56 State Agency; 20,858 SFA

Eligibility Manual
for School Meals

August 2013

Determining and Verifying Eligibility

Child Nutrition Programs
FOOD AND NUTRITION SERVICE, USDA

1

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 August 2012. 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.

The U.S Department of Agriculture prohibits discrimination against its customers, employees, and
applicants for employment on the bases of race, color, national origin, age, disability, sex, gender
identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental
status, sexual orientation, or all or part of an individual's income is derived from any public
assistance program, or protected genetic information in employment or in any program or activity
conducted or funded by the Department. (Not all prohibited bases will apply to all programs
and/or employment activities.)

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program
Discrimination Complaint Form, found at http://www.ascr.usda.gov/complaint_filing_cust.html or at
any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing
all of the information requested in the form. Send your completed complaint form or letter to us
by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence
Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at
[email protected].

Individuals who are deaf, hard of hearing 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 2013

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Table of Contents
INTRODUCTION .......................................................................................................................................... 9
STATUTO R Y AND R E GULATORY AUTH ORITY ..................................................................................... 9
ADMINISTRATION O F THE PROGRAMS............................................................................................... 9
RESOURCES ........................................................................................................................................ 9
PART 1: ADMINISTRATION ....................................................................................................................... 10
A. GENERAL REQUIREMENTS.............................................................................................................. 10
B. TERMS USED IN THIS MANUAL ..................................................................................................... 11
C. POLICY STATEMENT ........................................................................................................................ 15
POLICY STATEMENT FOR THE SMP .................................................................................................. 15
ADDRESSING OVERT IDENTIFICATION IN THE POLICY STATEMENT ................................................ 15
D. PUBLIC (MEDIA) RELEASE ............................................................................................................... 16
PART 2: APPLICATION .............................................................................................................................. 18
A. DESIGN ............................................................................................................................................ 18
B. FOREIGN LANGUAGE TRANSLATIONS.......................................................................................... 18
C. INFORMING HOUSEHOLDS ............................................................................................................. 19
LATE ENROLLMENTS ....................................................................................................................... 20
PAPER-BASED APPLICATIONS ........................................................................................................ 20
COMPUTER OR WEB-BASED APPLICATIONS .................................................................................. 20
INFORMATION LETTER..................................................................................................................... 20
D. HOUSEHOLD APPLICATIONS ........................................................................................................... 22
FAMILY FRIENDLY FREE AND REDUCED PRICE APPLICATION .......................................................... 22
EXEMPTION TO HOUSEHOLD APPLICATIONS ................................................................................ 23
PREVENTING OVERT IDENTIFICATION OF DIRECTLY CERTIFIED CHILDREN ..................................... 23
E. ELECTRONIC/SCANNED APPLICATIONS.......................................................................................... 23
F. CONTENTS OF APPLICATION .......................................................................................................... 24
CATEGORICAL ELIGIBILITY BASED ON ASSISTANCE PROGRAMS .................................................. 25
OTHER SOURCE CATEGORICAL ELIGIBILITY AND INCOME ELIGIBILITY ................................................ 25
G. QUESTIONS AND ANSWERS ............................................................................................................ 25
PART 3: PROCESSING APPLICATIONS ........................................................................................................ 27
A. BENEFITS PRIOR TO PROCESSING APPLICATIONS ........................................................................ 27
CARRYOVER OF PREVIOUS YEAR’S ELIGIBILITY ............................................................................. 27
B. APPLICATION PROCESSING TIMEFRAME........................................................................................ 28
C. DETERMINING COMPLETION OF SUBMITTED APPLICATIONS ...................................................... 29
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CATEGORICAL ELIGIBILITY................................................................................................................ 29
EX TENSION OF CA TEGORICAL EL IGIB ILI T Y .................................................................................... 29
OTHER SOURCE CATEGORICAL ELIGIBILITY (EXCEPT FOSTER CHILDREN) ....................................... 29
OTHER SOURCE CATEGORICAL ELIGIBILITY FOR FOSTER CHILDREN ............................................... 30
INCOME ELIGIBILITY ........................................................................................................................ 30
INDICATION OF DIFFERENT TYPES OF ELIGIBILITY ........................................................................ 31
REVIEWING SUBMITTED APPLICATIONS ....................................................................................... 31
D. CITIZENSHIP/LEGAL STATUS ......................................................................................................... 32
E. CURRENT INCOME/CONVERSIONS.................................................................................................. 32
INCOME RECEIVED AT DIFFERENT INTERVALS............................................................................... 32
NO CONVERSION REQUIRED ............................................................................................................ 32
CONVERSION REQUIRED .................................................................................................................. 33
INDICATING INCOME AND INCOME SOURCES .............................................................................. 33
F. DETERMINING ELIGIBILITY ............................................................................................................ 33
DETERMINATION USING CASE NUMBERS ..................................................................................... 33
DETERMINATION FOR OTHER SOURCE CATEGORICALLY ELIGIBLE CHILDREN ............................. 34
DETERMINATION BASED ON INCOME ........................................................................................... 34
VERIFICATION FOR CAUSE ............................................................................................................. 35
G. DURATION OF ELIGIBILITY ............................................................................................................... 35
PROHIBITION ON THE USE OF TEMPORARY APPROVAL .................................................................. 35
H. UNAPPROVED APPLICATIONS ......................................................................................................... 35
I. HOUSEHOLDS THAT FAIL TO APPLY ............................................................................................. 35
J. NOTIFICATION OF ELIGIBILITY DETERMINATION ....................................................................... 36
K. CHANGE IN HOUSEHOLD CIRCUMSTANCES.................................................................................. 36
L. APPEALS ........................................................................................................................................... 37
M. RECORDKEEPING ............................................................................................................................ 37
APPROVED APPLICATIONS ........................................................................................................... 37
DENIED APPLICATIONS ................................................................................................................. 37
CHANGES DURING THE SCHOOL YEAR ........................................................................................... 37
RECORD RETENTION ....................................................................................................................... 37
N. TRANSFERRING ELIGIBILITY ........................................................................................................... 38
O. RESTRICTIONS ................................................................................................................................. 39
P. QUESTIONS AND ANSWERS ........................................................................................................... 40
PROCESSING APPLICATIONS ............................................................................................................ 40
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DETERMINING IF A N APPLIC ATION IS COMPLETE ............................................................................. 42
CUSTODY SITUATIONS ...................................................................................................................... 43
ACCEPTING BENEFITS ....................................................................................................................... 43
PART 4: INCOME ELIGIBILITY ................................................................................................................... 44
A. GENERAL .......................................................................................................................................... 44
B. DETERMINING HOUSEHOLD COMPOSITION ................................................................................ 44
SPECIAL SITUATIONS ........................................................................................................................ 44
C. DETERMINING HOUSEHOLD INCOME REPORTABLE INCOME ................................................. 46
CURRENT INCOME ........................................................................................................................... 47
SPECIAL SITUATIONS ....................................................................................................................... 47
INCOME EXCLUTIONS ...................................................................................................................... 49
D. QUESTIONS AND ANSWERS .......................................................................................................... 51
PART 5: CATEGORICAL ELIGIBILITY ........................................................................................................... 54
A. MEMBERS OF ASSISTANCE PROGRAM HOUSEHOLDS ................................................................. 54
B. OTHER SOURCE CATEGORICALLY ELIGIBLE .................................................................................... 54
HEAD START AND EVEN START...................................................................................................... 56
DOCUMENTATION OF PARTICIPATION ............................................................................................ 56
MIGRANT EDUCATION PROGRAM .................................................................................................. 56
MEP CONTACTS................................................................................................................................ 57
DOCUMENTATION OF MEP ENROLLMENT ....................................................................................... 57
RUNAWAY AND HOMELESS YOUTH ACT ....................................................................................... 58
DOCUME NTATION OF RUNAWAYS’ R H YA PAR TICIPA TION ............................................................. 58
MCKINNEY-VENTO HOMELESS ASSISTANCE ACT........................................................................... 59
DOCUME N TING FR EE MEAL ELIGIBILITY FOR H O MELESS CHILDRE N .......................................... 59
HOMELESS CHILDR E N RESID I NG WITH ANOTHER HOUSEHOLD .................................................. 59
FOSTER CHILD .................................................................................................................................. 60
DOCUMENTING FREE MEAL ELIGIBILITY FOR FOSTER CHILDREN ................................................... 60
C. DURATION OF CATEGORICAL ELIGIBILITY ...................................................................................... 61
D. QUESTIONS AND ANSWERS .......................................................................................................... 61
PART 6: DIRECT CERTIFICATION FOR ASSISTANCEPROGRAMS ............................................................. 64
A. GENERAL .......................................................................................................................................... 64
B. MANDATORY DIRECT CERTIFICATION WITH SNAP................................................................... 64
C. DIRECT CERTIFICATION WITH TANF AND FDPIR ........................................................................... 66
D. REQUIRED DOCUMENTATION ....................................................................................................... 66
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E. NOTIFICATION ................................................................................................................................. 67
F. DELIVERY OF BENEFITS ................................................................................................................... 67
G. EXPIRATION OF CATEGORICAL ELIGIBILITY ................................................................................... 68
H. RECORDKEEPING ............................................................................................................................. 68
PART 7: CONFIDENTIALITY/DISCLOSURE .................................................................................................. 69
A. GENERAL .......................................................................................................................................... 69
PREVENTING OVERT IDENTIFICATION ............................................................................................ 69
B. AGGREGATE DATA .......................................................................................................................... 70
C. DISCLOSURE CHART ........................................................................................................................ 71
D. “NEED TO KNOW” ......................................................................................................................... 72
E. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS ................................................................ 72
F. NO CHILD LEFT BEHIND ................................................................................................................ 73
G. FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT ..................................................................... 73
H. PARENTAL NOTIFICATION FOR DISCLOSURE ................................................................................ 74
NOTICE R E QUIREMENTS .................................................................................................................. 74
I. AGREEMENTS/MEMORANDA OF UNDERSTANDING ...................................................................... 74
NON-MEDICAID/SCHIP AGENCIES .................................................................................................. 75
MEDICAID/SCHIP AGENCIES ........................................................................................................... 75
J. OTHER DISCLOSURES THAT REQUIRE PARENTAL CONSENT .......................................................... 75
K. CONSENT STATEMENT REQUIREMENTS ........................................................................................ 76
L. PENALTIES FOR IMPROPER DISCLOSURE ...................................................................................... 76
M. QUESTIONS AND ANSWERS ......................................................................................................... 77
PART 8: VERIFICATION ............................................................................................................................. 79
A. GENERAL DEFINITIONS.................................................................................................................... 79
B. EXCEPTIONS TO VERIFICATION REQUIREMENTS .......................................................................... 79
C. INITIAL VERIFICATION ................................................................................................................... 80
ESTABLISHING THE SAMPLE POOL ................................................................................................ 80
ESTABLISHING THE SAMPLE SIZE .................................................................................................. 81
VERIFICATION COMPLETION DEADLINES ....................................................................................... 81
D. VERIFICATION FOR CAUSE ........................................................................................................... 81
GENERAL .......................................................................................................................................... 81
VERIFICATION FOR CAUSE FOR SCHOOL DISTRICT EMPLOYEES ...................................................... 82
E. APPLICATION SELECTION PROCEDURES ......................................................................................... 82
AVAILABLE SAMPLE SIZES ................................................................................................................ 82
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STANDARD SAMPLE SIZE ................................................................................................................. 82
ALTERNA TE SAMP L E SIZES ............................................................................................................. 83
COMPLETING THE SAMPLE SIZE .................................................................................................... 83
F. QUALIFYING TO USE AN ALTERNATE SAMPLE SIZE ..................................................................... 84
LOWERED NON-RESPONSE RATE.................................................................................................... 84
IMPROVED NON-RESPONSE RATE .................................................................................................. 84
CONTINUING ELIGIBILITY FOR USE OF AN ALTERNATE SAMPLE SIZE ........................................ 85
STATE AGENCY RESPONSIBILITIES .................................................................................................. 85
G. POST SELECTION PROCEDURES ..................................................................................................... 85
CONFIRMATION REVIEWS ............................................................................................................... 85
OUTCOME OF CONFIRMATION REVIEWS ....................................................................................... 86
REPLACING APPLICATIONS ............................................................................................................. 87
H. HOUSEHOLD NOTIFICATION OF SELECTION................................................................................ 87
CONTACTING THE HOUSEHOLD ........................................................................................................ 87
I. SOURCES FOR VERIFICATION OF WRITTEN EVIDENC E .............................................................. 88
COLLATERAL CONTACTS .................................................................................................................. 89
AGENCY RECORDS ........................................................................................................................... 89
WHEN A HOUSEHOLD INDICATES N O INCOME ................................................................................ 90
J. CONTINUING THE VERIFICATION PROCESS ................................................................................... 90
WHEN VERIFICATION IS CONSIDERED COMPLETE ......................................................................... 90
FOLLOW-UP ..................................................................................................................................... 91
K. NOTICE OF ADVERSE ACTION ........................................................................................................ 92
L. BENEFITS DURING AN APPEAL ....................................................................................................... 92
M. HEARING PROCEDURE ................................................................................................................... 92
N. HOUSEHOLDS THAT REAPPLY FOR PROGRAM BENEFITS............................................................ 93
O. RECORDKEEPING ............................................................................................................................. 93
INDIVIDUAL APPLICATIONS ............................................................................................................ 93
P. QUESTIONS AND ANSWERS ............................................................................................................ 94
PART 9: DIRECT VERIFICATION ................................................................................................................. 96
A. GENERAL .......................................................................................................................................... 96
B. NAMES SUBMITTED FOR DIRECT VERIFICATION........................................................................... 96
C. DIRECT VERIFICATION WITH ASSISTANCE PROGRAMS ................................................................ 96
D. DIRECT VERIFICATION WITH MEDICAID AND SCHIP .................................................................... 97
STATES WITH MEDICAID AND/OR SCHIP INCOME LIMITS OF 133% OR LESS ........................ 97
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STATES WITH MEDICAID AND/OR SCHIP INCOME LIMITS BETWEEN 133%-185%.......................... 97
E. DOCUMENTATION TIMEFRAME ..................................................................................................... 97
F. INCOMPLETE OR INCONSISTENT INFORMATION ........................................................................ 98
PART 10: APPENDICES.............................................................................................................................. 99
APPENDIX A: POLICY STATEMENT ...................................................................................................... 99
AMENDMENTS .............................................................................................................................. 100
LEAS OPERATING THE SPECIAL MILK PROGRAM ........................................................................... 100
APPENDIX B: PROTOTYPE APPLICATION ......................................................................................... 101
APPENDIX C: PROTOTYPE AGREEMENT ............................................................................................ 102
DISCLOSURE OF FREE AND REDUCED PRICE INFORMATION ...................................................... 102

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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.

STATUTO R Y AND R E GULATORY AUTH ORITY
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 et 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 O F 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/child-nutrition-programs 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.

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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 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.

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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) [TANF is a Federal designation; each State has
its own name and acronym for the Program; also see definition below]

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 State-funded 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. No
application is necessary if eligibility is determined through the direct certification process.

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Direct certification for SNAP households must be conducted using the electronic data match
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 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 households receiving SNAP benefits.

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. Direct
certification for these programs 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 for these programs is determined through the direct
certification process.

DIRECT VERIFICATION means using public records as a 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 an agency that
administers a State plan under part B or E of title IV of the Social Security Act, or a foster child who
a court has placed with a caretaker household. These provisions only apply to children formally
placed in foster care by a State child welfare agency or a court. They do not apply to informal
arrangements such as caretaker arrangements or permanent guardianship placements that may
exist outside of or as a result of State or court based systems. Whether placed by the State child
12

welfare agency or a court, in order for a child to be considered categorically eligible for free meals,
the state must retain legal custody of the child.

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 pre- kindergarten
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.

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 7CFR 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.
13

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
is formally placed by a court with a caretaker household, and the State retains legal custody of
the child.

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 reduced price benefits; certification and
notification of eligibility; provision of meals in the cafeteria; the point of service; providing additional
services, such as educational services to low income children 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
14

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 beneficiaries in States with TANF standards 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 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 and LEAs must avoid any policy or practice that has the effect of overtly identifying children
receiving meal benefits. LEAs and SFAs must assure that their policy statement complies with this
guidance. State agencies must ensure during an administrative review that the LEA’s and SFA’s policy
statement addresses ways to prevent overt identification.
15

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 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) if the State program meets the statutory
requirements.

No application is required for free meal benefits for these households.

All children in these households are eligible for free meal benefits. If any child(ren) was not listed on
the eligibility notice, the household should contact the LEA or school to have free meal 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.

16

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.

17

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 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 reduced 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.

18

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 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 must 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.

19

LATE ENROLLMENTS
Households enrolling new students in an LEA after the start of the school year must be provided an
information 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 and other source categorical 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 as one of their application processes, the information
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.

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 their children have been
directly certified, they should 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;
20



















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;
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 into the new school year, eligibility from the
previous year will continue. W hen the carry-over period ends, 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.
The following two statements, as follows:
o The U.S Department of Agriculture prohibits discrimination against its customers,
employees, and applicants for employment on the bases of race, color, national
origin, age, disability, sex, gender identity, religion, reprisal, and where applicable,
political beliefs, marital status, familial or parental status, sexual orientation, or all
or part of an individual's income is derived from any public assistance program, or
protected genetic information in employment or in any program or activity
conducted or funded by the Department.

21

o

If you wish to file a Civil Rights program complaint of discrimination, complete the
USDA Program Discrimination Complaint Form, found at
http://www.ascr.usda.gov/complaint_filing_cust.html or at any USDA office, or call
(866) 632-9992 to request the form. You may also write a letter containing all of the
information requested in the form. Send your completed complaint form or letter
to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication,
1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 6907442 or email at [email protected].

Individuals who are deaf, hard of hearing 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 below.

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.

FAMILY FRIENDLY FREE AND REDUCED PRICE APPLICATION
A new version of the prototype application package, the Family Friendly application, is available for
use. LEAs are encouraged to use this application package, as appropriate. The Family Friendly
application is a simplified application that includes only the information that families need when first
applying for free and reduced price meals in the school meal programs. This application package has
been translated into 33 languages and is available at:
http://www.fns.usda.gov/cnd/Application/familyfriendlyapps.html

22

This package includes the letter to household, application instruction, the application and the form to
share information with MEDICAID/SCHIP for additional benefits.

This newly translated package is intended to assist with the requirement that LEAs and State agencies
have to ensure their application and other household materials are available in a language a Limited
English Proficient household can understand.

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, 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 LEA 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 issued by FNS.
(http://www.fns.usda.gov/cnd/governance/Policy-Memos/2007/SP_10-2007.pdf)

23

An electronic application system should also include a statement which explains how to obtain a paper
application should a household decide they no longer want to complete an electronic application.

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. 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
24





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 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.

25

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.

26

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 operating 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 within 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.

Children from schools participating in Community Eligibility (CE) that transfer within the same LEA to a
school not participating in CE must complete a free and reduced price meal application or can be
determined eligible for free meals through the direct certification notification. If a child’s direct
certification information from the previous year is available, that child may receive free meals during
the carryover period.

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 operating 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.

27

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.

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

28

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.

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.

EX TENSION OF CA TEGORICAL EL IGIB ILI T Y
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).
29

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, as defined in Part I. B. of this manual, 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.
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.

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.)
30

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;
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, or 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.

31

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 non- citizens.

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.

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.
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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.

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 all children in the household as eligible for free benefits.
33

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, runaway or enrolled
in a Head Start program. If a child’s status is not confirmed, the benefits must be terminated unless
income information was provided through an application.

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).
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, including e-mail, to
a parent or guardian. 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
34

o

signature.
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 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
35

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. LEAs
that use an automated telephone information system must also give written notification of denial. The
notification must advise the household of:





Reason for denial of benefits;
Right to appeal;
Instructions on how to appeal; and
Their ability to 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 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.
36

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

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
37

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, or 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 student in a Community Eligibility school transfers to another school district/LEA, the new LEA
may accept the eligibility determination from the student’s former LEA if the eligibility for that student
was based on current direct certification (i.e., transfers within the school year in which direct certification
was conducted, or there is an approved application for other children in the household that do not attend a
CE school). If current eligibility is not available from the sending LEA, the student must either be directly
certified by the receiving LEA or submit an application.

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 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.
38

When a child transfers within the same LEA from a school using CE to a non CE school, a new
application or direct certification is required unless the child’s individual eligibility information was
determined through direct certification in the same school year and is available. In addition, if there is
an approved application for another child in the household, that eligibility status can be used.

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 must 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.

39

The LEA must seek written 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. (See Part 7
for additional guidance on disclosure restrictions.)

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.

40

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
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
41

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 have 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 are receiving DSNAP (special disaster benefits), they must be certified for free meals or free milks. Contact your State
agency for assistance.

DETERMINING IF A N APPLIC ATION 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/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.

42

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?
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.
43

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.

44

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 Friend s
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).

45

Foster Child
A foster child is a child whose care and placement is the responsibility of an agency that administers
a State plan under part B or E of title IV of the Social Security Act child whose care and placement is
the responsibility of an agency that administers a State plan under part B or E of title IV of the
Social Security Act, or a foster child who a court has placed with a caretaker household. These
provisions only apply to children formally placed in foster care by a State child welfare agency or a
court. They do not apply to informal arrangements such as caretaker arrangements or permanent
guardianship placements that may exist outside of or as a result of State or court based systems.
Whether placed by the State child welfare agency or a court, in order for a child to be considered
categorically eligible for free meals, the state must retain legal custody of the child.
A foster child is considered a member of the foster parents’ household. The category of “foster
child” also includes a child placed with relatives through a formal arrangement by the courts or State
child welfare agency. A child is not considered a foster child if placed with relatives informally instead
of 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:

46





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;
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.
47

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. Self- employed 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.
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.

48

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.

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.

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:

49










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/housingi’
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.

50

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
51




















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;
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 102-508); (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 99-125);
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(igtr5
"hg) 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.
52

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.
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.

53

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 an Assistance Program.

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 who 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).
54

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, the LEA must process the application using the
income information provided. At such time as the other source eligibility is documented, the
application is disregarded (if all children in household are other source). The application must be
retained.

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 another 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

55

HEAD START AND EVEN START
Children enrolled in Federally-funded Head Start centers are considered categorically eligible for free
meals in the school meals/free milk programs. Children enrolled in State funded pre-kindergarten
programs with eligibility requirements identical to or more stringent than those used by the Federallyfunded 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.

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.

56

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.

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 the other children listed on
the application are not migrant or other source categorically eligible 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.

57

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.hhs.gov/programs/fysb/programs/runaway-homeless-youth

For further information on FYSB, see their web site at


http://www.acf.hhs.gov/programs/fysb

DOCUMENTATION OF RUNAWAYS’ R H YA 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.

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.

58

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 H OMELESS 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 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.
59

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 welfare agency or court. This does not apply to informal arrangements
such as caretaker arrangements or to permanent guardianship placements that may exist outside of
or as a result of State or court based 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.
Whether placed by the state welfare agency or a court, in order for a child to be considered
categorically eligible for free meals, the state must retain legal custody of the child.

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
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
60



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).

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.

61

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.

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.

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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.

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).

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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
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.

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State agencies and LEAs can no longer use the “letter method” as the sole method of direct certification.
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.

FREQUENCY OF DIRECT CERTIFICATION
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 a
minimum:




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 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 who 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
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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. 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.

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 Program.

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.
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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.
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.

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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.

In addition, schools/LEAs must ensure that children who receive free or reduced price meal benefits
are not overtly identified when they are provided additional services under certain programs or
activities that are permitted to have access to children’s eligibility information, such as academic
support under No Child Left Behind. (See the Disclosure Chart)

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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).

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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

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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 agencies, LEAs and schools must ensure that data systems, records and other
means of accessing a student’s eligibility status are limited to officials directly connected with
administration or enforcement of a federal or State program or activity. This includes Federal, State or
local program operators responsible for the ongoing operation of the program or activity, or
responsible for program compliance.

Eligibility information cannot be made available to all school officials. For example, access must be
limited to a student’s teachers who are directly responsible for the administration of a federal
education program, e.g., No Child Left Behind (NCLB) or who are providing tutorial or other assistance
under NCLB. Teachers, guidance counselors, principals, etc. who are not providing such assistance
under the appropriate statutory or regulatory requirements cannot have access. On-line data systems
must have masking or de-identification capability to prevent unauthorized access to free or reduced
price eligibility status.

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

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status. There must be a "need to know" relating to the administration or enforcement of a Federal
education program or 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 (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 section 9(b)(6) of the National School Lunch Act apply, not FERPA.

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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 R E QUIREMENTS
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:


They are not required to consent to the disclosure;



The information will be used to facilitate the enrollment of eligible children in a health
insurance program or other programs; and
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 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.
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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
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
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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 or the basis of eligibility (e.g., SNAP eligibility or income level),
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;
Indicate 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.

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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,
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State and local program operators responsible for the ongoing operation or activities of their
respective program, and compliance officials responsible for the monitoring, 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.

10. How do I know who to contact for more information regarding Medicaid and SCHIP?
For State and Federal Medicaid, visit: http://www.medicaid.gov/. For SCHIP, visit:
http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Childrens-HealthInsurance-Program-CHIP/Childrens-Health-Insurance-Program-CHIP.html.
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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;

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







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);
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 split- session 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.

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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.

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.)

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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 verification 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 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;
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

3,000 error prone applications approved by the LEA for the school year, as of October 1 of the
school year.

ALTERNA TE SAMP L E SIZES
LEAs that qualify may select one of the following sample sizes.
Alternate One:
The sample size equals 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 at random;
3,000 applications approved by the LEA for the school year, as of October 1 of the school year,
selected at random.

Alternate Two:
The sample size equals the lesser of the sum of


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.

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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 nonresponse 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 nonresponse 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 non- response rate.

Year 1: School Year 2011-2012






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%
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
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

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.

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.

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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.

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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 error- prone 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;
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


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
70 area. The LEA may also provide different
telephone numbers for each local calling area within the LEA.

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.
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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.

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.)

89

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 N O 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.

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.

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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.
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.

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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 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.
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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:
o 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.

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





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.

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.

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.

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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.

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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.

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D. DIRECT VERIFICATION WITH MEDICAID AND SCHIP

STATES WITH MEDICAID AND/OR SCHIP INCOME LIMITS OF 133% OR LESS


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
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

STATES WITH MEDICAID AND/OR SCHIP INCOME LIMITS BETWEEN 133%-185%






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

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

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.)

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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
description of how the cafeteria and meal service prevents overt identification of the children
receiving free or reduced price meals or free milk.
A statement of the measures the LEA has taken to prevent disclosure of confidential free and
reduced price eligibility information as required under 7 CFR 245.6(f-k)

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;

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



Notice to households of selection for verification;
Notice to households of adverse action; and
The notice of eligibility, based on direct certification.

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. LEAs 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.

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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/Application/application_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.

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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, Eligibility status only;
administered by a State agency or local education consent not required.
agency.
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:

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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) __________________________________________________

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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)_

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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

Name:

________

Title:
Phone:

__________________________
Signature:

Date: __

__

Determining Agency Administrator
Name:

_______

Title:
Phone:

__________________________
Signature:

Date:

_

*Any attachments will become part of this agreement.

106