agency(other than a program carried out under title XIXor XXI of the Social Security Act (42 U.S.C. 1396et seq.; 42 U.S.C. 1397aa et seq.)); or

(III) a Federal, State, or local means-testednutrition program with eligibility standards com-

parable to the school lunch program under thisAct;(iii)(I) the Comptroller General of the United

States for audit and examination authorized by anyother provision of law; and

(II) notwithstanding any other provision of law, aFederal, State, or local law enforcement official for thepurpose of investigating an alleged violation of anyprogram covered by this paragraph or paragraph(3)(F), (4), or (5);

(iv) a person directly connected with the adminis-tration of the State medicaid program under title XIX

of the Social Security Act (42 U.S.C. 1396 et seq.) orthe State childrens health insurance program undertitle XXI of that Act (42 U.S.C. 1397aa et seq.) solelyfor the purposes of

(I) identifying children eligible for benefitsunder, and enrolling children in, those programs,except that this subclause shall apply only to theextent that the State and the local educationalagency or school food authority so elect; and

(II) verifying the eligibility of children for pro-grams under this Act or the Child Nutrition Act of1966 (42 U.S.C. 1771 et seq.); and

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(v) a third party contractor described in paragraph(3)(G)(iv).(B) LIMITATION ON INFORMATION PROVIDED.Informa-

tion provided under clause (ii) or (v) of subparagraph (A)shall be limited to the income eligibility status of the childfor whom application for free or reduced price meal bene-

fits is made or for whom eligibility information is providedunder paragraph (3)(F), (4), or (5), unless the consent of theparent or guardian of the child for whom application forbenefits was made is obtained.

(C) CRIMINAL PENALTY.A person described in sub-paragraph (A) who publishes, divulges, discloses, or makesknown in any manner, or to any extent not authorized byFederal law (including a regulation), any information ob-tained 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 sub-

paragraph (A)(iv)(I) shall ensure that any local educationalagency or school food authority acting in accordance withthat option

(i) has a written agreement with 1 or more Stateor local agencies administering health programs forchildren under titles XIX and XXI of the Social Secu-rity Act (42 U.S.C. 1396 et seq. and 1397aa et seq.)that requires the health agencies to use the informa-tion obtained under subparagraph (A) to seek to enrollchildren in those health programs; and

(ii)(I) notifies each household, the information ofwhich shall be disclosed under subparagraph (A), thatthe information disclosed will be used only to enroll

children in health programs referred to in subpara-graph (A)(iv); and

(II) provides each parent or guardian of a child inthe household with an opportunity to elect not to havethe 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 nec-essary for the purpose of enrolling children in health pro-grams 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 freeand reduced price policy statement to a State educationalagency under this Act unless there is a substantive changein the free and reduced price policy of the local educationalagency.

(B) ROUTINE CHANGE.A routine change in the policyof a local educational agency (such as an annual adjust-ment of the income eligibility guidelines for free and re-duced price meals) shall not be sufficient cause for requir-ing the local educational agency to submit a policy state-ment.(8) COMMUNICATIONS.

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(A) IN GENERAL.Any communication with a house-hold under this subsection or subsection (d) shall be in anunderstandable and uniform format and, to the maximumextent practicable, in a language that parents and legalguardians can understand.

(B) ELECTRONIC AVAILABILITY.In addition to the dis-

tribution of applications and descriptive material in paperform as provided for in this paragraph, the applicationsand material may be made available electronically via theInternet.(9) ELIGIBILITY FOR FREE AND REDUCED PRICE LUNCHES.

(A) FREE LUNCHES.Any child who is a member of ahousehold whose income, at the time the application is sub-mitted, is at an annual rate which does not exceed the ap-plicable family size income level of the income eligibilityguidelines 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 issubmitted, is at an annual rate greater than the appli-cable family size income level of the income eligibilityguidelines for free lunches, as determined under para-graph (1), but less than or equal to the applicable fam-ily size income level of the income eligibility guidelinesfor reduced price lunches, as determined under para-graph (1), shall be served a reduced price lunch.

(ii) M AXIMUM PRICE.The price charged for a re-duced price lunch shall not exceed 40 cents.(C) DURATION.Except as otherwise specified in para-

graph (3)(E), (3)(H)(ii), and section 11(a), eligibility for free

or reduced price meals for any school year shall remain ineffect(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.(10) No physical segregation of or other discrimination against

any child eligible for a free lunch or a reduced price lunch underthis subsection shall be made by the school nor shall there be anyovert identification of any child by special tokens or tickets, an-nounced or published list of names, or by other means.

(11) Any child who has a parent or guardian who (A) is respon-sible for the principal support of such child and (B) is unemployed

shall be served a free or reduced price lunch, respectively, duringany period (i) in which such childs parent or guardian continues tobe unemployed and (ii) the income of the childs parents or guard-ians during such period of unemployment falls within the incomeeligibility criteria for free lunches or reduced price lunches, respec-tively, based on the current rate of income of such parents orguardians. Local educational agencies shall publicly announce thatsuch children are eligible for free or reduced price lunch, and shallmake determinations with respect to the status of any parent orguardian of any child under clauses (A) and (B) of the precedingsentence on the basis of a statement executed in such form as theSecretary may prescribe by such parent or guardian. No physical

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segregation of, or other discrimination against, any child eligible fora free or reduced price lunch under this paragraph shall be madeby the school nor shall there be any overt identification of any suchchild by special tokens or tickets, announced or published lists ofnames, or by any other means.

(12)(A) A child shall be considered automatically eligible for a

free lunch and breakfast under this Act and the Child Nutrition Actof 1966 (42 U.S.C. 1771 et seq.), respectively, without further appli-cation or eligibility determination, if the child is

(i) a member of a household receiving assistance under thesupplemental nutrition assistance program authorized underthe Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);

(ii) a member of a family (under the State program fundedunder part A of title IV of the Social Security Act (42 U.S.C.601 et seq.)) that the Secretary determines complies withstandards established by the Secretary that ensure that thestandards under the State program are comparable to or morerestrictive than those in effect on June 1, 1995;

(iii) enrolled as a participant in a Head Start program au-

thorized under the Head Start Act (42 U.S.C. 9831 et seq.), onthe basis of a determination that the child meets the eligibilitycriteria 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 indi-

viduals described in section 725(2) of the McKinney-VentoHomeless Assistance Act (42 U.S.C. 11434a(2)));

(v) served by the runaway and homeless youth grantprogram established under the Runaway and Homeless

Youth Act (42 U.S.C. 5701 et seq.);(vi) a migratory child (as defined in section 1309 of the

Elementary and Secondary Education Act of 1965 (20

U.S.C. 6399)); or(vii)(I) a foster child whose care and placement isthe responsibility of an agency that administers aState plan under part B or E of title IV of the SocialSecurity Act (42 U.S.C. 621 et seq.); or

(II) a foster child who a court has placed with acaretaker household.

(B) Proof of receipt of supplemental nutrition assistance pro-gram benefitss or assistance under the State program funded underpart A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)that the Secretary determines complies with standards establishedby the Secretary that ensure that the standards under the Stateprogram are comparable to or more restrictive than those in effect

on June 1, 1995, or of enrollment or participation in a Head Startprogram on the basis described in subparagraph (A)(iii), shall besufficient to satisfy any verification requirement imposed under thissubsection.

(13) E XCLUSION OF CERTAIN MILITARY HOUSING ALLOW-ANCES.The amount of a basic allowance provided under sec-tion 403 of title 37, United States Code, on behalf of a memberof a uniformed service for housing that is acquired or con-structed under subchapter IV of chapter 169 of title 10, UnitedStates Code, or any related provision of law, shall not be con-sidered to be income for the purpose of determining the eligi-bility of a child who is a member of the household of the mem-

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ber of a uniformed service for free or reduced price lunchesunder this Act.

(14) COMBAT PAY.(A) DEFINITION OF COMBAT PAY.In this paragraph,

the term combat pay means any additional paymentunder chapter 5 of title 37, United States Code, or other-

wise designated by the Secretary to be appropriate for ex-clusion under this paragraph, that is received by or froma member of the United States Armed Forces deployed toa designated combat zone, if the additional pay

(i) is the result of deployment to or service in acombat zone; and

(ii) was not received immediately prior to servingin a combat zone.(B) EXCLUSION.Combat pay shall not be considered

to be income for the purpose of determining the eligibilityfor free or reduced price meals of a child who is a memberof the household of a member of the United States Armed

Forces.(15) DIRECT CERTIFICATION FOR CHILDREN RECEIVING MED-ICAID BENEFITS.

(A) DEFINITIONS.In this paragraph:(i) ELIGIBLE CHILD.The term eligible child

means a child(I)(aa) who is eligible for and receiving medical

assistance under the Medicaid program; and(bb) who is a member of a family with an in-

come as measured by the Medicaid program beforethe application of any expense, block, or other in-come disregard, that does not exceed 133 percentof the poverty line (as defined in section 673(2) ofthe Community Services Block Grant Act (42U.S.C. 9902(2), including any revision required bysuch section)) applicable to a family of the sizeused for purposes of determining eligibility for theMedicaid program; or

(II) who is a member of a household (as thatterm is defined in section 245.2 of title 7, Code ofFederal Regulations (or successor regulations) witha child described in subclause (I).(ii) MEDICAID PROGRAM.The term Medicaid pro-

gram means the program of medical assistance estab-lished under title XIX of the Social Security Act (42

U.S.C. 1396 et seq.).(B) DEMONSTRATION PROJECT.(i) IN GENERAL.The Secretary, acting through the

Administrator of the Food and Nutrition Service and incooperation with selected State agencies, shall conducta demonstration project in selected local educationalagencies to determine whether direct certification of el-igible children is an effective method of certifying chil-dren for free lunches and breakfasts under section9(b)(1)(A) of this Act and section 4(e)(1)(A) of the ChildNutrition Act of 1966 (42 U.S.C. 1773(e)(1)(A)).

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(ii) SCOPE OF PROJECT.The Secretary shall carryout the demonstration project under thissubparagraph

(I) for the school year beginning July 1, 2012,in selected local educational agencies that collec-tively serve 2.5 percent of students certified for

free and reduced price meals nationwide, based onthe most recent available data;(II) for the school year beginning July 1, 2013,

in selected local educational agencies that collec-tively serve 5 percent of students certified for freeand reduced price meals nationwide, based on themost recent available data; and

(III) for the school year beginning July 1,2014, and each subsequent school year, in selectedlocal educational agencies that collectively serve10 percent of students certified for free and re-duced price meals nationwide, based on the mostrecent available data.

(iii) PURPOSES OF THE PROJECT.At a minimum,the purposes of the demonstration project shall be

(I) to determine the potential of direct certifi-cation with the Medicaid program to reach chil-dren who are eligible for free meals but not cer-tified to receive the meals;

(II) to determine the potential of direct certifi-cation with the Medicaid program to directly cer-tify children who are enrolled for free meals basedon a household application; and

(III) to provide an estimate of the effect onFederal costs and on participation in the school

lunch program under this Act and the schoolbreakfast program established by section 4 of theChild Nutrition Act of 1966 (42 U.S.C. 1773) of di-rect certification with the Medicaid program.(iv) COST ESTIMATE.For each of 2 school years of

the demonstration project, the Secretary shall estimatethe cost of the direct certification of eligible childrenfor free school meals through data derived from

(I) the school meal programs authorized underthis Act and the Child Nutrition Act of 1966 (42U.S.C. 1771 et seq.);

(II) the Medicaid program; and(III) interviews with a statistically representa-

tive sample of households.(C) AGREEMENT.(i) IN GENERAL.Not later than July 1 of the first

school year during which a State agency will partici-pate in the demonstration project, the State agencyshall enter into an agreement with the 1 or more Stateagencies conducting eligibility determinations for theMedicaid program.

(ii) WITHOUT FURTHER APPLICATION.Subject toparagraph (6), the agreement described in subpara-graph (D) shall establish procedures under which aneligible child shall be certified for free lunches under

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this Act and free breakfasts under section 4 of theChild Nutrition Act of 1966 (42 U.S.C. 1773), withoutfurther application (as defined in paragraph (4)(G)).(D) CERTIFICATION.For the school year beginning on

July 1, 2012, and each subsequent school year, subject toparagraph (6), the local educational agencies participating

in the demonstration project shall certify an eligible childas eligible for free lunches under this Act and free break-fasts under the Child Nutrition Act of 1966 (42 U.S.C. 1771et seq.), without further application (as defined in para-graph (4)(G)).

(E) SITE SELECTION.(i) IN GENERAL.To be eligible to participate in

the demonstration project under this subsection, aState agency shall submit to the Secretary an applica-tion at such time, in such manner, and containing suchinformation as the Secretary may require.

(ii) CONSIDERATIONS.In selecting States and localeducational agencies for participation in the dem-

onstration project, the Secretary may take into consid-eration such factors as the Secretary considers to beappropriate, which may include

(I) the rate of direct certification;(II) the share of individuals who are eligible

for benefits under the supplemental nutrition as-sistance program established under the Food andNutrition Act of 2008 (7 U.S.C. 2011 et seq.) whoparticipate in the program, as determined by theSecretary;

(III) the income eligibility limit for the Med-icaid program;

(IV) the feasibility of matching data betweenlocal educational agencies and the Medicaid pro-gram;

(V) the socioeconomic profile of the State orlocal educational agencies; and

(VI) the willingness of the State and local edu-cational agencies to comply with the requirementsof the demonstration project.

(F) ACCESS TO DATA.For purposes of conducting thedemonstration project under this paragraph, the Secretaryshall have access to

(i) educational and other records of State and localeducational and other agencies and institutions receiv-

ing funding or providing benefits for 1 or more pro-grams authorized under this Act or the Child NutritionAct of 1966 (42 U.S.C. 1771 et seq.); and

(ii) income and program participation informationfrom public agencies administering the Medicaid pro-gram.(G) REPORT TO CONGRESS.

(i) IN GENERAL.Not later than October 1, 2014,the Secretary shall submit to the Committee on Edu-cation and Labor of the House of Representatives andthe Committee on Agriculture, Nutrition, and Forestryof the Senate, an interim report that describes the re-

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sults of the demonstration project required under thisparagraph.

(ii) FINAL REPORT.Not later than October 1,2015, the Secretary shall submit a final report to thecommittees described in clause (i).(H) FUNDING.

(i) IN GENERAL.On October 1, 2010, out of anyfunds in the Treasury not otherwise appropriated, theSecretary of the Treasury shall transfer to the Sec-retary to carry out subparagraph (G) $5,000,000, to re-main available until expended.

(ii) RECEIPT AND ACCEPTANCE.The Secretaryshall be entitled to receive, shall accept, and shall useto carry out subparagraph (G) the funds transferredunder clause (i), without further appropriation.

(c) School lunch programs under this Act shall be operated ona nonprofit basis. Commodities purchased under the authority ofsection 32 of the Act of August 24, 1935, [(7 U.S.C. 612c)] may be

donated by the Secretary to schools, in accordance with the needsas determined by local school authorities, for utilization in theschool lunch program under this Act as well as to other schools car-rying out nonprofit school lunch programs and institutions author-ized to receive such commodities. The requirements of this sectionrelating to the service of meals without cost or at a reduced costshall apply to the lunch program of any school utilizing commod-ities donated under any provision of law.

(d)(1) The Secretary shall require as a condition of eligibility forreceipt of free or reduced price lunches that the member of thehousehold who executes the application furnish the last 4 digits ofthe social security account number of the parent or guardian whois the primary wage earner responsible for the care of the child for

whom the application is made, or that of another appropriate adultmember of the childs household, as determined by the Secretary.

(2) No member of a household may be provided a free or re-duced price lunch under this Act unless

(A) appropriate documentation relating to the income ofsuch household (as prescribed by the Secretary) has been pro-vided to the appropriate local educational agency so that thelocal educational agency may calculate the total income of suchhousehold;

(B) documentation showing that the household is partici-pating in the supplemental nutrition assistance program underthe Food and Nutrition Act of 2008 [(7 U.S.C. 2011 et seq.)] has

been provided to the appropriate local educational agency;(C) documentation has been provided to the appropriatelocal educational agency showing that the family is receivingassistance under the State program funded under part A oftitle IV of the Social Security Act that the Secretary determinescomplies with standards established by the Secretary that en-sure that the standards under the State program are com-parable to or more restrictive than those in effect on June 1,1995;

(D) documentation has been provided to the appropriatelocal educational agency showing that the child meets the cri-teria specified in clauses (iv) or (v) of subsection (b)(12)(A);

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332Sec. 9 RICHARD B. RUS

national school lunch act (as amended through december 12, 2010)

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