56 State Agency; 20,858 SFA

Eligibility
Manual
for
School
Meals
Determining
and
Verifying
Eligibility
_______________________________

Child Nutrition Programs
Food and Nutrition Service
U.S. Department of Agriculture

This manual contains information on Federal requirements regarding the determination and
verification of eligibility for free and reduced price meals in the National School Lunch
Program and the School Breakfast Program. These provisions also apply to the
determination of eligibility for free milk under the Special Milk Program and are generally
applicable to the Child and Adult Care Food Program and the Summer Food Service
Program when individual children’s eligibility must be established. Local educational
agencies, institutions and sponsors should confer with their State agency to determine
which procedures and options are followed in their State.

This manual replaces the Eligibility Guidance for School Meals Manual issued in October
2011. This updated version reflects changes made since that time, as a result of final and
interim regulations, and policy clarifications.

In accordance with Federal law and U.S. Department of Agriculture policy, participating
institutions are prohibited from discrimination on the basis of race, color, national origin, sex,
age or disability.
To file a complaint of discrimination, write USDA, Director, Office of Adjudication, 1400
Independence Avenue, SW, Washington, D.C. 20250-9410 or call toll free (866) 632-9992
(Voice). Individuals who are hearing impaired or have speech disabilities may contact USDA
through the Federal Relay Service at (800) 877-8339; or (800) 845-6136 (Spanish). USDA is
an equal opportunity provider and employer.

August 2012

ii

TABLE OF CONTENTS
Introduction ................................................................................................................................................ vi
Part 1: Administration ................................................................................................................................ 1
A. General Requirements ......................................................................................................................... 1
B. Terms Used in this Manual ................................................................................................................. 1
C. Policy Statement ................................................................................................................................. 5
D. Public (Media) Release ....................................................................................................................... 6
PART 2: Application ................................................................................................................................... 8
A. Design ................................................................................................................................................. 8
B. Foreign Language Translations .......................................................................................................... 8
C. Informing Households ......................................................................................................................... 9
D. Household Applications .................................................................................................................... 11
E. Electronic/Scanned Applications ....................................................................................................... 12
F. Contents of Application ..................................................................................................................... 12
G. Questions and Answers .................................................................................................................... 14
PART 3: Processing Applications........................................................................................................... 15
A. Benefits Prior to Processing Applications ......................................................................................... 15
B. Application Processing Timeframe.................................................................................................... 16
C. Determining Completion of Submitted Applications.......................................................................... 16
D. Citizenship/Legal Status ................................................................................................................... 19
E. Current Income/Conversions ............................................................................................................ 19
F. Determining Eligibility ........................................................................................................................ 21
G. Duration of Eligibility ......................................................................................................................... 22
H. Unapproved Applications .................................................................................................................. 22
I. Households That Fail to Apply............................................................................................................ 23
J. Notification of Eligibility Determination .............................................................................................. 23
K. Change in Household Circumstances ............................................................................................... 23
L. Appeals .............................................................................................................................................. 24
M. Recordkeeping.................................................................................................................................. 24
N. Transferring Eligibility ........................................................................................................................ 25
O. Restrictions ....................................................................................................................................... 26
P. Questions and Answers ..................................................................................................................... 27
PART 4: Income Eligibility ....................................................................................................................... 31
A. General.............................................................................................................................................. 31
B. Determining Household Composition ............................................................................................... 31
C. Determining Household Income Reportable Income ........................................................................ 33

iii

D. Questions and Answers .................................................................................................................... 38
Part 5: Categorical Eligibility ................................................................................................................... 41
A. Members of Assistance Program Households .................................................................................. 41
B. Other Source Categorically Eligible .................................................................................................. 41
C. Duration of Categorical Eligibility ...................................................................................................... 47
D. Questions and Answers .................................................................................................................... 47
Part 6: Direct Certification FOR ASSISTANCE PROGRAMS ................................................................ 50
A. General.............................................................................................................................................. 50
B. Mandatory Direct Certification with SNAP ........................................................................................ 50
C. Direct Certification with TANF and FDPIR ........................................................................................ 51
D. Required Documentation .................................................................................................................. 52
E. Notification......................................................................................................................................... 52
F. Delivery of Benefits ........................................................................................................................... 53
G. Expiration of Categorical Eligibility.................................................................................................... 53
H. Recordkeeping .................................................................................................................................. 53
Part 7: Confidentiality/Disclosure ........................................................................................................... 54
A. General.............................................................................................................................................. 54
B. Aggregate data .................................................................................................................................. 54
C. Disclosure Chart ............................................................................................................................... 55
D. “Need to Know” .................................................................................................................................. 56
E. National Assessment of Educational Progress ................................................................................. 56
F. No Child Left Behind ......................................................................................................................... 56
G. Family Educational Rights and Privacy Act ...................................................................................... 57
H. Parental Notification for Disclosure ................................................................................................... 57
I. Agreements/Memoranda of Understanding ....................................................................................... 58
J. Other Disclosures that Require Parental Consent............................................................................. 58
K. Consent Statement Requirements .................................................................................................... 59
L. Penalties for Improper Disclosure ..................................................................................................... 59
M. Questions and Answers.................................................................................................................... 60
PART 8: Verification ................................................................................................................................. 63
A. General Definitions ............................................................................................................................ 63
B. Exceptions TO Verification Requirements ........................................................................................ 63
C. Initial Verification ............................................................................................................................... 64
D. Verification for Cause ........................................................................................................................ 65
E. Application Selection Procedures ..................................................................................................... 66
F. Qualifying to use an Alternate Sample Size ...................................................................................... 67
G. Post Selection Procedures ............................................................................................................... 68

iv

H. Household Notification of Selection .................................................................................................. 70
I. Sources for Verification of Wr i tte n Ev ide nce ................................................................................ 71
J. Continuing the Verification Process ................................................................................................... 73
K. Notice of Adverse Action ................................................................................................................... 74
L. Benefits During an Appeal ................................................................................................................. 74
M. Hearing Procedure ........................................................................................................................... 75
N. Households that Reapply for Program Benefits................................................................................ 75
O. Recordkeeping .................................................................................................................................. 75
P. Questions and Answers .................................................................................................................... 76
Part 9: Direct Verification ........................................................................................................................ 78
A. General.............................................................................................................................................. 78
B. Names Submitted for Direct Verification ........................................................................................... 78
C. Direct Verification with Assistance Programs ................................................................................... 78
D. Direct Verification with Medicaid and SCHIP .................................................................................... 78
E. Documentation Timeframe ................................................................................................................ 79
F. Incomplete or Inconsistent Information ............................................................................................. 79
Part 10: Appendices ................................................................................................................................. 80
Appendix A ............................................................................................................................................. 80
Appendix B ............................................................................................................................................. 82
Appendix C ............................................................................................................................................. 83

v

INTRODUCTION

This manual contains information on determining eligibility for free and reduced price meals
for the National School Lunch Program (including commodity schools and the After School
Snack Program); and the School Breakfast Program. It is also applicable to the Special Milk
Program for Children when schools and institutions serve free milk to eligible children. While
this eligibility guidance directly addresses the school programs, it is also generally
applicable to the Child and Adult Care Food Program and the Summer Food Service
Program when individual children’s eligibility must be established. These programs are
collectively considered the Child Nutrition Programs.

STATUTORY AND REGULATORY AUTHORITY
Statutory authority for the Child Nutrition Programs includes the Richard B. Russell National
School Lunch Act (NSLA) and the Child Nutrition Act of 1966 (CNA). The statutory citations
are, respectively, 42 United States Code 1751 st. seq. and 42 United States Code 1771 et.
Seq.
Regulatory authority is found, as follows, in the Code of Federal Regulations, (CFR):
7 CFR Part 210, National School Lunch Program (NSLP)
7 CFR Part 215, Special Milk Program for Children (SMP)
7 CFR Part 220, School Breakfast Program (SBP)
7 CFR Part 225, Summer Food Service Program (SFSP)
7 CFR Part 226, Child and Adult Care Food Program (CACFP)
7 CFR Part 245, Determining eligibility for free and reduced price meals and free milk in
schools

ADMINISTRATION OF THE PROGRAMS
The school meals programs are administered at the Federal level by the Food and Nutrition
Service (FNS) of the U.S. Department of Agriculture (USDA). At the State level, the
programs are administered by the State agency designated in each State. If State law
prevents the State from administering the program, it may be administered by the
appropriate FNS Regional Office (FNSRO).

RESOURCES
To keep up to date, regularly check the Child Nutrition Division’s Web site at
http://www.fns.usda.gov/cnd for recently posted regulations, policy clarifications, prototype
application materials and other information. State agencies may also access the
PartnerWeb at https://www.partnerweb.usda.gov.

vi

PART 1: ADMINISTRATION
A. GENERAL REQUIREMENTS
State agencies that administer the school meals programs must issue free and reduced
price policy guidance and any other instructions necessary to local educational agencies to
ensure the awareness of Federal and State requirements pertaining to free and reduced
price meals and free milk. Participating local educational agencies must provide free and
reduced price benefits to eligible children in accordance with the statutory and regulatory
requirements as detailed in this manual.
All schools participating in the NSLP or SBP must make free and reduced price meals
available to eligible children, and all schools and institutions participating in the free milk
option of the SMP must make free milk available to eligible children.
The term “school food authority” (SFA) is used for local agencies administering the school
meal programs (i.e., the governing body which is responsible for the administration of one or
more schools and has the legal authority to operate the school meals programs in those
schools), while the term “local educational agency” (LEA) is used for those responsible for
the application, certification, and verification activities of the NSLP and SBP.
Local educational agency (LEA) means:
 The public board of education or other public or private nonprofit authority legally
constituted within a State for the administrative control of public or private nonprofit
schools in a political subdivision of a State;
 An administrative agency or combination of school districts or counties recognized by
the State;
 Any other public or private nonprofit institution or agency having administrative
control and direction of a public or private nonprofit schools, residential child care
institutions; or
 The State educational agency that, in any state or territory, serves as the sole
educational agency for all public or private nonprofit schools.

B. TERMS USED IN THIS MANUAL
ASSISTANCE PROGRAMS Receipt of benefits by any household member from certain
programs conveys categorical (automatic) eligibility for free school meals to all children in
the household. The determination is made through an application with appropriate case
numbers or through “direct certification for assistance programs.” The Assistance Programs
are:




Supplemental Nutrition Assistance Program (SNAP)
Food Distribution Program on Indian Reservations (FDPIR)
Temporary Assistance for Needy Families (TANF is a Federal designation; each
State has its own name and acronym for the Program; also see definition below)

1

CATEGORICALLY ELIGIBLE CHILDREN are those children automatically eligible for
free meal benefits because they, or any household member, receive benefits under
Assistance Programs or those children who are designated as members of Other Source
Categorically Eligible Programs. An individual child’s eligibility under any of the Other
Source Categorically Eligible Programs does not convey to other children in the household.
There are two ways children may be classified as categorically eligible:




Through participation in Assistance Programs- SNAP/FDPIR or TANF (a child or
any member of the household, receives benefits from SNAP/FDPIR or TANF as
determined through direct certification or an application with appropriate case
numbers); or
Through Other Source Categorically Eligible designation- children documented
under the applicable definition in this section as:
o Homeless, runaway, or migrant
o A foster child,
o Enrolled in a Federally-funded Head Start Program or a comparable Statefunded Head Start Program or pre-kindergarten programs; or in an Even
Start Program.

DIRECT CERTIFICATION means determining children eligible for free meals benefits
based on documentation obtained directly from the appropriate State or local agency or
other authorized individual. In most situations, direct certification of a child’s eligibility status
should not involve the household. The communication exchange should be between an
appropriate agency and the LEA/school.

DIRECT CERTIFICATION FOR ASSISTANCE PROGRAMS can be conducted through
a computer/electronic match between the Assistance Programs and/or the State or LEA.
Direct certification for SNAP households must be conducted using electronic data match
process.
Direct certification may be also conducted using letters provided to eligible participants from
TANF or FDPIR agencies that the family submits to the LEA/school. However, the use of
eligibility letters does not fulfill the direct certification requirement for those household
receiving SNAP benefits. No application is necessary if eligibility is determined through the
direct certification process.

A letter provided by SNAP to households to be submitted to an LEA no longer meets the
requirement for SNAP direct certification. However, if a household provides a SNAP
eligibility letter to the LEA/school, it must be accepted but is not considered direct
certification.

DIRECT CERTIFICATION FOR OTHER SOURCE CATEGORICALLY ELIGIBLE
PROGRAMS can be conducted through a computer/electronic match between appropriate
State or local agencies, officials from other source programs and/or LEA officials such as the
LEA’s homeless liaison.
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Direct certification may also be conducted using lists of eligible participants provided to the
State or LEA from appropriate officials from Other Source Categorically Eligible Programs.
Letters provided by such programs to eligible participants may also be used for direct
certification. No application is necessary if eligibility is determined through the direct
certification process.

DIRECT VERIFICATION means using public records as means to verify children’s
eligibility for free/reduced price meals. Direct verification may be conducted with SNAP,
FDPIR, or TANF agencies or appropriate officials in programs represented in Other Source
Categorically Eligible Programs to confirm eligibility for free meals. Direct verification with
Medicaid/SCHIP may confirm either eligibility for free or reduced price meals depending on
the Medicaid/SCHIP eligibility criteria in the state.

EVEN START refers to a Federally-funded Even Start Family Literacy Program for
preschool/ pre-kindergarten children.

EXTENSION OF CATEGORICAL ELIGIBILITY means that all children in a household
with at least one child or household member who receives benefits from an Assistance
Program are categorically eligible for free meals. Any one child’s or household member’s
receipt of benefits from an Assistance Program extends free school meal eligibility to all
children who are members of the household.

FOSTER CHILD means a child whose care and placement is the responsibility of the State
or formally placed by a court with a caretaker household. A foster child is categorically
eligible for free meals without further application. For purposes of determining eligibility for
school meals for other children in the household, the foster child is considered a member of
the household in which they reside. The foster child’s income is only considered when the
foster family applies for meal benefits for the non-foster children in the household.

FREE MEAL is a meal served in the NSLP or SBP to a child eligible for such benefits under
7 CFR Part 245. Neither the child nor any member of the household pays or is required to
work in the school or in the school’s food service to receive a free meal.

FREE MILK is milk served in the SMP to a child eligible for free milk under 7 CFR Part 245.
Neither the child nor any member of the household pays or is required to work in the school
or in the school’s food service to receive free milk.

HEAD START refers to the Federal Head Start Program and any State funded prekindergarten classes using identical or more stringent eligibility criteria than the Federal
Head Start Program.

HOMELESS (Other Source Categorical Eligibility Program) means a child is considered
homeless if s/he is identified as lacking a fixed, regular and adequate nighttime residence by
the LEA homeless liaison, or by the director of a homeless shelter.
3

HOUSEHOLD means a group of related or nonrelated individuals who are living as one
economic unit. The term “family” has the same definition. These definitions are found in 7
CFR 245.2.

INCOME ELIGIBILITY GUIDELINES (IEGS) are the household size and income levels
prescribed annually by the Secretary of Agriculture for determining eligibility for free and
reduced price meals and for free milk. The free guidelines are at or below 130 percent of the
Federal poverty guidelines and the reduced price guidelines are between 130 and at or
below 185 percent of the Federal poverty guidelines.
LEP means limited English proficient.
MIGRANT means a child who is enrolled in the Migrant Education Program (MEP) as
determined by the State or local MEP coordinator.

MIXED HOUSEHOLDS are households that include children designated as Other Source
Categorically Eligible as well as children who are not.

OPERATING DAYS are days during which meal service is provided.

OTHER SOURCE CATEGORICALLY ELIGIBLE PROGRAMS are those categories
which make children automatically eligible for free benefits, either through direct certification
or application, because the children are:








Enrolled in a Federal Head Start Program;
Enrolled in State-funded pre-kindergarten classes using identical or more stringent
eligibility criteria than the Federal Head Start Program;
Enrolled in Even Start - a participant in a Federally-funded Even Start Family Literacy
Program for pre-school and pre-kindergarten children;
Determined a homeless child by the school district’s homeless liaison or by the
director of a homeless shelter;
Determined a migrant child by the State or local Migrant Education Program (MEP)
coordinator or homeless liaison;
Determined a runaway child who is receiving assistance from a program under the
Runaway and Homeless Youth Act and is identified by the local educational liaison;
Determined to be a foster child whose care and placement is the responsibility of the
State or formally placed by a court with a caretaker household.

A child’s eligibility for free meals under Other Source Categorical Eligibility does not extend
to any other child in the household.

OVERT IDENTIFICATION is any action that may result in a child being recognized as
potentially eligible to receive or certified for free or reduced price school meals or free milk.
SFAs must assure that a child’s eligibility status is not disclosed at any point in the process
of providing free or reduced price meals, including notification of the availability of free or
4

reduced price benefits; certification and notification of eligibility; provision of meals in the
cafeteria; the point of service; and through the method of payment.

REDUCED PRICE MEAL is a lunch priced at 40 cents or less, an afterschool snack priced
at 15 cents or less or a breakfast priced at 30 cents or less served, to a child certified as
eligible for such benefits under 7 CFR Part 245.

RESIDENTIAL CHILD CARE INSTITUTION (RCCI) is generally any distinct part of a
public or nonprofit private institution that (1) maintains children in residence; (2) operates
principally for the care of children; and (3) if private, is licensed by the State or local
government to provide residential child-care services under the appropriate licensing code.
The regulatory definition of “School” for NSLP, SBP and SMP includes RCCIs. See Parts 2
and 4 of this manual for additional guidance on how to certify residents of RCCIs.

RUNAWAY means a runaway child who is receiving assistance from a program under the
Runaway and Homeless Youth Act and is identified by the LEA’s homeless liaison or an
official of such program.

SCHOOL YEAR is the period between July 1 and June 30.

TANF means the Temporary Assistance for Needy Families Program; categorical eligibility
for free meals is limited to those States with standards under the State program that are
comparable to or more restrictive than those in effect on June 1, 1995.

WORKING DAYS are those days when school is open, teachers and/or school
administration are on-site but food service is not in operation.

C. POLICY STATEMENT
Each LEA participating in the NSLP, SBP or the SMP (with free milk option) must have an
approved free and reduced price policy statement on file at the State agency or the Food
and Nutrition Service Regional Office (FNSRO) if the program is administered by the
FNSRO. If an LEA is just starting its participation in the NSLP, SBP or SMP, it must submit
its policy statement to the State agency for approval. Once approved, the policy statement
becomes a permanent document, but must be amended when the LEA makes a substantive
change in its free and reduced price policy. (See Appendix A for the requirements for the
policy statement and amendments.)

POLICY STATEMENT FOR THE SMP
A policy statement must be submitted to and approved by the State agency for LEAs
participating in the SMP with the free milk option. An LEA may submit a single policy
5

statement for the NSLP/SBP and SMP when some of its schools participate in the SMP and
others participate in the NSLP/SBP. Specific instructions on the development of the policy
statement and policy approval process are provided to LEAs by the State agency.

ADDRESSING OVERT IDENTIFICATION IN THE POLICY STATEMENT
SFAs must avoid any policy or practice that has the effect of overtly identifying eligible
children. LEAs must assure that their policy statement complies with this guidance. State
agencies must assure during an administrative review as part of the general areas that an
LEA’s policy statement addresses ways to prevent overt identification.

D. PUBLIC (MEDIA) RELEASE
Near the beginning of each school year, the public must be notified that the NSLP, SBP
and/or SMP are available in the school or school district. This notice must include the
eligibility criteria for free and reduced price meals and/or free milk. It must be provided to the
local news media, the unemployment office, and any major employers who are
contemplating large layoffs in the attendance area of the school.
The public release must also explain that:
 When known to the LEA, households will be notified of their children’s eligibility for
free meals if they are members of households receiving assistance from- The Supplemental Nutrition Assistance Program (SNAP) or as applicable, the Food
Distribution Program on Indian Reservations (FDPIR); or
 The Temporary Assistance for Needy Families (TANF) as by law,
 No application is required for free meal benefits.
 All children in these households are eligible for free meal benefits and if any
child(ren) was not listed on the eligibility notice, the household should contact the
LEA or school to have benefits extended to that child(ren).
When known to the LEA, households will be notified of any child’s eligibility for free meals if
the individual child is Other Source Categorically Eligible because the child is categorized
as—
 Homeless, migrant or runaway as defined by law; or
 Enrolled in an eligible Head Start, Even Start or pre-kindergarten class as defined in
by law.
For any child not listed on the eligibility notice, the households should contact the LEA or
school about any child also eligible under one of these programs or should submit an
income application for other children.
If households/children receive benefits under Assistance Programs or other source
programs are not notified by the school of their free meal benefits, the parent/guardian
should contact their school.
Households notified of their children’s eligibility must contact the LEA or school if it chooses
to decline the free meal benefits.
6

The public release must contain the same information supplied in the letter to households
(see Part 2, Section C. Informing Households), except that the public release must contain
both the free and reduced price Income Eligibility Guidelines (IEGs). However, a public
release that only refers to the SMP should not contain the reduced price IEGs.
The State agency may make the public release on behalf of its LEAs. In this case, the free
and reduced price policy statement must specify the responsibilities the State agency will
assume (e.g., sending the public release to the local media, employment office) and the
names of the schools affected by the policy.
Copies of the public release must be made available upon request to any interested person.

7

PART 2: APPLICATION
A. DESIGN
The application and all supporting materials must be clear and simple in design and in an
understandable and uniform format. The application materials must also conform to the
requirements described in this part.

B. FOREIGN LANGUAGE TRANSLATIONS
The application materials and other communications with households concerning eligibility
determinations must be, in a language that parents and guardians can understand in order
to diminish any language barriers to participation for Limited English Proficient (LEP)
families. Where households need information in a language other than English, LEAs must
make reasonable efforts, considering the number of such households, to provide household
letters and application forms to them in the appropriate languages.
The FNS web site, at (http://www.fns.usda.gov/cnd/frp/frp.process.htm) has the prototype
application and materials translated in a number of languages. LEAs and State agencies are
responsible for ensuring that all application and other household materials used in the
application process are available in a language the LEP household can understand.
Additionally, households can be assisted with completing the application process through
the use of personnel proficient in foreign languages.
LEAs are currently assisting LEP families as required under Title 6 of the Civil Rights Act of
1964. Under Title 6, LEAs have a responsibility to be aware of the language needs of LEP
households and ensure these households have access to the same information other
parents have in a manner they can easily understand. LEAs are reminded that free and
reduce price application materials can easily be included along with educational materials
that are provided to LEP families under the requirements of Title 6.
LEAs must have a system in place to identify language needs of families. LEAs can use
the information gained through the Home Language Survey conducted during the school
enrollment process to identify the language used in households.
LEAs and State agencies must:






Be familiar with the translated application materials available through FNS. *Use the
Home Language Survey, USDA’s “I Speak” survey or other surveys to help identify LEP
families.*Be familiar with languages used in the community and the potential need for
materials in those languages.
After assessing potential language needs, determine where information or translation
services in those languages may be obtained.
After identifying LEP households, ensure that the households applying for benefits
receive language services.
For parents or guardians who are unable to read or have limited literacy, State agencies
and LEAs must provide the necessary services so that parents or guardians are assisted
with completing the application process. This may entail providing oral interpretation
8




services. Parents should not be expected to rely on family members (especially
children) or friends as interpreters as they may not be able to provide quality and
accurate interpretations.
State agencies and LEAs must have a system in place to assist LEP households
through the verification process. Follow-up with LEP households that do not respond to
the initial verification request.
When possible State agencies and LEAS should also partner with other local resources,
such as migrant or refugee assistance agencies.

C. INFORMING HOUSEHOLDS
Each year, at the beginning of school, information letters must be distributed to the
households of children attending the school. This letter tells families which Child Nutrition
Programs are available and that meals may be available free or at a reduced price, or that
milk may be available free. All LEAs must be able to provide households with paper
applications and materials.
The information letter should be sent to households of all schoolchildren either before the
beginning of the school year or very early in the school year so eligibility determinations can
be made and free and reduced price benefits provided as soon as possible. Information
letters cannot be sent home at the end of the school year for the next year nor can the LEA
accept and process applications before the beginning of the federally defined School Year
(July 1 through June 30). Year-round schools usually follow the July 1-June 30 school year
therefore, they would distribute information letters in June.
The information letter may be distributed by the postal service, emailed to the
parent/guardian or through the information packet provided to students.

LATE ENROLLMENTS
Households enrolling new students in an LEA after the start of the school year must be
provided a letter and an application form and materials when they enroll.

If the LEA has the capability, the status of any newly enrolled child must be checked for
Assistance Programs eligibility at the time of enrollment.

PAPER-BASED APPLICATIONS
If the LEA only uses paper applications, an application form and instructions must be
included with the letter to households.

COMPUTER OR WEB-BASED APPLICATIONS
If the LEA uses a computer or web-based system to process applications, the letter must
inform the household how to access the system in order to apply for benefits. In addition,
the letter must explain to the household how to obtain and submit a paper application. This
may be done by including a telephone number or a form to return requesting that an
application be sent.
9

INFORMATION LETTER
The information letter must contain the following information:


Income Eligibility Guidelines
o For schools participating in the NSLP or SBP only the reduced price
guidelines may be included, with an explanation that households with
incomes at or below the reduced price limits are eligible for either free or
reduced price meals;
o For schools participating in the SMP with the free milk option, the free
guidelines must be included;
o For schools participating in the NSLP or SBP and also participating in the
SMP with the free milk option for their split-session kindergarten students,
both sets of guidelines must be included.

Instructions on how to apply for free or reduced price meals or free milk including the
fact that only one application is required for all children in the household;

Explanation that an application for free or reduced price benefits cannot be approved
unless it contains complete eligibility information as indicated on the application and
instructions;

Explanation that no application is necessary if the household is notified by the LEA
that all children have been directly certified. If the household is not sure if children have
been directly certified, contact the school;

Statement that only the last four digits of the social security number of the adult
household member signing the application is needed;

Statement that a foster child is categorically eligible for free meals and may be
included as a member of the foster family if the foster family chooses to also apply for
benefits for other children and an explanation that including children in foster care as
household members may help other children in the household quality for meal benefits. If
the foster family is not eligible for free or reduced price meal benefits, it does not prevent a
foster child from receiving free meal benefits;

Explanation that categorical eligibility for free meals is extended to all children in a
household when the application lists an Assistance Program’s case number for any
household member;

Explanation that households with any member who is currently certified to receive
Assistance Program benefits may submit an application for these children with the
abbreviated information as indicated on the application and instructions;

Explanation that households with children who are categorically eligible under Other
Source Categorically Eligible Programs should contact the school for assistance in receiving
benefits and indicate they must mark the relevant box on the application to indicate their
Other Source Categorical Eligibility;

Explanation that the information submitted on the application may be subject to
verification;

Statement that a household may apply for benefits at any time during the school
year;

Statement that children of parents or guardians who become unemployed may be
eligible for free or reduced price meals or for free milk;
10


Statement to the effect that Special Supplemental Nutrition Program for Women,
Infants and Children (WIC) participants may be eligible for free or reduced price meals;

Explanation that a household may appeal the decision of the LEA with respect to the
application using the hearing procedure described in the LEA’s free and reduced price policy
statement;

Local contact information if the household has questions about the application
process;

An explanation that for up to 30 operating days in the new school year, eligibility from
the previous year will continue. However, unless the household is notified that their children
are directly certified or the household submits an application that is approved, the children
must pay full price for school meals and that the school will not send a reminder or a notice
of expired eligibility when the carry-over period ends.

The following two statements, as follows:
o In accordance with Federal law and U.S. Department of Agriculture
policy, this institution is prohibited from discrimination on the basis of
race, color, national origin, sex, age or disability.
o To file a complaint of discrimination, write USDA, Director, Office of
Adjudication, 1400 Independence Avenue, SW, Washington, D.C. 202509410 or call toll free (866) 632-9992 (Voice). Individuals who are hearing
impaired or have speech disabilities may contact USDA through the
Federal Relay Service at (800) 877-8339; or (800) 845-6136
(Spanish). USDA is an equal opportunity provider and employer.

D. HOUSEHOLD APPLICATIONS
LEAs must provide household applications to families applying for free or reduced price
meals or free milk benefits. A household application is submitted by a household for all
children in that household that attend schools in the same LEA. LEAs cannot require an
application for each child in a household except as discussed in the Exemptions to
Household Applications.
LEAs cannot require separate applications for households with some children who are
eligible based on categorical eligibility and some who are applying based on household
income. An LEA can copy an application to allow them to process different eligibility
determinations in mixed household situations or to share with the different schools/or LEAs
that children in the household attend.
The application provided to a household may only be pre-filled with the child’s name. All
other data required on the application must be completed by the household.

EXEMPTION TO HOUSEHOLD APPLICATIONS
Each child residing in an RCCI is considered a household of one. An application is
completed for each child unless the RCCI uses an eligibility documentation sheet for all
children residing in the RCCI. The documentation sheet must provide information indicating
the child’s name and the personal income received by the child, the child’s date of birth,
11

date of admission and date of release. The documentation sheet must be signed by an
appropriate official and provide the official’s title and contact information.
Children attending but not residing in an RCCI are considered members of their household
and their eligibility is determined using a household application or through direct certification.

PREVENTING OVERT IDENTIFICATION OF DIRECTLY CERTIFIED CHILDREN
LEAs are not required to provide applications to parents when children are eligible for free
meals through direct certification, but must assure that these children are not overtly
identified through the method used to distribute applications. If an LEA distributes
applications to individual households by mail (including e-mail to a parent/guardian); in
individual student packets or provides online availability, applications do not have to be
provided to households in which all children are determined eligible through direct
certification. If the distribution method is not individualized the SFA must provide
applications to all households.

E. ELECTRONIC/SCANNED APPLICATIONS
The LEA may make the application and supporting materials available electronically via the
Internet. In addition, the LEA may accept applications electronically and may provide for
electronic signatures for such submissions. All disclosure restrictions must be met and
acceptance of the application and electronic signatures must be in accordance with
guidance (http://www.fns.usda.gov/cnd/governance/Policy-Memos/2007/SP_10-2007.pdf)
issued by FNS.
The LEA may also scan the paper applications submitted. The scanning process must meet
all regulatory requirements as well as perform functions as outlined in this guidance. For
example, the software/scanner system must be able to recognize and accept less than
whole dollar amounts.
Note: USDA and FNS do not evaluate, recommend, approve or endorse any software used
for certification or verification purposes. There are no Federal specifications for software
vendors. LEAs are responsible for assuring that the certification and verification processes
meet all regulatory requirements and policies including the calculation of income
frequencies discussed in Part 3, Section E. Therefore, if software is used to perform all or
part of the certification or verification process, the LEA must assure the software used is
performing correctly and meets all requirements.

F. CONTENTS OF APPLICATION
Except for the information in the attesting statement, the required information on the
application form may be separate from the signature block. For example, the Use of
Information Statement may be referred to in the signature block but may be on the reverse
side of the application or included with the instructions on how to complete the form.
Because of the statutory change requiring only the last 4 digits of a social security number,
the Privacy Act statement is no longer required.
12 In lieu, the Use of Information Statement
must be provided on the application.

The application form must contain:
 Use of Information Statement (exactly as follows):
o The Richard B. Russell National School Lunch Act requires the information on
this application. You do not have to give the information, but if you do not, we
cannot approve your child for free or reduced price meals. You must include the
last four digits of the social security number of the adult household member who
signs the application. The social security number is not required when you apply
on behalf of a foster child or you list a Supplemental Nutrition Assistance
Program (SNAP), Temporary Assistance for Needy Families (TANF) Program or
Food Distribution Program on Indian Reservations (FDPIR) case number or other
FDPIR identifier for your child or when you indicate that the adult household
member signing the application does not have a social security number. We will
use your information to determine if your child is eligible for free or reduced price
meals, and for administration and enforcement of the lunch and breakfast
programs.
o We MAY share your eligibility information with education, health, and nutrition
programs to help them evaluate, fund, or determine benefits for their programs,
auditors for program reviews, and law enforcement officials to help them look into
violations of program rules.
 Statement explaining the following:
o While disclosure of the last 4 digits of a social security number is voluntary the
National School Lunch Act requires the last 4 digits of a social security number or
an indication of “none” for approval of the application.
 Attesting Statement, directly above the signature block for the signing adult, to certify:
o The person signing is furnishing true information and to advise that person that
the application is being made in connection with the receipt of Federal funds;
o School officials may verify the information on the application; and
o Deliberate misrepresentation of the information may subject the applicant to
prosecution under State and Federal statutes.

CATEGORICAL ELIGIBILITY BASED ON ASSISTANCE PROGRAMS
The application must provide space for identifying any household member who receives
benefits from Assistance Programs and their case numbers.
When a case number for one of the three Assistance Programs for any household member
is listed on the application, all children in the household are eligible for free meals.

OTHER SOURCE CATEGORICAL ELIGIBILITY AND INCOME ELIGIBILITY
In the case of children designated as Other Source Categorically Eligible the application
must provide space for indicating status in the other source categories. This is necessary
because of the possibility of “mixed households” in which some children may be designated
as Other Source Categorically Eligible and some may not. The LEA must contact the
household to determine which child(ren) is other source categorically eligible and then
confirm the status of the Other Source Categorically Eligible child with the appropriate
13

officials (as discussed in Part 5) and certify them if they qualify. The LEA then must
determine eligibility for other children listed on the application through household size and
income.

G. QUESTIONS AND ANSWERS

1. How do I handle the distribution of applications for year-round schools?
Applications should be distributed on or about the beginning of the school year, or
soon thereafter, so that households are provided with current eligibility criteria and so
that eligibility determinations are based on the current Income Eligibility Guidelines.

2. In a computerized operation, may I submit a pre-printed copy of last year’s
application for the household to confirm the accuracy of the application and sign it? If
not, what items may I preprint?
It is the household’s responsibility to complete the application. The LEA may send
households an application with the child’s name. No other information required for an
eligibility determination may be preprinted.

3. A school wants to use the application for free and reduced price meal benefits to
collect information from all households on their citizenship status. Is this
permissible?
Schools may not collect information regarding a household’s citizenship on the
application for school meal benefits, because citizenship is not a requirement for
participation in the school meal programs. Doing so would create a barrier to
participation by deterring eligible households from applying for meals for their
children.

4. School applications sometimes request a birth date or other information not required
through statute or regulation as a required field. Can these applications be marked
as incomplete and not processed?
The LEA must not delay approval of applications, both on-line applications as well as
hard copies of applications if the household fails to provide any information that is not
required. For example, if the household fails to include its street address, or birth
dates, processing of the application cannot be delayed.

14

PART 3: PROCESSING APPLICATIONS
A. BENEFITS PRIOR TO PROCESSING APPLICATIONS
Before applications are processed for the new school year and up to the first 30 operating
days, beginning with the first day of the school year, the LEA must carry-over eligibility and
claim free and reduced price meals served to:




Children from households with approved applications on file from the previous year;
Newly enrolled children from households with children who were approved for
benefits in the LEA the previous year; and
Previously approved children who transfer from one school to another under the
jurisdiction of the same LEA. For children transferring in the same LEA from a school
using Provisions 1, 2 or 3, carryover is applicable only if the prior year was a base
year and the child’s individual eligibility information is available. If the applications are
not centrally maintained, both the sending and the receiving school must maintain a
copy of the child’s approved application from the previous school year.

CARRYOVER OF PREVIOUS YEAR’S ELIGIBILITY
Carryover of previous year’s eligibility applies to direct certification, categorical eligibility
determinations and income applications. (See Part 6: Direct Certification for Assistance
Programs.) Carryover is for up to 30 operating days (beginning with the first day of school)
into the current school year or until a new eligibility determination is made, either approved
or denied. The new eligibility determination supersedes the carryover eligibility.
Carryover of the eligibility status from the previous year also applies to children in Head
Start Programs if the SFA administers both the Head Start Program and the school in which
the child attends kindergarten.
Local school officials are encouraged to expedite eligibility determinations for new enrollees.
Note: Once an application is processed and approved or denied, the LEA must implement
that determination in accordance with the time frames discussed in “Application Processing
Timeframe.” If a household does not submit an application or children are not directly
certified by the end of the carryover period, the LEA is not required to send the household a
denial letter or a notice of adverse action.

15

B. APPLICATION PROCESSING TIMEFRAME
Unless the children in a household are determined eligible through direct certification, the
household should submit an application to receive free or reduced price meals or free milk.
The information that the household must provide depends on whether the children are
categorically eligible based on receipt of benefits from an Assistance Program, are Other
Source Categorically Eligible, or are determined eligible based on the household’s size and
income.
Households that choose not to apply for the NSLP cannot be required to submit an
application for free or reduced price benefits. Additionally, the LEA must not delay approval
of the application if the household fails to provide any information that is not required. For
example, if the household fails to include its street address or a birth date, processing of
the application cannot be delayed.
Applications must be reviewed in a timely manner. An eligibility determination must be
made, the family notified of its status, and the status implemented within 10 operating days
of the receipt of the application. Whenever possible, applications should be processed
immediately, particularly for children who do not have approved applications on file from the
previous year.
Households should be notified immediately if benefits are denied or reduced from the level
of the previous year in order to provide adequate time for the family to make appropriate
arrangements for payment to prevent the household from accumulating meal charges.
A new lower eligibility determination should be implemented only after the family has been
notified. For example, in the case of a household that received free benefits the previous
year and will now receive reduced price benefits for the new school year; adequate notice
should be provided.
The carryover period is in place to allow schools an appropriate amount of time to process
applications, especially large school districts. However, it is not the intent that schools delay
the processing of applications. Instead, schools must process applications as they are
received and promptly notify the household of their eligibility status

C. DETERMINING COMPLETION OF SUBMITTED APPLICATIONS
To be considered, an application must include the required information which depends on
the basis for applying--receipt of certain benefits (categorical eligibility) or household size
and income. Any application that is missing required information, that contains inconsistent
information, or is unclear is considered an incomplete application and cannot be processed.
The LEA should make reasonable efforts to contact the household in order to obtain or
clarify required information.

16

CATEGORICAL ELIGIBILITY
Assistance Programs
These sources of categorical eligibility may be determined based on an application
submitted by a household because these programs provide distinct case numbers. In all
instances where a case number for an Assistance Program is used on an application, there
must be the corresponding household member’s name.
There are no “mixed households” under the Assistance Programs because if any member of
the household receives benefits from any of the Assistance Programs, all children listed on
the application are eligible for free meals. If income information is also provided, it should be
ignored.
For these situations, a complete application must provide:
 Names of the children for whom the application is made;
 SNAP, FDPIR or TANF case number, or other FDPIR identifier, for the child(ren) or
for any household member listed on the application; and
 Signature of an adult household member.

EXTENSION OF CATEGORICAL ELIGIBILITY
LEAs must ensure that children in a household that lists an Assistance Program case
number on an application for any household member are provided free meal benefits. This
extension of categorical eligibility also applies to the direct certification process.

OTHER SOURCE CATEGORICAL ELIGIBILITY (EXCEPT FOSTER
CHILDREN)
Children may be categorically eligible due to Other Source Categorical Eligibility status
through an application (or direct certification). Under this designation, an appropriate box on
the application must be checked indicating the child’s status. The child is determined eligible
for free meals and the LEA must then document the status with appropriate officials for each
program (as described below).
A complete application must provide:
 Names of children for whom application is made;
 Indication of child’s categorical eligibility status (a box for each category is shown on
the prototype application and households must check the appropriate one); and
 Signature of adult household member.

OTHER SOURCE CATEGORICAL ELIGIBILITY FOR FOSTER CHILDREN
A foster child whose care and placement is the responsibility of the State or who is placed
by a court with a caretaker household is categorically eligible for free meals. The child’s
status for free meals is taken at face value, as with income applications. No further
action/follow-up is required. If an application is submitted for a foster child or the foster child
is included on the foster family’s application, then the application is part of the verification
pool and the foster child’s eligibility must then be verified, if it was not directly certified.
17

A complete application must provide:




Name of the foster child;
Checked box indicating a child’s foster care status; and
Signature of an adult household member.

INCOME ELIGIBILITY
Those households applying for meal benefits for their children who are not:
 Eligible through categorical eligibility under Assistance Programs;
 Eligible through Other Source Categorical Eligibility; or
 Foster children
must submit an application and be determined eligible for meal benefits based on household
size and income.
A complete application must provide:
 Names of all household members;
 Amount and source of current income for each member and the frequency of the
income;
 Signature of an adult household member; and
 Last four digits of the social security number of the adult household member who
signs the application or an indication that the household member does not have one.
However, if the family’s current income does not reflect the income that will be available
during the school year the family should contact the LEA for assistance in completing the
application. (See Part 4C: Determining Household Income.)

INDICATION OF DIFFERENT TYPES OF ELIGIBILITY
On applications indicating mixed households, where some children are Other Source
Categorically Eligible and some children are not, the LEA must have a method to process
different eligibility statuses that may result from these applications. While the household
cannot be required to submit multiple applications, the LEA may reproduce the application to
accommodate more than one eligibility status or may process the application separately in a
computer-based system.
After the Other Source Categorically Eligible children are determined eligible for free meal
benefits (which requires documentation of their status, except for children in foster care), the
LEA must then use the household’s income and size (including children in the other source
category) to determine if the non-categorically eligible children listed on the application are
eligible for meal benefits .
In such mixed households, Other Source Categorically Eligible children will receive free
meal benefits even if other children listed on the application are determined either eligible for
reduced price meals or ineligible for free or reduced price meal benefits.
A complete mixed application must provide:
 Names of all household members;
18







Amount and source of current income for each member and the frequency of
income;
A checked box indicating the Other Source Categorical Eligibility status of a child; for
a foster child, list any personal income made available to the foster child, and earned
by the foster child as appropriate;(It is optional for the household to list foster
children residing in their care);
Signature of an adult household member; and
Last four digits of the social security number of the adult household member who
signs the application or, an indication that the household member does not have a
social security number.

REVIEWING SUBMITTED APPLICATIONS
The determining official must review each incoming application to ensure that the household
has submitted a complete application. If the application is complete, the official must then
determine whether the household is categorically eligible or income eligible for benefits
based on the information provided on the application.
The LEA must not delay approval of the application if the household fails to provide any
information that is not required. For example, if the household fails to include its street
address, processing of the application cannot be delayed.

D. CITIZENSHIP/LEGAL STATUS
United States citizenship or immigration status is not a condition of eligibility for free and
reduced price benefits. LEAs must apply the same eligibility criteria for citizens and noncitizens.
The Department has determined that the Child Nutrition Programs are not subject to Title IV
of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA),
which restricts certain welfare and public benefits for aliens.
LEAs may not request citizenship status on the application as this may deter otherwise
eligible households from applying.

E. CURRENT INCOME/CONVERSIONS
For the purposes of certification of eligibility for free or reduced price meals or free milk, the
household must provide their current income which is based on the most recent information
available. This may be for the current month, the amount projected for the month for which
the application is filled out or for the month prior to application. If the household’s current
income is not a reflection of income that will be available over the school year, the
household should contact the LEA for assistance. The LEA would determine the amount
and frequency of income available during the school year for households.
19

If a household provided only annual income the LEA must ensure that this is an accurate
reflection of their current income

INCOME RECEIVED AT DIFFERENT INTERVALS
Households may have income from different sources which are paid on different schedules.
For example, the household may receive paychecks on a weekly basis and child support on
a monthly basis. This section explains when conversion of income is required and how
conversion is done.

NO CONVERSION REQUIRED
If there is only one source of income or, if all sources are received in the same frequency,
no conversion is required. The LEA would total all sources and compare them to the
appropriate Income Eligibility Guidelines (IEGs). For example, if a household of three
reported receiving a monthly Social Security check and monthly child support, those
amounts would be added together and the result compared to the monthly IEG category for
a household of three.

CONVERSION REQUIRED
If there are multiple income sources with more than one frequency, the LEA must annualize
all income by multiplying:





Weekly income by 52;
Bi-weekly income (received every two weeks) by 26;
Semi-monthly income (received twice a month) by 24;
Monthly income by 12.

Do not round the values resulting from each conversion. Add all of the un-rounded
converted values and compare the un-rounded total to the appropriate IEG for annual
income for the household size
LEAs cannot use conversion factors such as 4.33 to convert weekly income or 2.15 to
convert bi-weekly income to monthly amounts. If an LEA uses software for application or
certification purposes, the software cannot use conversion factors and cannot
automatically convert income unless there are different frequencies.

INDICATING INCOME AND INCOME SOURCES
Each household must provide the total amount of their current income. Income must be
identified with the individual who received it, and the source of the income (wages, Social
Security, etc.). Each household member who does not have income must also be identified
and must have an indication of zero income on the application. Zero income may be
indicated by checking a “no income” box, by writing in “zero” or “no income” or by inserting
$0.
20

F. DETERMINING ELIGIBILITY
How the LEA official determines eligibility depends on the basis for potential eligibility—
categorical eligibility with case numbers, other source categorical eligibility without case
numbers or income eligibility.

DETERMINATION USING CASE NUMBERS
The determining official must assure that the Assistance Programs case number or other
identifier consistent with the identifiers used in that program in that State are valid. LEA
officials need to be familiar with the format of valid case numbers/other identifiers. If there is
any doubt concerning the validity of a case number/ other identifier submitted on an
application, an LEA official should contact local assistance program officials. Applications
with invalid case numbers or FDPIR identifiers must not be approved. However, for any child
or household member with a valid case number/other identifier, the LEA must approve that
child as eligible for free benefits.
Only the case number may be used to determine eligibility; for example, the electronic
benefit (EBT) card number used by the Supplemental Nutrition Assistance Program cannot
be used to establish categorical eligibility.

DETERMINATION FOR OTHER SOURCE CATEGORICALLY ELIGIBLE CHILDREN
LEA officials must document eligibility under these circumstances through the appropriate
officials as discussed in Part 5 of this manual. Further, if an LEA official has knowledge that
a child may be Other Source Categorically Eligible (other than foster children; see section
on foster children) and an application was not submitted, that official may apply on that
child’s behalf and then must confirm their status through appropriate officials. Applying on a
child’s behalf is important when there may be a delay in documenting whether a child meets
the definition of homeless, migrant or runaway. If a child’s status is not confirmed, the
benefits must be terminated.
When an LEA receives an application with any of the Other Source Categorical Eligibility
categories checked, the determining official must document free meal eligibility for each
child in any of those categories as described in Part 5. An appropriate official from the
agencies must confirm a child’s status either through direct contact to the agency or by a list
of names provided by the agency. Unlike categorical eligibility under Program Assistance
which extends eligibility to all children in the household, Other Source Categorical Eligibility
must be determined individually for each child listed as such.

DETERMINATION BASED ON INCOME
It is the responsibility of the determining official to compute the household’s total current
income and compare the total amount to the appropriate IEG.


LEA officials must determine countable income (see Part 4C: Determining
Household Income).

21




Households that submit a complete application indicating total household income at
or below the income limits for free or reduced price benefits must be approved for
free or reduced price benefits, as appropriate.
Households that submit an incomplete application cannot be approved if required
information is missing; information must be obtained before an eligibility
determination can be made.
o To get the required information, the school may return the application to the
household or contact the household either by phone or in writing. The
determining official should document the details of the contact, and date and
initial the entry.
o Applications missing the signature of an adult household member must be
returned for signature.
o Every reasonable effort should be made to obtain the missing information
prior to denying the application.

VERIFICATION FOR CAUSE
The LEA has an obligation to verify all approved applications that may be questionable; that
is, verification “for cause” (see Part 8D: Verification for Cause). Such verification efforts
cannot delay the approval of applications. If an application is complete and indicates that the
child is eligible for free or reduced price benefits, the application must be approved. Only
after the determination of eligibility has been made can the LEA begin the verification
process.

G. DURATION OF ELIGIBILITY
A child’s eligibility is in effect from the date of eligibility for the current school year and up to
30 operating days in the subsequent school year. However, this does not apply when the
initial eligibility determination was incorrect or when verification of household eligibility,
including verification for cause, does not support the level of benefits for which the
household was approved. In those instances, officials must make appropriate changes in
eligibility.

PROHIBITION ON THE USE OF TEMPORARY APPROVAL
Temporary approval of an application is no longer permitted because of the year long
duration of eligibility provision. If LEAs/schools are concerned with the authenticity of the
information provided on an application, they may, on a case by case basis, verify the
application for cause.

H. UNAPPROVED APPLICATIONS
Any child who is not categorically eligible or who is in a household that does not meet the
income eligibility standards cannot be approved for benefits. If there are any inconsistencies
or questions concerning the required eligibility information provided, the household’s
22

application must be denied unless the inconsistencies or questions are resolved. For
instance, if it is unclear whether the household provided weekly or monthly income, this
issue must be resolved before an eligibility determination can be made. School officials may
contact the household prior to denial, document the details of the contact, and date and
initial the entry.

I. HOUSEHOLDS THAT FAIL TO APPLY
Local school officials may complete an application for a child known to be eligible if the
household fails to apply. When exercising this option, the school official must complete an
application on behalf of the child based on the best household size and income information.
The source of the information must be noted on the application. Names of household
members, the last four digits of the social security number and signature of an adult
household member need not be secured. These applications are excluded from verification.
However, the household must be notified that the child has been certified to receive free or
reduced price benefits.
This option is intended for limited use in individual situations and must not be used to make
eligibility determinations for categories or groups of children.

J. NOTIFICATION OF ELIGIBILITY DETERMINATION
Households must be notified of their eligibility status. Households with children who are
approved for free or reduced price benefits may be notified in writing or verbally.
Households with children who are denied benefits must be given written notification of the
denial. The notification must advise the household of:
 Reason for denial of benefits;
 Right to appeal;
 Instructions on how to appeal; and
 Statement that family may re-apply for free and reduced price benefits at any time
during the school year.
Failure to reapply during the carryover period is not a denial of benefits for the current
school year. LEAs are not required to notify families or send reminders. A notice of
adverse action is not required as eligibility was not established for the current school year.

K. CHANGE IN HOUSEHOLD CIRCUMSTANCES
Because of year-long duration of eligibility, households are not required to report changes in
income or household size or changes with regard to participation in a program that makes
the children categorically eligible. However, families may voluntarily report changes. If a
change is reported that will increase benefits, the LEA must put that change into effect.
However, if the change will decrease benefits (free to reduced price) or terminate free or
23

reduced price benefits (free or reduced price status to paid status), the LEA must explain to
the household that the change does not have to go into effect but that the household may
request that the lower benefits go into effect. If so, the household would then be provided a
notice of the adverse action as provided in Part 8, Section K.

L. APPEALS
A household may appeal either the denial of benefits or the level of benefits for which they
have been approved. When a household requests an appeal, the hearing procedures
outlined in the LEA’s free and reduced price policy statement must be followed.

M. RECORDKEEPING
APPROVED APPLICATIONS
LEA officials must:




Indicate approval date;
Indicate the level of benefit for which each child is approved; and
Sign or initial the application.

DENIED APPLICATIONS
LEA officials must:





Indicate the denial date;
Indicate reason for denial;
Indicate date the denial notice was sent; and
Sign or initial the application.

24

CHANGES DURING THE SCHOOL YEAR
If any change is made after the initial approval for the current school year such as a transfer
to another school within the LEA or if the household voluntarily requests that a change be
made, the LEA officials must:
 Note the change;
 Write the date of the change on the application; and
 Implement the change by updating rosters or other methods used at point of sale, if
necessary.
When a child transfers to another school within the LEA, the date of the transfer must be
noted on the application.

RECORD RETENTION
All free and reduced price applications, including applications from households denied
benefits and inactive applications, must be kept on file for a minimum of three (3) years after
the final claim is submitted for the fiscal year to which they pertain. Files must be kept longer
if they are required by an audit as long as required for resolution of the issues raised by the
audit. If audit findings have not been resolved, the applications must be retained as long as
required for resolution of the issues raised by the audit.
Applications may be maintained either at the school or at a central location with a list of
eligible children maintained at the school. If an LEA maintains applications at a central
location, applications must be readily retrievable by school, and the LEA must ensure that
any changes in eligibility status and transfers in and out of the school are accurately and
promptly recorded on each school’s list.

N. TRANSFERRING ELIGIBILITY
If a child transfers to another school in the same LEA in the same school year, his/her
eligibility must be transferred (see below for handling transfers from a Provision 1, 2, 0r 3
school).
When a student transfers to another school district, the new LEA may accept the eligibility
determination from the student’s former LEA without incurring liability for the accuracy of the
initial determination. When a copy of an application is provided, the accepting LEA should
review the application for arithmetic errors and compare the income and household size to
the applicable IEGs to assure that the correct level of benefits was assigned. If the
accepting LEA determines that an arithmetic error occurred, the accepting LEA must notify
the household that it must file an application in the new LEA in order to receive benefits.
Also the accepting LEA must make changes that occur as a result of any verification
activities or review findings conducted by that LEA.
When a child transfers within the same LEA from a school using Provision 1, 2, or 3, a new
application or direct certification is required unless the transfer is in a base year for the
Provision schools when the child’s individual eligibility information was taken and is
available. If the transfer is done in a non-base year, a new application is required unless
25

current individual free or reduced price eligibility information is available through direct
certification or an approved application for another child in the household. These
procedures are also applicable when a child transfers to a new school district.

O. RESTRICTIONS
The information provided by families on the free and reduced price application will be used
only for determining eligibility for meal or milk benefits and verification of eligibility. LEAs that
plan to disclose children’s eligibility status for purposes other than determining and verifying
free or reduced price eligibility must inform households of this potential disclosure. In some
cases, the LEA must obtain parental consent prior to the disclosure. LEAs that anticipate
disclosure specifically to Medicaid or the State Children’s Health Insurance Program
(SCHIP) must notify households of this and give them the opportunity to decline the
disclosure. (See Part 7: Confidentiality/Disclosure.)
Distribution and processing applications solely for information about household income to
determine the funding or benefits for programs other than the school meals programs or to
determine eligibility for other programs is not permitted. Therefore, funds in the nonprofit
school food service account cannot be used to pay the costs associated with collecting and
processing such information.
A school or LEA must obtain the household income information for non-program purposes
through means other than the household's application for free or reduced price school meal
benefits. If schools or LEAs collect such information for non-program purposes, the
applications may not be labeled as applications for meal benefits under the school
meals/milk programs or give any indication that such benefits are contingent upon a
household returning the application.
If LEAs provide households with multi-use applications, which include both meal program
benefits as well as non-food benefits, they must ensure that the process allows submission
of an application solely for free or reduced meal or free milk benefits.
The LEA must seek consent from the parent(s) or guardian(s) to use the information
provided on the application for non-program purposes or for purposes not permitted in this
guidance.

26

P. QUESTIONS AND ANSWERS
PROCESSING APPLICATIONS
1. How much judgment or discretion may the LEA exercise in determining whether a
household does or does not meet the eligibility criteria for benefits?
Questions frequently arise concerning what is to be included as income and what
constitutes a household. This manual is intended to provide guidelines for those individuals
making eligibility determinations. The guidance cannot, however, address each individual
situation. Determining officials will occasionally have to apply the broad concepts set forth in
this guidance to some individual situations. If unusual situations unlike any examples in the
guidance arise, the LEA determining official should contact the State agency.

2. If any item of required information is missing from the free and reduced price application
submitted by the household, may the determining official complete the application for the
household using information derived from other records available to the school?
No. All required information must be provided by the household and cannot be derived from
another source.

3. A school sent home a statement requiring all households to complete and submit the
application for free and reduced price meal benefits. Is this permissible?
No. Schools cannot require a household to submit an application if they choose not to do so.

4. Can the determining official make an eligibility determination based upon other income
sources, which were not declared on the application but about which the official knows?
No. The determining official must make the initial determination based upon the face value
of the application. However, immediately after the application is approved, the LEA may
verify that application for cause.

5. A household voluntarily provided pay stubs that conflict with the income information on
the application. According to the income information on the application, the household is
eligible for benefits. However, from the pay stubs, it appears that the household is not
eligible. What should the determining official do?
The submission of documentation that does not support the information provided on the
application must not affect the initial eligibility determination. The determining official must
approve or deny the application on face value and notify the household of the initial eligibility
determination. Under these circumstances, an LEA official must take appropriate action by
either:
 Sending the household a notice of approval and a notice of adverse action at the
same time. This provides the household opportunity to resolve the discrepancy
during the (10 operating days) advance notice of adverse action; or
27



Sending the household a notice of approval and a verification letter (based on
verification for cause) at the same time.

LEA officials are in the best position to determine the appropriate action to take. However,
the inconsistency must be resolved expeditiously.

6. A household voluntarily provided pay stubs with the application but did not write the
amount of each person’s income on the application. All other items were completed.
According to the pay stubs, the household is eligible for benefits. What should the
determining official do?
Rather than denying the application or returning the application to the household, the
determining official should contact the household to ensure that the household submitted
information about all sources of income. The official should document the contact, enter the
income information on the application and initial and date the action. The application would
then be processed accordingly.

7. May the approval of applications be delegated to a food service management company
along with other management responsibilities?
An employee of the food service management company may act as an agent for the LEA in
various aspects of the application, certification and verification processes. The company’s
employee must comply with all requirements for these processes, including limited
disclosure of individual eligibility information. However, the LEA is ultimately responsible for
ensuring that all requirements are being met and the information on the application remains
the property of the LEA and cannot be used or possessed by the food service management
company for any use other than to determine eligibility for free or reduced price meals.

8. In a computerized operation, where the computer generates the determination, does the
determining official have to sign or initial each application?
No. The determining official may sign or initial and date a sheet of paper that would then be
attached to a batch of applications or make a note to the electronic file. However, the
computer system should be able to capture the original date of approval, the basis for the
determination (i.e., what household size and income was used), and to update the status of
applications to account for transfers, withdrawals, terminations, and other changes.

9. A number of children from a federally declared disaster are temporarily moved to my
school district. How do I certify these children?
If these children are determined homeless by the school district’s homeless liaison or is
receiving D-SNAP (special disaster benefits), they must be certified for free meals or free
milks. Contact your State agency for assistance.

28

DETERMINING IF AN APPLICATION IS COMPLETE
1. Does an emancipated child sign his/her own applications? Are the last 4 digits of a social
security number required?
An emancipated child who lives alone as a household of one or as a member of a
household with no adult household members must sign his or her own application. No social
security number is required for the emancipated child.

2. What if the racial/ethnic data collection question is not completed?
Parents’ provision of this information is voluntary, and failure to provide the information must
not affect the child’s eligibility for benefits.

3. If a school is providing benefits for a child during the first 30 operating days of the school
year based upon income information from the previous year’s eligibility, and upon receiving
the current year application for the household, the school determines that there is a
decrease in the child’s benefits, is it necessary to provide a notice of adverse action at the
end of the 30 days?
No, it is not necessary to provide a notice of adverse action. The LEA must, however, notify
the household of the decision made on the current school year’s application.

4. What kind of notice is recommended for children determined to be eligible for free or
reduced price meals?
Households must be notified of their eligibility for benefits; however, notification does not
have to be in writing. LEAs may notify households of their children’s eligibility for free or
reduced priced benefits by letter, to the parent’s/guardian’s email address, or phone. LEAs
may also use an automated system which assures accuracy of information and
confidentiality. When an application is denied, the household must always be notified in
writing through the postal system or an email to the parent’s/guardian’s email address.

5. When foster parents apply for benefits for their own children, do they include their foster
children as household members?
Foster parents who choose to apply for meal benefits for their children may include their
foster child(ren) (including a preschool foster child) on the application as a household
member. A foster child’s income (personal income provided to the child or earned by the
child) is only considered when the foster parent(s) submit an application for the non-foster
children in the household. Regardless of the eligibility of the foster family’s own children, the
foster child is categorically eligible for free meals.

6. A child and his mother are living with her sister’s family because they were evicted. The
child was determined homeless by our liaison and is therefore categorically eligible for free
meals. Can the sister count the child and his mother in her household?
29

Yes, unless the mother and her child are not part of the same economic unit as her sister.
This homeless child is always eligible for free meals even if the sister’s children are ineligible
or only qualify for reduced priced meals. Further, based on year long duration, the homeless
child retains his/her free meal status when his/her family is no longer homeless and the
sister’s children also retain their eligibility status for the current school year even if the other
family moves out.

CUSTODY SITUATIONS
1. Parents share the custody of their daughter and the child lives alternately with her mother
and her father. Based on the mother’s income, she is entitled to free meals. I understand
that the child is entitled to free meals even when she is with her father. My question is—can
the father include her as a household member in his household?
Yes. Since the daughter is part of each parent’s economic unit while she is in residence at
the respective households, both parents may include her as a household member.

2. In a split custody situation, a child is eligible for free meals based on the application
submitted by his mother. However, his father told us he doesn’t want his son to get free
meals while he is with him. May I still claim the boy’s meals at the free rate?
No. When the child is residing with his father and the father pays for the meals, you cannot
claim that child’s meal at the free rate.

ACCEPTING BENEFITS
1. What if a child is eligible for free meals, but the household wants to pay the reduced
price?
The school should respect the family’s wishes and allow the child to pay the reduced price
charge. The application should correctly reflect that the child is eligible for free meals.
However, the school should note on the application that the family has elected to pay the
reduced price charge. The meals served to such a child must be claimed for reduced price
reimbursement since the school received the reduced price payment from the household.

30

PART 4: INCOME ELIGIBILITY
A. GENERAL
To determine if a household meets income eligibility requirements for benefits, LEA officials
must compare the household size and the total household income to IEGs. Officials may be
asked by households for guidance on whom to include as a household member or what to
include as income on the application for benefits. Although LEA officials may have to use
their own discretion in some instances, this section explains the requirements for
determining household composition and income and also provides guidance on how to
handle special situations.

B. DETERMINING HOUSEHOLD COMPOSITION
Household composition for the purpose of making an eligibility determination for free and
reduced priced benefits is based on economic units. An economic unit is a group of related
or unrelated individuals who are not residents of an institution or boarding house but who
are living as one economic unit, and who share housing and/or significant income and
expenses of its members. Generally, individuals residing in the same house are an
economic unit. However, more than one economic unit may reside together in the same
house. Separate economic units in the same house are characterized by prorating expenses
and economic independence from one another.

SPECIAL SITUATIONS
Adopted Child
An adopted child for whom a household has accepted legal responsibility is considered to
be a member of that household. If the adoption is a “subsidized” adoption, which may
include children with special needs, the subsidy is included in the total household income.
(See Part 4D: Questions and Answers.)
Because some adopted children were first placed in families as foster children, parents
may not be aware that, once the child is adopted, s/he is no longer categorically eligible for
free meals as a foster child. Due to year-long eligibility, the free eligibility status of a foster
child does not change within the year (including the first 30 operating days of the
subsequent school year) if the child is adopted. However, for the subsequent school years,
an adopted child must now be determined eligible based on the economic unit and all
income available to that household, including any adoption assistance, is counted when
making an eligibility determination.

31

Child Attending an Institution
A child who attends but does not reside in an institution is considered a member of the
household in which s/he resides.

Child Residing in an Institution or RCCI
A child residing in a non-participating institution but who attends a participating school
during the week or a child residing in a participating RCCI is considered a household of one.

Child Away at School
A child who is temporarily away at school (e.g., attending boarding school or college) is
included as a member of the household. If a child is attending a participating boarding
school and wishes to apply for meal benefits, s/he is not considered a household of one.
Instead, the child’s eligibility is determined based on his family’s size and income. This also
applies to foreign students attending boarding schools.

Child Living with One Parent, Relative, or Friends
In cases where no specific welfare agency or court is legally responsible for the child or
where the child is living with one parent, other relatives, or friends of the family, the child is
considered to be a member of the household with whom s/he resides. Children of divorced
or separated parents are generally part of the household that has custody.

Joint Custody
When joint custody has been awarded and the child physically changes residence, the child
is considered part of the household where s/he resides. In these situations, if both parents
apply for benefits in the same LEA for the child, and different eligibility statuses result, the
greatest benefit level is used. For example, if the mother’s situation results in eligibility for
free meals but the father’s application is denied, the child would receive free meals
regardless of which parent had custody at the time.

Emancipated Child
A child living alone or as a separate economic unit is considered to be a household of one.

Foreign Exchange Student
A foreign exchange student is considered to be a member of the household in which s/he
resides (i.e., the household hosting the student).

Foster Child
A foster child is a child whose care and placement is the responsibility of the State or who is
placed by a court with a caretaker household. Such a child is considered a member of the
foster parent(s) household. A foster child placed with relatives through a formal arrangement

32

by the courts or State is also considered a foster child. A child is not considered a foster
child if placed informally with relatives and not through court or State intervention.
Family Members Living Apart
Family members living apart on a temporary basis are considered household members.
Family members not living with the household for an extended period of time are not
considered members of the household for purposes of determining eligibility, but any money
made available by them or on their behalf for the household is included as income to the
household.

Deployed service personnel
Family members not living with the household for an extended period of time are not usually
considered household members. However, any member of the armed services who is
activated or deployed in support of any military combat operation is counted as a household
member. Any money made available by them or on their behalf for the household is
included as income to the household with the exception of combat pay as discussed below
under Income Exceptions- Military Benefits- Combat Pay

C. DETERMINING HOUSEHOLD INCOME REPORTABLE INCOME
Income is any money received on a recurring basis, including gross earned income, unless
specifically excluded by statute. Gross earned income means all money earned before such
deductions as income taxes, employee’s social security taxes, insurance premiums, and
bonds. Income includes but is not limited to:




Earnings from work
o Wages, salaries, tips, commissions
o Net income from self-owned business and farms
o Strike benefits, unemployment compensation, and worker’s compensation
Welfare/child support/alimony
o Public assistance payments/welfare benefits (e.g., TANF, General
Assistance, General Relief)
o Alimony or child support payments

Note: Benefits under SNAP and FDPIR are not counted as income.




Retirement/disability benefits
o Pensions, retirement income, veterans’ benefits
o Social security
o Supplemental security income
o Disability benefits
Any other income
o Net rental income, annuities, and net royalties;
o Interest and dividend income;
o Cash withdrawn from savings, income from estates, trusts and/or
investments;
o Regular contributions from persons not living in the household;
33

o

Any other money that may be available to pay for the child(ren)’s meals

CURRENT INCOME
Households must report current income on a free and reduced price application. Current
income means income received by the household for the current month, the amount
projected for the first month for which the application is filled out or for the month prior to
application. If this income is higher or lower than usual and does not fairly or accurately
represent the household’s actual circumstances, the household may, in conjunction with
LEA officials, project its annual rate of income based on the guidelines on special situations.

SPECIAL SITUATIONS
Projected Income for Seasonal Workers
Seasonal workers and others whose income fluctuates usually earn more money in some
months than in other months. Consequently, the previous month’s income may distort the
household’s actual circumstances. In these situations, the household may project its annual
rate of income and report this amount as its current income. If the prior year’s income
provides an accurate reflection of the household’s current annual rate of income, the prior
year may be used as a basis for the projected annual rate of income.
The LEA must determine the period of time any earnings are received for seasonal workers
as well as the amounts and sources. Seasonal workers include those with annual
employment contracts but who may choose to have their salaries paid over a shorter period
of time. This includes school employees. The LEA must determine the full amount of income
available to such workers contractually on an annual basis and convert all income sources
to annual amounts. This treats these employees in the same manner as employees who
choose to have their salaries paid over the full year.
Income for the Self-Employed
Self-employed persons may use last year’s income as a basis to project their current year’s
net income, unless their current net income provides a more accurate measure. Selfemployed persons are credited with net income rather than gross income. Net income for
self-employment is determined by subtracting business expenses from gross receipts.






Gross receipts include the total income from goods sold or services rendered by the
business.
Deductible business expenses include the cost of goods purchased, rent, utilities,
depreciation charges, wages and salaries paid, and business taxes (not personal,
Federal, State, or local income taxes).
Non-deductible business expenses include the value of salable merchandise used
by the proprietors of retail businesses.
Net income for self-employed farmers is figured by subtracting the farmer’s
operating expenses from the gross receipts.
Gross receipts include the value of all products sold; money received from the rental
of farm land, buildings, or equipment to others, and incidental receipts from the sale
of items such as wood, sand, or gravel.
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

Operating expenses include cost of feed, fertilizer, seed, and other farming supplies,
cash wages paid to farmhands, depreciation charges, cash rent, interest on farm
mortgages, farm building repairs, and farm taxes (but not local, State, and Federal
income taxes).

Income from Wages and Self-Employment
For a household with income from wages and self-employment, each amount must be listed
separately. When there is a business loss, income from wages may not be reduced by the
amount of the business loss. If income from self-employment is negative, it should be listed
as zero.

Military Benefits
Benefits paid directly to the service person such as housing allowances and food or clothing
allowances, are considered income.

Deployed Service Members
Only that portion of a deployed service member’s income made available by them or on their
behalf to the household will be counted as income to the household. Combat Pay is
excluded as discussed below under Income Exclusions - Military Benefits - Combat Pay.

Foster Child’s Income
If the household where the foster child resides applies for benefits for their non-foster
children, then the foster child’s personal income is considered when making an eligibility
determination. The foster child’s income can be from a part-time job or any funds provided
to the child for his/her personal use. ((It is optional for the household to list foster children
residing in their care).

Income for a Child Residing in an RCCI or Institutions
Only the income earned by a child from full-time or regular part-time employment and/or
personally receives while in residence at the RCCI or institution is considered income.

Child’s Income
The earnings of a child who is a full-time or regular part-time employee must be listed on the
application as income.

Alimony and Child Support
Any money received by a household in the form of alimony or child support is considered
income to the receiving household. Any money paid by a household in the form of alimony
or child support is not excluded from income for that household.

35

Garnished Wages and Bankruptcy
Income is the gross income received by a household before deductions. In the case of
garnished wages and income ordered to be used in a specified manner, the total gross
income must be considered regardless of whatever portions are garnished or used to pay
creditors.

36

INCOME EXCLUSIONS
General
Income not to be reported or counted as income in the determination of a household’s
eligibility for free and reduced price benefits includes:







Any cash income or value of benefits excluded by statute (see Question and Answer
2 in this part for statutory exclusions); common exclusions are the value of benefits
under the SNAP or FDPIR and some Federal educational benefits;
Payments received from the Foster Care agency or court for the care of foster
children;
Student financial assistance provided for the costs of attendance at an educational
institution, such as grants and scholarships, awarded to meet educational expenses
and not available to pay for meals;
Loans, such as bank loans, since these funds are only temporarily available and
must be repaid;
Value of in-kind compensation, such as housing for clergy and similar non-cash
benefits; and
Occasional earnings received on an irregular basis (not recurring, such as payment
for occasional baby-sitting or mowing lawns).

Military Benefits
An in-kind benefit is excluded, such as non-privatized on-base housing, where no cash is
provided to the household. Other sources of excluded income related to the military:







Family Subsistence Supplemental Allowance (FSSA) - By law, the FSSA is not
counted as income in determining eligibility for free and reduced price meals;
Privatized housing allowances received under the Military Housing Privatization
Initiative are not counted as income. Under this privatization initiative, a housing
allowance appears on the leave and earnings statement of service members living in
privatized housing. The exclusion only applies to service members living in housing
covered under the Military Housing Privatization Initiative. Housing allowances for
households living off-base in the general commercial/private real estate market are
counted as income. Additional information about DOD’s Military Housing
Privatization Initiative, including a list of affected installations, may be found at
http://www.acq.osd.mil/housing;
Combat Pay is excluded if it is
o Received in addition to the service member’s basic pay;
o Received as a result of the service member’s deployment to or service in an
area that has been designated as a combat zone; and
o Not received by the service member prior to his/her deployment to or service
in the designated combat zone.
Combat pay as described is extended to Deployment Extension Incentive Pay
(DEIP). DEIP is given to active-duty service members who agree to extend their
military service by completing deployment with their units without re-enlisting
o This exemption applies only until the service members return to their home
station. DEIP payments provided to service members that are not considered
deployed are not exempt.

37

Institutionalized Child’s Income
Payments from any source directly received by the RCCI or institution on a child’s behalf are
not considered as income to the child.
Child’s Income
Infrequent earnings, such as income from occasional baby-sitting or mowing lawns, are not
counted as income and should not be listed on the application.
Lump Sum Payments
Lump sum payments or large cash settlements are not counted as income since they are
not received on a regular basis. These funds may be provided as compensation for a loss
that must be replaced, such as payment from an insurance company for fire damage to a
house. However, when lump sum payments are put into a savings account and the
household regularly draws from that account for living expenses, the amount withdrawn is
counted as income.

D. QUESTIONS AND ANSWERS
1. Why is the housing allowance provided to service personnel counted as income when the
value of provided housing is not?
Income is defined as all cash received on a recurring basis. In-kind benefits, by definition,
are not cash payments, and, therefore, are not considered as income for the purpose of
determining free and reduced price eligibility. School officials are not in a position to
determine the value of in-kind benefits, such as housing for clergy, cars for salespersons,
employee medical or dental benefits, etc. The income exclusion for in-kind benefits is
uniform throughout the school meal programs. To treat in-kind benefits provided to military
households differently from in-kind benefits provided to the general population would create
an inequity. The fact that the value of military on base housing is more readily identifiable
than other sources of in-kind benefits would not lessen the inequity.

2. What payments from Federal programs are excluded from consideration as income by
legislative prohibition?
The following payments are excluded as income:
 Value of assistance to children and their families under the Richard B. Russell
National School Lunch Act, the Child Nutrition Act of 1966, and the Food and
Nutrition Act of 2008;
 Reimbursements from the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970;
 Any payment to volunteers under Title I (VISTA and others) and Title II (RSVP,
foster grandparents, and others) of the Domestic Volunteer Service Act of 1973
to the extent excluded by that Act;
 Payments to volunteers under section 8(b)(1)(B) of the Small Business Act
(SCORE and ACE);
 National Flood Insurance Program (NFIP) payments—payments received by
property owners under the NFIP;
38
















Income derived from certain sub-marginal land of the U.S. that is held in trust for
certain Indian tribes;
Student financial assistance received under Title IV of the Higher Education Act
of 1965, including the Pell Grant, Supplemental Education Opportunity Grant,
State Student Incentive Grants, National Direct Student Loan, PLUS, College
Work Study, and Byrd Honor Scholarship Programs, to the extent excluded by
that Act;
Payments under the Agent Orange Compensation Exclusion Act (Public Law
101-201);
Payments under the Child Care and Development Block Grant (Public Law 102508); (15) payments and allowances to individuals participating in AmeriCorps to
the extent excluded by the National and Community Service Act of 1990;
Payments under the Low-income Home Energy Assistance Act (Public Law 99125); payments under the Disaster Relief Act of 1974, as amended by the
Disaster Relief and Emergency Assistance Amendments of 1989 (Public Law
100-707);
Payments received under the Carl D. Perkins Vocational Education Act, as
amended by the Carl D. Perkins Vocational and Applied Technology Act
Amendments of 1990 (Public Law 101-392);
Value of any child care payments made under section 402(g)(1)(E) of the Social
Security Act;
Value of any “at-risk” block grant child care payments made under section 5081
of Public Law 101-508, which amended section 402(i) of the Social Security Act;
Value of any child care provided or paid for under the Child Care and
Development Block Grant Act, as amended (Public Law 102-586, Sec. 8(b));
Payments received under the Old Age Assistance Claims Settlement Act, except
for per capita shares in excess of $2,000;
Payments received under the Cranston-Gonzales National Affordable Housing
Act (Public Law 101-625);
Payments received under the Housing and Community Development Act of
1987;

This list is not all inclusive. Legislation is periodically enacted that excludes income for the
purposes of the school meals/milk programs. Here is a link to the list of income excluded by
Federal law that is maintained by the Supplemental Security Income Program:
http://www.socialsecurity.gov/OP_Home/cfr20/416/416-app-k.htm
This Web site may assist you in determining if benefits from other programs are excluded as
income from Federal means-tested programs. Determining officials should always contact
the State agency when there is question of whether specific payments are to be included as
income. The household always has the right to provide documentation or to request a
determination about a source of income that may be excluded for the purposes of the school
meals/milk programs.

3. If one household owns a housing unit and rents living space to another household, must
the household receiving the rental fee report this amount as income?
Yes. Income includes money derived from rent of room(s), apartment(s), etc. If a household
receives rental income from another household, it must be included as income. The
treatment of rental income would be similar to the treatment of self-employment income.
39

4. Are children for whom households receive adoption assistance payments under Title IV-E
of the Social Security Act automatically eligible for free school meals?
No. Although Sections 673 and 674 of the Social Security Act specify that, for purposes of
Titles XIX (medical assistance) and XX (child care), children whose parents receive adoption
payments shall be deemed to be zero benefit recipients of the Aid to Families with
Dependent Children program (now TANF), the statute did not extend this TANF equivalency
to the NSLP, SBP, or SMP. Additionally, since there is no legislative prohibition from
considering the adoption assistance payments as income, the amount of assistance must be
included as household income in the free and reduced price meal eligibility determination.

5. If a child lives with his/her parents and is required to pay for room and board, is the child a
separate household?
The child is considered a separate household only in those cases when the child is living
alone or as a separate economic unit. Separate economic units are usually characterized by
the prorating of most household expenses. Most children paying room and board are usually
paying a token amount and are not economically independent of their parents and are,
therefore, not considered to be emancipated.

6. If two separate households rent living space (e.g., an apartment or house), and one
household gives its portion of the rent to the other household which, in turn, transmits the full
rent to the landlord, does the rental income given to the transmitting household count as
rental income?
No. The transmitting household has not received income; rather it is performing a simple
financial transaction that does not provide it with additional income.

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PART 5: CATEGORICAL ELIGIBILITY
A. MEMBERS OF ASSISTANCE PROGRAM HOUSEHOLDS
A child who is a member of a household that receives benefits from Assistance Programs
(SNAP, TANF, FDPIR) is categorically eligible for free benefits. LEAs must give households
applying for free and reduced price meals the opportunity to indicate on the application that
the children are categorically eligible for free benefits and to provide case numbers either for
a child or for any household member.

Categorical eligibility for free meals is extended to all children in a household if any member
of the household receives benefits from Assistance Programs.

If a household submits an application for children who were directly certified, the LEA must
disregard the paper application. Direct certification takes precedence over an application
submitted by the household unless the application identifies other children in the household
that were not directly certified.

Documentation for Assistance Programs using an application for meal benefits requires that
the household list a case number on the application. LEAs/schools need to be familiar with
their State’s case numbers in order to ensure the case numbers are viable for each
program.

B. OTHER SOURCE CATEGORICALLY ELIGIBLE
In order to ensure quick delivery of meal benefits to other source populations, LEAs/schools
should have procedures in place with Other Source Categorically Eligible agency officials to
ensure the LEA is promptly notified of children meeting this eligibility criterion. On or around
the beginning of each school year, LEAs/schools should conduct outreach to Other Source
Categorically Eligible agency officials in preparation for the new school year.
Other Source Categorical Eligibility of a child does not convey to other children in the
household. If the household of an Other Source Categorically Eligible child submits an
application, the appropriate box under other source on the application must be checked.
The school/LEA must then contact the household to determine which child is eligible for free
meals under Other Source Categorical Eligibility. Documentation of Other Source
Categorical Eligibility is required (excludes foster children, except if through verification).
For reference refer to the National School Lunch Act, section 9(d)(1).
If the household submits an application with the household’s income and has also checked
the box for “Other Source Categorical Eligibility”, and the LEA or school has not had the
opportunity to document the status of the child(ren) through other source liaisons, process
the application using the income information provided. At such time as the other source
eligibility is documented, the application is disregard (if all children in household are other
source). The application must be retained.

41

LEAs are encouraged to conduct direct certification with appropriate officials and agencies
for Other Source Categorically Eligible Programs. The LEA/school must decide the most
expeditious manner in which to confirm/document a child’s status under Other Source
Categorical Eligibility so that free meal benefits can be provided as soon as possible. For
example, direct certification may be accomplished through an electronic method, such as, a
fax or email of lists of eligible students exchanged between appropriate agency officials and
LEA/school. Or, an agency may provide a letter to the household which in turn the
household provides to the school. The procedures for mandatory and voluntary direct
certification are the same. When conducting direct certification for Other Source
Categorically Eligible Programs, the required documentation depends on the agency
providing the information.
In cases of form letters to households or direct computer matches which may not include the
official’s original signature, sufficient documentation must include correspondence or a
written agreement between the Other Source Categorically Eligible Program designated
officials and the LEA setting out or confirming the manner in which LEA officials would be
provided the children’s status.
A method of data exchange between an agency and an LEA that does not involve the
household is encouraged. The documentation must be retrievable by school to ensure
proper delivery of benefits and to allow substantiation of the number of children eligible for
free meals or milk.
An LEA or school official who has direct knowledge that a child is in an other source
category may expedite program benefits to the child by completing an application for that
child or compiling a list of other source eligible students. As soon as possible, the eligibility
determination must be documented by the appropriate agencies.

TRANSFERRING INFORMATION
To ensure that an eligible Other Source Categorical Eligible child (migrant, runaway,
homeless, etc), continues to receive benefits, LEAs are encouraged to share the child’s free
meal eligibility status with the new LEA when a migrant, homeless or runaway child moves
from their jurisdiction if the family knows their new location. See N. Transferring Eligibility
between LEAs, in Part 3 of this manual for additional information

HEAD START AND EVEN START
Children enrolled in Federally-funded Head Start centers are considered categorically
eligible for free meals in the NSLP. Children enrolled in State funded pre-kindergarten
programs with eligibility requirements identical to or more stringent than those used by the
Federally-funded Head Start centers are also considered categorically eligible.
For a child to be categorically eligible for free meals based on their participation in Even
Start, the child must be enrolled as a participant in a Federally-funded Even Start Family
Literacy Program and must be at the pre-kindergarten level.

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DOCUMENTATION OF PARTICIPATION
Documentation of a child’s participation in a Federally-funded Head Start or Even Start is
required to establish categorical eligibility for free meals in the NSLP or SBP, or for free milk
in the SMP. Confirmation that the child has not yet entered kindergarten must be included in
the documentation from the Even Start official.
Acceptable documentation includes:
 Statement of enrollment in Head Start or Even Start or;
 List of children participating in Head Start or Even Start; and
 For Even Start, confirmation that the child has not yet entered kindergarten.

MIGRANT EDUCATION PROGRAM
A child is considered categorically eligible if s/he is identified as meeting the definition of
migrant in section 1309 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6399) by the State, regional or local Migrant Education Program (MEP) director or
coordinator or the local educational liaison.
The basic definition of a migrant child for MEP is a child that has moved across school
district lines within the last three years, in order to accompany or join a parent or guardian
who has moved to seek or obtain temporary or seasonal work in agriculture or fishing. (Note:
minors who move with a spouse, or by themselves to perform this work may also qualify.)
State educational agencies and local MEP staff are responsible for identifying and
maintaining supporting documentation as to who is defined as a migrant child.

MEP CONTACTS
Most State educational agencies sub-grant MEP funds to local operating agencies (LOAs) to
provide program services. These operating agencies are typically school districts; however,
in some States, the LOAs may be regional units that administer the MEP in multiple school
districts. When a LOA or school district receives MEP funds, a MEP coordinator is usually
designated. This may be a Federal program director who administers multiple Federal
programs including the MEP. The operating agency or school district identifies and recruits
migrant children in their geographic area and maintains a list of eligible migrant children.

DOCUMENTATION OF MEP ENROLLMENT
LEAs should work directly with their State, regional, or local Migrant Education Program
director or coordinator, local migrant or homeless liaison, to identify migrant children and to
document their eligibility for free school meals. LEAs must accept documentation that the
children are migrant children from the LOA or school district’s MEP coordinator.
Acceptable documentation for MEP enrollment is:
 Dated list with each child's name ; and the signature of the State, regional or local
MEP director, coordinator or local educational liaison,
 A letter from a migrant education director, coordinator, or liaison provided by a
household that confirms that a child currently meets the definition of migrant under
the Elementary and Secondary Education Act.
43

This documentation is in lieu of free and reduced price meal applications and must be
sought, as much as possible, prior to a household completing an application. Once
documentation is obtained, the LEA must notify the household as soon as possible about
the child’s free meal eligibility. Because documentation of MEP eligibility is acceptable in lieu
of a free and reduced price meal application, any application submitted on behalf of the child
would be disregarded unless other children are listed on the application in which case, the
LEA has to process the application to determine eligibility for the other children listed on the
application.
If the application indicates a child’s status as a migrant, and the household has not
contacted the school, the school/LEA should check with the migrant coordinator.
It is particularly important that newly arrived migrant children in the LEA be documented and
certified for free meals as promptly as possible. LEAs need to establish procedures with the
MEP coordinator to assure prompt notification, especially when a new migrant child is
identified.
RUNAWAY AND HOMELESS YOUTH ACT
A runaway child is identified as a runaway receiving assistance through a program under the
Runaway and Homeless Youth Act (RYHA) by the local educational liaison. If the LEA or
State agency becomes aware of other officials who may be administering the RHYA in their
State, they should contact the State agency or regional office, as appropriate, for guidance.
The programs for runaways are established by the Family and Youth Services Bureau
(FYSB) of the U.S. Department of Health and Human Services. Because the FYSB
coordinates with school district homeless liaisons, LEA officials should be able to obtain
documentation of a child’s participation in a RHYA-funded program.
The following is a Web site that may assist LEAs in obtaining more information about the
operations of the RHYA programs in their State:
http://www.acf.dhhs.gov/programs/oro/
For further information on FYSB, see their web site at
http://www.acf.hhs.gov/programs/fysb/index.html

DOCUMENTATION OF RUNAWAYS’ RHYA PARTICIPATION
Acceptable documentation to substantiate participation in a program for runaway children
sponsored by RHYA must include:




Child’s name or a list of names of participating children;
Effective date(s); and
Signature of the school district’s homeless liaison.

Because direct certification documentation of enrollment in an RHYA-funded program is
acceptable in lieu of a free and reduced price meal application, any application submitted on
behalf of the child would be disregarded.

44

It is particularly important that runaway children who may be enrolled in an RHYA-funded
program be documented and certified for free meals as promptly as possible. Therefore,
LEAs need to establish procedures with the homeless coordinator. If an application is
submitted for a runaway child participating in a RHYA program with the box checked for
runaway, the child must receive free meal benefits.

MCKINNEY-VENTO HOMELESS ASSISTANCE ACT
A child is considered homeless if s/he is identified as lacking a fixed, regular and adequate
nighttime residence under the McKinney-Vento Homeless Assistance Act by the local
educational agency liaison, or by the director of a homeless shelter. If the LEA or State
agency becomes aware of other officials who may be administering the homeless
assistance act under the McKinney-Vento Act in their State, they should contact the State
agency or regional office, as appropriate, for guidance.
The term “homeless” means individuals who lack a fixed, regular, and adequate nighttime
residence. The definition includes:
 Children and youths who are sharing the housing of other persons due to loss of
housing, economic hardship, or a similar reason; are living in motels, hotels, trailer
parks, or camping grounds due to the lack of alternative adequate accommodations;
 Children and youths who are living in emergency or transitional shelters, are
abandoned in hospitals, or are awaiting foster care placement;
 Children and youths who have a primary nighttime residence that is a public or
private place not designed for or ordinarily used as a regular sleeping
accommodation for human beings;
 Children and youths who are living in cars, parks, public spaces, abandoned
buildings, substandard housing, bus or train stations, or similar settings; and
 Migratory children who qualify as homeless because the children are living in the
circumstances described above.
This list is provided to assist LEA officials who may know a child’s circumstances that may
qualify them as homeless. However, as discussed below, the determination of whether a
child meets the definition is made by the school district’s homeless liaison.

DOCUMENTING FREE MEAL ELIGIBILITY FOR HOMELESS CHILDREN
Acceptable documentation that the children are homeless is obtained from the LEA
homeless liaison or directors of homeless shelters where the children reside. Documentation
to substantiate free meal eligibility must consist of the




Child’s name or a list of names;
Effective date(s), and
Signature of the local educational liaison or the director of the homeless shelter.

HOMELESS CHILDREN RESIDING WITH ANOTHER HOUSEHOLD
A child or family may temporarily reside with another household and still be considered
homeless under the definition of homeless in McKinney-Vento. In these cases the
45

household size and income of the host family is not taken into consideration in determining
the free meal eligibility for the child(ren) designated as homeless by the LEA liaison.
When a host family applies for free and reduced price meals for their own children, the host
family may include the homeless family as household members if the host family provides
financial support to the homeless family, such as shelter, utilities, clothing or food. In such
cases, the host family must also include any income received by the homeless family. LEA
officials must determine eligibility for the host family in the traditional manner. However, free
meal eligibility for the homeless child is based on the documentation provided by the LEA
liaison, even when the child is included on the host family’s free and reduced price meal
application.
FOSTER CHILD
A foster child is a child whose care and placement is the responsibility of a State or local
welfare agency or who is placed by a court with a caretaker household. This applies only to
foster children who are formally placed by the State or court, not informal arrangements
outside of the State or court systems. A child may still be considered a foster child if placed
with relatives provided the placement is made by the State or local foster care system or
courts.

A foster family may include their foster child on the same household application that
includes their non-foster children. This will streamline the application process and may
help the foster family’s non-foster children qualify for free or reduced price meals based
on household size and income.

DOCUMENTING FREE MEAL ELIGIBILITY FOR FOSTER CHILDREN
The LEAs are encouraged to establish formal mechanisms with State and local foster care
agencies and courts to receive information directly from these agencies to facilitate
certification for free meals for foster children. LEAs and foster care agencies or courts
should have a written agreement between the agency or court and the LEA setting out or
confirming the manner in which LEA officials would be provided the children’s status.
Documentation can be submitted by an appropriate State agency or court (Direct
Certification):
 Electronic/computer match directly to the LEA or other child nutrition program
institution indicating the status of the child as a foster child without further
application;
 LEAs can accept a State agency’s or court’s letter confirming the child’s status as a
foster child submitted by the household; or
 Foster parents may complete an application and check the appropriate box indicating
the child’s status as a foster child. No further documentation is required (the
application is subject to verification).

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C. DURATION OF CATEGORICAL ELIGIBILITY
Since households are not required to report changes in income or household size during the
school year, households are also not required to report a change in their categorical
eligibility status because they no longer receive benefits or participate in the programs
discussed above. For households that voluntarily report changes, see Part 3K: Changes in
Household Circumstances.

D. QUESTIONS AND ANSWERS
1. A child who has been certified homeless by the liaison earlier this year returns home.
The child remains categorically eligible based on having been determined categorically
eligible earlier in the year—but he was with a host family which had the option of including
him on their application for meal benefits. Now that the child is back home, can his “home”
family apply for free or reduced price benefits and include him as a household member?
There are several points that need to be addressed in responding to this question.
 The homeless child’s eligibility status cannot “convey” to the other children in either
the host or “home” family. However, the homeless child is counted as a household
member in the other households.
 The homeless child remains eligible for free meals for the current school year (and
up to 30 operating days in the next) regardless of where he is living.
 The host family can include the child if they apply for benefits while the child is living
with them and, if he moves out of the home, there is no change in eligibility status for
the remaining children because of year-long eligibility.
 When the child returns to his “home” family, he is counted as a household member if
his family applies for benefits for the other children in the household. By the same
token, if the homeless child leaves the family which has an approved application on
file, the status of the remaining children doesn’t change unless something happens
that would improve their status.

2. May a private school serve free meals to homeless students using documentation
provided by a public school homeless liaison or the State Coordinator for Education of
Homeless Children and Youth?
Although the McKinney-Vento Homeless Assistance Act only applies to public schools,
public school liaisons or the State Coordinator for Education of Homeless Children and
Youth may share documentation with a private school and the private school may use this
information to support serving free meals to this population. Private schools may also use
documentation obtained from shelter directors for this purpose. While there is no policy
requiring private schools to establish a homeless/runaway liaison, they are encouraged to
do so for school meal program purposes.

3. Does the categorical eligibility status of a homeless student remain in effect for the entire
school year even if the homeless student secures permanent housing and continues to
reside in the same SFA?
Yes. A homeless child remains eligible for free meals for the current school year, plus up to
30 operating days in the subsequent school year, even if that child secures a permanent
residence (e.g., returns home) at some point during the current school year.
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4. Does the categorical eligibility status of a homeless student remain in effect for the entire
school year even if the homeless student secures permanent housing but now attends a
school in a different LEA?
The new LEA may accept the eligibility determination for students provided by the former
LEA as described in Part 3O: Processing Applications - Restrictions. However, if the LEA
does not elect to accept the eligibility determination from the prior LEA, then the household
is required to reapply for benefits with the new LEA. The homeless coordinator may still
make a determination that the student is “homeless” and thus eligible for free meal benefits
even if the student is considered to have a permanent residence, (not with his/her family). If
the student’s status is not designated as homeless, the household where the student
resides must apply for meal benefits based on household size and gross income.
5. Is a child considered a foster child if placed in a relative’s home?
Provided a child is placed in a relative’s home by a State or court system, they are
considered a foster child and eligible for free meal. Informal arrangements among relatives
do not qualify a child as a foster child and thus the child is not categorically eligible for free
meals.

6. Does a foster child’s categorical eligibility extend to other children in the household the
same as with Assistance Programs (SNAP, TANF or FDPIR)?
No. A foster child’s eligibility status for free meals does not extend to other children in the
household.

7. Is the direct certification process required for a foster child and what documentation is
required to verify a child’s status as a foster child?
Direct certification is not required for foster children; however LEAs and other child nutrition
institutions are strongly encouraged to establish formal mechanisms with State and local
foster care agencies or the courts to receive information directly from these agencies to
facilitate certification for free meals for foster children. Documentation may consist of welfare
agency or court documents stating that the courts have taken legal custody of a child and
s/he has been place in the foster care system or if appropriate a list of children in foster care
from the welfare or court system is sufficient.

8. What if one of the children listed on an income application is checked as a foster child?
Since foster children are categorically eligible for free meals, the LEA notes the foster child’s
free meal status and then must determine the eligibility status of other children listed on the
application based on household size and income. The foster child may be included on the
application (at the household’s discretion) as a household member along with any personal
income s/he may have.

9. Is direct certification required for children in Head Start, migrant, runaway or homeless
programs?
No. Direct certification is not a requirement for these programs but is strongly encouraged.
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10. An application is submitted indicating a child is one of these categories: Head Start,
Migrant, Runaway or Homeless (Other Source Categorically Eligible) but is additional
documentation needed?
Yes. Additional documentation from appropriate agency officials is required to certify that a
child participates in one of these programs (this does not include foster children).
(National School Lunch Act, section 9(d)(2).)

49

PART 6: DIRECT CERTIFICATION FOR ASSISTANCE
PROGRAMS
A. GENERAL
Direct certification is the process under which LEAs certify children who are members of
households receiving assistance under the Assistance Programs (SNAP, TANF or FDPIR)
as eligible for free school meals, without further application, based on information provided
by the State/local agency administering those programs.
Eligibility for free meals is extended to all children in a household if one member has been
directly certified as eligible under the Assistance Programs. These children are also
considered directly certified. LEAs may be able to use school district enrollment records to
determine additional children who are part of the family but were not identified through direct
certification.
During the carryover period, categorical eligibility status is extended to any newly enrolled
children who are members of a household with one or more members who were directly
certified under Assistance Programs.
This section only discusses direct certification for Assistance Programs. Other Source
Categorically Eligible children, such as homeless children identified by the school district’s
homeless liaison, are processed using procedures similar to direct certification. Those
procedures are found in Part 5 of this manual.
Because children who are directly certified are determined eligible based on documentation
received from an Assistance Program, they are not subject to verification.

B. MANDATORY DIRECT CERTIFICATION WITH SNAP
All LEAs must directly certify children who are members of households receiving SNAP
benefits.
METHOD OF DIRECT CERTIFICATION
Beginning in School Year 2012-2013, direct certification with SNAP must use a data
matching technique between the SNAP office and the LEA/school. The SNAP household
can no longer be required to provide the LEA with a SNAP letter notifying the household of
eligibility for free meal benefits.
State agencies and LEAs may continue to use the “letter method” as the sole method of
direct certification during School Year 2011-2012 only. This restriction only applies to direct
certification activities with SNAP. (See below for use of the letter method for TANF/FDPIR.)
SNAP agencies may continue to provide letters to families as a secondary method along
with use of an automated system, especially during the initial use of an automated system.
The additional notification to families would help to ensure that they were aware of their
children’s categorically eligibility if the children were not matched during a data exchange.
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FREQUENCY OF DIRECT CERTIFICATION
Beginning in School Year 2011-2012, LEAs must conduct direct certification with SNAP at
least three times during the school year. More frequent direct certification efforts are
permissible and encouraged. The efforts must be made:
 At or around the beginning of the school year (i.e., July 1);
 Three months after the beginning of the school year; and
 Six months after the beginning of the school year.
Subsequent direct certification efforts are required for children who were not initially directly
certified and who are currently reduced price or paid. If the LEA has the capability, the
status of any newly enrolled child must be checked for SNAP eligibility at the time of
enrollment. If this is not possible, the household must be provided with an application so that
at the child’s benefits are not delayed until the next scheduled direct certification update.

ZERO SNAP BENEFIT HOUSEHOLDS
Some households may be eligible for “zero benefits” and the law restricts categorical
eligibility for free school meals based on SNAP participation to children who are members of
a household receiving assistance under SNAP. Therefore, a child who is a member of a
household that is receiving “zero benefits” from SNAP is not categorically eligible for free
meals, unless the child is categorically eligible for another reason
For the purposes of direct certification, State agencies must ensure that SNAP matches do
not identify children as categorically eligible for free meals when the children are members
of a household eligible for zero SNAP benefits. SNAP defines benefits as allotments issued
on electronic benefit transfer (EBT) cards, or other means approved by the Secretary, that
can be used to purchase food at authorized retail food stores.
SAs must work with their counterparts that administer SNAP to assure that direct
certification matching only identifies children as categorically eligible when they are in
households that actually receive SNAP benefits. Any State agency that has included
children who are members of a household eligible for zero SNAP benefits in their direct
certification matching must ensure that their matching process is revised to no longer
identify these children as categorically eligible.

C. DIRECT CERTIFICATION WITH TANF AND FDPIR
Although not required, LEAs are encouraged to conduct direct certification with the TANF
program and FDPIR. Direct certification with these programs may use either a data
matching technique or the letter method. If LEAs conduct direct certification with TANF
and/or FDPIR agencies, there is no requirement on how frequently the contacts are made.
At a minimum for these programs, direct certification contact should be at or near the
beginning of the school year, July 1, as defined in 7 CFR 210.2.

51

D. REQUIRED DOCUMENTATION
Documentation to establish children’s eligibility for free meals under direct certification for
Assistance Programs, and to substantiate claims for reimbursement, must include:
 Names of children or any household member currently certified to receive benefits
from Assistance Programs;
 A statement certifying that each child is a member of a household where someone
receives Assistance Program benefits;
 At least one piece of identifying information matching each child with a child
attending a particular school. Examples of identifiers include:
o Children’s birth dates
o Addresses
o Parents’ names
o Child’s social security number, if available
o Last 4 digits of the social security number of the person signing the
application, if available
o Gender
o Other identifiers
 Date; and
 Signature of an official of the Assistance Programs.
For computer matches which may not include the official’s original signature, sufficient
documentation must include correspondence or a written agreement between the
Assistance Programs office and the LEA that sets out or confirms the manner in which LEA
officials would be provided the children’s SNAP, TANF or FDPIR status.
The documentation must be retrievable by school to ensure proper delivery of benefits and
to allow substantiation of the number of children eligible for free meals or milk.

E. NOTIFICATION
The LEA must notify the household about eligibility established through direct certification.
The notification must include the following information:
 The child is eligible for free benefits;
 No further application is necessary;
 If applicable, an explanation of extended eligibility and how to notify the LEA of any
additional children in the household; and
 How to notify the LEA if it does not want free benefits for directly certified children.
This notification must also be provided to households directly certified by providing a letter to
the LEA indicating receipt of TANF or FDPIR benefits or through contacts with officials such
as the LEA’s homeless liaison or a foster care agency.
LEAs must ensure that all households receive either a direct certification notification or an
application for free and reduced price school meals. LEAs that distribute the application
materials through the mail, individual student packets, or other method that prevents the
overt identification of children who were already determined eligible through direct
certification are not required to distribute application materials to households in which all
children were determined eligible through the direct certification process.
52

Notification of free meal eligibility through direct certification may be done through e-mail if
the LEA has an e-mail address for a parent or guardian.

AGE OF DOCUMENTATION
LEA officials must obtain from Assistance Program officials the most current certification
information available.

F. DELIVERY OF BENEFITS
The LEA must provide benefits promptly. Eligible children may receive benefits immediately
and the LEA may assume consent if refusal has not been received within a certain number
of days, as determined by the LEA.
If the household refuses benefits, the LEA must discontinue benefits immediately and must
document the refusal.

G. EXPIRATION OF CATEGORICAL ELIGIBILITY
Because of year-long duration of eligibility, households are no longer required to report
changes in their categorical eligibility status. Further, if a subsequent direct certification
contact indicates a child is no longer receiving SNAP or other benefits, no change is
required.
Households may voluntarily report a change. If a household reports a change that may
reduce or terminate benefits, the LEA must explain to the household that the change does
not have to go into effect but, that at the household’s request the change will go into effect.
If the household wants the change to go into effect, the LEA must provide a notice of
adverse action.

H. RECORDKEEPING
LEAs must keep documentation for direct certification on file for a minimum of three (3)
years after submission of the final claim for reimbursement for the fiscal year to which they
apply. Documentation must be kept longer if it is required by an audit. If audit findings have
not been resolved, the applications must be retained as long as required for resolution of the
issues raised by the audit. If audit findings have not been resolved, the documentation must
be maintained as long as required for resolution of the issues raised by the audit.
Documentation may be maintained either at the school or at a central location with a list of
eligible children maintained at the school. If an LEA maintains documentation at a central
location, children’s categorical eligibility status must be readily retrievable by school, and the
LEA must ensure that any changes and transfers in and out of the school are accurately and
promptly reflected on each school’s list.
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PART 7: CONFIDENTIALITY/DISCLOSURE
A. GENERAL
The issues of privacy and confidentiality of personal data are complicated as well as
sensitive. Before developing State and local disclosure policies, State agencies and LEAs
should discuss the issue with their legal counsel.
LEAs may disclose children’s free and reduced price meal eligibility information to programs,
activities and individuals that are specifically authorized access under the NSLA which is the
law that sets forth the disclosure limits for the Child Nutrition Programs. Disclosure is always
an option, not a requirement. The school foodservice director in conjunction with any LEA
officials responsible for making the free and reduced price meal or free milk eligibility
determination makes the decision on whether or not children’s information will be disclosed.
The LEA may opt to disclose children’s eligibility information to Medicaid or State Children’s
Health Insurance Program (SCHIP) officials if the State agency has not prohibited such
disclosure to these health insurance programs and the family does not decline to have their
children’s eligibility information released.

PREVENTING OVERT IDENTIFICATION
Unauthorized disclosure or “overt identification” of children receiving free or reduced price
meal benefits may be an unintentional consequence of having a food service line where
competitive foods are sold and a different food service line for NSLP program meals.
In the same way, schools that have a dual payment system that accepts both cash and
electronic payments may overtly identify children through the method of payment.
Schools must ensure to the maximum extent practicable, that the sale of competitive foods
and the method of payment does not inadvertently result in children being identified by their
peers as receiving free or reduced price meal benefits.
LEAs must ensure compliance with disclosure limitations in this part (reference NSLA
9(b)(10) and regulations found at 7 CFR 245.8 and the policy guidance memorandum
addressing overt identification,

B. AGGREGATE DATA
The LEA may disclose aggregate data to any program or individual when children cannot be
identified through release of the aggregate data or by means of deduction. An example of
aggregate data is the number of children eligible for free or reduced price meals in school
district. As aggregate data does not identify individual children, parental notification and
parental consent are not needed. However, LEAs are cautioned about release of aggregate
data when individual children’s eligibility may be deduced (e.g., release of data about a
specific classroom when the numbers of eligible children is very small).

54

C. DISCLOSURE CHART
The NSLA specifies that persons directly connected with the administration or enforcement
of certain programs or activities are permitted to have access to children’s eligibility
information. The following chart shows the circumstances for disclosing eligibility
information. If you have concerns or questions about disclosing children’s eligibility
information, contact your State agency for further guidance.
Recipient of Information

What May be Disclosed

Requirements

Programs under the National School Lunch
Act or Child Nutrition Act

All eligibility information

Prior notice and
consent not required

Federal/State or local means tested nutrition
programs with eligibility standards
comparable to the NSLP

Eligibility status only

Prior notice and
consent not required

Federal education programs

Eligibility status only

Prior notice and
consent not required

State education programs administered by a
State agency or local education agency

Eligibility status only

Prior notice and
consent not required

Local education programs

NO eligibility information,
unless parental consent is
obtained

Parental consent

Medicaid or the State Children’s Health
Insurance Programs (SCHIP), administered by
a State or local agency authorized under titles
XIX or XXI of the Social Security Act to
identify and enroll eligible children

All eligibility information
unless parents elect not to
have information disclosed

Must give prior
notice to parents and
opportunity for
parents to decline to
have their
information
disclosed

State health programs other than
Medicaid/SCHIP, administered by a State
agency or local education agency

Eligibility status only

Prior consent not
required

Federal health programs other than
Medicaid/SCHIP

NO eligibility information,
unless parental consent is
obtained

Parental consent

Local health program

NO eligibility information,
unless parental consent is
obtained

Parental consent

Comptroller General of the United States for
purposes of audit and examination

All eligibility information

Prior notice and
consent not required

Federal, State, or local law enforcement
officials investigating alleged violations of
any of the programs under the NSLA and
CNA or investigating violations of any of the
programs that are authorized to have access to
names and eligibility status

All eligibility information

Prior notice and
consent not required

55

D. “NEED TO KNOW”
Although a program or person may be authorized under the NSLA to receive free and
reduced price eligibility information, there must be a legitimate need to know to provide a
service or carry out an authorized activity.
State Medicaid and SCHIP agencies and health insurance program operators receiving
children’s free and reduced price meal or free milk eligibility information must use that
information only to enroll eligible children in State Medicaid or SCHIP.

E. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS
LEAs may disclose, without parent/guardian consent, children’s names and eligibility status
to persons who are directly connected to the administration or enforcement of NAEP
because NAEP is a Federal education program. Additionally, LEAs may disclose children’s
names and eligibility status to persons directly connected with the administration or
enforcement of State educational assessment programs to the extent that the State
assessment is part of the NAEP or the assessment program is established at the State, not
local level. Other State education programs also are eligible to have access to participants'
names and eligibility status, without parent/guardian consent, but the program must be
established at the State, not local level.
The term “persons directly connected” for the purpose of disclosure to NAEP includes
Federal, State and local program operators responsible for NAEP program administration or
program compliance and their contractors. This does not imply that these persons have
routine access to participants' eligibility status. There must be a "need to know" for
legitimate NAEP purposes.
LEAs are encouraged to inform households when they plan to disclose or use eligibility
information outside the originating program and to have a written agreement with NAEP
officials (See Part 7, Section I: Agreements/Memoranda of Understanding).

F. NO CHILD LEFT BEHIND
No Child Left Behind (NCLB) is a Federal education program. Therefore, LEA officials may
disclose a child’s eligibility status to persons directly connected with, and who have a need
to know, a child’s free and reduced price meal eligibility status in order to administer and
enforce the NCLB requirements. However, other information obtained from the free and
reduced price school meal application or through direct certification cannot be disclosed.
LEA officials must keep in mind that the intent of the confidentiality provisions is to limit the
disclosure of a child’s eligibility status to those who have a “need to know” for proper
administration and enforcement of a Federal education program. LEAs must establish
procedures that limit access to a child’s eligibility status to as few individuals as possible.
LEA officials, prior to disclosing information on the eligibility of individual children, should
enter into a memorandum of understanding or other agreement to which all involved parties
56

(including both officials who administer the school meals/milk programs and officials who
administer the overall education functions) would adhere. This agreement would specify the
names of the individuals who would have access to the information, how the information
would be used in implementing NCLB and how the information will be protected from
unauthorized uses and third-party disclosures, and should include a statement of the
penalties for misuse of the information.

G. FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT
Federal Department of Education has established that education records are under the
purview of the Family Educational Rights and Privacy Act (FERPA). However, for the school
meals programs and milk program, the restrictions imposed by the laws governing these
programs apply, not FERPA.

H. PARENTAL NOTIFICATION FOR DISCLOSURE
Unless otherwise indicated, LEAs must inform households if they plan to disclose or use
eligibility information outside the originating program, i.e., lunch, breakfast or milk program.
This may be done as either a general notification of potential disclosure or a specific
notification to disclose information to a particular program.

NOTICE REQUIREMENTS
The notice of potential disclosure or specific disclosure may be in the letter to households
that accompanies the free and reduced price meal or free milk application, on the
application, or, for children directly certified, in the document informing households of the
participants’ eligibility through direct certification. The notification should state that the
children’s names, eligibility status and other information provided on the application or
obtained through direct certification may be disclosed to certain other Federal, State or local
agencies as authorized by the NSLA. A list of the specific programs is not necessary.
Parents/guardians must be notified of the potential disclosure or specific disclosure and
given the opportunity to elect not to have their children’s information disclosed.
The notification of potential disclosure or specific disclosure must inform the
parents/guardians:
 That they are not required to consent to the disclosure;
 That the information will be used to facilitate the enrollment of eligible children in a
health insurance program or other programs; and
 That their decision will not affect their children’s eligibility for free and reduced price
meals or free milk.
The notice of either potential or specific disclosure must be given prior to disclosure and
parents/guardians given a reasonable time limit to respond. For children who are
determined eligible though direct certification, the notice of potential or specific disclosure
may be in the document informing parents/guardians of their children’s eligibility for free
57

meals through direct certification. (See Appendix B: Prototype Application for a link to
prototype notification of disclosure.)

I. AGREEMENTS/MEMORANDA OF UNDERSTANDING
An agreement is not needed for Federal, State or local agencies evaluating or reviewing
Child Nutrition Program operations. Similarly, an agreement is not necessary for disclosures
to the Comptroller General. These activities are part of routine operations of the Child
Nutrition Programs and enforcement.

NON-MEDICAID/SCHIP AGENCIES
The LEA should enter into a written agreement with other entities, including NAEP,
requesting the information prior to disclosing children’s eligibility information. The agreement
should:






Be signed by both the LEA and receiving entity;
Identify the entity receiving the information;
Describe the information to be disclosed and how it will be used;
Describe how the information will be protected from unauthorized use and
disclosure; and
Describe the penalties for unauthorized disclosure.

MEDICAID/SCHIP AGENCIES
For any disclosures to Medicaid or SCHIP, the LEA and receiving agency must have an
agreement or Memorandum of Understanding which includes:
 Health insurance program or health agency receiving child’s eligibility information;
 Information that will be disclosed, specifying that the information must only be used
to seek to enroll children in State Medicaid or SCHIP;
 How the information will be used and how it will be protected from unauthorized uses
and disclosures;
 Penalties for unauthorized disclosure; and
 Signature of the determining agency and the State Medicaid/SCHIP program or
agency receiving the children’s eligibility information.
In all cases, the receiving entity must be informed in writing that:
 Eligibility information may only be used for the purpose for which the disclosure was
made;
 Further use or disclosure to other parties is prohibited; and
 A violation of this provision may result in a fine of not more than $1000 or
imprisonment of not more than 1 year, or both.
A prototype agreement is in Appendix C.

J. OTHER DISCLOSURES THAT REQUIRE PARENTAL CONSENT
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Children’s parents or guardians may always provide consent for the disclosure of any or all
of the information related to their children’s eligibility status (i.e., whether children are eligible
for free or reduced price meals), or the information that the household provided through the
free and reduced price meal eligibility process.
A disclosure of all eligibility information to any other Federal, State or local program or
individual not included in the NSLA requires parental consent. Other programs that require
parental consent are local health and local education programs and other local level
activities. For example, the disclosure of children’s eligibility for free and reduced price
meals to determine children’s eligibility for free text books or reduced fees for summer
school requires consent when these are local initiatives rather than State or federal
programs.
The disclosure of information other than names and eligibility status to the programs
authorized only to receive participants’ names and eligibility status also requires written
consent. For example, determining agencies may disclose names and eligibility status to a
Federal education program, but if the program requests family size, determining agencies
must obtain consent prior to disclosure.

K. CONSENT STATEMENT REQUIREMENTS
The consent statement must be in writing. It may be obtained at the time of application, or at
a later time. The consent statement must:






Identify the information that will be shared and how the information will be used;
Be signed and dated. In the case of a child participant, the consent statement must
be signed by the parent or guardian of the applicant household, even though the
application for free and reduced price meals or free milk may be signed by any adult
household member. For adult participants in the Child and Adult Care Food Program,
the adult participant must sign the consent statement unless a guardian has been
appointed;
State that failing to sign the consent statement will not affect eligibility for or
participation in the program and that the information will not be shared by the
receiving program with any other entity or program; and
Enable the parent/guardian/adult to limit consent to only those programs with which
he or she wishes to share information. For example, the consent statement could
use a check-off system under which the applicant would check or initial a box to
indicate that he or she wants to have information disclosed to determine eligibility for
benefits from a certain program.

L. PENALTIES FOR IMPROPER DISCLOSURE
The NSLA establishes a fine of not more than $1000 or imprisonment of not more than one
(1) year, or both, for publishing, divulging, disclosing, or making known in any manner or
extent not authorized by Federal law, any eligibility information. This includes the disclosure
of eligibility information by one entity authorized under the NSLA to receive the information
to any other entity, even if that entity would otherwise be authorized to receive the
information directly from the determining agency.
59

M. QUESTIONS AND ANSWERS
1. What does disclosure mean as it relates to children’s personal free and reduced price
meal or free milk eligibility information?
Disclosure means revealing or using individual children’s program eligibility information that
is obtained through the free and reduced price eligibility process for a purpose other than
the purpose for which the information was obtained. Disclosure includes but is not limited to
access, release, or transfer of personal data about children by means of print, tape,
microfilm, microfiche, electronic communication or any other means. It includes eligibility
information obtained through the free and reduced price application or through direct
certification and whether the children are eligible for free meals or reduced price meals.

2. May the principal of a school compare the test scores of individual students in his/her
school, by socioeconomic status, to the test scores of students in another school in the
same district?
Students’ names and free or reduced price eligibility status may be disclosed, without
consent, for a Federal or State education program. However, parental consent is required
for disclosure to a local education program. Aggregate data may be disclosed provided that
it doesn’t allow for individual student identification.

3. May the LEA disclose eligibility information to other Child Nutrition Programs?
The LEA may disclose all eligibility information from children’s free and reduced price
applications or information obtained through direct certification to persons directly connected
with the administration or enforcement of the programs authorized under the NSLA or Child
Nutrition Act of 1966. This includes the NSLP, SBP, SMP, Child and Adult Care Food
Program (CACFP), Summer Food Service Program (SFSP), and the Special Supplemental
Nutrition Program for Women, Infants and Children (WIC). This means that program
eligibility information collected for any one of the Child Nutrition Programs may be shared
with another Child Nutrition Program, even if the programs are sponsored by different
entities. For example, a public school may disclose information from children’s free and
reduced price school meal applications, without parental consent, to a SFSP administered
by a parks and recreation agency.

4. Who are persons “directly connected” to the administration or enforcement of a program?
The LEA may disclose children’s eligibility status only to persons determined to be “directly
connected” with the administration or enforcement of a Federal education program, State
education program, State health program or a means-tested nutrition program; also, to
persons directly connected with the Comptroller General Office or law enforcement for an
authorized activity.
Persons directly connected to program administration or program enforcement include
Federal, State and local program operators responsible for the ongoing operation or
activities of their respective program, and compliance officials responsible for the monitoring,
60

reviewing, auditing or investigating a program authorized to have access to free and
reduced price eligibility information.

5. Who are persons “directly connected” with the administration of State Medicaid and
SCHIP?
Persons directly connected with the administration of State Medicaid and SCHIP for
purposes of disclosure of free and reduced price meal and free milk eligibility information are
State employees and persons authorized under Federal and State Medicaid and SCHIP
requirements to carry out initial processing of applications or to make eligibility
determinations. Check with your State Medicaid/SCHIP coordinator to determine the
persons or entities in your State authorized to enroll children in Medicaid and SCHIP.

6. What eligibility information may an LEA disclose to means-tested nutrition programs?
Without parental consent, the LEA may only disclose name and eligibility status. Disclosure
of other information, such as parents’ names and address, requires parental notification and
consent.

7. Who is responsible for making the decision on whether to disclose children’s eligibility
status and/or to disclose other personal information?
Whether or not to disclose children’s eligibility information is a local decision that should be
made by the school foodservice director in conjunction with LEA officials. The LEA should
develop a policy on disclosing free and reduced price meal eligibility information. However,
for disclosures to Medicaid and SCHIP, the decision on disclosure is a joint State
agency/LEA decision. Both the State agency and LEA must agree to disclose children’s
information to Medicaid and SCHIP.

8. When I notify parents that their information will be disclosed to Medicaid or SCHIP, unless
they decline to have their information shared, how long do I have to wait for a response from
the parent before I release their information?
LEAs should provide adequate time for any parental response. A minimum of 10 calendar
days should be provided. It is a good idea to include a date in the parental notification
statement that informs households that they must respond by a specified date if they do not
want their information disclosed to Medicaid or SCHIP.

9. Can the State agency enter into a Memorandum of Understanding for all LEAs for
disclosing information to Medicaid/SCHIP?
No. Each LEA must be given the opportunity to decline providing information to
Medicaid/SCHIP.

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10. How do I know who to contact for more information regarding Medicaid and SCHIP?
For State and Federal Medicaid, visit: http://www.cms.hhs.gov/home/medicaid.aspedicaid.
For SCHIP, visit: http://www.cms.hhs.gov/home/schip.asp.

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PART 8: VERIFICATION
A. GENERAL DEFINITIONS
VERIFICATION is confirmation of eligibility for free and reduced price meals under the
NSLP and SBP. Verification is only required when eligibility is determined through the
application process, not through direct certification conducted with an Assistance Program
or officials or agencies that documented Other Source Categorical Eligibility. Verification
must include either confirmation of income eligibility or confirmation that the child or any
member of the household is receiving assistance under SNAP, FDPIR or TANF or that a
child is Other Source Categorically Eligible. Verification may include confirmation of any
other information required on the application, such as household size.

DIRECT VERIFICATION is using records from public agencies to verify income and/or
program participation. See Part 9 of this manual.

ERROR PRONE means applications within $100 per month of the applicable Income
Eligibility Guideline. Error prone replaces the term “Focused Sample.”

RANDOM SAMPLING means each application has an equal chance of being selected. A
statistically valid random sample is not required. The LEA must determine a selection
interval by dividing the number of applications by the required sample size.

SAMPLE POOL means the total number of applications approved as of October 1.

SAMPLE SIZE means the number of applications subject to verification; the minimum and
maximum sample size is three percent total.

B. EXCEPTIONS TO VERIFICATION REQUIREMENTS
Verification efforts are not required:




For children who have been certified under direct certification procedures including
children documented as eligible migrant, runaway, homeless children, foster
children and children participating in Head Start/Even Start;
For children in RCCIs except for applications for any non-residential students
attending the institution;
o Applications from children listed above are not included in the sample pool
In schools where FNS has approved special cash assistance claims based on
economic statistics regarding per capita income (e.g., Puerto Rico and the Virgin
Islands);
63





In schools participating only in the SMP;
In schools where all children are served with no separate charge for food service
and no special cash assistance is claimed (i.e., non-pricing programs claiming only
the paid rate of reimbursement); and
In LEAs where all schools participate in Provisions 1, 2, or 3 except in those years in
which applications are taken for all students in attendance (i.e., the base year).

C. INITIAL VERIFICATION
Each LEA must annually verify eligibility of children from a sample of household applications
approved for free and reduced price meal benefits for that school year unless the State
agency assumes responsibility for verification on behalf of its LEAs.
The LEA may begin verification activity once the application approval process for the current
school year is underway and there are approved applications on file. To do so, the LEA may
project the number of approved applications (sample pool) that it anticipates will be on file
on October 1. The projected number is based on prior years’ experience. However, the final
sample pool is the actual number of approved applications on file as of October 1. The
sample size must be based on the October 1 sample pool. Any estimates must be
compared with the actual number of applications on file on October 1 and the sample pool
and sample size adjusted accordingly. If October 1 falls on a weekend, use the next
operating day to establish the sample pool.

ESTABLISHING THE SAMPLE POOL
The sample pool uses the total number of approved applications on file as of October 1 of
the current school year. LEAs may choose not to count applications for students in splitsession kindergarten programs participating in the SMP when determining the verification
sample pool.
The sample pool depends on the number of applications (paper or electronic) and is not
based on the number of children eligible for free and reduced priced meals.

ESTABLISHING THE SAMPLE SIZE
Once the sample pool is determined, the LEA calculates the sample size—the number of
applications that must be verified. When calculating the sample size, all fractions or
decimals are rounded upward to the nearest whole number. At least one application must
always be verified.
With the exception of verification for cause, LEAs must not verify more than or less than the
standard sample size or the alternate sample size (when used) and must not verify all
(100% of) applications. Verification conducted “for cause” is done in addition to the required
verification sample size.

64

VERIFICATION COMPLETION DEADLINES
The LEA must complete the verification activities specified in this section not later than
November 15 of each school year. However, the LEA may request an extension of the
November 15 deadline, in writing, from their State agency. The State agency may approve,
in writing, an extension up to December 15 of the current school year due to natural
disaster, civil disorder, strike or other circumstances that prevent the LEA from the timely
completion of verification activities. A request for an extension beyond December 15 must
be submitted by the State agency to FNSRO for approval.

D. VERIFICATION FOR CAUSE
GENERAL
The LEA has an obligation to verify all questionable applications (verification “for cause”).
Such verification efforts cannot delay the approval of applications. If an application is
complete and indicates that the child is eligible for free or reduced price benefits, the
application must be approved. Only after the determination of eligibility has been made can
the LEA begin the verification process.
To verify an approved application for cause, the LEA must send the household a letter
explaining that it must submit verification of eligibility information with the application for
continued eligibility. (See Part 8H: Household Notification of Selection.) The verification
letter may be sent at the same time as a notice of eligibility.
The LEA verifies applications for cause following the procedures in Sections H through N, in
this part of the manual. Any household that fails to submit requested verification information
by the date specified by the LEA or that submits verification information that does not
support the initial determination of eligibility must be sent a notice of adverse action. (See
Part 8K: Notice of Adverse Action.)
Once households have been requested to provide documentation for cause, the LEA must
complete the verification process for these households.

VERIFICATION FOR CAUSE FOR SCHOOL DISTRICT EMPLOYEES

Verification for cause must not be used to automatically verify the households of all
school district employees whose children are certified for free or reduced price
meals. However, from among the list of children approved for free or reduced price
meals, an LEA could identify children of school district employees and use available
LEA salary information available to them to identify questionable applications and
then conduct verifications for cause on those questionable applications.
LEAs can use verification for cause to review approved applications for free or
reduced price meals when known or available information indicates school district
employees may have misrepresented their incomes on their applications to receive
free or reduced price meals for their children. We would recommend that an LEA
65

consult with legal counsel in establishing the parameters of verification for cause for
school district employees.
FNS supports use of verification for cause where appropriate as a method for LEAs
to address integrity concerns. We strongly encourage LEAs and their legal counsel
to consult with their State agency prior to undertaking verification for cause where
concerns with employee misrepresentation of information on an income eligibility
application have been raised. State agencies should assist in ensuring that LEAs
balance administrative requirements and integrity with access to free and reduced
price meals for eligible children.

E. APPLICATION SELECTION PROCEDURES
AVAILABLE SAMPLE SIZES
There are three sample sizes established for verification activities. The standard sample size
must be used by LEAs unless it qualifies to use one of the alternate sample sizes.

STANDARD SAMPLE SIZE
The standard sample size is the lesser of



Three percent (3%) of all applications approved by the LEA for the school year, as of
October 1 of the school year, selected from error prone applications;
3,000 error prone applications approved by the LEA for the school year, as of
October 1 of the school year.

ALTERNATE SAMPLE SIZES
LEAs that qualify may select one of the following sample sizes.
Alternate one:
The sample size equals the lesser of



3,000 of all applications selected at random from applications approved by the LEA
as of October 1 of the school year;
Three percent (3%) of all applications selected at random from applications
approved by the LEA as of October 1 of the school year.

Alternate tw o:
The sample size equals the lesser of the sum of

66



1,000 of all applications approved by the LEA as of October 1 of the school year,
selected from error prone applications; OR one (1) percent of all applications
approved by the LEA as of October 1 of the school year, selected from error prone
applications;

PLUS the lesser of:



500 applications approved by the LEA as of October 1 of the school year that
provide a case number in lieu of income information;
One-half (½) of one percent (1%) of applications approved by the LEA as of October
1 of the school year that provide a case number in lieu of income information.

COMPLETING THE SAMPLE SIZE
For sample sizes based on error prone applications, there may not be enough applications
that meet this criterion. When this happens, the LEA must select, at random, additional
approved applications to complete the required sample size.
In other situations, the number of error prone applications may exceed the required sample
size. When this happens, the LEA must randomly select the required number of applications
from all error prone applications.

F. QUALIFYING TO USE AN ALTERNATE SAMPLE SIZE
There are two ways an LEA may annually qualify to use an alternate sample size based on
lowered non-response rates.

LOWERED NON-RESPONSE RATE
Any LEA may use an alternate sample size for any school year when its non-response rate
for the preceding school year is less than twenty percent. For example, for School Year
2011-2012, the LEA may elect to use one of the alternate sample sizes because in School
Year 2010-2011, the LEA’s non-response rate was 18%.

IMPROVED NON-RESPONSE RATE
An LEA with more than 20,000 children approved by application as eligible for free or
reduced price meals as of October 1 of the school year may use an alternate sample size
for any school year when its non-response rate for the preceding school year is at least ten
percent below the non-response rate for the second preceding school year.

The following is an example of how an LEA may qualify based on an improved nonresponse rate.
Year 1: School Year 2011-2012
67





The LEA had 21,000 children approved for free or reduced price meal benefits based
on a total of 6,000 approved applications
o Therefore, 180 household applications (3% of 6,000) must be verified
Of those 180 households, 45 households failed to respond to verification requests,
which results in a non-response rate of 25% (45 ÷ 180 as a percentage)
The LEA must improve the 25% non-response rate by at least 10%
o The improvement rate is calculated by multiplying the non-response rate by
10% which is 25% x 10%= 2.5%

Year 2: School Year 2012-2013







The LEA had 6,000 approved applications, so the sample size is 180 (3% of 6,000)
The number of non-respondents was reduced to 40 which is a non-response rate of
22.2% (40 ÷ 180 as a percentage)
The next step is to calculate the level of improvement needed between Year 1 and
Year 2
o Subtract Year 1’s non-response rate from Year 2’s non-response rate (25%
minus 2.5%= 22.5%)
Since 22.2% is less than the minimum non-response rate of 22.5%, there is more
than a 10% improvement
The LEA is qualified to use an alternate sample size for School Year 2012-2013

Year 3: School Year 2013-2014
The LEA may choose to use one of the alternate sample sizes for its verification activities

CONTINUING ELIGIBILITY FOR USE OF AN ALTERNATE SAMPLE SIZE
The LEA must annually determine if it is eligible to use one of the alternate sample sizes. If
the LEA determines it is eligible, it must contact its State agency in accordance with any
procedures established by the State agency for approval prior to use of alternate sample
sizes.

STATE AGENCY RESPONSIBILITIES
Each State agency must establish a procedure for LEAs to designate use of an alternate
sample size. The State agency may also establish criteria for reviewing and approving the
use of an alternate sample size, including deadlines for submissions.

G. POST SELECTION PROCEDURES
There are two procedures that the LEA completes prior to contacting the household to
obtain documentation of eligibility. These are the required confirmation reviews and the
optional replacement of certain applications.
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CONFIRMATION REVIEWS
Prior to any other verification activity, an LEA official, other than the official who made the
initial eligibility determination, must review each approved application selected for
verification to ensure that the initial determination was accurate.
This requirement is waived if the LEA uses a technology-based system that demonstrates a
high level of accuracy in processing an initial eligibility determination. LEAs must contact the
State agency to determine if their system qualifies them for this waiver.
Further, any LEA that conducts a confirmation review of all applications at the time of
certification is not required to conduct confirmation reviews prior to verification.

OUTCOME OF CONFIRMATION REVIEWS
Depending on the outcome of each confirmation review, the LEA takes one of the following
actions.
No Change in Status
If the initial eligibility status was correct, the LEA verifies the application.
Status Change From Reduced Price to Free
The LEA:
 Makes the increased benefits available immediately;
 Notifies the household of the change in benefits; and
 Verifies the application.
If verification reduces the level of benefits (from free to reduced price or paid), the
household is sent a notice of adverse action.
Status Change From Free to Reduced Price
The LEA:



Does not change the child’s status; and
Verifies the application.

If the child’s free status is verified, the LEA does not notify the household. However, if the
child’s status changes from free to either reduced price or paid, the household is sent a
notice of adverse action.
Status Change From Free or Reduced Price to Paid
The LEA:
 Immediately sends the household a notice of adverse action;
 Does not verify the application;
 Selects an similar application (for example, another error-prone application) for
verification; and
 Follows the confirmation review procedures for the newly selected application.

69

REPLACING APPLICATIONS
After completing the confirmation reviews, the LEA may, on a case-by-case basis, replace
up to five percent of applications selected. Applications may be replaced when the LEA
believes that the household would be unable to satisfactorily respond to the verification
request.
Any application removed must be replaced with another approved application selected on
the same basis (i.e., an error-prone application must be substituted for a withdrawn errorprone application). The newly selected application must then have confirmation review.
In those LEAs where five percent of total applications result is less than one, one application
may still be replaced. All results of the five percent calculation are rounded up to the next
whole number.

H. HOUSEHOLD NOTIFICATION OF SELECTION
Once the LEA has completed the post selection procedures, it proceeds with household
notification.
CONTACTING THE HOUSEHOLD
When a household is selected for verification and is required by the LEA to submit
documents or other forms of evidence to document eligibility, the household must be sent a
letter informing them of their selection and of the types of information acceptable to the LEA.
Prototype notification materials may be found using the link in Appendix B of this manual.
The letter must include the following:
 That the household was selected for verification;
 Use of Information Statement (Please note that the Social Security Number (SSN)
for all household members is no longer required for verification.);
 The types of acceptable information that may be provided to confirm current income,
including pay stubs, award letters from assistance agencies for benefits such as
social security or supplemental security income, and support payment decrees from
courts;
 That the household may provide proof that a child or any household member is
receiving benefits under the Assistance Programs instead of providing income
information or that a child is Other Source Categorically Eligible; that documentation
of income or receipt of assistance may be provided for any point in time between the
month prior to application and the time the household is required to provide income
documentation;
 That information must be provided by a date as specified by the LEA and that failure
to do so will result in termination of benefits;
 Name of an LEA official who can answer questions and provide assistance; and
 A no-cost to the household telephone number.
For verification inquiries, the LEA must provide a telephone number that is available at no
cost to the household. The LEA may establish a toll-free number or allow the household to
reverse the charges if any households in that LEA are outside the local calling area. The
LEA may also provide different telephone numbers for each local calling area within the
LEA.
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When the LEA uses agency records or direct verification (see I. Sources of Verification,
Agency Records in this part and Part 9 Direct Verification in this manual) to confirm
eligibility, a letter informing the household of its selection for verification is not required,
since the household will not have to provide documents.

I. SOURCES FOR VERIFICATION OF WRITTEN EVIDENCE
Written evidence is the primary source of eligibility confirmation for all households including
TANF, FDPIR, Other Source Categorical Eligibility Programs, and foster child households.
Written evidence is most often pay stubs from employers or award letters from welfare
departments or other government agencies submitted to the verifying officials as
confirmation of eligibility.
Acceptable written evidence for income eligible households contains the name of the
household member, amount of income received, frequency received, and the date the
income was received (e.g., a pay stub with no dates would be insufficient).
Acceptable written evidence for children who are receiving benefits from an Assistance
Program is a official letter or notice indicating that the child or any household member is
receiving benefits from that program; for example, a notice of eligibility. For Other Source
Categorical Eligibility Programs, an official letter, notice or list from the appropriate State
agency; from a social services agency or court system for foster children; or for Head
Start/Even Start enrollees, from the office or coordinator for those programs. The verifying
official should examine the document provided to ensure that the child for whom the
application was made is part of a household currently participating in any of these programs
noted above or is a foster child. Electronic Benefit Transfer (EBT) cards cannot be used to
confirm eligibility in SNAP and therefore cannot be used for categorical eligibility purposes.
A document from an assistance program that does not specify the certification period is not
adequate for documentation. For example, the SNAP identification card is not acceptable
because it usually does not have an expiration date.
A household that does not have satisfactory documentation from the assistance office, State
or local agency for other source categorical eligibility may request a signed, dated letter from
these offices verifying that the child is part of a household currently receiving their benefits.

71

COLLATERAL CONTACTS
A collateral contact is a person outside of the household who is knowledgeable about the
household’s circumstances and can give confirmation of a household’s income participation
in Assistance Programs or Other Source Categorical Eligibility Program sources. Collateral
contacts include employers, social service agencies, migrant workers’ agencies, and
religious or civic organizations. The verifying official should request a collateral contact only
in cases when the household has not been able to provide adequate written evidence.
The verifying official must give the household the opportunity to designate the collateral
contact. However, the verifying official may select a collateral contact if the household fails
to designate one or designates one who is unacceptable to the verifying official. In either
case, no contact may be made without first notifying the household and obtaining its
permission.
All collateral contacts may be written or oral and must be documented, dated, and initialed.
The LEA will examine any written information provided by the collateral contact or evaluate
any oral information. If the collateral contact is unwilling or unable to provide the requested
information, the LEA must contact the household to complete the verification process.
Verification of eligibility for households that provided an Assistance Program case number
on the application may be accomplished by submitting a list of names and Assistance
Programs case numbers to the local SNAP or welfare office for confirmation of certification
of receipt of benefits from agency records. (See Part 9: Direct Verification.)

AGENCY RECORDS
A household’s eligibility may be confirmed through the use of information maintained by
other government agencies to which the State agency, LEA, or school has legal access.
Although USDA regulations do not require that households be notified of selection when
verification is made through agency records, such agencies may have their own notification
requirements.
One source of agency records is the wage and benefit information maintained by the State
employment agency if that information is available to the verifying official. Such records are
State records, and the release of information maintained by State employment offices is
governed by State law. (See Part 9: Direct Verification.)
Acceptable documentation of income or receipt of assistance from any of the above
sources may be provided for any point in time between the month prior to application and
the time the household is required to provide income documentation.

WHEN A HOUSEHOLD INDICATES NO INCOME
If a household is selected for regular verification or verification for cause and the application
indicates zero income, the LEA must request an explanation of how living expenses are met
and may request additional written documentation or collateral contacts.

72

J. CONTINUING THE VERIFICATION PROCESS
To continue the verification process subsequent to household notification, the LEA must
either determine:



If the household has submitted adequate information to complete its individual
verification activity; or
If follow-up with the household is needed.

WHEN VERIFICATION IS CONSIDERED COMPLETE
The following demonstrates how an LEA determines whether or not the household
adequately responded and whether follow-up is required.






The household submits either adequate written evidence or collateral contact
corroboration of income or categorical eligibility:
o Verification is considered complete for this household;
The household submits either adequate written evidence or collateral contact
corroboration of income which indicates that the child(ren) should receive either a
greater or lesser level of benefits:
o Verification is considered complete for this household when the notice of
adverse action is sent or household is notified that its benefits will be
increased or decreased;
The household indicates, verbally or in writing, that it no longer wishes to receive free
or reduced price benefits:
o Verification is considered complete when the notice of adverse action is sent;
The application provides case numbers and it is determined that no household
member is receiving benefits from an Assistance Program:
o Verification is considered complete when the notice of adverse action is sent.

If verification results in higher benefits (e.g., a child who is moved from the reduced price
to free category), the change is effective immediately and must be implemented no later
than 3 operating days later. Parents should be notified through whatever channels the LEA
uses to notify the household of approval for benefits.

FOLLOW-UP
The LEA must make at least one follow-up attempt to contact the household when the
household does not adequately respond to the request for verification. The follow-up attempt
may be in writing (including to the parent’s/guardian’s email) or by telephone and the LEA
must document that a contact was attempted. LEAs must ensure the LEP households are
provided adequate language assistance and understand the need to respond to the
verification request.
 The LEA must inform the household that failure to provide adequate written evidence
or to designate an adequate collateral contact will result in termination of benefits.
 The follow-up contact must attempt to obtain the missing written evidence or obtain
collateral contact information.
73



If the collateral contact is unwilling or unable to provide the requested information,
the LEA must contact the household to complete the verification process.
The LEA must make a follow-up attempt when the household:
 Does not respond to the request for verification;
 Submits insufficient or obsolete written evidence;
 Does not designate collateral contacts; and
 Collateral contacts are unable or unwilling to provide the requested evidence.
If, after at least one follow-up attempt:
 Household responds and provides all needed evidence, verification is considered
complete for this household:
o If there is no change in benefits;
o When household is notified that its benefits will be increased;
o When notice of adverse action is sent.
 Household does not respond, verification is considered complete for this household:
o When notice of adverse action is sent.
 LEA is unable to continue its verification activities because the household fails to
provide adequate written evidence or knowledgeable collateral contacts, verification
is considered complete for this household:
o When the notice of adverse action is sent.

K. NOTICE OF ADVERSE ACTION
All households for whom benefits are to be reduced or terminated must be given 10
calendar days’ written advance notice of the change. A prototype notice of adverse action
may be found using the link in Appendix B. of this manual.
The notice of adverse action may be sent via the postal service or to the email address of a
parent/guardian. The LEA cannot notify the household of adverse action by phone.
The first day of the advance notice period is the day the notice is sent. The notice must
advise the household of the following:
 Change in benefits;
 Reasons for the change;
 That an appeal must be filed within the 10 calendar days advance notice period to
ensure continued benefits while awaiting a hearing and decision;
 Instructions on how to appeal;
 That the household may reapply for benefits at any time during the school year; and
 Households that were terminated because no member was receiving benefits from
an Assistance Program may submit an application containing household names and
income information and provide written evidence of current household income.

L. BENEFITS DURING AN APPEAL
When a household appeals a reduction or termination of benefits within the 10 calendar day
advance notice period, the LEA must continue to provide the benefits for which the child was
74

originally approved until a final determination is made. The LEA may continue to claim
reimbursement at that level during this period.
When a household does not appeal a reduction or termination of benefits during the 10
calendar day advance notice period, or the hearing official rules that benefits must be
reduced, the actual reduction or termination of benefits must take place no later than 10
operating days after the 10 calendar day advance notice period, or 10 operating days after
the decision by the hearing official.

M. HEARING PROCEDURE
The hearing procedure in the LEA’s free and reduced price policy statement must be
followed. The hearing official must be an individual who was not connected with the
approval or verification process.
The household may request a school conference prior to a formal hearing. Any such
conference must not prejudice a later appeal.

N. HOUSEHOLDS THAT REAPPLY FOR PROGRAM BENEFITS
Households affected by a reduction or termination of benefits may reapply for benefits at
any time during the school year. However, if benefits to a household have been terminated
and the household reapplies in the same school year, the household is required to submit
income documentation or proof of participation in Assistance Programs at the time of
reapplication. These are not considered new applications.

O. RECORDKEEPING
Documentation must be kept by the LEA to demonstrate compliance with the verification
requirements when LEAs are reviewed by State or Federal reviewers including
documentation concerning any appeals. LEAs must maintain a description of their
verification efforts. The description must include a summary of the verification efforts
including the selection process; the total number of applications on file on October 1 and the
percentage or number of applications that are/will be verified by November 15. The LEA
must also be able to demonstrate compliance with the confirmation review requirement and
provision of a no-cost telephone number for assistance in the verification process.

INDIVIDUAL APPLICATIONS
For each application, the LEA must keep records of the source of information used to verify
the application such as wage stubs or names and titles of collateral contacts. The LEA must
retain:



Copies of all relevant correspondence between the households selected for
verification and the LEA;
One of the following for all documentation used to verify eligibility:
75

All documents submitted by the household or reproductions of those
documents; or
o In cases where the actual documents or photocopies cannot be kept, the
verifying official must make a written record of the documents submitted by
the household including the type of document, e.g., wage stubs or a letter
from an employer, income shown on the document, time period of the
income, and the date of the document and any changes in eligibility as a
result of verification procedures, the reasons for the changes, and the date
the change was made.
 Any change in eligibility as a result of verification procedures, the reason for the
change and the date the household was notified, if necessary, and the date it
became effective; and
 Records of follow-up attempts and results.
LEAs should also record:
 Any additional information necessary to show the efforts made by the LEA to meet
the verification requirements;
 Title and signature of the verifying official; and
 Criteria for replacing applications for verification.
o

When verification information is needed for coordinated review effort (CRE) purposes, the
LEA must be able to provide this information for each school selected for review.

P. QUESTIONS AND ANSWERS
1. What if an application is selected for verification but, the household transfers out of the
school district before the information can be verified?
If a household selected for verification transfers out of the district before the information can
be verified, verification cannot be completed. To meet the minimum verification
requirements, a new application must be selected.

2. What if I am using other agency records and that agency does not respond before
November 15?
The LEA should document that it contacted another agency well in advance of deadline
which demonstrates good faith. This would be a valid reason for the State agency to extend
the deadline.

3. How is overtime income counted for the purposes of verification?
The LEA official should work with the household to determine whether the overtime for the
month being verified is representative of overtime received in other months. If the overtime
is a one-time or sporadic source of income, income should be calculated based on the
regular monthly income without overtime.

76

4. If a household is paid weekly and submits a pay stub for a week, must I go back and ask
for pay stubs for a whole month?
No. If the weekly pay stub is representative of what the household normally receives each
week, one pay stub is sufficient.

5. In our school district, no one lives outside of the local calling area. Do we have to provide
a no-cost telephone number for verification questions?
The LEA doesn’t have to have a toll-free number to call but a parent must be able to call
collect if, for example, s/he works outside of the local calling area and is unable to contact
the LEA during the LEA’s hours of operation.

77

PART 9: DIRECT VERIFICATION
A. GENERAL
Direct verification is using records from public agencies to verify income and/or program
participation. Direct verification may be completed at the State or local level or through a
joint effort at both levels.
LEAs are not required to conduct direct verification. However, any LEA that wishes to
conduct direct verification must contact their State agency for assistance with establishing a
direct verification method.
LEAs may conduct direct verification activities with Assistance Programs as well as the
agency that administers the State plan for Medicaid, and the State Children’s Health
Insurance Program (SCHIP). Direct verification must be conducted prior to contacting the
household for documentation. The public agency’s records may document income for any
point in time between the month prior to application and the time the household is required
to provide income documentation.

B. NAMES SUBMITTED FOR DIRECT VERIFICATION
The LEA must only submit the names of school children certified for free or reduced price
meal benefits listed on the application. These names are submitted to the agency
administering an eligible program (for example, SNAP or the Medicaid program). The names
of other household members (all adults, children who are not attending school, or children
not approved for free or reduced price meals) cannot be submitted for direct verification
purposes.

C. DIRECT VERIFICATION WITH ASSISTANCE PROGRAMS
If information obtained through direct verification of an application for free or reduced price
meal benefits indicates a child is participating in one of these programs, no additional
verification is required. The eligibility status of the child or children listed on the application is
considered verified.

D. DIRECT VERIFICATION WITH MEDICAID AND SCHIP
S T A T E S W I T H M ED IC A I D AND /O R SCH I P IN C O M E L IM I T S OF 13 3 % OR LE S S



If the income eligibility used for the Medicaid or SCHIP is not more than 133% of the
official poverty line or where those households that have income that is not more
than 133% of the official poverty line can be identified, records from these agencies
may be used to verify eligibility

78

o

If information obtained through direct verification with these programs verifies
the eligibility status of the child or children listed on the application, no
additional verification is required

S T A T E S W I T H M ED IC A I D AND /O R SCH I P INCO ME L IMIT S BETW EEN 13 3%-1 85 %







Direct verification information must include either:
o The percentage of the official poverty line upon which the applicant’s
participation is based; or
o The income and household size used by Medicaid or SCHIP in order to
determine that the applicant is either at or below 133% of the Federal poverty
line, or is between 133% and 185% of the Federal poverty line
Verification for children approved for free meals is complete if the data indicates that
the percentage is at or below 133% of the Federal poverty line;
Verification for children approved for reduced price meals is complete if the data
indicates that the percentage is at or below 185% of the Federal poverty line; and
If information obtained through direct verification with Medicaid or SCHIP verifies
eligibility status, no additional verification is required.

E. DOCUMENTATION TIMEFRAME
The information used for direct verification must be the most recent information available
which is defined as data which is no older than 180 days prior to the date of the free and
reduced price application. To be consistent with policy established for “regular” verification,
direct verification efforts may use information from any point in time between the month prior
to application and the time the LEA conducts direct verification.
In other words, for direct verification, LEAs and State agencies may use:
 The latest available information for one month (within the 180-day requirement); or
 Information for all months from the month prior to application through the month
direct verification is conducted.
An example of this would be one where the State agency or LEA would use data for the
month of September or, if available, for August through October.

F. INCOMPLETE OR INCONSISTENT INFORMATION
If information provided by the public agency does not verify eligibility, the LEA must proceed
with regular verification activities. (See Part 8: Verification.)

79

PART 10: APPENDICES
APPENDIX A

POLICY STATEMENT
The free and reduced price policy statement must contain, at a minimum, the following:














Names of official(s), or the position of the LEA or school official, designated to make
eligibility determinations;
An assurance that the LEA will determine eligibility in accordance with the current
Income Eligibility Guidelines (IEGs);
LEAs specific procedures to accept applications for benefits and its direct
certification procedures;
Description of the method(s) used to collect payments from children paying the full
price of the meal or milk or the reduced price of the meal which prevents the overt
identification of the children receiving free or reduced price meals or free milk;
An assurance that the school will abide by the hearing procedures and the
nondiscrimination practices; and
Copy of the application form and letter to households.
Statement that a foster child is categorically eligible for free meals and may be
included as a member of the foster family if the foster family chooses to also apply
for benefits for other children and an explanation that including children in foster care
as household members can help other children in the household qualify for free or
reduced price meals. If the foster family is not eligible for free or reduced price meal
benefits, it does not prevent a foster child from receiving free meal benefits;
Explanation that households with children who are categorically eligible under
Other Source Categorically Eligible Programs should contact the school for
assistance in receiving benefits and mark the relevant box on the application to
indicate their status.
A statement that State agencies and LEAs will ensure there are no barriers for
participation in our Programs for Limited English Proficient (LEP) families and that
State agencies and LEAs are required to communicate with parents and
guardians in a language they can understand throughout the certification and
verification processes.
LEAs selling competitive foods during a meal service are encouraged to include in
the a description of how the cafeteria and meal service prevents overt identification
of the children receiving free or reduced price meals or free milk.

The free and reduced price policy statement should also contain a copy of the following:
 Media release;
 Notice to households of approval or denial of benefit;
 Notice to households of selection for verification;
 Notice to households of adverse action; and
 In LEAs that have opted to implement direct certification, the notice of eligibility,
under direct certification.

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AMENDMENTS
Unless there is a substantive change made to the free and reduced price policy of the LEA,
the policy statement need not be changed and resubmitted for State agency approval.
Routine changes, such as inclusion of the new IEGs are not sufficient to require
resubmission.
The LEA must amend its policy statement for any substantive changes to its free and
reduced price policy and include a description of the change. In all cases, the LEA must
have an approved policy statement on file at the State agency that accurately describes its
current free and reduced price policies. Amendments must be submitted for approval by the
State agency by October 15. The amendments must be approved by the State agency prior
to implementation.
The amendments must reflect:
 Changes made necessary by law/regulations;
 Changes made by the LEA (e.g., changes in collection procedures, designation of
new approving/hearing official(s), changes in procedures for accepting applications,
revisions in the letter to households or application for free and reduced price
meals/free milk);
 Additional information specified by the State agency.

LEAS OPERATING THE SPECIAL MILK PROGRAM
A free policy statement must be approved by the State agency or RO for LEAs participating
in the SMP with the free milk option. SFAs may submit one policy statement for both meals
and milk when some of the schools in the district participate in the SMP and others
participate in meal programs. Specific instructions on the development of the policy
statement and policy approval process are provided to LEAs by the State agency.

81

APPENDIX B

PROTOTYPE APPLICATION
FNS has developed a prototype application and related materials which have been
translated into a number of different languages. These materials may be accessed at
http://www.fns.usda.gov/cnd/FRP/frp.process.htm
States may adopt these or develop their own State specific forms. For application forms for
your State, contact the State agency responsible for the administration of the Child Nutrition
Programs.

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APPENDIX C

PROTOTYPE AGREEMENT:
DISCLOSURE OF FREE AND REDUCED PRICE INFORMATION

I.

PURPOSE AND SCOPE

(Insert Name of Determining Agency) and (Insert Name of Receiving Agency) acknowledge
and agree that children's free and reduced price meal and free milk eligibility information
obtained under provisions of the Richard B. Russell National School Lunch Act (42 USC
1751 et. seq.) (NSLA) or Child Nutrition Act of 1966 (42 USC 1771 et. seq.) (CNA) and the
regulations implementing these Acts is confidential information. This Agreement is intended
to ensure that any information disclosed by the (insert name of determining agency) to the
(insert name of receiving agency) about children eligible for free and reduced price meals or
free milk will be used only for purposes specified in this Agreement and that the (insert
name of determining agency) and (insert name of receiving agency) recognize that there are
penalties for unauthorized disclosures of this eligibility information.

II.

AUTHORITY

Section 9(b)(6)(A) of the NSLA (42 USC 1758(b)(6)(A)) authorizes the limited disclosure of
children's free and reduced price meal or free milk eligibility information to specific programs
or individuals, without prior parent/guardian consent. Except that, the parent/guardian must
be provided the opportunity to decline to share eligibility information prior to the disclosure
for identifying children eligible for benefits under or enrolling children in the State Medicaid
Program and the State children's health insurance program. Additionally, the statute
specifies that for any disclosures not authorized by the statute, the consent of children's
parents/guardians must be obtained prior to the disclosure.

The requesting agency certifies that it is currently authorized to administer the following
program(s) and that information requested will only be used by the program(s) indicated.

83

Check
all that
apply

Program

Information
Authorized

Medicaid or the State children’s health insurance
program (SCHIP), administered by a State or
local agency authorized under titles XIX or XXI of
the Social Security Act.

All eligibility
information unless
parents elect not to
have information
disclosed.

Specify Program:
State health program other than Medicaid/SCHIP,
administered by a State agency or local education
agency.

Eligibility status only;
consent not required.

Specify Program:
Federal health program other than
Medicaid/SCHIP
Specify Program:

No eligibility
information unless
parental consent is
obtained.

Local health program

No eligibility
information unless
parental consent is
obtained.

Specify Program:

Child Nutrition Program under the National School
Lunch Act or Child Nutrition Act

All eligibility
information; consent
not required.

Specify Program:
Federal/State or local means tested nutrition
program with eligibility standards comparable to
the National School Lunch Program

Eligibility status only;
consent not required.

Specify Program:
Eligibility status only;
consent not required.

Federal education program
Specify Program:
State education program administered by a State
agency or local education agency
Specify Program:

84

Eligibility status only;
consent not required.

Note: Section 9(b)(6)(A) specifies that certain programs may receive children's eligibility
status only, without parental consent. Parental consent must be obtained to disclose any
additional eligibility information. Section 9(b)(6)(D)(ii) specifies that for State Medicaid or
SCHIP, parents must be notified and given opportunity to elect not to have information
disclosed. Social security numbers may only be disclosed if households are given notice of
the disclosure and the uses to be made of their social security numbers as required by Sec.
7 of the Privacy Act.

III.

RESPONSIBILITIES

(Insert Name of Determining Agency) will:
When required, secure parents/guardians consent prior to any disclosure not authorized by
the National School Lunch Act or any regulations under that Act, unless prior consent is
secured by the receiving agency and made available to the determining agency;

For State Medicaid and SCHIP notify parents/guardians of potential disclosures and provide
opportunity for parents/guardians to elect not to have information disclosed;

Disclose eligibility information only to persons directly connected to the administration or
enforcement of programs authorized access under the National School Lunch Act or
regulations under the Act or to programs or services for which parents/guardians gave
consent.

(Insert Name of Receiving Agency) will:
Ensure that only persons who are directly connected with the administration or enforcement
of the (insert name of the Program) and whose job responsibilities require use of the
eligibility information will have access to children's eligibility information:

Specify by name(s) or title(s)___________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

85

Use children's free and reduced price eligibility information for the following specific
purpose(s):
(Describe)________________________________________________________
_______________________________________________________________
_______________________________________________________________

Inform all persons that have access to children's free and reduced price meal eligibility
information that the information is confidential, that children's eligibility information must only
be used for purposes specified above, and the penalties for unauthorized disclosures.

Protect the confidentiality of children's free and reduced price meal or free milk eligibility
information as follows:

_______________________________________________________________

Specifically describe how the information will be protected from unauthorized uses and
further disclosures.)
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

Description of Procedures to Transfer Meal Eligibility Information (May be completed
by either the determining agency or receiving agency)

Describe the procedures for transferring students' meal eligibility information from the
determining agency to the requesting agency/program so as to limit the number of
individuals who have access to the information.
(Describe)_______________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

86

IV.

EFFECTIVE DATES

This agreement shall be effective from_________________ to _________________.

V.

PENALTIES

Any person who publishes, divulges, discloses, or makes known in any manner, or to any
extent not authorized by Federal law (Section 9(b)(6)(C) of the National School Lunch Act;
42 USC 1758(b)(6)(C)) or a regulation, any information about a child's eligibility for free and
reduced price meals or free milk shall be fined not more than a $1,000 or imprisonment of
not more than 1 year or both.

VI.

SIGNATURES

The parties acknowledge that children's free and reduced price meal and free milk eligibility
information may be used only for the specific purposes stated above; that unauthorized use
of free and reduced price meal and free milk information or further disclosure to other
persons or programs is prohibited and a violation of Federal law which may result in civil and
criminal penalties.

Requesting Agency/Program Administrator

Printed Name: ____________________________________________________
Title: __________________________________Phone: ___________________
Signature:_______________________________________________________
Date: __________________________________________________________

Determining Agency Administrator

Printed Name: ___________________________________________________
Title: __________________________________Phone: __________________
Signature: ______________________________________________________
Date:__________________________________________________________

*Any attachments will become part of this agreement.

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