Attachment G Eligibility Manual for School Meals

Attachment G: Eligibility Manual for School
Meals

This information is being collected from School food authorities and schools. This
is a revision of a currently approved information collection. The Richard B. Russell
National School Lunch Act (NSLA) 42 U.S.C. § 1758, as amended, authorizes the
National School Lunch Program (NSLP). This information is required to
administer and operate this program in accordance with the NSLA. Under the
Privacy Act of 1974, any personally identifying information obtained will be kept
private to the extent of the law. According to the Paperwork Reduction Act of
1995, an agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a valid OMB control
number. The valid OMB control number for this information collection is
0584-0026. The time required to complete this information collection is estimated
to average 1 minute per response. The burden consists of the time it takes for
School Food Authorities and Special Milk Program operators to read the manual
and to notify house of eligibility determinations, notify households of direct
certification eligibility, establish free and reduced price policy statements, notify
households of selection for verification, and notify households if benefits will be
ending. Send comments regarding this burden estimate or any other aspect of this
collection of information, including suggestions for reducing this burden, to: U.S.
Department of Agriculture, Food and Nutrition Services, Office of Policy Support,
1320 Braddock Place, 5th Floor, Alexandria, VA 22314, ATTN: PRA (0584-0026).
Do not return the completed form to this address.

OMB Control Number 0584-0026
Expiration Date: XX/XX/20XX

Eligibility Manual for School Meals
Determining and Verifying Eligibility

USDA Food and Nutrition Services
Child Nutrition Programs
July 18, 2017

This information is being collected from School food authorities and schools. This is a revision of a currently
approved information collection. The Richard B. Russell National School Lunch Act (NSLA) 42 U.S.C. § 1758, as
amended, authorizes the National School Lunch Program (NSLP). This information is required to administer and
operate this program in accordance with the NSLA. Under the Privacy Act of 1974, any personally identifying
information obtained will be kept private to the extent of the law. According to the Paperwork Reduction Act of
1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information
unless it displays a valid OMB control number. The valid OMB control number for this information collection is
0584-0026. The time required to complete this information collection is estimated to average 1 minute per
response. The burden consists of the time it takes for School Food Authorities and Special Milk Program operators
to read the manual and to enter into agreements with State agencues, notify house of eligibility determinations,
notify households of direct certification eligibility, establish free and reduced price policy statements, notify
households of selection for verification, and notify households if benefits will be ending. Send comments regarding
this burden estimate or any other aspect of this collection of information, including suggestions for reducing this
burden, to: U.S. Department of Agriculture, Food and Nutrition Services, Office of Policy Support, 1320 Braddock
Place, 5th Floor, Alexandria, VA 22314, ATTN: PRA (0584-0026). Do not return the completed form to this
address.

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and
policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA
programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity
conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by
program or incident.
Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large
print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at
(202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally,
program information may be made available in languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027,
found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to
USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call
(866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202)
690-7442; or (3) email: [email protected].
USDA is an equal opportunity provider, employer, and lender.

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Table of Contents
About This Guidance ...................................................................................................................... 5
Section 1: Getting Started ............................................................................................................... 7
Child Nutrition Programs ............................................................................................................ 7
Key Requirements ....................................................................................................................... 7
Policy Statements .................................................................................................................... 8
Public Outreach Requirements ................................................................................................ 8
Definitions ................................................................................................................................. 14
Section 1: Questions and Answers ............................................................................................ 21
Section 2: The Basis of Eligibility ................................................................................................ 22
Determining Eligibility Based on Income Applications ........................................................... 22
Determining Household Composition ................................................................................... 22
Determining Household Reportable Income ......................................................................... 24
Determining Household Reportable Income - Special Situations ......................................... 27
Income Exclusions ................................................................................................................. 30
Determining Categorical Eligibility Using an Application ....................................................... 33
Assistance Program Participants ........................................................................................... 33
Other Source Categorically Eligible Program Participants ................................................... 34
The Direct Certification Process ............................................................................................... 35
Assistance Program Participants ........................................................................................... 36
Other Source Categorical Eligibility ..................................................................................... 37
Other Source Categorical Eligibility Descriptions .................................................................... 38
Area Eligibility .......................................................................................................................... 43
Section 3: Establishing Eligibility ................................................................................................ 46
Carryover of Previous Year’s Eligibility .................................................................................. 46
Transfer of Eligibility ................................................................................................................ 48
Transferring Between LEAs .................................................................................................. 49
Processing Applications ............................................................................................................ 50
Application Processing Timeframe ....................................................................................... 50
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Denied Applications .............................................................................................................. 56
Special Situations When Determining Eligibility ................................................................. 59
Reviewing Applications Based on Income ............................................................................... 60
Assessing Completeness of Income Applications ................................................................. 61
Income Conversions .............................................................................................................. 61
Determining Eligibility for Applications Based on Income .................................................. 62
Assessing Completeness of Categorically Eligible Applications ............................................. 63
Determining Eligibility for Categorically Eligible Applications .............................................. 64
Reviewing Direct Certification for Assistance Programs ......................................................... 65
Required Documentation for All Direct Certification Options ............................................. 66
Mandatory SNAP Direct Certification .................................................................................. 66
TANF and FDPIR Direct Certification ................................................................................. 67
Methods and Frequency of Direct Certification Efforts ........................................................ 68
Notification of Eligibility Established Through Direct Certification .................................... 69
Record Retention ....................................................................................................................... 69
Applications .............................................................................................................................. 69
Direct Certification Documents ............................................................................................. 70
Special Provisions.................................................................................................................. 70
Section 3: Questions and Answers ............................................................................................ 72
Section 4: The School Meal Application ...................................................................................... 74
Application Overview ............................................................................................................... 74
Application Content ............................................................................................................... 74
Application Formats .............................................................................................................. 79
Application Types.................................................................................................................. 80
Section 4: Questions and Answers ............................................................................................ 82
Section 5: Confidentiality and Disclosure .................................................................................... 83
Confidentiality Requirements ................................................................................................... 84
Preventing Overt Identification ................................................................................................. 84
Disclosure Requirements........................................................................................................... 86
Notification and Notice ......................................................................................................... 90
Penalties for Improper Disclosure ............................................................................................. 93
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Section 5: Questions and Answers ............................................................................................ 94
Section 6: Verification .................................................................................................................. 96
Verification Overview ............................................................................................................... 96
Key Verification Terms ......................................................................................................... 98
Initial Steps for Verification .................................................................................................. 98
Verification for Cause ........................................................................................................... 99
Application Selection Procedures ........................................................................................... 101
Available Sample Sizes ....................................................................................................... 101
Qualifying to Use an Alternate Sample Size ....................................................................... 102
Post-Selection Procedures ................................................................................................... 103
Household Notification of Selection ................................................................................... 105
Sources for Verification .......................................................................................................... 107
Direct Verification................................................................................................................... 109
Types of Direct Verification ................................................................................................ 110
Documentation Timeframe .................................................................................................. 111
Verification Follow-Up ........................................................................................................... 112
Following Up with Households ........................................................................................... 112
When Verification is Considered Complete ........................................................................ 113
Record Retention ................................................................................................................. 114
Section 6: Questions and Answers .......................................................................................... 116
Appendix A: Policy Statement.................................................................................................... 118
Appendix B: Prototype Applications .......................................................................................... 120
Appendix C: Prototype Agreement for Disclosure of Free and Reduced Price Information ..... 123
Appendix D: Policy Memos........................................................................................................ 127
Glossary of Acronyms ................................................................................................................ 131
Additional Resources .................................................................................................................. 133

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About This Guidance
Millions of children across the nation participate in the
Federal Child Nutrition Programs (CNPs) each day,
receiving benefits that make an important contribution to
their overall nutrition and academic success. In 2016, an
average of 30.3 million children participated in the
National School Lunch Program (NSLP) and 14.5 million
children participated in the School Breakfast Program
(SBP) each day school was in session. Seventy-three
percent of all lunches and 85 percent of all breakfasts
were served at the free and reduced price rate.
The Eligibility Manual for School Meals provides
comprehensive information on the Federal requirements,
policies, and procedures for establishing eligibility in the
Programs. This is intended to help State and local
educational agencies (LEAs) accurately determine,
certify, and verify children’s eligibility for free and
reduced price school meals and free milk.
The United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS)
understands the importance of reducing paperwork and administrative errors, emphasizing
flexibility in how the Programs operate, and maintaining strong accountability for outcomes,
all while promoting access for eligible families. It is critical that State and local procedures
encourage and support effective methods for establishing eligibility, including direct
certification, to reach children who qualify for benefits, but who are not participating.
The Eligibility Manual provides practical information for State and local agencies responsible for
administering the School Meal Programs, including guidance on determining eligibility for free
and reduced price meals and free milk, protecting student privacy, and ensuring the accuracy of
eligibility determinations through the verification process. By using this manual, State and local
agencies can ensure their policies and procedures for establishing eligibility are effective,
improve Program integrity, and reduce administrative burden, without compromising access for
families in need.
While the requirements in this manual are generally directed towards LEAs, FNS recognizes
there is wide variation in the structure of school districts at the local level. As such, in some
cases, the school food authority (SFA) may assume responsibility for certain requirements
included in this manual. Additionally, CNP operators will find this manual useful when
establishing eligibility for individual children in the Summer Food Service Program (SFSP) or
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for children and adult participants in the Child and Adult Care Food Program (CACFP). The
income eligibility, categorical eligibility, confidentiality, and disclosure sections of this manual
are also applicable to the SFSP and CACFP.
The sections of the Eligibility Manual include:
• Section 1: An overview of the CNPs: the NSLP, SBP, CACFP, and SFSP.
• Section 2: Information about determining eligibility based on household size and income,
Assistance Program participation, and Other Source Categorical Eligibility designations.
• Section 3: A guide to processing and reviewing applications and notifying households of
application approval or denial.
• Section 4: An overview of application requirements and information about various
application types and formats.
• Section 5: A guide to confidentiality and disclosure requirements, including when, how,
and to whom a child’s eligibility status or other eligibility information may be disclosed.
• Section 6: An overview of the verification requirements for the School Meal Programs.
• Appendices: Additional resources LEAs may use to learn more about eligibility
determinations in the CNPs.
This edition replaces the Eligibility Manual issued in July 2016. FNS issues this guidance
periodically to ensure that CNP operators have current policy information to begin the
application and certification process at the start of each school year.
LEAs and other CNP institutions and sponsors should contact the appropriate State agency for
additional guidance. State agencies should direct questions to the appropriate FNS Regional
Office (FNSRO).
Statutory Authority
Statutory authority for the CNPs 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 in the Code of Federal Regulations (CFR), as follows:
• 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

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Section 1: Getting Started
In this section, you will find information on:
• The administration of USDA’s CNPs,
• Policy requirements for operating the CNPs,
• Public outreach requirements for LEAs, and
• A list of key terms used throughout the Eligibility Manual.

Child Nutrition Programs
At the Federal level, the CNPs are
administered by USDA-FNS. At the State
level, the programs are administered by a
designated State agency. If State law prevents
State administration, programs may be
administered by the appropriate FNSRO, often
referred to as a Regional Office Administered
Program (ROAP).
According to 7 CFR 245.1(a), State agencies
that administer the CNPs must issue free and
reduced price policy guidance and any other
instructions necessary to LEAs and other
program sponsors to ensure awareness of Federal and State requirements pertaining to free and
reduced price meals and free milk. Participating LEAs must provide free and reduced price meal
benefits to eligible children in accordance with the statutory and regulatory requirements as
detailed in this manual.

Key Requirements
All schools participating in NSLP or SBP must make free and reduced price meals available to
all eligible children. All schools and institutions participating in the free milk option of the SMP
must make free milk available to eligible children [7 CFR 245.1(a)]. No person shall, on the
ground of race, color, or national origin, be excluded from participation in, be denied the benefits
of, or be otherwise subjected to discrimination under the CNPs [7 CFR 15.1].

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Policy Statements
According to 7 CFR 245.10(a), each LEA participating in the NSLP and SBP must have an
approved free and reduced price policy statement on file at the appropriate State agency (or the
FNSRO, if the LEA participates under a ROAP). Likewise, each LEA participating in the SMP
with the free milk option must have an approved policy statement on file. If some schools in an
LEA participate in the SMP and others participate in the NSLP or SBP, the LEA may submit a
single policy statement for all of its schools.
When an LEA begins participation in the NSLP, SBP, or SMP, the LEA must submit a policy
statement to the State agency for approval as part of the application process. Once approved, the
policy statement becomes a permanent document, though it must be amended when the LEA
makes a substantive change in its free and reduced price policy statement [7 CFR 245.10(c)].
The State agency provides specific instructions on the development of the policy statement and
policy approval process [7 CFR 245.10(a)(1)]. Please see Appendix A for the requirements for
the policy statement and amendments.

Public Outreach Requirements
As required at 7 CFR 245.5(a), near the beginning of each school year the public must be
notified that free and reduced price meals and free milk are available. This notice must include
the eligibility criteria for free and reduced price meals or free milk. The public notice must be
provided to the local news media, the unemployment office, and any major employers
contemplating large layoffs in the attendance area of the school [7 CFR 245.5(a)(2)].
The State agency may issue the public release on behalf of all LEAs in the State. In this case, the
free and reduced price policy statement must specify the responsibilities the State agency will
assume, such as sending the public release to the local media and employment offices, and the
names of the schools covered under the policy. Copies of the public release must be made
available upon request to any interested person [7 CFR 245.5(b)].
In addition to the required notification at the beginning of the school year, LEAs are strongly
encouraged to share information about the availability of school meals in routine contacts
throughout the school year. LEAs may post the application on school or district websites,
provide information in newsletters regularly sent to families, and use other existing notification
methods (e.g., print, telephone, email, text message, and social media) to encourage eligible
families to apply.
LEAs must ensure that communication with applicants, participants, members of the public, and
companions with disabilities are as effective as communications with people without disabilities
through the provision of auxiliary aids and services, such as alternative formats, taped text, audio
recordings, Brailed materials, large print and sign language interpreters [28 CFR 35.160].
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Additionally, in order to participate in the School Meal Programs, program operators must
comply with the USDA regulation Non Discrimination on the Basis of Handicap in Programs or
Activities Receiving Federal Financial Assistance [7 CFR 15b]. This includes ensuring children
with disabilities have an equal opportunity to participate in and benefit from the NSLP and SBP.
For more detailed guidance about accommodating disabilities, please see issued SP 26-2017:
Accommodating Disabilities in the School Meal Programs: Guidance and Questions and
Answers (Q&As), https://www.fns.usda.gov/school-meals/accommodating-disabilities-schoolmeal-programs-guidance-and-qas.
LEAs also must take reasonable steps to ensure meaningful access to their programs and
activities by persons with limited English proficiency. More information about this requirement
may be found in Application Content and in SP 37-2016: Meaningful Access for Persons with
Limited English Proficiency in the School Meal Programs: Guidance and Q&As,
http://www.fns.usda.gov/meaningful-access-persons-limited-english-proficiency-lep-schoolmeal-programs-guidance-and-qas.
Public Media Release
The public media release must include the same
information supplied in the letter to households.
Additionally, the public release must contain
the Federal Income Eligibility Guidelines
(IEGs) for free as well as reduced price school
meals. However, a public release solely for the
SMP only provides the free IEGs, and is not
required to provide the reduced price IEGs.
To view the current IEGs, please see:
http://www.fns.usda.gov/school-meals/
income-eligibility-guidelines.
The public release also must explain the
following information:
• When known to the LEA, households
will be notified of their children’s eligibility for free meals based on their participation
(or a household member’s participation) in the:
o Supplemental Nutrition Assistance Program (SNAP);
o Food Distribution Program on Indian Reservations (FDPIR); or
o Temporary Assistance for Needy Families (TANF), if the State program meets
Federal standards.

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When known to the LEA, households will be notified of any child’s eligibility for free
meals based on the individual child’s designation as Other Source Categorically Eligible,
as defined by law. Children are determined Other Source Categorically Eligible if they
are:
o Homeless,
o Migrant,
o Runaway,
o A foster child, or
o Enrolled in Head Start or an eligible pre-kindergarten program
(see: SP 40-2013: Q&As Regarding the Participation of Head Start Programs in
Child Nutrition Programs, https://www.fns.usda.gov/qas-regarding-participationhead-start-programs-child-nutrition-programs-0).
If children or households receive benefits under Assistance Programs or Other Source
Categorically Eligible Programs and are not listed on the notice of eligibility and are not
notified by the school of their free meal benefits, the parent or guardian should contact
the school or should submit an income application.
Households notified of their children’s eligibility must contact the LEA or school if they
choose to decline the free meal benefits.

Information Letters to Households
To inform families about the availability of free and reduced price meals or free milk, schools
must distribute information letters to the households of children attending the school
[7 CFR 245.5(a)(1)]. LEAs are encouraged to inform households that all school-aged children in
income-eligible households can receive school meal benefits regardless of a child’s immigration
status. In addition, the letter may inform households that LEAs do not release information for
immigration-related purposes in the usual course of operating CNPs.
The information letter must be sent to households before children begin attending school. The
letters may be distributed by the postal service, e-mailed to the parent or guardian, or included in
information packets provided to students. LEAs also are encouraged to provide applications and
information about school meals in routine household contacts throughout the school year through
school newsletters, social media updates, or other household notification processes. Information
letters may not, however, be sent to households at the end of the school year for the subsequent
school year, nor can the LEA accept and process applications before the federally defined school
year, which begins on July 1. (Year-round schools, however, may distribute the letters in June.)
Direct certification allows LEAs to establish student eligibility for free meals using participant
data from other means-tested programs, eliminating the need for an application. (See: The Direct
Certification Process.) LEAs must ensure all households receive either a direct certification
notification of their child’s approval or, for those children not directly certified, an application
10

for free and reduced price meal benefits [7 CFR 245.6(c)(6) and 7 CFR 256.6(c)(6)(ii)].
Notification of a child’s eligibility through direct certification may be done through e-mail if the
LEA has an e-mail address for a parent or guardian.
When distributing the application materials for those children not directly certified, LEAs must
prevent the overt identification of those children determined eligible through the direct
certification process and who do not need application materials [7 CFR 245.6(b)(10)].
See Preventing Overt Identification for more information.
As outlined at 7 CFR 245.5(a), the information letters must include:
• The IEGs, as follows:
o For schools participating in the NSLP and/or SBP only, the information letter
must include the reduced price guidelines and an explanation that households with
incomes at or below the reduced price income limit may be eligible for free or
reduced price meals.
o For schools participating in the SMP with the free milk option only, the
information letter must include the free guidelines.
o For schools participating in the NSLP and/or SBP, and also participating in the
SMP with the free milk option (e.g. for split-session kindergarten students), the
information letter must include the free and reduced price guidelines.
• Instructions on how to apply for free and reduced price meals or free milk, including:
o Local contacts and mailing addresses, prominently displayed.
o An explanation of how to submit an application to a school or LEA office.
o Instructions for where to direct questions about the application process.
o General application information:
 A household may apply for benefits at any time during the school year. Children of
parents or guardians who become unemployed or experience a financial hardship
mid-year may become eligible for free and reduced price meals or free milk at any
point during the school year.
 Only one application is required for all children in the household attending schools in
the same LEA.
 No application is necessary if the household was notified by the LEA their children
have been directly certified. If the household is not sure if their children have been
directly certified, the household should contact the school.
 Only the last four digits of the Social Security Number of the household’s primary
wage earner or another adult household member (or an indication of “none”) is needed
when submitting the application.
 Information submitted on the application may be subject to verification.

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 Special Supplemental Nutrition Program for Women, Infants and Children (WIC)
participants may be certified as eligible for free and reduced price meals through the
application process.
An explanation of Assistance Program (SNAP, FDPIR, or TANF) household eligibility:
o Categorical eligibility for free meal benefits is extended to all children in a household
when the application lists an Assistance Program’s case number for any household
member.
o Households with any member who is currently certified to receive Assistance
Program benefits may submit an application with abbreviated information as
indicated on the application and instructions.
An explanation of Other Source Categorically Eligibility:
o Households with children who are
categorically eligible through an Other
Source Categorically Eligible
designation may be eligible for free
benefits and should contact the school or
LEA for assistance in receiving benefits.
o 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. Including children in foster care as household members may help
other children in the household qualify for benefits.
o If non-foster children in a foster family are not eligible for free or reduced price meal
benefits, an eligible foster child will still receive free benefits.
An explanation of eligibility determinations:
o An application for free and reduced price benefits cannot be approved unless
complete eligibility information is submitted, as indicated on the application and in
the instructions.
o A household may appeal the application decision, using the hearing procedure
described in the LEA’s free and reduced price policy statement.
An explanation of carryover policy:
o For up to 30 operating days into the new school year (or until a new eligibility
determination is made, whichever comes first) an individual child’s free or reduced
price eligibility status from the previous year will continue within the same LEA.
o When the carryover period ends, unless the household is notified that their children
are directly certified or the household submits an application that is approved, the
children’s meals must be claimed at the paid rate. Though encouraged to do so, the
LEA is not required to send a reminder or a notice of expired eligibility.

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The full USDA Nondiscrimination Statement, revised as of October 2015, as follows:
In accordance with Federal civil rights law and U.S. Department of Agriculture
(USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and
employees, and institutions participating in or administering USDA programs are
prohibited from discriminating based on race, color, national origin, sex,
disability, age, or reprisal or retaliation for prior civil rights activity in any
program or activity conducted or funded by USDA.
Persons with disabilities who require alternative means of communication for
program information (e.g. Braille, large print, audiotape, American Sign
Language, etc.), should contact the Agency (State or local) where they applied for
benefits. Individuals who are deaf, hard of hearing or have speech disabilities
may contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages other
than English.
To file a program complaint of discrimination, complete the USDA Program
Discrimination Complaint Form, (AD-3027) found online at:
http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or
write a letter addressed to USDA and provide in the letter all of the information
requested in the form. To request a copy of the complaint form, call (866) 6329992. Submit your completed form or letter to USDA by:
(1) Mail: U.S. Department of Agriculture
Office of the Assistant Secretary for Civil Rights
1400 Independence Avenue, SW
Washington, D.C. 20250-9410;
(2) Fax: (202) 690-7442; or
(3) E-mail: [email protected].
This institution is an equal opportunity provider.

Information Letters for Late Enrollments
Households enrolling new students in an LEA after the start of the school year must be provided
an information letter, application, and materials when they enroll, and the LEA must determine
eligibility promptly [7 CFR 245.6(a)(1)]. The LEA must notify the household of the children's
eligibility and provide free or reduced price meal benefits to eligible children within 10 operating
days of receiving the application from the household [7 CFR 245.6(c)(6)(i)]. If the LEA has the
capability, the status of any newly enrolled child must be checked for participation in an
Assistance Program and in Other Source Categorical Eligibility at the time of enrollment.
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Definitions
Assistance Programs: Receipt of benefits by any household member from certain Assistance
Programs conveys categorical (automatic) eligibility for free school meals to all children in the
household. The determination is made through direct certification for Assistance Programs or
through an application with appropriate case numbers. The Assistance Programs that convey
categorical eligibility to all children in the household are:
• Supplemental Nutrition Assistance Program
• Food Distribution Program on Indian Reservations
• Temporary Assistance for Needy Families
Automated Data Matching: The most common direct certification method used to directly
certify children. Matches are made between student enrollment records and benefit recipient
records from Assistance Programs, foster care agencies, Head Start Programs, Migrant Education
Programs, and agencies working with homeless and runaway children, or other appropriate State
or local agencies to establish categorical eligibility.
There are two common automated data matching processes:
• Local-level: The State agency distributes relevant data to the LEA and the LEA matches
the data to the children’s enrollment records.
• State or central-level matching: The State agency is responsible for a system that matches
a list of children enrolled in schools in the NLSP with a list of children receiving
Assistance Program benefits and then provides relevant information to the LEA to
process at the local level.
Carryover of Eligibility: When a child transitions from one standard counting and claiming
school to another standard counting and claiming school within the same LEA between school
years, the child’s eligibility status from the previous school year is carried into the current school
year for up to 30 operating days, beginning on the first operating day of school. A child’s prior
year’s eligibility remains in effect until a new eligibility determination is made or, if no
determination is made, for up to 30 operating days [7 CFR 245.6(c)(2)]. For more information,
see: Carryover of Previous Year’s Eligibility.
Categorical Eligibility: Automatic eligibility for free meals or free milk due to a child’s (or any
household member’s) receipt of benefits under an Assistance Program, or a child’s designation
as Other Source Categorically Eligible [7 CFR 245.2]. There are two ways children may be
classified as categorically eligible:
• Participation in an Assistance Program [7 CFR 245.6(b)(7)]: A child or any member of
the household receives benefits from an Assistance Program, as determined either
through direct certification or an application with the appropriate case number.

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•

Other Source Categorically Eligible designation [7 CFR 245.6(b)(8)]: A child is
documented as meeting the applicable definition, as defined in this section, as:
o Homeless, runaway, or migrant child;
o Foster child; or
o Enrolled in a federally-funded Head Start or comparable State- or Indian Tribal
Organization-funded Head Start or pre-kindergarten program.

An individual child’s eligibility for free benefits under any of the Other Source Categorically
Eligible Programs does not convey to other children in the household [7 CFR 245.6(b)(8)].
Except for a foster child, the household indication of Other Source Categorically Eligible Status
must be confirmed through documentation prior to certifying the child’s eligibility for free
meals. If documentation does not confirm eligibility for an Other Source Categorically
Eligibility, the household should be asked to resubmit the application and include income
information.
Community Eligibility Provision (CEP): Rather than collecting school meal applications to
make individual eligibility determinations, schools that adopt CEP are reimbursed using a
formula based on the percentage of students who are normally certified for free school meals
without an application, such as students who participate in the Supplemental Nutrition
Assistance Program and homeless students. See the Community Eligibility Provision Resource
Center: https://www.fns.usda.gov/school-meals/community-eligibility-provision-resource-center.
Determining Official: An LEA official responsible for determining children’s eligibility for free
and reduced price benefits. An employee of a 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, including limited disclosure of
individual eligibility information. However, the LEA is ultimately responsible for ensuring that
all requirements are met and that the information on the application remains the property of the
LEA and may not be used or possessed by the food service management company for any use
other than to determine eligibility for free and reduced price meals. This also applies when an
LEA and/or SFA contracts with an Educational Service Provider to manage these functions.
See SP 07-2008: Charter School Involvement in the National School Lunch and Breakfast
Programs, https://www.fns.usda.gov/sp07-2008-charter-school-involvement-nslp-and-sbp.
Direct Certification: Determining children eligible for free benefits based on documentation
obtained directly from appropriate State or local agencies or other authorized individuals. Direct
certification of a child’s eligibility status should not involve the household. The communication
exchange should be between an appropriate agency and the State agency, LEA, or school.

15

Direct Certification for Assistance Programs: A process conducted through automated data
matching or an exchange of information between the Assistance Program agency and the State
agency or LEA. No application from the household is necessary. Letters from Temporary
Assistance for Needy Families and Food Distribution Program on Indian Reservations agencies
submitted by households are considered direct certification. However, direct certification for
Supplemental Nutrition Assistance Program households must be conducted using an automated
data matching process [7 CFR 245.6(b)(1)]. If a household provides a Supplemental Nutrition
Assistance Program eligibility letter to the LEA or school, the letter must be used to establish
eligibility, but it is not considered direct certification for reporting purposes.
Direct Certification for Other Source Categorically Eligible Programs: A process conducted
through an automated data matching or an exchange of information between appropriate State or
local agencies and officials from Other Source Categorically Eligible Programs, such as the
LEA’s homeless liaison. Direct certification also may be conducted using lists of eligible
children provided to the State agency or LEA from appropriate officials of these programs.
Letters and contacts from officials of these may also be used as direct certification.
[7 CFR 245.6(b)(2)]
Direct Verification: The use of public records as a means to verify children’s eligibility for free
and reduced price benefits. Direct verification may be conducted with Assistance Program
agencies or appropriate officials of Other Source Categorically Eligible Programs to confirm
eligibility for free meals. Direct verification with Medicaid or the Children’s Health Insurance
Program may confirm eligibility for either free or reduced price meals, depending on the
Medicaid or Children’s Health Insurance Program eligibility criteria in the State. Direct
verification may be used for applications included in the verification sample or those verified for
cause. [7 CFR 245.6a(g)]
Extension of Categorical Eligibility for Assistance Programs: A child or other household
member’s receipt of benefits from an Assistance Program automatically extends eligibility for
free benefits to all children who are members of the household. [7 CFR 245.6(b)(7)]
Food Distribution Program on Indian Reservations (FDPIR): FDPIR is a Federal program that
provides United States Department of Agriculture foods to low-income households living on
Indian reservations, and to Native American families residing in designated areas near
reservations and in the State of Oklahoma. Children from households that receive benefits from
FDPIR are deemed categorically eligible for free school meals. See Food Distribution Program
on Indian Reservations: http://www.fns.usda.gov/fdpir/food-distribution-program-indianreservations-fdpir.
Food Service Management Company: A Food Service Management Company is a commercial
enterprise or a nonprofit organization that may be contracted with by the SFA or LEA to manage
any aspect of the school food service.
16

Foster Child: An Other Source Categorical Eligibility Program designation for a child who is
formally placed by a court or a State child welfare agency. 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. This definition does not apply to informal
arrangements or permanent guardianship placements that may exist outside of State or
court-based systems. [7 CFR 245.2]
Free Meal: A meal served in the National School Lunch Program or School Breakfast Program
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. [7 CFR 245.2]
Free Milk: Milk served in the Special Milk Program 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. [7 CFR 245.2]
Head Start: An Other Source Categorically Eligible Program, which refers to Federal Head Start
and any State-funded pre-kindergarten program that use eligibility criteria that are identical or
more stringent than Federal Head Start. [7 CFR 245.2]
Homeless: An Other Source Categorically Eligible Program designation for a child who is
identified by the LEA’s homeless liaison or by an official of a homeless shelter as lacking a
fixed, regular, and adequate nighttime residence. [7 CFR 245.2]
Household: A group of related or nonrelated individuals who are living as one economic unit.
The term “family” has the same definition as “household” under 7 CFR Part 245.2.
Income Eligibility Guidelines (IEGs): The family-size income levels prescribed annually by the
Secretary of Agriculture for determining eligibility for free and reduced price meals and free
milk. The free guidelines are 130 percent of the Federal poverty guidelines. The reduced price
guidelines are 185 percent of the Federal poverty guidelines. See School Meals - Income
Eligibility Guidelines: http://www.fns.usda.gov/school-meals/income-eligibility-guidelines.
Local Educational Agency (LEA): According to 7 CFR 210.2, the term “local educational
agency” refers to:
• A 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 recognized by the State;
• Any other public or private nonprofit agency with administrative control and direction of
public or private nonprofit schools or 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.
17

Limited English Proficiency (LEP): A limited ability to read, speak, write, or understand
English. Local educational agencies, schools and other entities that receive Federal financial
assistance, including reimbursements for meals from United States Department of Agriculture,
must take reasonable steps to ensure meaningful access to their programs and activities by
persons with limited English proficiency. See SP 37-2016: Meaningful Access for Persons with
Limited English Proficiency in the School Meal Programs: Guidance and Q&As,
http://www.fns.usda.gov/meaningful-access-persons-limited-english-proficiency-lep-schoolmeal-programs-guidance-and-qas.
Migrant: An Other Source Categorical Eligibility designation for a child who is enrolled in the
Migrant Education Program as determined by the State or local Migrant Education Program
coordinator or as documented by an appropriate local educational agency official, such as the
homeless liaison. [7 CFR 245.2]
Mixed Households: Those households that include children designated as Other Source
Categorically Eligible and other children who are not. [7 CFR 245.2]
Operating Days: The days on which reimbursable meals or milk are provided by a school or
another program sponsor. [7 CFR 245.2]
Other Source Categorically Eligible: Categories that make children automatically eligible for
free benefits, either through direct certification or application. A child’s eligibility for free
benefits under Other Source Categorical Eligibility does not extend to any other child in the
household. A child is Other Source Categorically Eligible if they are:
• Enrolled in Federal Head Start;
• Enrolled in State- or Indian Tribal Organization-funded pre-kindergarten programs that
use eligibility criteria that are identical or more stringent than Federal Head Start;
• Determined to be homeless by the LEA’s homeless liaison or by an official of a homeless
shelter;
• Determined to be a migrant by the State or local Migrant Education Program coordinator
or homeless liaison;
• Determined to be a runaway who is identified by the local education liaison as receiving
assistance through a program under the Runaway and Homeless Youth Act; or
• Determined to be a foster child whose care and placement is the responsibility of the
State, or who is formally placed by a court with a caretaker household through which the
State retains legal custody of the child.
Overt Identification: Any action that may result in a child being recognized as certified for
(or potentially eligible to receive) free or reduced price school meals or free milk. Local
educational agencies and school food authorities must assure that a child’s eligibility status is not

18

disclosed at any point in the process of providing free and reduced price meals or free milk,
including:
• When the child or household is notified of the availability of free and reduced price
benefits;
• During certification and notification of eligibility;
• During the provision of meals in the cafeteria;
• At the point of service;
• During the provision of additional services, such as educational services to low income
children; or
• When the child pays for their meals.
See SP 45-2012: Preventing Overt Identification of Children Certified for Free or Reduced Price
School Meals, http://www.fns.usda.gov/preventing-overt-identification-children-certified-freeor-reduced-price-school-meals.
Reduced Price Meal: 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): Any distinct part of a public or nonprofit private
institution that:
• Maintains children in residence;
• Operates principally for the care of children; and
• If private, is licensed by the State or local government to provide residential child care
services under the appropriate licensing code.
The definitions of “School” and “Child” in 7 CFR 210.2, 215.2 and 220.2, outline the
requirements for eligible Residential Child Care Institutions and eligible residents.
Runaway: An Other Source Categorical Eligibility designation for a child who is identified by
the LEA’s homeless liaison or a program official as receiving assistance from a program under
the Runaway and Homeless Youth Act. [7 CFR 245.2]
School Food Authority (SFA): The governing body responsible for the administration of one or
more schools. The SFA has the authority to enter into a legal agreement with the State
administrating agency to operate the School Meal Programs. [7 CFR 210.2]
School Year (SY): The period from July 1 through June 30. [7 CFR 210.2]

19

Supplemental Nutrition Assistance Program (SNAP): SNAP offers nutrition assistance to
millions of eligible, low-income individuals and families and provides economic benefits to
communities. Children from households that receive benefits under SNAP are deemed
categorically eligible for free school meals. See Supplemental Nutrition Assistance Program:
http://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program-snap.
Temporary Assistance for Needy Families (TANF): A Federal designation for a State-funded
program under Part A of Title IV of the Social Security Act. Each State has its own name and
acronym for the program. Categorical eligibility for free benefits is limited to beneficiaries in
States with TANF standards that are comparable to or more restrictive than those in effect on
June 1, 1995. See SP 22-2010, CACFP 10-2010, SFSP 08-2010: Categorical Eligibility—
Temporary Assistance to Needy Families, http://www.fns.usda.gov/sp22-2010-categoricaleligibility%E2%80%94temporary-assistance-needy-families.
Without Further Application: “Without further application” means that no action is required by
the household of a child who has been directly certified to receive free meal benefits.
[42 U.S.C 1758(b)(4)(G)(i)]
Working Days: The days when school is open and teachers or school administration are on-site,
but the reimbursable meal service is not in operation.
A Glossary of Acronyms is also included at the end of the manual.

20

Section 1: Questions and Answers
1. When should schools distribute information about the application, and when should
schools distribute the household application itself?
Schools should send the information letter to households very early in the school year, which
begins July 1. Applications should also be distributed on July 1 or soon thereafter.
Distributing applications early in the school year ensures households have sufficient time to
complete and return the application prior to the first day of school.
Additionally, schools are encouraged to provide families with information about the School
Meal Programs in routine contacts throughout the school year, and remind families that
applications may be submitted at any time during the school year.
Information letters may not, however, be sent to households before the end of one school
year for the subsequent year, nor can the LEA accept and process applications before the
federally defined school year. (Note: Year-round schools may distribute the letters in June.)
2. May schools require all households to complete and submit an application for free and
reduced price meals?
No. Schools may not require households to complete and submit an application. It is the
household’s choice to complete and submit an application for meal benefits. However, LEAs
must inform households that they may receive meal benefits if they are eligible.
3. May schools include IEGs for free school meals, in addition to including the IEGs for
reduced price meals, when sending out the application and any descriptive materials?
No. The application and any descriptive materials distributed to households may only contain
the income levels for reduced price school meal eligibility. This requirement is statutory
[42 U.S.C 1758 (b)(2)(B)(i) and (ii)].

21

Section 2: The Basis of Eligibility
This section provides an overview of how to determine:
•
•
•
•

Household composition when making an income eligibility determination,
Household reportable income and income exclusions,
Categorical eligibility based on participation in Assistance Programs, and
Categorical eligibility through an Other Source Categorical Eligibility designation.

Determining Eligibility Based on Income Applications
To establish income eligibility for a household, determining officials must compare the
household size and the total household gross income to the applicable IEGs. Families may ask
determining officials to explain whom to include as a household member or what to include as
income when submitting the application. This section explains the overarching requirements for
determining household composition and income and provides guidance on how to handle special
situations. LEAs with additional questions should contact the State agency for further
clarification.

Determining Household Composition
For the purpose of making an eligibility determination for
free and reduced priced benefits, household composition is
based on an economic unit. 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 whose members share housing,
significant income, and expenses [7 CFR 245.2].
Generally, individuals residing in the same house or
apartment unit are an economic unit. However, more than
one economic unit may reside together in the same house.
Separate economic units in the same residence are
characterized by prorating expenses and by economic
independence from one another.
Please see the following table for a review of special
situations to consider when determining household
composition.
22

Special Situations for Determining Household Composition
Adopted child
An adopted child for whom a household has accepted legal responsibility is considered to be a
member of the household. If the household receives assistance payments or a subsidy for the
adoption, the assistance payments or subsidy are included as income.
Child attending an institution or Residential Child Care Institution (RCCI)
A child who attends, but does not reside in an institution or RCCI is considered a member of the
household in which the child is a resident.
Child residing in an institution or RCCI
A child who is a resident of a non-participating institution and attends a participating school during
the week, or a child who resides 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. A child attending a participating boarding school who applies for
meal benefits is also considered a member of the parent’s or guardian’s household. Eligibility is
determined based on the family’s size and income.
Child living with one parent, relative or friend
In cases where the child is living with one parent, relative, or friend, the child is considered to be a
member of the household with whom the child resides. Children of divorced or separated parents
are considered part of the household with custody.
Families with joint custody
In joint custody situations, a child may physically change residence regularly. If both
parents/guardians apply for meal benefits within the same LEA, but the eligibility determination is
different, the greater benefit level is used. For example, if one parent or guardian’s application
results in eligibility for free meals but the other parent or guardian’s application is denied, the child
would receive free meals regardless of where the child resided on a given school day.
However, one parent or guardian may elect not to have the child receive free or reduced price meal
benefits while residing with them. When the child is residing with this parent or guardian, the
school should respect their wishes and allow the parent or guardian to pay for the meals. In this
situation, the child’s meals must be claimed at the paid rate.
Emancipated child
A child living alone or as a separate economic unit is considered to be a household of one. If an
emancipated child lives alone as a household of one, or as a member of a household with no adult
household members, the emancipated child must sign the application. No portion of the Social
Security Number is required on the application of an emancipated child.

23

Special Situations for Determining Household Composition
Child paying room and board
Separate economic units are usually characterized by prorating most household expenses. Children
living within a household and paying for room and board are usually paying a token amount, and
are not economically independent of the household. Therefore, in most situations, these children
are not considered to be a household of one and are instead included in the larger household for
purposes of determining eligibility.
Foreign exchange student
A foreign exchange student is considered to be a member of the household (the “host household”)
in which the foreign exchange student resides.
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, or a child who is
formally placed with a relative or other caretaker household by a court or State child welfare
agency. For CNP eligibility purposes, a foster child is considered a member of the foster parents’
household if the child is placed through a formal arrangement by a court or State child welfare
agency. 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.
Family members living apart from family
Family members who are living apart on a temporary basis are considered household members.
Family members who are not living with the household for an extended period of time are not
considered members of the household for purposes of determining eligibility.
Deployed service personnel
Members of the armed services who are activated or deployed in support of any military combat
operation are counted as household members.

Determining Household Reportable Income
Households must report current income on a free and reduced price application.
•

•
•

Income is any money (before deductions), received on a recurring basis, including
earnings, pensions, and child or spousal support, unless an income source is specifically
excluded by law for the CNPs. (See: Income Exclusions.)
Gross earned income means all money earned before deductions such as income taxes,
employee’s Social Security taxes, insurance premiums, and bonds.
Current income means the gross income received by a household, before deductions, for
the current month, or 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
24

usual and does not fairly or accurately represent the household’s actual circumstances,
the household may, in conjunction with determining officials, project its annual rate of
income. FNS does not set any specific requirements regarding the frequency
(e.g., weekly, bi-weekly, monthly) at which household income is reported on an
application. While in most cases earners report income on a more frequent basis, there
is no prohibition against annual income reporting. For more information, see:
SP 19-2017: Reporting Annual Income on School Meal Applications,
https://www.fns.usda.gov/school-meals/reporting-annual-income-school-mealapplications.
Indicating Income and Income Sources
Each household must provide the total amount of current gross income. The application must
identify the source of the income earned by adults or children as applicable, and the adult or
child who received it (such as wages or Social Security) [7 CFR 245.6(a)(5)(i) and
245.6(a)(5)(ii)].
Indication of No Income
Each household member must be listed on the
application, even if they have no reportable
income. Household members must be asked to
report their status as zero income earners. This
may be done by indicating zero or no income.
A paper application must include a clear and
easy to understand instruction that
communicates to households that any income
field left blank is a positive indication there is
no income to report. When no income is
provided for any of the adult household
members, the application is still considered complete. On web-based applications, LEAs may
incorporate functionality that prevents applicants from progressing or making a final submission
when fields have been left blank. This eliminates the possibility of blank fields altogether, and is
recommended as an integrity-promoting feature. Web-based applications may also include error
or warning messages that highlight missing information and/or direct the applicant to fields
where that information must be submitted.
If local officials have knowledge or available information suggesting a household has
intentionally misreported its income, including by leaving the income fields blank, the LEA must
verify the household’s application for cause [7 CFR 245.6a(c)(7)]. For more information, see
Verification for Cause.

25

The following table, Determining Household Reportable Income, provides an overview of
income types to include when determining household reportable income.
Determining Household Reportable Income
Category

Description
•
•
•

Earnings
from work

Public
assistance,
alimony,
pensions and
child support

Any other
income
regularly
received

•

•
•
•
•
•
•
•
•
•

Wages, salaries, tips, commissions, and cash bonuses;
Net income from self-owned business, including farms;
Strike benefits, unemployment compensation, and worker’s
compensation; and
Military basic pay and cash bonuses and allowances for off-base housing,
food, and clothing (excluding combat pay, Family Subsistence
Supplemental Allowance, and privatized housing allowances; for more
information, see Income Exclusions).

•
•

Unemployment benefits;
Worker’s compensation;
Supplemental Security Income (SSI);
Regular cash assistance from State or local governments;
Alimony payments;
Child support payments;
Veteran’s benefits;
Pensions;
Retirement Social Security (including railroad retirement and black lung
benefits);
Private pensions or disability benefits; and
Adoption assistance payments.

•
•
•
•
•
•
•
•

Income from trusts or estates;
Annuities;
Investment income;
Earned interest;
Net rental income;
Regular cash payments from outside household;
Cash withdrawn from savings; and
Any other money regularly available to pay for children’s meals.

26

Determining Household Reportable Income
- Special Situations
USDA has identified several “special situations” LEAs
may encounter when determining children’s eligibility
for free and reduced price meals. This section provides
guidance for LEAs to use when determining eligibility
in special situations.
Projected Income for Seasonal Workers
Certain workers, such as seasonal workers, experience
income fluctuations throughout the year, meaning they earn more money in some months than in
other months. For these workers, reporting the previous month’s income may distort the
household’s actual financial circumstances. In these situations, the household may project its
annual rate of income, and report this amount as its current income. If the prior year’s income
provides an accurate reflection of the household’s current annual rate of income, the prior year
may be used as a basis for the projected annual rate of income.
The LEA must determine the period of time any earnings are received for seasonal workers, as
well as the amount and source. Seasonal workers with annual employment contracts, such as
school employees, may choose to have their salaries paid over a shorter period of time. To treat
these employees in the same manner as employees who choose to have their salaries paid over
the full year, the LEA must determine the full amount of income available contractually on an
annual basis, and convert all income sources to annual amounts.
Income for the Self-Employed
Self-employed persons may use their previous 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-employed farmers, for example, is figured by subtracting the farmer’s operating expenses
from the gross receipts.
•

Deductible business expenses include:
o The cost of goods purchased;
o Rent;
o Utilities;
o Depreciation charges;
o Wages and salaries paid; and
o Business taxes.
27

•

•

•

Non-deductible business expenses include:
o The value of salable merchandise used by the proprietors of retail businesses; and
o Personal, Federal, State, or local income taxes.
Gross receipts include:
o The total income from goods sold or services rendered by the business;
o The value of all products sold;
o Money received from the rental of land, buildings, or equipment to others; and
o Incidental receipts from the sale of items such as wood, sand, or gravel.
Operating expenses include:
o Cost of feed, fertilizer, seed, and other farming supplies;
o Cash wages paid to employees;
o Depreciation charges;
o Cash rent;
o Interest on farm mortgages;
o Farm building repairs; and
o Farm taxes.

Income from Wages and Self-Employment
For a household with income from wages and self-employment, each amount must be listed
separately. When a household experiences a business loss, income from wages must not be
reduced by the amount of the business loss. If income from self-employment is negative, it is
listed as zero.
Income from Rental Properties
For households with rental properties, income includes money derived from the rental of rooms,
apartments, homes and other leases. The treatment of rental income is similar to the treatment of
self-employment income.
Military Benefits
For non-deployed service members, income includes benefits paid directly to the service
member, such as food and clothing allowances. Income also includes housing allowances for
households living off-base in the general commercial or private real estate market.
For deployed service members, income only includes the portion of a deployed service member’s
income made available to the household by the deployed service member, (or on their behalf).
For more information, see: SP 06-2010, CACFP 03-2010, SFSP 04-2010: Exclusion of Military
Combat Pay, https://www.fns.usda.gov/cacfp-03-2010r-exclusion-military-combat-pay.

28

Foster Child’s Income
If a household where a foster child resides
applies for benefits for their non-foster children,
the foster child may be included as a household
member and any personal income received by
the foster child is reportable. The foster child’s
income can be from a part-time job held by the
child, or from any funds provided to the child for
the child’s personal use.
Child’s Income
The current earnings of a child, regardless of
age, or student grade 12 or below who is a
full-time or regular part-time employee, must be
listed on the application as income. Additionally,
children’s income from other sources, such as
Supplemental Security Income or Social
Security, must be listed on the application as
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. The same requirement applies to
children residing in an RCCI: only the income earned from full-time or regular part-time
employment or personally received by the child, while in residence at the RCCI, is considered
income. For more information, see Income Exclusions.
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. Money paid by a household in the form of alimony or child
support is not excluded as income for that household.
Garnished Wages and Bankruptcy
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 the portions garnished or used to pay creditors.

29

Income Exclusions
Income excluded from the determination of a household’s eligibility for free and reduced price
meal benefits includes:
• Any cash income or value of benefits excluded by statute, such as the value of benefits
under SNAP or FDPIR and some Federal educational benefits;
• Payments received from a 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; and
• Infrequent earnings received on an irregular basis, such as payment for occasional
baby-sitting or yard work.
With regard to eligibility determinations for
the CNPs, FNS has adopted the income
exclusions provided under the Social Security
Act and other Federal laws. A number of
these exclusions are discussed below. This
manual does not list all sources of income
excluded from the eligibility determination.
To view a list of all income sources excluded
by the Social Security Act, please see:
Section 1612 of the Social Security Act
(https://www.ssa.gov/OP_Home/ssact/title16b
/1612.htm#ACT-B1612-B).
To see a list of income sources excluded by
other Federal laws, see: Appendix to Subpart
K of Part 416—List of Types of Income Excluded under the SSI Program as Provided by
Federal Laws Other Than the Social Security Act
(http://www.socialsecurity.gov/OP_Home/cfr20/416/416-app-k.htm).
Unless a source of income is specifically listed as excluded by the Social Security Act or
Appendix to Subpart K, it should be included as income on the household application.
Determining officials should contact the State agency when there is a question of whether
specific payments are to be included as income. The following tables provide examples of
payments from Federal programs excluded as income and examples of other payments excluded
as income in the CNPs. Please note, this is not an exhaustive list.

30

Examples of Payments Excluded as Income
Category

Description

SNAP, WIC,
and CNP
Benefits

•

Value of assistance to children and their families under the NSLA, the
CNA of 1966, and the Food and Nutrition Act of 2008.

•

Reimbursements from the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970.
Payments received under the Cranston-Gonzales National Affordable
Housing Act, P.L. 101-625.
Payments received under the Housing and Community Development
Act of 1987.

Housing
assistance

•
•
•

Volunteer
payments

•
•

•

Child care
•

Old age
assistance

Any payment to volunteers under Title I (VISTA and others) and Title
II (RSVP, foster grandparents, and others) of the Domestic Volunteer
Service Act of 1973 to the extent excluded by the Act.
Payments to volunteers under Section 8(b)(1)(B) of the Small Business
Act (SCORE and ACE).
Payments and allowances to individuals participating in AmeriCorps to
the extent excluded by the National and Community Service Act of
1990.
The value of any child care provided or arranged, or any payment or
reimbursement for costs incurred for such care, under the Child Care
and Development Block Grant Act, as amended by Section 8(b) of
P.L. 102-586,106 Stat. 5035.
Value of any “at-risk” block grant child care payments made under
Section 5081 of P.L. 101-508, which amended Section 402 of the
Social Security Act.

•

Payments received under the Old Age Assistance Claims Settlement
Act, except for per capita shares in excess of $2,000.

•

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 the Act.
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, P.L. 101-392.

Student
financial aid
•

31

Examples of Payments Excluded as Income
Category

Description
•

Disaster
assistance
•

Utility
assistance

•

Payments under the Low-income Home Energy Assistance Act,
P.L. 99-125.

•

Payments under the Agent Orange Compensation Exclusion Act,
P.L. 101-201.
Family Subsistence Supplemental Allowance (FSSA). See: SP 30-2006,
CACFP 14-2006, SFSP 07-2006: U.S. Armed Forces Family
Supplemental Subsistence Allowance – Permanently Excluded from
Income Consideration for the Child Nutrition Programs,
https://www.fns.usda.gov/us-armed-forces-family-supplementalsubsistence-allowance-%E2%80%93-permanently-excluded-income-1.
Privatized housing allowances to service members living in housing
covered under the Military Housing Privatization Initiative. (See:
Department of Defense (DOD) Military Housing Privatization for a
description of this type of housing, http://www.acq.osd.mil/housing/).

•

Military
compensation
•

•

Combat pay

National Flood Insurance Program (NFIP) payments received by
property owners. See: SP 02-2006, CACFP 02-2006, SFSP 01-2006:
Treatment of Family Subsistence Supplemental Allowance and National
Flood Insurance Program payments in Income Eligibility
Determinations for Food and Nutrition Service Programs,
https://www.fns.usda.gov/treatment-family-subsistence-supplementalallowance-and-national-flood-insurance-program-payments-0.
Payments under the Disaster Relief Act of 1974, as amended by the
Disaster Relief and Emergency Assistance Amendments of 1989,
P.L. 100-707.

•

Deployment Extension Incentive Pay (DEIP) given to active-duty
service members who agree to extend their military service by
completing deployment with their units without re-enlisting. This
exemption applies only until the service members return to their home
station. DEIP payments provided to service members who are not
considered deployed are not exempt.
Also exclude combat pay:
o Received in addition to the service member’s basic pay;
o Received as a result of 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 deployment to or
service in the designated combat zone.
32

Examples of Payments Excluded as Income
Category
Land payments
Institutionalized
child’s income

Lump sum
payments

Description
•

Income derived from certain sub-marginal land of the U.S. that is held
in trust for certain Indian tribes.

•

Payments from any source directly received by an RCCI on a child’s
behalf are not considered as income to the child.

•

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.
Note: 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.

•

•
In-kind benefits

In-kind benefits (housing for clergy, cars for salespersons, employee
medical or dental benefits, etc.) 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.

Determining Categorical Eligibility Using an Application
This section describes establishing eligibility for children who are automatically eligible for free
meals or free milk because they (or another member of their household) receive Assistance
Program benefits, or because they are determined individually eligible through an Other Source
Categorically Eligible designation. In general, categorical eligibility may be established through
the application process or through the direct certification process. For more information about
direct certification, see The Direct Certification Process.

Assistance Program Participants
A child who is a member of a household that receives Assistance Program benefits (SNAP,
TANF, FDPIR) is categorically eligible for free meals or milk. If one child or adult in the
household receives Assistance Program benefits, categorical eligibility for free meal benefits
through the CNPs is extended to all children in that household [7 CFR 245.6(b)(7)].
LEAs are required to use direct certification to identify children receiving SNAP benefits.
(See: Mandatory SNAP Direct Certification.) LEAs may still accept SNAP notification letters to
a household as a secondary method of recognizing categorical eligibility for free meals for SNAP
33

households [7 CFR 245.6(b)(5)(ii)(A)]. If a household provides a
SNAP eligibility letter to the LEA or school, the letter must be used to
establish eligibility, but it is not considered direct certification for
reporting purposes.
When using an application to establish eligibility, LEAs must give
households the opportunity to provide SNAP, TANF, or FDPIR case
numbers or identifiers for any household member
[7 CFR 245.6(a)(6)]. Households receiving benefits under Assistance
Programs must list a case number when submitting an application.
Determining officials must ensure the Assistance Program’s case
number or identifier listed on the application is consistent with the
format used by the Assistance Program in the State. If the case number seems incorrect, the LEA
should contact the household or the local Assistance Program agency to confirm the household’s
eligibility or verify the application for cause. (See: Verification for Cause.)
When a household submits an application indicating an Assistance Program:
• The applicable Assistance Program must be identified and the program case number must
match the applicable Assistance Program.
• The child must be given free meals.
• The LEA official should compare the applications with case numbers to the direct
certification list to determine if any children listed on the application are on that list.
o When a match is found:
 The application must be disregarded;
 The household must be placed on the direct certification list; and
 Categorical eligibility must be extended to all children in the household.
o When a match is not found, the LEA should:
 Contact the household for further clarification; or
 Verify the application for cause.

Other Source Categorically Eligible Program Participants
Children designated as Other Source Categorically Eligible can also be determined eligible for
free meals through the application process. To determine Other Source Categorical Eligibility
through the application, the household must submit an application indicating the applicable
program. Only the individual children designated on the application as participating in an Other
Source Categorically Eligible Program may receive free meal benefits. Other Source Categorical
Eligibility of one child in a household does not convey free eligibility to other children in the
household [7 CFR 245.6(b)(8)].

34

If the household submits an application with income and also indicates Other Source Categorical
Eligibility for one or more children, the LEA must confirm the children’s status before meal
benefits can be provided. If a household submits an application indicating both income and Other
Source Categorical Eligibility, and the LEA cannot confirm the children’s status, the LEA must
process the application using the income information provided.
If Other Source Categorical Eligibility is documented for all children in the household, the
determination based on income is superseded. However, if some children in the household are
not determined Other Source Categorically Eligible, the income determination remains in effect
for those children.
When a household submits an application indicating Other Source Categorical Eligibility:
• The applicable programs must be indicated.
• The LEA official must contact the Other Source Categorically Eligible agency liaison to
confirm that the children are eligible for the applicable program. FNS recommends LEAs
confirm contact information for the agency liaisons at the beginning of each school year.

The Direct Certification Process
Direct certification allows LEAs to certify children as
eligible for free meal benefits using participant data from
other means-tested programs (as permitted), eliminating
the need for an application. The direct certification
process uses information provided by State or local
agencies administering Assistance Programs and Other
Source Categorically Eligible Programs. The data
exchange, most often completed by using either State or
local-level matching, may use automated data matching,
an e-mail exchange, or an exchange of faxes with
appropriate agency officials. Automated data matching is
required for SNAP, and encouraged for TANF and FDPIR [7 CFR 245.6(b)(4)]. The exchange
must include a date and signature. An electronic signature is acceptable. See: SP 10-2007,
CACFP 07-2007, SFSP 06-2007: Update on Electronic Transactions in the Child Nutrition
Programs, http://www.fns.usda.gov/update-electronic-transactions-child-nutrition-programs-1.
There are many steps State agencies and LEAs can take to improve the direct certification
process and increase access among eligible children. For an overview of strategies to improve
the process, see SP 43-2016 (v.2): Ensuring Access to Free and Reduce Price School Meals for
Low-Income Students - Revised, http://www.fns.usda.gov/ensuring-access-free-and-reducedprice-school-meals-low-income-students.

35

Assistance Program Participants
Eligibility for free meals is extended to all children in
a household if any member of the household receives
Assistance Program (SNAP, TANF, FDPIR) benefits
[7 CFR 245.6(b)(7)]. LEAs are encouraged to take
appropriate steps to identify children who are part of a
household receiving benefits, but were not identified
through the direct certification process. For example,
LEAs may review school district enrollment records or
reference submitted meal benefit applications to find
potential matches that were missed through the direct
certification process.
According to 7 CFR 245.6(b)(1), LEAs must directly
certify children in SNAP households using an
automated data matching technique. For example, the
LEA can compare the student enrollment records and the SNAP benefit recipient records. In
addition, an LEA may obtain a list (signed and dated) of SNAP-eligible children from an
appropriate agency official via fax or e-mail. LEAs are encouraged to work with agency liaisons
to identify eligible students and to consistently check and match student records with information
from these agencies, ensuring privacy protections are in place as, required by 7 CFR 245.6(f).
The following are acceptable methods for identifying Assistance Program eligible children
[7 CFR 245.2]:
• A household application including a case number for any household member.
(See: Assessing Completeness of Categorically Eligible Applications.)
• A letter from an Assistance Program agency official or a letter from an Assistance
Program agency provided to the household, which in turn, the household provides to
the school.
• A list of eligible children provide by local Assistance Program officials, including a
signature and the date.
• Completion of an application by a local school official with direct knowledge of the
child’s status [7 CFR 245.6(d)].
Direct Certification with Medicaid
Beginning in SY 2016-2017, FNS began conducting new demonstrations to evaluate direct
certification using Medicaid data in the NSLP and SBP. The demonstrations are conducted under
the administrative pilot authority in Section 18(c) of the NSLA. State agencies that administer
the NSLP and SBP were invited to apply to participate in these new demonstrations to evaluate
direct certification with Medicaid.
36

Under the demonstrations, State agencies match school enrollment data with Medicaid eligibility
data to identify children who receive Medicaid, or live with a child who receives Medicaid, and
whose family income, before expenses and deductions, does not exceed:
• 130 percent of the Federal Poverty Level for free school meal eligibility; or
• 185 percent of the Federal Poverty Level for reduced price meal eligibility
For more information about the pilot program, see: SP 23-2016: Request for Applications to
Participate in New Demonstration to Evaluate Direct Certification with Medicaid,
https://www.fns.usda.gov/request-applications-participate-new-demonstrations-evaluate-directcertification-medicaid.

Other Source Categorical Eligibility
To ensure eligible children are promptly connected with meal benefits, LEAs must have an
agreement with the Other Source Categorically Eligible Program designated officials. The
agreement must include an overview of procedures to follow when exchanging information and
confirming the children’s status, and must ensure privacy protections are in place, as required by
7 CFR 245.6(f). FNS also encourages LEAs to communicate with Other Source Categorically
Eligible agency officials in preparation for the direct certification data exchange. This
communication should occur prior to the beginning of each school year. Additionally, throughout
the school year, school officials are encouraged to consistently check and match student records
with these programs.
The following are acceptable methods for identifying Other Source Categorically Eligible
children:
• A household application indicating “Other Source Categorical Eligibility” for one or
more children.
• A form letter from an Other Source Categorically Eligible agency to the household,
which in turn, the household provides to the school.
• A signed and dated list of eligible children exchanged between the Other Source
Categorically Eligible officials and the LEA.
• A list of Other Source Categorically Eligible children compiled by the LEA and
submitted to the determining official.
• Completion of an application by a local school official with direct knowledge of the
child’s status [7 CFR 245.6(d)].
If form letters are sent to Categorically Eligible households or direct computer matches (which
might not include the designated official’s original signature) are used to determine Categorical
Eligibility, the LEA must have documentation including correspondence or a written agreement
between the Other Source Categorically Eligible Program designated officials and the LEA.
37

Other Source Categorical
Eligibility Descriptions
This section provides in-depth information
about Other Source Categorical Eligibility
designations, which apply to migrant,
runaway, homeless, and foster children.
Children enrolled in Head Start or enrolled in
an eligible pre-kindergarten program with
eligibility criteria identical to or more
stringent than Federal Head Start are also
categorically eligible for free meals. For
more information about Head Start, please see SP 40-2013, CACFP 11-2013, SFSP 13-2013:
Q&As Regarding the Participation of Head Start Programs in Child Nutrition Programs,
https://www.fns.usda.gov/qas-regarding-participation-head-start-programs-child-nutritionprograms-0.
Migrant Education Program (MEP)
Children identified by the State, regional, or local MEP director or coordinator or the local
educational liaison as meeting the definition of migrant are categorically eligible for free school
meals. The definition of migrant is included in Section 1309 of the Elementary and Secondary
Education Act of 1965, 20 U.S.C. 6399.
The MEP provides services to children who have moved across school district lines, within the
last three years, in order to accompany or join a parent or guardian who seeks or obtains
temporary or seasonal work in agriculture or fishing. Minors who move with a spouse or by
themselves to perform this work may also qualify.
The LEA must attempt to obtain MEP enrollment status early in the school year, prior to a
household completing an application. Once documentation is obtained, the LEA must notify the
household as soon as possible of the child’s eligibility for free meal benefits. A child in the MEP
is eligible for free meals for the duration of the current school year, regardless of a change in
circumstances, and up to 30 operating days into the next school year, due to the year-long
eligibility requirement [7 CFR 245.6(c)(1)].
LEAs must establish procedures with the MEP coordinator or homeless liaison to document and
certify migrant children for free meal benefits as promptly as possible, especially when a new
migrant child is identified. LEAs and MEP officials are responsible for identifying a migrant
child and maintaining supporting documentation.

38

Acceptable documentation [7 CFR 245.2] for MEP participation includes:
• A list of names of participating children;
• The effective dates and the signature of a MEP official; or
• A letter from an MEP official or local educational liaison provided by the household to
the school confirming the child currently participates in MEP.
Programs under the Runaway and Homeless Youth Act (RHYA)
Programs under the RHYA, established by the Family and Youth Services Bureau (FYSB) of the
U.S. Department of Health and Human Services, provide temporary housing, transitional living,
and street outreach programs for runaway, homeless, and human trafficked youth. For more
information about these programs, see: Putting an End to Youth Homelessness,
http://www.acf.hhs.gov/programs/fysb/programs/runaway-homeless-youth.
A child identified by the local educational liaison as
receiving assistance through a program under the
RHYA is categorically eligible for free meals. The
FYSB coordinates with school district homeless
liaisons; thus, determining officials should have
access to documentation of a child’s participation in
an RHYA-funded program. If the LEA or State
agency becomes aware of other officials who may be
administering the RHYA in their State, the LEA or
State agency should contact the State agency or
Regional office, as appropriate, for guidance.
A child in a RHYA program is eligible for free meals for the duration of the current school year,
regardless of a change in circumstances, and up to 30 days into the subsequent school year, due
to the yearlong eligibility requirement [7 CFR 245.6(c)(1)].
Acceptable documentation [7 CFR 245.2] for RHYA participation includes:
• A list of names of participating children;
• The effective dates and the signature of an RHYA official; or
• A letter from a RHYA official or homeless liaison provided by the household to the
school confirming the child currently participates in a RHYA program.
McKinney-Vento Homeless Assistance Act
The McKinney-Vento Homeless Assistance Act provides Federal money for homeless shelter
programs and facilitates public school access for homeless children and youth. According to the
Act, a student is considered homeless if they lack a fixed, regular, and adequate nighttime
residence or if they are identified as residing in a homeless shelter.

39

The circumstances that may qualify children as homeless include:
• Sharing the housing of other persons due to loss of housing, economic hardship, or a
similar reason.
• Living in motels, hotels, trailer parks, or camping grounds due to the lack of alternative
adequate accommodations.
• Living in emergency shelters, transitional shelters, or hospitals due to abandonment.
• Awaiting foster care placement.
• Having 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.
• Living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or
train stations, or similar settings.
• Living in any of the circumstances described above, due to migratory status.
Homeless children remain eligible for free meals for the duration of the current school year,
regardless of a change in their living situation, and up to 30 days into the subsequent school year,
due to the yearlong eligibility requirement [7 CFR 245.6(c)(1)].
The LEA homeless liaison or an official of a homeless shelter may identify a student as
homeless. Private schools may use documentation obtained from shelter directors, public school
liaisons, or the State Coordinator for Education of Homeless Children and Youth to determine a
child’s eligibility for free meals. Although the McKinney-Vento Homeless Assistance Act only
applies to public schools, private schools are encouraged to establish a homeless or runaway
liaison for this purpose. Forming and maintaining partnerships with organizations that work with
homeless students can help ensure these children are promptly provided with benefits.
If the LEA or State agency becomes aware of other officials administering homeless assistance
under the McKinney-Vento Act in their State, the LEA or State agency should contact the State
agency or Regional Office, as appropriate, for guidance.
Acceptable documentation [7 CFR 245.2] to establish eligibility based on homelessness includes:
• A list of names of homeless children;
• The effective dates and the signature of a homeless liaison; or
• A letter from a homeless liaison provided by the household to the school confirming the
child is currently homeless.
Children Experiencing Homelessness Due to a Disaster
Children determined to be homeless due to a disaster are categorically eligible for free meals in
the CNPs. In this situation, the homeless liaison makes a determination of homelessness and
provides to the LEA a list of all children determined homeless due to the disaster.

40

Children certified for free or reduced price meal benefits because of a disaster situation maintain
their eligibility status for the entire school year and up to 30 days in the next school year [7 CFR
245.6(c)(1)]. For more information, see SP 46-2014, CACFP 12-2014, SFSP 18-2014: Disaster
Response, http://www.fns.usda.gov/disaster-response-0.
Homeless Children Residing Within Another Household
When a household hosting a homeless family applies for free and reduced price benefits for their
own children, the host family may include members of the homeless family as household
members if the host family provides financial support to the homeless family. “Financial
support” may include shelter, utilities, clothing, or food. When applying for benefits, the host
family must also include any income received by the homeless family. The eligibility status for
the host family is based on its income or other sources of categorical eligibility. However, as
stated at 7 CFR 245.6(b)(8), the categorical eligibility of a homeless child does not convey
categorical eligibility to other children in the household.
Documentation of a homeless child’s status is provided by the LEA liaison, even when the child
is included on a host household’s application. In these cases, the household size and income of
the host family are not taken into consideration in determining eligibility for the children
designated as homeless by the LEA liaison. Children determined to be homeless are categorically
eligible for free meals, regardless of the eligibility determination for the host family’s children.
Due to year-long eligibility, a change in household composition will not impact the eligibility
determination for either the host family’s children or the homeless child [7 CFR 245.6(c)(1)].
Acceptable documentation [7 CFR 245.2] to establish eligibility for homeless children residing
in another household includes:
• A list of names of homeless children;
• The effective dates and the signature of a homeless liaison; or
• A letter from a homeless liaison provided by the household to the school confirming the
child is currently homeless.
Foster Children
A foster child is a child whose care and placement is the responsibility of a State or local welfare
agency or who is placed with a caretaker household by the court. This definition applies only to
foster children who are formally placed by the State welfare agency or court. This may include
foster children placed with relatives, provided the placement is made by the State or local foster
care system or courts, but does not apply to informal arrangements, such as caretaker
arrangements or to permanent guardianship placements, when such arrangements exist outside of
or as a result of State or court based systems. The State must retain legal custody of the child
(whether placed by a welfare agency or a court) in order for a foster child to be considered
categorically eligible for free meals.

41

LEAs are encouraged to establish formal procedures with State and local foster care agencies to
facilitate direct certification for free school meals for foster children. States may use different
terms and may have different definitions for children in foster care. State agencies and LEAs
should work to understand the placement arrangements and terminology used in that State so that
they can provide appropriate guidance regarding eligibility determinations. For more
information, see: SP 17-2011, CACFP 08-2011, SFSP 05-2011: Categorical Eligibility of
Children in Foster Care, https://www.fns.usda.gov/categorical-eligibility-children-foster-care.
Acceptable documentation [7 CFR 245.2] for foster children includes:
• An electronic or computer match provided directly to the LEA indicating the status of the
child as a foster child without further application;
• A letter from the State or local welfare agency or court confirming the child’s status as a
foster child;
• Documentation from the welfare agency or court stating that the courts have taken legal
custody of a child who has been placed in the foster care system;
• A list of children in foster care from the welfare agency or court; or
• An application that indicates the child’s status as a foster child.
A foster family may include their foster child on the household application for 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 benefits based on household size and income.
Eligible Households that Have Not Applied
According to 7 CFR 245.6(d), local school officials may complete
an application for a child known to be eligible for meal benefits if,
after household applications have been disseminated, the
household has not applied. 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.
When exercising this option, the school official must complete the
application on behalf of the child based on the household size and
income information or Other Source Categorical Eligibility status
known to the official, and must notify the household that their
child has been certified to receive free or reduced price benefits.
The source of the information used by the school official to determine eligibility must be noted
on the application. Names of household members, the last four digits of the Social Security
Number, and the signature of an adult household member are not required. These applications
are excluded from verification.

42

Area Eligibility
SFAs may use school meal data to establish area eligibility for
the Afterschool Snack component of the NSLP and Seamless
Summer Option (SSO) of the NSLP. NSLP Afterschool Snacks
offers cash reimbursement to help SFAs serve snacks to children
enrolled in education or enrichment activities after their regular
school day. More information about the Afterschool Snack
component of the NSLP may be found on the NSLP Afterschool
Snacks webpage: https://www.fns.usda.gov/schoolmeals/afterschool-snacks. SSO gives SFAs operating the NSLP
or SBP a streamlined option for providing summer meals. SFAs
operating the SSO continue to follow the same operational
requirements they follow during the regular school year, such as
the NSLP and SBP meal pattern requirements, when serving
summer meals to children. More information about the SSO may
be found on the School Meal Programs webpage:
https://www.fns.usda.gov/school-meals/opportunity-schools.
Snacks and meals served at area eligible NSLP Afterschool Snack and SSO sites are reimbursed
at the free rate, regardless of an individual child’s status. Snacks and meals served at sites that
are not area eligible are reimbursed at the appropriate rate, depending on each individual child’s
eligibility status.
In order to be area eligible based on meal data, the proposed site must be located in a school, or
in the attendance area of a school, where at least 50 percent of enrolled children are eligible for
free or reduced price school meals.
To determine area eligibility for a Community Eligibility Provision (CEP) school’s attendance
area, the individual school’s identified student percentage (ISP) is multiplied by a factor of 1.6. If
the resulting percentage is at least 50, sites within the school’s attendance area are area eligible.
Individual school data must be used to determine area eligibility, even if the school is
participating in CEP as part of a group or district claiming with a shared ISP.
Once a site establishes area eligibility, the eligibility is effective for a period of five years. In
addition to using school meal data, SSO sites are also permitted to establish area eligibility using
census data. For more information please see: SP 08-2017, CACFP 04-2017, SFSP 03-2017:
Area Eligibility in Child Nutrition Programs, https://www.fns.usda.gov/area-eligibility-childnutrition-programs.

43

Section 2: Questions and Answers
1. When foster parents apply for benefits for their non-foster children, do they include
their foster children as household members?
Households with foster and non-foster children may choose to include the foster child as a
household member. If the foster child is included as a household member, any personal
income earned by the foster child must be included on the household application. 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. The foster child
is categorically eligible for free meals regardless of the eligibility of the foster family’s
non-foster children.
2. If a foster child is adopted, is the foster child still categorically eligible for free meals
based on foster status?
Once a foster child is adopted, the child is no longer categorically eligible for free meals
based on foster status. However, due to year-long eligibility, the free eligibility status of a
foster child would not change within the school year, including up to 30 operating days into
the subsequent school year. The household that adopted a foster child would need to apply
for meal benefits at the start of the subsequent school year to determine if the household is
eligible for free or reduced price meal benefits.
3. If family members or friends are temporarily “doubling up” in a home, may the host
family count their guests as members of the household?
If the temporary household members are part of the same economic unit as the host family,
the host family may count their guests as members of the household. In this situation, income
for the temporary household members must also be counted. If the temporary household
members are not part of the same economic unit as the host family, they are not considered
part of the household.
4. If one household owns a housing unit and rents living space to another household, must
the household receiving the rental fee report the rental fee as income?
Yes. Income includes all money received, including money from rental properties or rooms.
If a household receives and keeps rental income from another household, it must be counted
as income.

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5. Is the housing allowance (Basic Allowance for Housing, or BAH) received by military
service personnel counted as income when making an eligibility determination for free
or reduced price meals?
Yes. Income is defined as all cash received on a recurring basis, which would include BAH.
In-kind benefits, however, are not cash payments. Therefore, in-kind benefits (such as
provided housing) are not considered income for the purposes of determining free and
reduced price eligibility. For more information, see: Exclusion of the Housing Allowance for
Military Households in Privatized Housing - Reauthorization 2004: Implementation Memo
CN 1, https://www.fns.usda.gov/exclusion-housing-allowance-military-householdsprivatized-housing-reauthorization-2004.
6. If a household member receives a cash subsidy for health insurance from an employer,
must the household report the subsidy on the application for school meals?
Yes. All household members must report gross income, which includes cash subsidies for
insurance payments.
7. A child is not employed full-time or part-time, but occasionally babysits for a neighbor
in the evening and on weekends. Must the household report the child’s earnings from
babysitting on its income application?
No. Infrequent earnings, such as income from occasional baby-sitting or mowing lawns, is
not counted as income and should not be listed on the application.
8. Are children in households receiving Tribal TANF benefits categorically eligible for
free school meals?
Yes. Children in households receiving Tribal TANF benefits under Title IV of the Social
Security Act are categorically eligible for free school meals and can be determined eligible
through direct certification, as long as the Tribal TANF program standards are comparable to
or more stringent than NSLP standards. This determination is made by the Child Nutrition
State agency.
9. How should an LEA certify children from a federally declared disaster area who have
temporarily moved into the school district?
Typically these children are determined homeless by the school district’s homeless liaison or
are receiving Disaster SNAP (D-SNAP, special disaster benefits) and they must be certified
for free meals and/or milk. LEAs should contact their State agency for more information.

45

Section 3: Establishing Eligibility
This section includes information about:
•
•
•
•
•

Carryover of eligibility;
Processing, approving, and denying applications;
Addressing special situations when establishing eligibility;
Reviewing different types of applications; and
Determining a child’s eligibility status.

Carryover of Previous Year’s Eligibility
For purposes of the CNPs, carryover refers to a child’s eligibility from the previous school year
being carried over into the current or new school year. According to 7 CFR 245.6(c)(2), an
individual student’s eligibility from the previous school year (before July 1) carries over for up
to 30 operating days into the new school year, or until a new eligibility determination is made,
whichever comes first. The 30 operating days begins on the first operating day of school.
Operating days are the days on which reimbursable meals or milk are provided by a school or
another program sponsor [7 CFR 245.2]. Carryover applies to eligibility established through a
household application or through direct certification. Meals served during the carryover period
are claimed at the appropriate rate, depending on the individual child’s eligibility status from the
previous school year.
Carryover allows students to continue receiving
school meal benefits while families complete and
submit, and schools process, applications. The
carryover period is not intended to delay
processing of applications. Instead, schools must
process applications as they are received and
promptly notify households of their eligibility
status. Within 10 days of receiving the
application, the LEA must make a determination
and notify the household of its eligibility status
[7 CFR 245.6(c)(6)].
While not required to issue a notification about the carryover period, school officials are
encouraged to clarify for families that the carryover will end after 30 operating days. School
officials should inform affected families that they must submit a new application for meal
benefits to re-establish their child’s eligibility before the end of the carryover period.
46

Carryover Within an LEA
Carryover of eligibility within an LEA is mandatory, whether a child is continuing in the same
school or will attend a different school within the same LEA. The LEA must carryover a child’s
eligibility status for no less than 30 operating days, unless a new eligibility determination is
made prior to the end of the 30-day carryover period. When a student moves to a new school
within an LEA, the LEA must carryover eligibility for free or reduced price benefits for:
• Children with approved applications on file from the previous year;
• Children who are newly enrolled in the LEA, but who reside in a household where
another child (e.g., a sibling) has an approved application on file from the previous year;
• Children directly certified for free meal benefits in the previous school year;
• Children who are newly enrolled in the LEA, but who reside in a household where
another child (e.g., a sibling) was approved through direct certification with an
Assistance Program in the previous year;
• Children determined Other Source Categorically Eligible for free benefits in the previous
school year; and
• Children in kindergarten who were enrolled in Head Start under the jurisdiction of the
same LEA during the previous school year.

Carryover Between LEAs
When children move to a new LEA, either at the beginning of the new school year or during the
summer months, the new LEA is encouraged to use the former LEA’s eligibility determination
from the previous school year and carryover the child’s eligibility status. As stated in
7 CFR 245.6(a)(4), the receiving school may accept the former school’s eligibility determination
without incurring liability for the accuracy of the determination. LEAs opting to do this can use
the former LEA’s eligibility determination for up to 30 operating days, or until a new eligibility
determination is made, whichever comes first. FNS strongly encourages carryover between
LEAs to ensure students do not experience a gap in school meal access.

Carryover for Provision Schools
When children from schools participating in a Special Provision (i.e., Provision 1, 2, or 3 or
CEP) move to a non-provision school, at the State agency’s discretion, the LEA may carry over
children’s eligibility for free reimbursable meals for up to 30 operating days or until a new
eligibility determination is made for the current school year, whichever comes first
[7 CFR 245.6(c)(2)]. This discretion applies to moves within an LEA or between LEAs.
FNS strongly encourages State agencies to implement the discretionary carryover provision for
children transitioning from Provision 1, 2, or 3 or CEP schools to ensure these children do not
experience a gap in school meal access.
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Transfer of Eligibility
Unlike carryover, which occurs at the start of a new school year, transfer of eligibility occurs
when a child moves to another school during the school year.
When a child transfers to another school, the date of the transfer must be noted on the application
and the point of service must be updated to include the new student’s information. If the LEA
has an application on file and any change is made after the initial approval for the current school
year, the determining 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, as
necessary.

Transferring Within an LEA
Once a child is determined eligible for free or reduced price meals, eligibility remains in effect for
the remainder of the school year, and for up to 30 operating days into the next school year
[7 CFR 245.6(c)(1)]. According to 7 CFR 245.3(c), when a child transfers to a new school within
the same LEA, the new school must accept the eligibility determination from the child’s former
school, if the child has an individual eligibility determination. The following table, Transferring
Within an LEA, describes how schools should handle transfer eligibility for children transferring
from schools using standard counting and claiming, and schools operating a special Provision.
Transferring Within an LEA
Non-Provision Schools to Non-Provision Schools
Eligibility for free and reduced price meal benefits for children from non-Provision and nonCEP schools must transfer to schools within the same LEA [7 CFR 245.3(c)].
Provision 1, 2, or 3 or CEP Schools to Non-Provision Schools
A child transferring within the same LEA from a Provision 1, 2, 3 or CEP school to a nonProvision school must be given free reimbursable meals for up to 10 operating days or until a
new eligibility determination is made, whichever comes first. State agencies have discretion to
allow LEAs to provide free reimbursable meals for up to 30 operating days or until a new
eligibility determination is made, whichever comes first [7 CFR 245.9(l)].

48

Transferring Between LEAs
When a student transfers to a new LEA, the new LEA is permitted to accept the eligibility
determination from the student’s former LEA [7 CFR 245.6(a)(4)]. LEAs and schools are
strongly encouraged to accept the former LEA’s eligibility determination to ease the new
student’s transition and ensure there is no break in the student’s meal access. The new LEA
should retain written documentation of the eligibility determination made by the former LEA.
An email from the former LEA stating the eligibility status is sufficient.
While the new LEA is not liable for the accuracy of the former LEA’s determination, the
accepting LEA should review the application for arithmetic errors and compare the income and
household size to the applicable IEGs to ensure that the correct level of benefits had been
assigned. If the accepting or new LEA determines that an arithmetic error occurred, the accepting
LEA must notify the household that they must submit a new application in order to determine
benefits. Additionally, if the child’s eligibility status is determined to be incorrect during an
Administrative Review or as part of verification, the child’s eligibility status would change. The
following table, Transferring Between LEAs, describes how schools should handle these cases.
Transferring Between LEAs
Non-Provision Schools to Non-Provision Schools
Eligibility for free and reduced price meal benefits for children from non-Provision schools
may transfer from the former LEA to the new LEA. The new school will not incur liability for
the accuracy of the former determination [7 CFR 245.6(a)(4)]. While accepting an eligibility
determination from another LEA is not required, it is a best practice and may ease the
student’s transition to the new school by ensuring there is no break in meal service.
Provision 1, 2, or 3 or the CEP Schools to Non-Provision Schools
LEAs may provide free reimbursable meals for 10 operating days for a child who transfers to
a different LEA from a Provision 1, 2, 3, or CEP school to a non-Provision school. State
agencies have discretion to allow LEAs to provide free reimbursable meals for up to 30
operating days or until a new eligibility determination is made, whichever comes first
[7 CFR 245.9(l)]. Effective July 1, 2019, LEAs must provide free reimbursable meals for 10
operating days for a child who transfers from a Provision 1, 2, or 3 or CEP school to a nonProvision school in another LEA. LEAs are encouraged to implement this provision early.
For more information, please see SP 51-2016: Ensuring Year-long Eligibility in the School
Lunch and School Breakfast Programs, http://www.fns.usda.gov/ensuring-year-long-eligibilityschool-lunch-and-school-breakfast-programs.

49

Processing Applications

Application Processing Timeframe
Applications must be reviewed in a timely manner. Whenever possible, applications should be
processed immediately, and must be processed within 10 operating days. This is particularly
important for children who are not eligible to receive carryover benefits because they were not
certified as eligible for free or reduced price meals during the previous school year.
According to 7 CFR 245.6(c)(6)(i), within 10 operating days of receipt of the application:
• An eligibility determination must be made,
• The family must be notified of its status, and
• The status must be implemented.
While households must be notified of their child’s status within 10 operating days, FNS
encourages LEAs to inform households of their child’s status as soon as an eligibility
determination has been made. This is important if benefits are denied or reduced from the level
of the previous year. If households are not notified of a reduction in benefits, they risk accruing
unpaid meal charges. (See: Unpaid Meal Charges, https://www.fns.usda.gov/schoolmeals/unpaid-meal-charges.) A new eligibility determination that reduces benefits (e.g., free to
reduced price) should be implemented only after the household has been notified of the change.
The LEA must not delay approval of applications if
the household fails to provide any non-essential
information. For example, if an application has all of
the required information for determining eligibility,
but the household did not include its street address or
the child’s birth date, processing of the application
must not be delayed. As stated at 7 CFR 245.6(a)(1),
the information requested in the application should be
limited to information required to demonstrate that a
household does (or does not) meet the eligibility
criteria for free and reduced price meals. For more
information, see: SP 50-2011, CACFP 27-2011
SFSP 20-2011: Free and Reduced Price Meal
Applications – Requests for Additional Information,
http://www.fns.usda.gov/free-and-reduced-pricemeal-applications-%E2%80%93-requests-additionalinformation.

50

Independent Review of Applications
LEAs designated by the State agency as demonstrating high
levels of, or a high risk for, administrative error associated
with certification and benefit issuance are required to
conduct a second review of applications [7 CFR 245.11(a)].
The second review must be conducted by an independent
individual or entity that did not make the original eligibility
determination. This individual or entity is not required to be
an employee of the LEA, but must be trained on how to
make application determinations [7 CFR 245.11(c)].
A second review of applications requires a re-evaluation of
the initial eligibility determination made by the original
determining official, based on the information provided by
the household on the application. The second review must
determine whether the application is complete with:
• Signature of an adult household member;
• Last four digits of a Social Security Number (or an
indication of “none”) for income applications;
• Names of all household members, including the
children for whom the application is made; and
• Identification of:
o The amount of income received by each household member for income
applications; or
o The applicable Assistance Program and program case number, for applications
based on categorical eligibility with an Assistance Program; or
o The applicable program, for applications based on Other Source Categorical
Eligibility.
The second review also must confirm the application was correctly approved based on the
current IEGs or accurate categorical eligibility information, as applicable.
In addition, as stated at 7 CFR 245.11(c)(1), the second review of applications must be
completed before the household is notified of eligibility and must not delay the eligibility
determination. LEAs required to conduct a second review of applications must still notify
households of the child’s eligibility determination within 10 operating days of receiving the
application. For more information, see SP 44-2014: Questions and Answers Related to the
Independent Review of Applications, http://www.fns.usda.gov/qas-related-independent-reviewapplications.

51

Approved Applications
Notification of Application Approval
Households must be notified, either in writing or verbally, of their child’s eligibility status within
10 operating days of receipt of the application [7 CFR 245.6(c)(6)]. LEAs are permitted to
communicate the written notification via e-mail to the adult household member who signed the
application. Determining officials must record the eligibility determination as follows:
• Indicate the approval date;
• Indicate the level of benefit for which the children or each child is approved (if the levels
are different); and
• Sign or initial and date the application.
This information may be recorded on the application itself or on a separate piece of paper
attached to one or more applications.
If a computer system is used, the system can be used to capture the original date of approval,
benefit level of each child, and the basis for the determination (i.e., the household size and
income used). The system may also be used to update the status of applications to account for
transfers, withdrawals, terminations, and other changes. A notation (i.e., date and initials) should
be made to an electronic file.
More information about paper and electronic applications may be found in Section 4: The School
Meal Application.
Delivery of Benefits
The LEA must provide benefits promptly to ensure eligible children do not experience a break in
meal access. The LEA may assume consent to receive free meal benefits from directly certified
households if the household does not refuse benefits within a certain number of days, as
determined by the LEA. As provided in 7 CFR 245.6(c)(6)(iii), if a household refuses free meal
benefits, the LEA must discontinue providing free meal benefits as soon as possible. The LEA
must document and maintain notification of the refusal. The documentation should correctly
reflect the child’s eligibility status, but should include a note that the family has elected to pay
for meals.
The LEA has a regulatory obligation to verify “for cause” all approved applications that may be
questionable [7 CFR 245.6a(c)(7)]. However, the verification effort may not delay the approval
of the application [7 CFR 245.6a(c)(1)(ii)]. 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. More
information about verification may be found in Section 6: Verification.

52

Flexibility in Determining Effective Date of Eligibility
Children are eligible for free or reduced price meal benefits on the date their eligibility is
determined; however, flexibility exists to allow LEAs to move the effective date of eligibility to
an earlier date under certain circumstances. This applies to both traditional household
applications and direct certification. An LEA electing to exercise this flexibility must notify its
State agency. LEAs using this flexibility must do so consistently for all children, in all schools.
•

Flexibility for Household Applications: LEAs may establish the date of submission of an
application as the effective date of eligibility, rather than the date the official approves the
application. This flexibility applies only to complete applications containing all required
information at the time of submission. LEAs may use this flexibility when processing
household income applications, as well as when waiting for documentation of other source
categorical eligibility (e.g., for homeless or migrant children) indicated on a household
application. See SP 11-2014: Effective Date of Free or Reduced Price Meal Eligibility
Determinations, http://www.fns.usda.gov/effective-date-free-or-reduced-price-mealeligibility-determinations.

•

Flexibility in Data Matching: LEAs using automated data matching may establish the
effective date of eligibility as the date of the automated data matching (or benefit recipient
file from another agency) which first identifies the child as eligible for direct certification,
rather than the date the LEA accesses and processes the automated data matching file into the
local point of service system. To be used for this purpose, the data file must be generated and
received by the LEA in the current school year. See SP 51-2014: Eligibility Effective Date for
Directly Certified Students, http://www.fns.usda.gov/eligibility-effective-date-directlycertified-students.

•

Flexibility in the Letter Method: Letters, lists, or other forms of documentation may be
used to directly certify children as members of households that participate in TANF, FDPIR,
and Other Source Categorically Eligible Programs. LEAs using this flexibility may consider
the effective date of eligibility for benefits to be the date the household or appropriate State
or local agency submitted the letter, list, or other form of documentation to the LEA, rather
than the date the school official approves the documentation. The flexibility in determining
the effective date of eligibility also applies to the letter method of documentation from
SNAP. See SP 51-2014: Eligibility Effective Date for Directly Certified Students,
http://www.fns.usda.gov/eligibility-effective-date-directly-certified-students.

53

LEAs using this flexibility must document the effective date used. Documentation may include:
• A method to document the date the application was received;
• A date stamp indicating the date letters or lists from other agencies are received
by the LEA; or
• The documented, traceable run date of automated match files or recipient benefit files
from another appropriate agency.
LEAs adopting this flexibility must refund any money paid by or on behalf of the child for
reimbursable meals or milk during the period from the effective date through the date the
certification is actually implemented at the local school. This includes forgiving accrued debt for
any meals or milk adjusted to free or reduced price due to the change in effective date. The LEA
can only claim those meals or milk at the free or reduced price reimbursement rate if the child is
given a refund or the debt is discharged. If categorical eligibility is based on SNAP, TANF, or
FDPIR, the flexibility applies to all children in the household, and all children must be given
refunds in order for the LEA to claim reimbursable meals or milk served to those children at the
free rate.
Duration of Eligibility
As stated at 7 CFR 245.6(c)(1), once an eligibility
determination is made, a child’s eligibility status
remains in effect for the remainder of the school
year. At the start of the subsequent school year,
children retain their previous year’s eligibility status
for 30 operating days or until a new determination is
made, whichever comes first. A new eligibility
determination can be made through the approval or
denial of a new application or through direct
certification. Temporary approval of eligibility is
not permitted because of the year-long duration of
eligibility.
If no new application is submitted and eligibility is
not established through direct certification by the
end of the 30-day carryover period, a child’s
eligibility for free or reduced price meals expires
and the LEA must discontinue benefits. The LEA
cannot send a notice of denial or adverse action if a child’s eligibility expires at the end of the
30-day carryover period. The household does not have a right to appeal a discontinuation of
benefits due to the expiration of the carryover period because no eligibility determination was
made during the current school year.

54

While schools are not required to notify parents and guardians about the end of the carryover
period, school officials are encouraged to send expiration reminders to families via email, text
message, auto-dialed calls, or mailed notices. Reminding families that their free or reduced price
meal benefits will end after the carryover period and encouraging households to submit a new
application may reduce the risk of households accruing unpaid meal charges. The reminder could
include the cost of reduced price and paid meals and a copy of the SFA’s written meal charge
policy. For more information on preventing unpaid meal charges, see: SP 29-2017: 2017 Edition:
Overcoming the Unpaid Meal Challenge: Proven Strategies from Our Nation’s Schools,
https://www.fns.usda.gov/school-meals/2017-edition-overcoming-unpaid-meal-challengeproven-strategies-our-nations-schools.
Changes in Eligibility During the School Year
Due to the year-long duration of eligibility, households are not required to report changes in
income, household size, or their participation in a program that impacts their child’s eligibility
status [7 CFR 245.6(c)(1)]. A subsequent direct certification contact indicating that a child is no
longer receiving benefits from Assistance Programs or Other Source Categorically Eligible
Programs will not impact their eligibility status for the current school year.
For example, a household is eligible for and participates in SNAP in August. The child in the
household is identified as eligible for free meals through automated data matching. In December,
the household is no longer participating in SNAP. The child remains eligible for free school
meals through the end of the school year, and for up to 30 operating days into the subsequent
school year, due to the year-long eligibility requirement.
Households may, however, voluntarily report a change. If a change is reported that will increase
benefits, the LEA must put the change into effect. Schools should inform families they may
submit applications at any point during the school year and remind families their child may
become eligible if the household experiences a change in financial circumstances (i.e., household
size goes up or income goes down). Schools are encouraged to reach out to families experiencing
a financial hardship which may result in a change in eligibility status for their child.
If the change will decrease benefits (from free to reduced price) or terminate benefits (from free
or reduced price to paid), the LEA must explain to the household the change is not required and
will only go into effect if the household requests the change in writing, for example, by
submitting a new application [7 CFR 245.6(c)(3)(i)].
If benefits are voluntarily decreased, the LEA must send a notice of adverse action that includes:
• Written confirmation of the action;
• An indication that the change was made at the request of the household; and
• An explanation of the household’s right to continue receiving free or reduced price
benefits, should the household choose to do so.
55

If any change (such as a household’s voluntary request to withdraw) is made after the initial
approval of eligibility for free or reduced price benefits during the current school year, the
determining officials must indicate the change on the application. The determining official will
use the same method used to record initial eligibility determinations, which includes:
• Noting the change;
• Recording the date of the change; and
• Implementing the change by updating
rosters or other methods used at point of
sale, if necessary.
In cases where the initial eligibility determination
is incorrect, the change in eligibility status will not
be voluntary. In these situations, LEA officials
must make appropriate changes in eligibility, and
send a notice of adverse action:
• If the initial eligibility determination was found to be incorrect during a second review of
applications or an Administrative Review; or
• When verification of household eligibility, including verification for cause, does not
support the level of benefits for which the household was approved.

Denied Applications
As stated at 7 CFR 245.6(c)(7), if a household provides an incomplete application or does not
meet the eligibility criteria for free or reduced priced benefits, the application must be denied.
The LEA must document and retain the denied application, and reasons for ineligibility, for three
years [7 CFR 245.6(e)].
Households with children who are denied benefits must receive prompt, written notification of
their denial. The notification may be provided by mail or e-mail to the adult household member
who signed the application. Posting the denial on the “notification” page of an online system
does not meet this requirement. Likewise, informing the household of denial via telephone does
not meet this requirement. LEAs that use automated telephone information systems 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
• Ability to reapply for free and reduced price benefits at any time during the school year.
56

Determining officials must record the eligibility determination and notification in an easily
referenced format. The record must include the:
• Denial date;
• Reason for denial;
• Date the denial notice was sent; and
• Signature or initials of the determining official (may be electronic, where applicable).
Notice of Adverse Action
All currently certified households for whom benefits are to be reduced or terminated must be
given 10 calendar days’ written notice of the change prior to the date the change will go into
effect [7 CFR 245.6a(j)]. The first day of the advance notice period is the day the notice is sent.
The notice of adverse action may be sent via mail or to the e-mail address of the parent or
guardian. The LEA cannot notify the household of adverse action by phone only.
As stated at 7 CFR 245.6a(j), the notice of adverse action must advise the household of:
• Change in benefits;
• Reasons for the change;
• 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; and
• The household may reapply for benefits at any time during the school year.
When households that applied based on Assistance Program participation are terminated because
no member receives benefits from an Assistance Program, the LEA should inform the household
that they may submit an application containing household names, income information, and
documentation of current household income [7 CFR 245.6a(f)(7)].
A notice of adverse action cannot be provided if the household fails to reapply during the
carryover period because eligibility during the carryover period is based on the previous years’
eligibility determination. The household has no right to appeal a discontinuation of benefits
based on the expiration of the carryover period. LEAs are encouraged to remind families of the
end of the carryover period, but may not send a notice of adverse action, as this would confer the
right to appeal.
Appeals and Hearing Procedures
A household may appeal the denial of benefits or the level of benefits for which it has been
approved. As stated at 7 CFR 245.6(c)(8), the household may request a conference with an
appropriate LEA or school food service official prior to a formal hearing. However, the
conference must not prejudice a later appeal.

57

According to 7 CFR 245.7, hearing procedures must provide the family and the LEA:
• A simple, publicly announced method to make an oral or written request for a hearing;
• An opportunity to be assisted or represented by an attorney or other person;
• An opportunity to examine, prior to and during the hearing, any documents and records
presented to support the decision under appeal;
• An opportunity to present oral or documentary evidence and arguments supporting a
position without undue interference; and
• An opportunity to question or refute any testimony or other evidence and to confront and
cross-examine any adverse witnesses.
In addition, at 7 CFR 245.7, Federal regulations state:
• The hearing must be held with reasonable promptness and convenience, and adequate
notice shall be given as to the time and place of the hearing;
• The hearing must be conducted and the decision made by a hearing official who did not
participate in making the decision under appeal or in any previously held conference;
• The decision of the hearing official shall be based on the oral and documentary evidence
presented at the hearing and made a part of the hearing record;
• The parties concerned and any designated representative shall be notified in writing of
the decision of the hearing official;
• A written record shall be prepared with respect to each hearing, which shall include the
challenge or the decision under appeal, any documentary evidence and a summary of any
oral testimony presented at the hearing, the decision of the hearing official, including the
reasons therefor, and a copy of the notification to the parties concerned of the decision of
the hearing official; and
• The written record of each hearing shall be preserved for a period of three years and shall
be available for examination by the parties concerned or their representatives at any
reasonable time and place during that period.
Benefits During an Appeal
According to 7 CFR 245.7(b)(1), 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 the original level during this period.
When a household does not request an appeal during the 10 calendar day advance notice period,
benefits must be reduced or terminated no later than 10 operating days after the notice period. If
the hearing official rules the child’s benefits must be reduced, the actual reduction or termination
of benefits must take place no later than 10 operating days after the hearing official’s decision.

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Households affected by a reduction or termination of benefits may reapply for benefits at any
time during the school year, and schools should remind families their children may become
eligible for free meals if the household unit experiences a change in financial circumstances
(i.e., household size goes up or income goes down). However, if benefits to a household have
been terminated because of failure to complete the verification or verification for cause process
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
[7 CFR 245.6a(f)(7)]. These are not considered new applications.

Special Situations When Determining Eligibility
Applications with Different Eligibility Types
LEAs must have a method in place to process
applications from mixed households (i.e. households
where some children are Other Source Categorically
Eligible and some children are not). These applications
may result in different eligibility statuses for different
children in a single household.
After Other Source Categorical Eligibility has been
determined for the appropriate children through contact
with the program liaisons, the LEA must use the
household’s size and income level to determine if the
children in the household who are not categorically
eligible are eligible for benefits based on income.
Households should include children identified as Other
Source Categorically Eligible when determining their
household size and income.
In mixed households, Other Source Categorically Eligible children must receive free benefits,
even if the other children listed on the application are determined ineligible for free benefits.
A complete mixed application must provide:
• Names of all household members;
• Amount, source, and frequency of current income for each household member;
• An indication of the program source of Other Source Categorical Eligibility status;
• Signature of an adult household member; and
• Last four digits of the Social Security Number of the household’s primary wage earner or
another adult household member, or an indication that no adult household member has a
Social Security Number.
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RCCI Resident Application
Each child residing in an RCCI is considered a household of one. An application must be
completed for each child unless the RCCI uses an eligibility documentation sheet for all children
residing in the RCCI. The documentation sheet must be signed by an appropriate official and
must include:
• Child’s name;
• Any personal income received by the child;
• Child’s date of birth;
• Date of admission;
• Date of release;
• Official’s title and contact information.
Children attending but not residing in an RCCI (commonly referred to as “day students”) are not
considered a household of one, and are instead considered members of their household. Their
eligibility is determined using a household application or through direct certification.

Reviewing Applications Based on Income
According to 7 CFR 245.6(a)(1), applications must be clear
and simple in design, and limit the information requested to
the information necessary to make an eligibility
determination for free and reduced price meals. To be
considered complete, an application must include all
required information. Any application that is missing
required information, contains inconsistent information, or
is unclear is considered an incomplete application and
should not be processed. The LEA should make reasonable
efforts to contact the household in order to clarify or obtain
the required information.
LEAs may pre-populate applications with data other than income data from the prior school year
or from another school source. (See: SP 43-2016 (v.2): Ensuring Access to Free and Reduced
Price School Meals for Low-Income Students, https://www.fns.usda.gov/ensuring-access-freeand-reduced-price-school-meals-low-income-students.) However, the LEA may not complete the
income portion of the application using income information derived from other records available
to the school. Any income information on the application must be provided by the household.

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Assessing Completeness of Income Applications
Households may submit applications that provide income information in order to establish free
or reduced price eligibility for all children in the household. According to the definition of
“Documentation” included at 7 CFR 245.2 a complete income-based application must provide:
• Names of all household members;
• Amount, source, and frequency of current income for each household member;
• Signature of an adult household member (an electronic signature is acceptable for
web-based applications); and
• Last four digits of the Social Security Number of the household’s primary wage earner or
another adult household member, or an indication that no adult household member has a
Social Security Number.
Indication of No Income
On a paper application, any income field left blank is a positive indication of no income;
therefore, paper applications with blank income fields are to be processed as complete. The adult
household member’s signature certifies that there is no income to report. In an online application,
if income fields are submitted with blank responses, these also are processed as complete.

Income Conversions
For the purposes of certification of eligibility for free and reduced price meals or free milk based
on household income, the household must provide their current income. The amount of income
must be based on the most recent information available, which may be income:
• For the current month;
• Projected for the month in which the application is filled out; or
• For the month prior to application.
If current income is not a reflection of the amount of income that will be available to the
household over the course of the school year, the household should contact the LEA for
assistance. Households may have income from a variety of sources and may be paid on different
schedules. For example, the household may receive paychecks on a weekly basis and child
support on a monthly basis.
In other cases, for seasonal workers or those who are self-employed, annual income reporting
may be the preferred income frequency as households may only be paid once or a few times per
year. The LEA will determine the amount and frequency of income available during the school
year for such households, and households can report income on an annual basis. For more
information, see: SP 19-2017: Reporting Annual Income on School Meal Applications,
https://www.fns.usda.gov/school-meals/reporting-annual-income-school-meal-applications.

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Depending on a household’s specific circumstances, an income conversion may or may not be
required.
•

No Income Conversion Required: If a household has only one source of income, or if all
sources are received in the same frequency, the LEA takes the sum of all income sources and
compares the household’s total income to the IEGs. For example, if a household of three only
reported receiving a monthly Social Security check and monthly child support, those
amounts would be added together and the result compared to the IEG monthly category for a
household of three.

•

Income Conversion Required: If a
household has multiple income sources and
the income sources are received with varying
frequency, the LEA must annualize (calculate
all income as for an entire year) by
multiplying:
o Weekly income by 52;
o Bi-weekly income (received every
two weeks) by 26;
o Semi-monthly income (received
twice a month) by 24; or
o Monthly income by 12.

LEAs should not round the values resulting from each conversion, and should instead add all of
the un-rounded converted values and compare the un-rounded total to the appropriate IEG for
annual income and 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 the LEA uses software for application or certification
purposes, the software cannot use conversion factors and cannot automatically convert income
unless there are different frequencies.

Determining Eligibility for Applications 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 IEGs.
Determining officials must determine reportable income (see: Determining Household
Reportable Income - General). When households submit a complete application indicating total
household income, those with income at or below the income limit for free or reduced price
benefits must be approved for the appropriate level of benefits.

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When a household submits an incomplete application or their application is missing required
information, the household cannot be approved for benefits. The missing information must be
obtained before an eligibility determination can be made. The following applications are some
examples of those considered incomplete:
• Applications that fail to indicate the amount of income for each adult household member,
and instead provide pay stubs.
• Applications missing the signature of an adult household member.
Every reasonable effort should be made by the determining official to obtain the missing
information prior to denying the application. To obtain the required information, the school or
LEA may return the application to the household, or contact the child’s parent or guardian by
phone, by mail, or via e-mail. The determining official should document the details of the
contact, dating and initialing the entry.

Assessing Completeness of Categorically Eligible Applications
Complete Assistance Program Application
For applications with an Assistance Program case number, a complete application must provide:
• The names of the children for whom the application is made;
• A SNAP, TANF or FDPIR case number or identifier for the children or any household
member listed on the application; and
• The signature of the adult household member completing the application.
Determining officials must ensure that the Assistance Program’s case number (or other identifier
listed on the application) is consistent with the format used by the Assistance Program in their
State. If the case number seems incorrect, the LEA should contact the household or a local
Assistance Program official to confirm the household’s eligibility or may verify the application
for cause (See: Verification for Cause.) Determining officials must obtain the most current
certification information available from the local Assistance Program officials when confirming
the household’s eligibility for meal benefits.
Complete Other Source Categorical Eligibility Application
Applications for Other Source Categorical Eligibility will include a check box or other indicator
to identify the child’s status as homeless, migrant, or runaway. The Prototype Application has a
box for homeless, migrant, or runaway children. Households must check the appropriate box to
indicate their child’s status. Enrollment in Head Start, by contrast, does not need to be identified
on the application. A child participating in Head Start is not determined eligible for free benefits
until the LEA documents the child’s status with Head Start program officials.
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A complete application for Other Source Categorical Eligibility must provide:
• Names of children for whom application is made;
• Indication of child’s categorical eligibility status; and
• Signature of adult household member.
Complete Application for Foster Children
Foster children are categorically eligible for free meals. The Prototype Application has a box for
foster children. Households must check the appropriate box to indicate their child’s status. The
child’s status for free meals does not require confirmation of eligibility status prior to receiving
benefits. No further action is required.
A complete application for a foster child must provide:
• Name of the foster child;
• Indication of the child’s foster care status; and
• Signature of an adult household member.

Determining Eligibility for Categorically Eligible Applications
Eligibility Determination Using Case Numbers
The determining official must assure the case number or other identifier included on an
Assistance Program application is consistent with the format used for the applicable program in
the State. Determining officials must be familiar with the format for valid case numbers. If a case
number seems incorrect, the LEA should contact the household or the appropriate agency to
confirm the household’s eligibility.
LEAs are encouraged to review direct certification lists to determine if any Assistance Program
applications can be matched with names on the lists. As stated at 7 CFR 245.6(b), if a household
submits an application for directly certified children, the direct certification eligibility
determination will take precedence. If a match is found, the application is disregarded and all
children in the household are categorically eligible for free meals through the direct certification
process. Any application disregarded because all children in the household were determined
categorically eligible through direct certification must be retained and the date of disregard must
be documented. If a match is not found, and the LEA considers the application to be
questionable, the determining official should verify the application for cause.

Note: Only the case number may be used to determine eligibility.
The electronic benefit transfer (EBT) card number used by SNAP
may not be used to establish categorical eligibility.
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Eligibility Determination for Other Source Categorical Eligibility
Unlike categorical eligibility under Assistance Programs, which extends eligibility to all children
in the household, Other Source Categorical Eligibility must be determined individually for each
child [7 CFR 245.6(b)(8)]. When an LEA receives an application with any of the Other Source
Categorical Eligibility categories checked, an appropriate program official must confirm the
status for each child, either through direct contact with the agency or using a list of names
provided by the agency, prior to providing benefits. (Foster children, however, do not require
confirmation of eligibility status prior to receiving benefits. See Assessing Completeness of
Categorically Eligible Applications for more information.)

Reviewing Direct Certification for Assistance Programs
This section provides guidance on direct certification for Assistance Programs. The direct
certification process allows LEAs to certify children for free meal benefits, without further
application, based on information provided by the State or local agencies administering SNAP,
TANF, and FDPIR. Other Source Categorically Eligible children, such as homeless children
identified by the LEA’s homeless liaison, are processed using procedures similar to direct
certification. Although direct certification is only required with SNAP (see: Mandatory SNAP
Direct Certification) expanding systems beyond mandatory SNAP matching to include TANF,
FDIPR, and Other Source Categorically Eligible designations can help increase access among
eligible children.
Eligibility for free meals is extended to all children in a household if any member has been
identified through the direct certification process as eligible for benefits under the Assistance
Programs. These children are also considered directly certified. LEAs are encouraged to take
appropriate steps to identify children who are part of an Assistance Program household but were
not identified through direct certification through available means, such as through the use of
school district enrollment records.
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.
For example, if a student beginning kindergarten resides in the same household as an older
student determined eligible by the same LEA through Assistance Program participation in the
previous school year, the kindergarten student would be eligible to receive carryover benefits for
up to 30 operating days at the start of the new school year.

65

Required Documentation for All Direct Certification Options
Documentation to establish eligibility and to substantiate claims for reimbursement based on
direct certification must be retrievable by a school to ensure proper delivery of benefits and to
allow substantiation of the number of children eligible for free meals or free milk.
Documentation based on direct certification must include:
• For Assistance Program households, the names of
children or any household member currently certified
to receive benefits from the Assistance Program and
information certifying each child as a member of a
household where someone receives benefits.
• For Other Source Categorically Eligible children, the
names of children currently certified to receive benefits
from Other Source Categorical Eligibility Programs.
• For all direct certification options, at least one form of
identifying information matching each child with a
child attending a particular school. Examples include:
o Children’s birth dates;
o Addresses;
o Parent or guardian names;
o Child’s Social Security Number, if available;
o Last four digits of the Social Security Number of the person signing an
application, if available; and
o Gender identity.
• For all direct certification options, the date.
• For all direct certification options, the signature of an official of the program.
Computer matches do not need to include the official’s original signature. For computer matches,
sufficient documentation must include correspondence or a written agreement between the
Assistance Program office and the LEA. The correspondence must set out or confirm the manner
in which determining officials would receive the children’s SNAP, TANF or FDPIR status.

Mandatory SNAP Direct Certification
All LEAs must directly certify children who are members of households receiving SNAP
benefits. If the child is determined eligible for free benefits through an application and through
direct certification, the application must be disregarded, and the child will be considered directly
certified. The date the application was disregarded must be indicated and the application must be
kept on file [7 CFR 245.6(b)].

66

Zero SNAP Benefit Households
SNAP defines “benefits” as allotments issued on EBT cards (or other means approved by the
Secretary) that can be used to purchase food at authorized retail food stores. Some SNAP
households may be eligible for “zero benefits.” However, Section 9(b)(12)(A)(i) of the NSLA
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 based on SNAP participation. In these situations, a child’s eligibility for free or
reduced price school meals must be determined by household income on a household application
or information from an appropriate source (TANF, FDPIR, migrant, homeless, runaway, foster)
that establishes categorical eligibility for other reasons.
State agencies must ensure SNAP direct
certification matches do not identify children who
are members of a household eligible for zero SNAP
benefits. Any State agency that has included
children who are members of a household eligible
for “zero benefits” in their direct certification
matching must revise their matching process to no
longer identify these children as categorically
eligible. For more information, see: SP 02-2012:
Direct Certification and Zero Benefit Households,
October 25, 2011, https://www.fns.usda.gov/directcertification-and-zero-benefit-households.

TANF and FDPIR Direct Certification
Expanding direct certification systems beyond mandatory SNAP matching can help capture
students participating in other eligible programs, increasing access and improving program
integrity. Although not required, LEAs are encouraged to conduct direct certification with TANF
and FDPIR. Direct certification with TANF and FDPIR may use an automated data matching
technique or the letter method [7 CFR 245.6(b)(4) and 7 CFR 245.6(b)(5)(ii)(B)]. The letter
method involves the household, or an agency official, submitting official documentation of the
child’s status to the LEA or school.
Direct certification contact for TANF and FDPIR should start at or near the beginning of the
school year (July 1, as defined in 7 CFR 210.2). If LEAs opt to conduct direct certification with
TANF or FDPIR agencies, there is no requirement on how frequently the contacts are made.

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Methods and Frequency of Direct Certification Efforts
While other Assistance Programs may use a data matching technique, direct certification with
SNAP must use an automated data matching technique. To facilitate this process, each State
agency must enter into an agreement with the State agency conducting eligibility determinations
for SNAP. The agreement must specify the procedures that will be used to facilitate the direct
certification of children who are members of a household receiving assistance under SNAP
[7 CFR 245.6(b)(1)(iv)]. Completing the direct certification process may require the SNAP
agency, State agency, LEA, or school to compare the student enrollment records and the SNAP
benefit recipient records. This automated data matching technique will most likely be completed
by using either State (central-level) matching or local (LEA-level) matching.
•

Direct Certification Matches: LEAs operating standard counting and claiming must
conduct direct certification with SNAP a minimum of three times during the school year.
More frequent direct certification efforts are encouraged, and may help increase access to
free school meals among eligible children. LEAs and schools operating a special Provision
must conduct a data match between SNAP records and student enrollment records at least
once annually [7 CFR 245.6(b)(1)(v)].
According to 7 CFR 245.6(b)(3(ii), at minimum, LEAs operating standard counting and
claiming must conduct direct certification matching with SNAP:
o At or around the beginning of the school year;
o Three months after the beginning of the school year; and
o 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 determined to receive reduced price or paid meals. 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. For more information, see The Direct Certification Process.

•

Letter Method: According to 7 CFR 245.6(b)(5)(ii), LEAs may accept SNAP notification
letters to a household as a secondary method of recognizing categorical eligibility for free
meals. Letters to households may also serve as an additional means to notify households of
children’s eligibility based on receipt of SNAP benefits.
If a household provides a SNAP eligibility letter to the LEA or school, the letter must be used
to establish eligibility, but will not be considered direct certification for reporting purposes.
This restriction applies only to SNAP and does not impact the use of the letter method for
TANF or FDPIR [7 CFR 245.6(b)(5)(ii)(B)].

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Notification of Eligibility Established Through Direct Certification
According to 7 CFR 245.6(c)(6)(ii), the LEA must notify the household, in writing, of eligibility
established through direct certification. The notification must explain that the child is eligible for
free benefits without further application. Further, the notification must clarify eligibility that free
meal benefits extend to all school-aged children in the household, and must inform households of
how to notify the LEA of any additional school-aged children in the household not listed on the
notification. Finally, the notification must explain how the household can notify the LEA if the
household does not wish to receive free benefits for directly certified children.
The LEA must also provide a notification to households with children directly certified through
the letter method or through contacts with officials, such as the LEA’s homeless liaison or a
foster care agency.
LEAs must ensure all households receive either a direct
certification notification or an application, and must also
ensure their methods of contact do not result in overt
identification of students determined eligible through the
direct certification process [7 CFR 245.1(b)]. Overt
identification is any action that may result in a child being
recognized as eligible to receive free or reduced price meals.
To prevent overt identification, LEAs could distribute
application materials through the mail. LEAs may also
distribute applications with other school materials in
individual packets received by all students. For more
information, see Preventing Overt Identification.

Record Retention
Applications
All free and reduced price applications, including applications from households determined
ineligible for benefits, must be kept on file for a minimum of three years after the final claim is
submitted for the fiscal year to which they pertain [7 CFR 245.6(e)]. Additional documentation,
such as notices of adverse action, must also be retained if the documentation shows changes
made to a child’s eligibility status during the school year.

69

Any application disregarded because all children in the household were determined categorically
eligible through direct certification must be retained and the date of disregard must be
documented. As stated at 7 CFR 245.6(b), if a household submits an application for directly
certified children, the direct certification eligibility determination will take precedence.
Each school must maintain a list of eligible children by status on site, while the actual
applications may be maintained within the school or LEA or at another central location. If an
LEA maintains applications at a central location, the applications must be readily retrievable by
school. The LEA must ensure any changes in eligibility status and transfers in and out of the
school are accurately and promptly recorded on each school’s list. Additionally, adequate
documentation for changes in eligibility status or student transfers must be retained with the
applications for three years. Files must be kept longer if they are required by an audit. Such files
must be retained until any issues raised by the audit are resolved.

Direct Certification Documents
LEAs must keep direct certification documentation on file for a minimum of three years after
submission of the final claim for reimbursement for the fiscal year to which the records apply.
Documentation must be kept longer if 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 [7 CFR 245.6(e)].
A list of eligible children must be maintained at the school. However, documentation may be
maintained either at the school or at a central location. If an LEA maintains documentation at a
central location, children’s categorical eligibility status must be readily retrievable by school.
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.

Special Provisions
Recordkeeping requirements for Provisions 2 and 3 and CEP are outlined at 7 CFR 245.9(h).
LEAs must retain records for all schools operating Provision 2 or 3. Base year records for
Provision 2 or 3 must:
• Establish claiming percentages to support subsequent years’ reimbursement;
• Be retained during the entire period (established by the base year) Provision 2 or 3 is in
effect, including all extensions, and for three years after the final claim for
reimbursement or until all audits are resolved; and
• Include documentation of the verification activities from the base year.

70

LEAs and schools operating CEP must retain records used in the development of the ISP during
the entire period CEP is in effect. This includes records for the initial approval year and all
records from the year any updates are made to the ISP.
Upon request, the LEA must make documentation available for review or audit to document
compliance with the recordkeeping requirements. Depending on the certification or
reimbursement alternative used, such documentation includes, but is not limited to: enrollment
data, participation data, ISPs, available and approved socioeconomic data that was used to grant
an extension, if applicable, or other data [7 CFR 245.9(i)].
All Provision 2 or 3 and CEP records must be retained for three years after submission of the
final claim for reimbursement. Record retention must continue if any audit findings from the
period during which the records were in use remain outstanding. In any such case, records must
be retained until all issues raised by the audit have been fully resolved [7 CFR 245.9(h)].

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Section 3: Questions and Answers
1. If an LEA uses a computer system to generate eligibility determinations, must the
determining official sign or initial each application?
The LEA (not the computer system) is ultimately responsible for determining eligibility for
free or reduced price meals. The LEA must ensure their computer system meets all
requirements and performs all functions as outlined in this guidance with a high degree of
accuracy. The determining official may sign or initial and date a separate sheet of paper that
could then be attached to a batch of applications. Alternatively, the official may make a note
to the electronic file. The computer system should be able to capture the original date of the
approval and the basis for the determination (i.e., household size and income), and update the
status of applications to account for transfers, withdrawals, terminations, and any other
changes.
2. May a food service management company assist with the processing of applications,
along with other management responsibilities?
While the LEA is ultimately responsible for ensuring all Program requirements are met, 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 employee
must comply with all requirements for these processes, including limited disclosure of
individual eligibility information. For more information, see Section 5: Confidentiality and
Disclosure.
3. What notification is recommended when an eligibility determination is made?
Households must be notified of their eligibility for benefits. LEAs may notify households of
their children’s eligibility by letter, via email, over the telephone, or by using an automated
notification system. If an application is denied, however, the household must be notified of
the denial in writing through the postal service or an email sent to the parent or guardian’s
email address.
4. May a household determined to be eligible for free meals at the start of the school year
choose to submit a new application later in the school year?
Yes. While households are not required to report changes in their circumstances, a household
may choose to submit a new application during the school year. The new application would
supersede the original application. In this case, the LEA must explain to the household that
the household is not required to report the change due to the year-long duration of eligibility.
The change will only go into effect if the household requests the change in writing. If
benefits are voluntarily decreased, the LEA must send a notice of adverse action.

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5. What should a school do if a household eligible for free meals wishes to pay at the
reduced price?
The school should respect the household’s wishes and allow the household to pay the
reduced price charge. The household’s application should correctly reflect the child’s
eligibility status, but should include a note that the family has elected to pay the reduced
price charge. Meals served to such a child must be claimed at the reduced price
reimbursement rate, since the school received the reduced price payment from the household.

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Section 4: The School Meal Application
This section includes information on:
•
•

Required content for the school meal application; and
Different application types and formats.

Application Overview
LEAs must provide household applications to families applying for free and reduced price meals
or free milk benefits, unless the household has been directly certified. The application and all
supporting materials must be clear, simple in design, and understandable and uniform in format.
The application materials must also conform to the requirements described in this section.
In August 2016, FNS released a memorandum outlining steps State agencies, LEAs, and schools
can take to improve the application process and encourage eligible families to apply. To review
the strategies included in the memorandum, please see SP 43-2016 (v. 2): Ensuring Access to
Free and Reduced Price School Meals for Low-Income Students - Revised,
http://www.fns.usda.gov/ensuring-access-free-and-reduced-price-school-meals-low-incomestudents.

Application Content
This section lists the information required in the application, beyond the required reporting
information specified in Section 3: Establishing Eligibility. Except for the information in the
attesting statement, the required information on the application form may be separate from the
signature block and organized at the LEA’s discretion. For example, the Use of Information
Statement may be referred to in the signature block, on the reverse side of the application, or
included with the instructions on how to complete the form.
Requirement 1: Use of Information Statement
Because only the last four digits of an adult household member’s Social Security Number (or an
indication of “none”) are required, the Privacy Act statement is no longer needed. The Use of
Information Statement must be provided on the application instead, exactly as follows:
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 submit all needed
information, 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 primary wage earner or other adult
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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.
We may share your eligibility information with education, health, and nutrition programs to
help them evaluate, fund, or determine benefits for their programs, auditors for program
reviews, and law enforcement officials to help them look into violations of program rules.
Requirement 2: Attesting Statement
A statement must be included directly above the
signature block for the signing adult to certify:
• The person signing is providing true information;
• The application is being made in connection with
the receipt of Federal funds;
• School officials may verify the information on the
application; and
• Deliberate misrepresentation of the information
may subject the applicant to prosecution under
State and Federal statutes.
Requirement 3: Children’s Racial and Ethnic Identities
Although survey questions on children’s ethnicity and
race are optional for households to complete, they must
be included on the application. The required categories may be found in FNS Instruction 113-1:
Civil Rights Compliance and Enforcement – Nutrition Programs and Activities,
http://www.fns.usda.gov/sites/default/files/113-1.pdf. State agencies may include additional
categories along with those required by FNS or may disaggregate a category, provided they
follow the FNS reporting requirements. If the applicant fails to provide this information, school
officials should follow the guidance included in FNS Instruction 113-1 to collect this data.
Requirement 4: Categorical Eligibility Based on Assistance Programs
The application must provide space to identify the case number of any household member who
receives benefits from Assistance Programs. When a case number for one of the three Assistance
Programs (SNAP, TANF, and FDPIR) for any household member is listed on the application, all
children in the household are eligible for free meals. For more information, see: Assistance
Program Participants.
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Requirement 5: Other Source Categorical Eligibility and Income Eligibility
In the case of children designated as Other Source Categorically Eligible (with the exception of
Head Start where LEAs should have access to complete participation records for children) the
application must provide space for indicating status in the Other Source Categorical Eligibility
Programs. For more information, see: Other Source Categorically Eligible Program
Participants. 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. For more
information about mixed households, see Special Situations When Determining Eligibility.
Other Requirements:
When distributing the household applications, LEAs must:
• Provide households with instructional materials similar to those included with the
Prototype Applications. (See: Appendix B: Prototype Applications.)
• Provide one household application for all children who attend schools in the same LEA.
• Include the full USDA Nondiscrimination Statement.
When distributing household applications, LEAs may:
• Pre-fill the application with data (other than income data) from the prior year or from
another school source.
When distributing the household application, LEAs may not:
• Require separate/multiple applications for each child in a mixed household that includes
children who are Other Source Categorically Eligible and children who apply based on
household income.
• Require a household to submit an application.
In addition, if the LEA chooses to provide additional
benefits (e.g., free school books, computers, or exam fee
waivers) for children eligible for free and reduced price
meals, the LEA must obtain informed consent from the
household. LEAs must also ensure children are not
overtly identified when providing additional benefits
based on their eligibility for free and reduced price
meals. (See: Section 5: Confidentiality and Disclosure.) LEAs may not request additional
information to determine eligibility for other programs if the information requested creates a real
or perceived barrier to participation in the CNPs. For more information, see: SP 50-2011,
CACFP 27-2011, SFSP 20-2011: Free and Reduced Price Meal Applications – Requests for
Additional Information, http://www.fns.usda.gov/free-and-reduced-price-meal-applications%E2%80%93-requests-additional-information.

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Foreign Language Translations
USDA’s LEP guidance, released in 2014, requires State
agencies, LEAs, and schools that receive Federal
funding to ensure language is not a barrier to receiving
school meal benefits. State agencies, LEAs, and schools
are required to take reasonable steps to ensure
meaningful access for individuals with LEP to the
information and services they provide. Program
operators that fail to provide services to LEP individuals
may be discriminating on the basis of national origin
and may be in violation of Title VI of the Civil Rights
Act of 1964. See SP 37-2016: Meaningful Access for
Persons with Limited English Proficiency in the School
Meal Programs: Guidance and Q&As,
https://www.fns.usda.gov/meaningful-access-personslimited-english-proficiency-lep-school-meal-programsguidance-and-qas, for more information.
In order to ensure meaningful access, State agencies and LEAs must assist persons with LEP
throughout the application process. To begin, many schools identify an individual’s primary
language during the school enrollment process and store this information in an online database to
ensure communications sent to families throughout the school year are sent in the appropriate
language. LEAs may use the Home Language Survey, USDA’s “I Speak” survey, or other
language surveys to help identify household language needs. (See: I Speak Statements,
http://www.fns.usda.gov/sites/default/files/cnd/Ispeak.pdf.)
Once a school becomes aware of a language need, the school is responsible for ensuring the
individual’s application and other household materials (letter, instructions, notices, and
verification materials) are available in an understandable language. Simply offering the most
common non-English language is not sufficient. LEAs may use the translated application
materials available through FNS to ensure households comprised of LEP individuals have access
to free and reduced price application materials in a language they can understand. Use of these
materials will also benefit LEAs, as providing materials in an understandable language improves
the accuracy of the information provided by households, reducing certification errors. These
materials, available in 49 languages for SY 2017-2018, may be viewed and downloaded at:
http://www.fns.usda.gov/school-meals/translated-applications.
State agencies must ensure the FNS Paper-Based Prototype Application is available to their
LEAs, and ensure LEAs that do not have their own translations make the FNS prototype
materials available to the families who need them. The nonprofit food service account may be
used to pay for translation services for food service purposes if there is a need to translate
materials to a language currently unavailable.
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LEAs also should provide language services to assist families during the application process.
When necessary, LEAs should provide oral interpretation services to parents or guardians with
LEP and limited literacy. Household members (especially children) are not expected to provide
interpretive services. In many circumstances, household members are not competent to provide
accurate interpretations, and the use of household members to provide interpretations may create
a conflict of interest. Reliance on children is especially discouraged unless there is an extreme
emergency and no qualified, competent interpreters are available.
LEAs should carefully explore the most cost-effective means of delivering competent and
accurate language services before limiting services due to resource concerns. For example, LEAs
may consider sharing language assistance materials and services among and between recipients,
advocacy groups, and Federal grant agencies. LEAs should become familiar with State and local
organizations, such as migrant or refugee assistance agencies, that may be available to provide
language assistance.
State agencies and LEAs are expected to have a system in place to provide verification notices to
each household in the parent or guardian’s primary language. States and LEAs are expected to
follow up with households that do not respond to the initial verification request and provide oral
assistance if the parent or guardian has difficulty understanding the written request. Translations
of FNS prototype verification materials are available online. (See: Translated Applications,
http://www.fns.usda.gov/school-meals/translated-applications.)
For more information, see SP 37-2016: Meaningful Access for Persons with Limited English
Proficiency in the School Meal Programs: Guidance and Q&As,
http://www.fns.usda.gov/meaningful-access-persons-limited-english-proficiency-lep-schoolmeal-programs-guidance-and-qas.
Citizenship and Legal Status
An LEA may not request that applicants provide information regarding citizenship. USDA has
determined the CNPs are not subject to Title IV of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, which restricts certain welfare and public benefits for
undocumented individuals. 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. For more information, see: SP 50-2011, CACFP 27-2011,
SFSP 20-2011: Free and Reduced Price Meal Applications – Requests for Additional
Information, http://www.fns.usda.gov/free-and-reduced-price-meal-applications-%E2%80%93requests-additional-information.

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Application Formats
Requirements for All Applications
In SY 2015-2016, FNS amended the Paper-Based Prototype Application, resulting in various
content and visual changes. The required format changes were phased in, beginning in
SY 2016-2017.
As of SY 2016-2017, the Indication of No Income element
from the Paper-Based Prototype Application must be part of
all paper application designs. This requirement applies, even
when a State or local agency uses their own application
design, rather than the FNS prototype. Applications must
request applicants without income write “zero” in the
applicable field or mark “no income” when there is no
income to report, but they may not require a separate
indication of no income, such as a check box or another
fill-in field. The application must convey to the applicant in
a clear and easy to understand instruction that any income
field left blank is a positive indication of no income and
certifies that there is no income to report. Applications with
blank income fields are to be processed by the school
district as complete, rather than incomplete as in prior
practice. See SP 33-2015: Revised Prototype Free and Reduced Price Application Materials:
Policy Changes and Design Overview, http://www.fns.usda.gov/revised-prototype-free-andreduced-price-application-materials-policy-changes-and-design-overview. On a web-based
application, it is recommended that incomplete responses to an income field or any other
required field prevent the applicant from progressing or making a submission. In these cases, it is
also recommended to include error or warning messages that indicate what information is
missing, and if possible, direct the applicant to fields where that information must be submitted.
The application modifications below were optional for SY 2015-2016 and SY 2016-2017.
However, beginning in SY 2017-2018, the following elements now are required:
•

Total Household Members Reporting Field: Paper applications must include a field for
reporting the total number of members present in the household. A web-based application
may accomplish this by requiring household confirmation of a total computed by the
application. This is an accountability safeguard and encourages the household to report
all members who are present. Electronic applications may be exempt from explicitly
following this requirement if they otherwise ensure the household has been given a clear
opportunity to report all household members.
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•

Placement of Social Security Number Reporting Field: State and local agencies must
structure their applications to ensure only those households applying on the basis of
income are requested to provide the last four digits of an adult household member’s
Social Security Number (or indicate a lack thereof). Households applying based on
categorical eligibility status only are not required to provide this information. The
Prototype Applications accomplish this by making the Social Security Number reporting
field part of the income reporting section, though this format is not required.

Applications should contain a notice informing individuals with LEP and individuals with
disabilities how they may request free language assistance or auxiliary aids and services if they
need assistance completing the form.

Application Types
Paper Applications
If an LEA only uses paper applications, an application form and instructions must be included
with the letter to households. A sample household letter and instructions are included with the
Paper-Based Prototype Application developed by FNS. See: Applying for Free and Reduced
Price School Meals, http://www.fns.usda.gov/school-meals/applying-free-and-reduced-priceschool-meals.
Electronic and Scanned Applications
In accordance with the Child Nutrition and WIC Reauthorization Act of 2004 (P.L. 108-265),
FNS encourages LEAs to make electronic applications available and accept applications
electronically. LEAs may also scan paper applications. When using electronic and scanned
applications:
• All disclosure restrictions must be met, and acceptance of the application and electronic
signatures must conform with FNS policy. See: SP 10-2007, SFSP 06-2007,
CACFP 07-2007: Update on Electronic Transactions in the Child Nutrition Programs,
http://www.fns.usda.gov/update-electronic-transactions-child-nutrition-programs-1.
• The system should include a statement explaining how to obtain a paper application if a
household decides they do not want to complete an application electronically.
• The process for scanning applications must meet all requirements and perform all
functions as outlined in this guidance.
Electronic Applications
If the LEA uses an electronic system as one of their application processes, the letter to
households must inform the household how to access the system in order to apply for benefits.
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The letter must also explain the household still has the option to submit a paper application and
must indicate how the household may obtain and submit a paper application from the school.
When using electronic applications:
• The application must contain the information required of all applications. LEAs are
encouraged to use an electronic application with as comprehensive a set of integrity and
accessible features as the FNS Web-Based Prototype Application. See the Guide to
USDA’s Web-Based Prototype Application for additional information
(https://www.fns.usda.gov/school-meals/web-based-prototype-application).
• The system must include a question or data field to indicate a child’s migrant, runaway,
foster, or homeless status.
• The system may ask for a student identification number or a child’s birth date. However,
the household must be informed that these data fields are not required by NSLP, SBP, or
SMP. Since the additional information is not required for a child’s certification of
eligibility for free or reduced price meals, the applicant must still be able to advance
through and submit the application without completing those fields. Furthermore, such
applications must be considered complete, provided that all reporting requirements are
otherwise met. (See: SP 50-2011, CACFP 27-2011, SFSP 20-2011: Free and Reduced
Price Meal Applications – Requests for Additional Information,
http://www.fns.usda.gov/free-and-reduced-price-meal-applications-%E2%80%93requests-additional-information)
Note: USDA and FNS do not currently evaluate, recommend, approve, or endorse
any software used for certification or verification purposes. LEAs are responsible
for assuring that any automated certification and verification processes meet all
regulatory requirements and policies, including the calculation of household
income when multiple frequencies are reported.

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Section 4: Questions and Answers
1. At the local level, applications sometimes request a birth date or other information not
required by statute or regulation. Should LEAs mark applications missing such
information as complete?
Yes. Since the additional information described above is not required by statute or regulation
for a student’s certification of eligibility for free or reduce price school meals, an application
(whether paper or electronic) must be considered complete even if the additional information
is not provided.
2. May a web-based application system ask for a student identification number or student
birth date?
A web-based application system may ask for a student identification number or student birth
date if the LEA notifies households that the two data fields are not required by the NSLP,
SBP, or SMP. The LEA also must ensure a paper-based application is available to
households that do not wish to provide the additional information. This notification should be
included on the web-based portal. The disclaimer should indicate the availability of a
paper-based application and provide a contact number for further assistance.
3. Is the application considered complete if the racial/ethnic data collection question is not
completed?
Yes. The household is not required to complete the racial/ethnic data question. Failure to
provide this information must not affect a child’s eligibility for benefits. If the applicant fails
to provide this information, school officials should follow the guidance included in FNS
Instruction 113-1: Civil Rights Compliance and Enforcement – Nutrition Programs and
Activities, http://www.fns.usda.gov/sites/default/files/113-1.pdf to collect this data.

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Section 5: Confidentiality and Disclosure
This section includes information about:
•
•
•
•

Maintaining confidentiality when processing applications;
Preventing overt identification;
Federal, State, and local programs that may obtain student’s eligibility information; and
When parental or guardian approval is required prior to disclosure.

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 planning
to disclose children’s eligibility status for purposes other than determining and verifying free and
reduced price eligibility must inform households of this potential disclosure. In some cases, the
LEA must obtain consent of a parent or guardian prior to the disclosure. For example, LEAs
must notify households prior to disclosing information to Medicaid or CHIP, and must give
households the opportunity to decline the disclosure.
LEAs are prohibited from distributing and processing applications solely to obtain household
income information in order to determine the funding or benefits for programs other than the
CNPs. For example, LEAs may not distribute school meal applications solely to collect income
information for additional education funding from local nonprofits or community donors. Thus,
funds in the nonprofit school food service account cannot be used to pay the costs associated
with collecting and processing household income information for non-Program purposes. A
school or LEA must obtain this information through other means. If the school or LEA collects
such information for non-Program purposes through a separate application, the applications must
not be labeled as applications for benefits under the CNPs or give any indication CNP benefits
are contingent upon a household returning the application.
If LEAs provide households with multi-use applications, which include both application for
benefits from a CNP and for other benefits or programs, they must ensure households have the
option to submit an application solely for free and reduced meal or free milk benefits.
The LEA must seek written consent from the parent or guardian to use the information provided
on the application for non-Program purposes or for purposes not permitted in this guidance.
Consent must be obtained each school year and consent forms cannot be extended from one
school year to the next. For more information, see SP 16-2016, CACFP 06-2016, SFSP 10-2016:
Disclosure Requirements for the Child Nutrition Programs, http://www.fns.usda.gov/disclosurerequirements-child-nutrition-programs-0.

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Confidentiality Requirements
Section 9(b)(6) of the NSLA, 42 U.S.C.1758(b)(6) and regulations found at 7 CFR Part 245.6
explain the restrictions on the disclosure and use of information obtained from an application for
free and reduced price meals, as well as the criminal penalties for improper release of
information. While the law discusses applications specifically, the disclosure requirements also
apply to information obtained through the direct certification process.
Before developing State and local disclosure policies, State agencies and LEAs should discuss
the issue with their legal counsel as the issues of privacy and confidentiality of personal data are
complicated as well as sensitive.

Disclosure means revealing or using individual children’s Program eligibility
information obtained through the 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 application or through direct certification.

The NSLA establishes the disclosure limits for the CNPs. LEAs may, in limited situations,
disclose children’s free and reduced price meal eligibility information to programs, activities,
and individuals, as specifically authorized under the NSLA. Disclosure is always an option, not
a requirement. The LEA may opt to disclose children’s eligibility information to Medicaid or
CHIP officials if the State agency has not prohibited disclosure to these health insurance
programs and the family does not decline to have their children’s eligibility information released.
Children’s individual information must be protected and is subject to limited disclosure beyond
the current school year. More information may be found in Disclosure Requirements.

Preventing Overt Identification
LEAs must avoid any policy or practice leading to the overt identification of children receiving
free or reduced price meal benefits. Overt identification is any action that may result in a child
being recognized as potentially eligible for or certified for free or reduced price school meals.
LEAs must assure that their policy statement complies with this requirement. During an
Administrative Review, the State agency must ensure the policy statement addresses ways to
prevent overt identification.

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Unauthorized disclosure or overt identification of children receiving free and reduced price meal
benefits is prohibited under the NSLA. LEAs must ensure that a child’s eligibility status is not
disclosed at any point in the process of providing free and reduced price meals, including:
• Notification of the availability of free and reduced price benefits;
• Certification and notification of eligibility;
• Provision of meals in the cafeteria; and
• The point of service.
Schools accepting both cash and electronic payments must ensure children are not overtly
identified through the method of payment [7 CFR 245.8(b)]. To the maximum extent practicable,
schools must ensure the sale of non-Program foods and the method of payment for non-Program
foods do not inadvertently result in children being identified by their peers as receiving free and
reduced price benefits.
In addition, schools and LEAs must ensure children who receive free and reduced price benefits
are not overtly identified when they are provided additional services under programs or activities
available to low-income children based on their eligibility for free and reduced price meals. See:
SP 45-2012: Preventing Overt Identification of Children Certified for Free or Reduced Price
School Meals, http://www.fns.usda.gov/preventing-overt-identification-children-certified-freeor-reduced-price-school-meals.
Preventing Overt Identification of Directly Certified Students
LEAs are not required to provide applications to households when children are eligible for free
meals through direct certification. However, LEAs must ensure these children are not overtly
identified through the method used to distribute applications. For example, the LEA could send
applications to households that are not directly certified via mail or provide applications to all
households [7 CFR 245.6(b)(10)].
Aggregate Data
The LEA may disclose aggregate data to any program or requestor when individual children
cannot be identified through release of the aggregate data or by means of deduction
[7 CFR 245.6(f)]. An example of aggregate data is the total number of children eligible for free
and reduced price meals in the school district. As aggregate data does not identify individual
children, parental or guardian notification and consent are not needed. However, LEAs are
cautioned about release of aggregate data when individual children’s eligibility may be deduced,
such as through the release of data about a specific classroom when the number of eligible
children is small.

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Disclosure Requirements
The NSLA allows persons directly connected with the administration or enforcement of certain
programs or activities to have access to children’s eligibility information. The following table,
Disclosure, shows the circumstances for disclosing eligibility information. LEAs with concerns
or questions about disclosing children’s eligibility information should contact their State agency
for further guidance.
Disclosure
Recipient of Information

What May Be Disclosed

Requirements
Prior notice and
consent not required

Programs under the NSLA or CNA

All eligibility information

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
Prior notice and
consent not required

State education programs administered by a
State agency or LEA

Eligibility status only

Local education programs

No eligibility information,
unless parental or
guardian consent is
obtained

Parental or guardian
consent

Medicaid or CHIP, 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 or
guardians elect not to
have information
disclosed

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

State health programs other than Medicaid
or CHIP, administered by a State agency or
LEA

Eligibility status only

Prior consent not
required

Federal health programs other than
Medicaid or CHIP

No eligibility information,
unless parental or
guardian consent is
obtained

Parental or guardian
consent

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Disclosure
Recipient of Information

What May Be Disclosed

Requirements

Local health programs

No eligibility information,
unless parental or
guardian consent is
obtained

Parental or guardian
consent

Comptroller General of the United States for
All eligibility information
purposes of audit and examination

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

Prior notice and
consent not required

All eligibility information

“Need to Know”
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, as well as to
persons directly connected with the Comptroller General Office or law enforcement for an
authorized activity [7 CFR 245.6(f)(3)].
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 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 [7 CFR 245.6(f)(3)(i)].
Eligibility information cannot be made available to all school officials as a general practice.
Access must be limited to a student’s teachers who are directly responsible for the administration
of a Federal education program, or who are providing tutorial or other assistance under the
educational program. Teachers, guidance counselors, principals, or other school officials who are
not providing such assistance under the appropriate statutory or regulatory requirements cannot
have access. Online data systems must have a masking or de-identification capability to prevent
unauthorized access to free and reduced price eligibility status.
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State Medicaid agencies, CHIP agencies, and health insurance program operators receiving
children’s free and reduced price eligibility information must only use the information to enroll
eligible children in State Medicaid or CHIP [7 CFR 245.6(g)].
The following programs are considered “directly connected” to school eligibility data:
•

Federal or State Education Programs [7 CFR 245.6(f)(2)]:
Student names and eligibility status may be disclosed, without parent or guardian consent, to
a Federal or State education program. Prior to disclosing individual eligibility information,
determining officials should enter into a Memorandum of Understanding or other agreement
with all involved parties, including officials who administer the CNPs and officials who
administer the overall education functions. This agreement would specify: the names of the
individuals who would have access to the information, how the information would be used in
implementing a Federal education program, and how the information would be protected
from unauthorized uses and third-party disclosures. The agreement would also include a
statement of the penalties for misuse of the information.

•

National Assessment of Educational Progress (NAEP) [7 CFR 245.6(f)(2)(i)]:
Because NAEP is a Federal education program, LEAs may disclose, without parent or
guardian consent, children’s names and eligibility status to persons directly connected to the
administration or enforcement of NAEP. 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 the State assessment is part of the
NAEP. Other State education programs may access participants' names and eligibility status,
without parent or guardian consent. However, in both situations, 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 administration or
compliance, and their contractors. This does not imply that these persons have routine access
to participants' eligibility status. There must be a "need to know" 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. For more information, see SP40-2008: Reaffirmation of Policy on Limited
Disclosure of Children's Eligibility Information to the National Assessment of Educational
Progress (NAEP), https://www.fns.usda.gov/sp40-2008-reaffirmation-policy-limiteddisclosure-childrens-eligibility-information-national.

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•

Every Student Succeeds Act (ESSA):
ESSA is the nation’s Federal education law. Therefore, determining officials may disclose a
child’s eligibility status to persons directly connected with, and who have a “need to know,”
in order to administer and enforce ESSA requirements. However, other information obtained
from the free and reduced price application or through direct certification cannot be
disclosed.
Determining officials must keep in mind 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.

•

Family Educational Rights and Privacy Act
(FERPA):
FERPA (20 U.S.C. 1232g; 34 CFR Part 99) is a
Federal law that protects the privacy of student
education records. The law applies to all schools
that receive funds under an applicable program of
the U.S. Department of Education. However, CNPs
are subject to the disclosure restrictions imposed by
Section 9(b)(6) of the NSLA and not FERPA.

•

Other Federal CNPs [7 CFR 245.6(f)(3)(i)]:
LEAs may disclose all eligibility information from a household’s free and reduced price meal
application or information obtained through direct certification to persons directly connected
with the administration or enforcement of the programs authorized under the NSLA or CNA,
including the NSLP, SBP, SMP, CACFP, SFSP, and WIC.
This means that program eligibility information collected for any one of the CNPs may be
shared with another CNP, 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 household consent, to an SFSP administered by a parks
and recreation agency.

•

Other Federal or State Means-Tested Programs [7 CFR 245.6(f)(2)(ii)]:
LEAs may only disclose a child’s name and eligibility status to persons directly connected to
other Federal or State means-tested programs without household consent. However,
disclosure of any other information, such as a parent or guardian’s name and address,
requires household notification and consent.

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Notification and Notice
Disclosures That Require Parental Notification
Unless otherwise indicated in Disclosure Requirements, LEAs must inform the adult household
member who signed the application if they plan to disclose or use eligibility information outside
the originating program. This may be done by issuing a general notification of potential
disclosure or through a specific notification to disclose information to a particular program
[7 CFR 245.6(h)(2)(i)].
Notice Requirements [7 CFR 245.6(h)]
The notice of potential disclosure or specific disclosure may be included in the letter to
households that accompanies the free and reduced price application, on the application, or, for
children directly certified, in the document informing households of their child’s eligibility
through direct certification.
The notification should explain 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.
The notification of a disclosure requiring the consent of a parent or guardian, such as a disclosure
request for a local education or health program, must inform parents or 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
• The decision to disclose or not disclose will not affect their children’s eligibility for free
and reduced price meals or free milk.
The notice of potential or specific disclosure must be given prior to disclosure and parents or
guardians must be given a reasonable amount of time to respond. For more information, see
Appendix B: Prototype Applications. The following section outlines the situations where prior
notice and consent are necessary.
Disclosures That Require Household Consent
Parents or guardians may always provide consent for the disclosure of any or all of the
information related to their children’s eligibility status, or the information the household
provided through the free and reduced price meal eligibility process. In addition, parents or
guardians may request release of information to programs. The LEA must obtain written consent
signed by a parent or guardian according to the guidelines below.

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A disclosure of all eligibility information to any other Federal, State or local program or
individual not included in the NSLA requires household consent. Other programs that require
parental consent are local level programs and activities, including local health and local
education programs. For example, the disclosure of children’s free and reduced price eligibility
status to determine 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 children’s 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, determining agencies must
obtain household consent prior to disclosure.
Noncustodial Parent Requests for Disclosure
The LEA cannot disclose the eligibility status or the source of the child’s eligibility to the
noncustodial parent without consent from the parent household member who signs the
application. An attorney’s request would not be a sufficient justification for the release of the
application data. The sole exception would be under a court order or subpoena. LEAs should
consult with an attorney to determine if disclosure may be required.
Consent Statement for Disclosure
The consent statement must be in writing. It may be obtained at the time of application, or at a
later time. According to 7 CFR 245.6(i), the consent statement for this type of disclosure 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 CACFP, 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 CNP and that the information will not be shared by the receiving
program with any other entity or program.
• Enable parents, guardians, or adult participants to limit consent to only those programs
with which they wish 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
they want to have information disclosed to determine eligibility for benefits from a
certain program.

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Agreements and Memoranda of Understanding
For disclosures to Medicaid or CHIP, the decision
on disclosure is a joint State agency and LEA
decision. The LEA and receiving agency must have
an agreement or Memorandum of Understanding
outlining the arrangement to disclose children’s
information to Medicaid or CHIP. A State agency
may not enter into a Memorandum of Understanding
on behalf of all LEAs for disclosure to Medicaid or
CHIP, as each LEA must be given the opportunity
to decline providing free and reduced price meal and
free milk eligibility information to Medicaid or
CHIP [7 CFR 245.6(j)(1)].
According to 7 CFR 245.6(j)(2), the agreement or Memorandum of Understanding must include:
• The health insurance program or health agency receiving the child’s eligibility
information;
• Information to be disclosed, specifying the information must only be used to seek to
enroll children in Medicaid or CHIP;
• How the information will be used and how it will be protected from unauthorized uses
and disclosures;
• Penalties for unauthorized disclosure; and
• Signatures of officials of the determining agency and the Medicaid or CHIP 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 one year, or both.
Persons directly connected with the administration of Medicaid or CHIP 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 or CHIP requirements to
carry out initial processing of applications or to make eligibility determinations. LEAs should
work with the Medicaid or CHIP coordinator to determine the persons or entities in the State
who are authorized to enroll children in Medicaid or CHIP.

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LEAs must notify parents or guardians of their intent to disclose a child’s free or reduced price
school meal eligibility to Medicaid or CHIP and provide adequate time for any response
[7 CFR 245.6(h)(2)]. FNS recommends providing a minimum of 10 calendar days for parents or
guardians to respond. LEAs should include a date in the household notification statement to
inform households they must respond by a specified date if they do not want their information
disclosed to Medicaid or CHIP.
The LEA should also enter into a written agreement with other entities, including NAEP,
requesting the information prior to disclosing children’s eligibility information. The agreement
with these entities 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.
An agreement is not needed for Federal, State or local agencies evaluating or reviewing CNP
operations. Similarly, an agreement is not necessary for disclosures to the Comptroller General.
These activities are part of routine operations and enforcement of the CNPs.
For more information, see Appendix C: Prototype Agreement for Direct Verification.

Penalties for Improper Disclosure
According to Section 9 (b)(6)(C) of the NSLA, improper disclosure may result in a fine of up to
$1000 or imprisonment of up to one year, or both. Improper disclosure includes 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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Section 5: Questions and Answers
1. What does disclosure mean as it relates to children’s eligibility status?
Disclosure means revealing or using individual children’s program eligibility information
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,
microfiches, electronic communication, or any other means. It includes eligibility
information obtained through the application or through direct certification.
2. What eligibility information may an LEA disclose to a means-tested nutrition program?
Without household consent, the LEA may only disclose a child’s name and eligibility status.
Disclosure of other information, such as parent or guardian names and addresses, requires
household notification and consent.
3. For the purposes of disclosure, who are persons “directly connected” to the
administration of State Medicaid and CHIP?
Persons “directly connected” with the administration of State Medicaid or CHIP are State
employees and persons authorized under Federal and State Medicaid and CHIP requirements
to process applications or to make eligibility determinations. LEA officials should check with
their State Medicaid or CHIP coordinator to determine the persons or entities authorized to
enroll children in Medicaid or CHIP.
4. How long should LEA officials wait for a response from a parent or guardian before
releasing information to Medicaid or CHIP?
LEAs should provide parents with adequate time to respond. LEAs are encouraged to include
a notification on the statement sent to households informing households they must respond
by a specified date if they do not want their information disclosed to Medicaid or CHIP.
5. Is each LEA required to enter into a separate Memorandum of Understanding for
disclosing information to Medicaid/CHIP?
Yes, if the LEA and State agency agree to disclose children’s eligibility information to
Medicaid/CHIP, each LEA must be given the opportunity to decline providing information to
Medicaid/CHIP.

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6. May children’s eligibility information be shared with the school guidance counselor?
Yes, but only with household consent. Free and reduced price eligibility status may not be
shared with guidance counselors without household consent. An LEA or school could send a
letter to all households informing them of other school-based programs available to
households that qualify for free or reduced price meals. Interested households could then
contact the guidance office if they are interested in pursuing any of these benefits and to
complete a consent form.
7. If an LEA contracts with a third party server to store electronic school meal
applications, do confidentiality and disclosure requirements still apply?
Yes. Confidentiality and disclosure requirements surrounding the school meal applications
apply regardless of the application type. The information must be protected and only viewed
and/or released according to the guidelines. LEAs contracting with a third party must have an
agreement in place that clearly delineates FNS requirements for confidentiality.

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Section 6: Verification
In this section, you will find information on:
•
•
•
•
•
•

The initial steps for verification;
Application selection procedures, including available sample sizes;
When to review questionable applications;
Required procedures for notifications and follow-up;
Allowable sources for verification; and
How to determine if verification is complete.

Verification Overview
Section 9(b)(3) of the NSLA and regulations at
7 CFR 245.6a(c)(1) establish requirements for LEAs in
conducting verification of eligibility for free and reduced
price meals based on applications in participating schools.
Verification is only required when eligibility is
determined through the application process, and is not
required for eligibility determinations made through the
direct certification process.
Verification must include confirmation of either:
• Income eligibility;
• Receipt of assistance under SNAP, FDPIR,
or TANF, by the child or any member of
the household; or
• Other Source Categorical Eligibility.
Verification may also include confirmation of any other information required on the application,
such as household size.
According to 7 CFR 245.6a(c)(2),verification efforts are not required:
• For children who have been certified under direct certification procedures, including
children documented as migrant, runaway, or homeless; foster children; and children
enrolled in Head Start;
• For children in RCCIs, except for applications for non-residential students attending
the institution;

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•
•
•

•

•

In schools where FNS has approved special cash assistance claims based on economic
statistics regarding per capita income, such as in Puerto Rico and the Virgin Islands;
In schools participating only in the SMP;
In schools with non-pricing programs, which claim only the paid rate of reimbursement,
where all children are served with no separate charge for food service and no special cash
assistance is claimed;
In LEAs where all schools participate in CEP or in Provisions 1, 2, 3, except in the base
years in Provision 1, 2, or 3 schools in which applications are taken for all children in
attendance; and
For other FNS exemptions determined on a case-by-case basis.

Verification Completion Deadlines
The LEA must complete the verification
activities specified in this section no later than
November 15 of each school year
[7 CFR 245.6a(b)(1)]. However, the LEA
may request an extension of the November 15
deadline, in writing, from the 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 timely completion of
verification activities. A request for an
extension beyond December 15 must be
submitted by the State agency to the FNSRO
for approval [7 CFR 245.6a(b)(2)(i)].
Improving the Verification Process
Nationally, on average, around 40 percent of contacted households do not respond to the
verification notice, which results in the loss of meal benefits for potentially eligible children
(source: FNS-742 data from SY 2014-2015.) In order to minimize the risk of eligible children
losing access to meal benefits due to non-response, FNS released a memorandum highlighting
best practices to improve the verification process. To review the strategies outlined in the
memorandum, see SP 43-2016 (v. 2): Ensuring Access to Free and Reduced Price School Meals
for Low-Income Students - Revised, http://www.fns.usda.gov/ensuring-access-free-and-reducedprice-school-meals-low-income-students.

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Key Verification Terms
•
•
•

•
•

Direct Verification: Use of records from public agencies to verify children’s eligibility for
free and reduced price benefits.
Error Prone: Applications within $100 per month of the applicable IEGs.
Random Sampling: A sampling process where 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.
Sampling Pool: The total number of applications approved as of October 1.
Sample Size: The number of applications subject to verification. The minimum and
maximum sample size is three percent of the total or 3,000 applications, whichever is less.

Initial Steps for Verification
Each LEA must annually verify eligibility of children from a sample of household applications
approved for free and reduced price benefits for that school year, unless the State agency
assumes responsibility for verification on behalf of its LEAs.
LEAs may begin verification once the application approval process for the current school year is
underway and approved applications are on file. To begin verification, the LEA may project the
number of approved applications (the “sample pool,” see below) it anticipates will be on file on
October 1. This projection is based on prior years’ experience, i.e., the number of approved
applications in previous years. 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 LEAs must adjust the sample pool and sample size accordingly. If October 1 falls on a
weekend, LEAs use the next operating day to establish the sample pool. For more information,
see Application Selection Procedures.
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. The sample pool depends on the number of approved applications, including
paper and electronic applications. The sample pool is not based on the number of children
eligible for free and reduced priced benefits, as some eligible students will have established
eligibility through the direct certification process and will not have an application on file. In
addition, the sample pool does not include applications where all children in the household are
determined eligible based on documentation provided by the State or local agency responsible
for the administration of the SNAP, FDPIR or TANF or applications where all children in the
household are determined to be foster, homeless, migrant, or runaway children
[7 CFR 245.6a(c)(2)].
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Applications for “mixed households,” which include children who are eligible based on income
and other children who are eligible based on Other Source Categorical Eligibility, are subject to
verification and are included in the sample pool. Applications with case numbers for
participating children (who were not determined eligible through direct certification) are also
subject to verification. LEAs may choose not to count applications for students in split-session
kindergarten programs participating in the SMP when determining the verification sample pool.
Establishing the Sample Size
Once the sample pool is determined, the LEA calculates the sample size, or 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 or less than the standard
sample size or the alternate sample size (when the alternate sample size is used). LEAs must not
verify all (100 percent) of the applications. Verification conducted “for cause,” as described in
the following section, is completed in addition to the required verification sample size.

Verification for Cause
Apart from the required verification of a specified number of approved applications, regulations
at 7 CFR 245.6a(c)(7) require LEAs to verify any questionable application including, on a
case-by-case basis, verifying any application for cause when the LEA is aware of additional
income or persons in the household. This is known as “verification for cause.”
Determining officials are strongly encouraged to contact the household to clarify any information
that is unclear or questionable before certifying the application and proceeding with verification
for cause. Once households have been requested to provide documentation for cause, the LEA
must complete the verification process for these households.
Verification for cause cannot delay the approval of applications, and LEAs can begin the
verification process only after the determination of eligibility has been made. If an application is
complete and indicates the child is eligible for free or reduced price benefits, the application
must be approved while the LEA begins verification for cause.
Where appropriate, FNS supports use of verification for cause as a method for LEAs to address
integrity concerns. State agencies should ensure LEAs balance administrative requirements and
integrity with access to free and reduced price meals for eligible children. When conducting
verification for cause, the LEA verifies applications for cause following the standard verification
procedures described in this section.

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The LEA must send the household a Notification of Selection. The notification letter may be sent
with the Notice of Eligibility. If the household fails to submit requested verification information
by the date specified by the LEA, or submits verification information that does not support the
initial determination of eligibility, the LEA must send a notice of adverse action to terminate the
child’s free or reduced meal benefits.
Any verification for cause conducted by an LEA is separate from the verification sample
required by the NSLA and Program regulations. Verification for cause may be conducted at any
time during the school year. For more information, see: SP 13-2012: Verification for Cause in
the School Meal Programs, http://www.fns.usda.gov/verification-cause-school-meals-programs.
Questionable Applications and Information
While the verification sample may not exceed statutory limits, LEAs have an obligation to
follow-up when households submit applications with questionable and incomplete information.
It is important to note the restriction on the sample size does not apply to a State’s ability to
conduct application verification activities connected to general oversight responsibilities, which
may include verifying additional applications for cause. Prior to certifying children for benefits,
the determining official should review the application for any discrepancies in the information
provided.

If a discrepancy is found, the determining official should:
• Seek clarification about the information provided in order to
make a determination in a timely manner;
• Deny the application with an explanation that incomplete
information was provided; or
• Approve the application and verify for cause.

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 and reduced price benefits. However,
LEAs can use verification for cause to review approved applications when known or available
information indicates school district employees may have misrepresented their income on the
application. For example, the LEA could identify children of school district employees and use
available salary information to identify questionable applications, and then conduct verification
for cause on those questionable applications. It is recommended that an LEA consult with legal
counsel in establishing the parameters of verification for cause for school district employees.

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Application Selection Procedures
Available Sample Sizes
Section 9(b)(3) of the NSLA specifies verification sample sizes for LEAs. There are three
sample sizes established for verification activities, as described in the table below. The standard
sample size must be used by an LEA unless the LEA qualifies to use an alternate sample size.
As stated in Section 9(b)(3)(D)(iii) of the NSLA, the standard sample size is the lesser of three
percent or 3,000 of the approved applications on file as of October 1. For more information,
see: SP 27-2006: Verification Sample Size, http://www.fns.usda.gov/sp27-2006-verificationsample-size.
Available Sample Sizes

Standard

Standard Sample Size [7 CFR 245.6a(c)(3)]
Sample size equals the lesser of:
• Three percent of all applications approved by the LEA for the school year, as
of October 1 of the school year, selected from error prone applications; or
• 3,000 error prone applications approved by the LEA for the school year, as of
October 1 of the school year.

Alternate Sample Sizes Available to Qualified LEAs [7 CFR 245.6a(c)(4)]
Sample size equals the lesser of:
• Three percent of all applications approved by the LEA for the school year, as
Alternate
of October 1 of the school year, selected at random; or
One
• 3,000 applications approved by the LEA for the school year, as of October 1 of
the school year, selected at random.
Alternate
Two

Sample size equals the lesser of the sum of either:
• 1,000 of all applications approved by the LEA, as of October 1 of the school
year, selected from error prone applications; or
• One 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,
which provide case numbers in lieu of income information; or
• One-half of one percent (.05 percent) of applications approved by the LEA, as
of October 1, of the school year that provide case numbers in lieu of income
information.

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Completing the Sample Size
The LEA may not have enough applications that meet the criterion for sample sizes based on
error prone applications. When this happens, the LEA must select, using random sampling,
additional approved applications to complete the required sample size [7 CFR 245.6a(c)(5)].
In other situations, the number of error prone applications may exceed the required sample size.
When this happens, the LEA must randomly select, using random sampling, the required number
of applications from all error prone applications.

Qualifying to Use an Alternate Sample Size
There are two ways an LEA may annually qualify to use an alternate sample size based on
lowered non-response rates.
•

Lowered Non-Response Rate [7 CFR 245.6a(d)(2)]: Any LEA may use an alternate
sample size for any school year when its non-response rate for the preceding school year was
less than 20 percent. For example, for SY 2016-2017, an LEA could have used an alternate
sample size if in SY 2015-2016 the LEA’s non-response rate was 18 percent.

•

Improved Non-Response Rate [7 CFR 245.6a(d)(3)]: An LEA with more than 20,000
children approved by application as eligible, 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 was at least 10 percent below the non-response rate for the second preceding school
year.

The following table, Qualifying to Use an Alternate Sample Size, provides an example of how an
LEA may qualify based on an improved non-response rate.
Qualifying to Use an Alternate Sample Size
Year 1: SY 2014-2015
•

•
•
•

The LEA had 21,000 children approved for free and reduced price meal benefits based on a
total of 6,000 approved applications
o Therefore, 180 household applications (3 percent 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 percent (45 ÷ 180 as a percentage)
The LEA must improve the 25 percent non-response rate by at least 10 percent
The improvement rate is calculated by multiplying the non-response rate by 10 percent,
which is 25 percent x 10 percent = 2.5 percent

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Qualifying to Use an Alternate Sample Size
Year 2: SY 2016-2017
•
•
•

•
•

The LEA had 6,000 approved applications, so the sample size is 180 (3 percent of 6,000)
The number of non-respondents was reduced to 40 which is a non-response rate of 22.2
percent (40 ÷ 180 as a percentage)
The next step is to calculate the level of improvement needed between Year 1 and Year 2, by
subtracting Year 1’s non-response improvement rate from Year 2’s non-response rate (25
percent minus 2.5 percent = 22.5 percent)
Since 22.2 percent is less than the minimum non-response rate of 22.5 percent, the
improvement is greater than 10 percent
The LEA qualified to use an alternate sample size for SY 2016-2017

Year 3: SY 2017-2018
•

The LEA could 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 and
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. If the LEA determines it is eligible,
the LEA must contact the State agency in accordance with any procedures established by the
State agency for approval prior to use an alternate sample size [7 CFR 245.6a(d)(4)].

Post-Selection Procedures
There are two procedures the LEA completes prior to contacting the household to obtain
documentation of eligibility: the required confirmation reviews and the optional replacement of
certain applications.
Confirmation Reviews
Prior to any other verification activity, a determining official must review each approved
application selected for verification to ensure the initial determination was accurate. 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. The confirmation review must be done by
an individual other than the individual who made the initial eligibility determination
[7 CFR 245.6a(e)(1)].

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This requirement is waived if the LEA uses a technology-based system with a high level of
accuracy in processing an initial eligibility determination. The LEA must contact the State
agency to determine if its system qualifies them for this waiver. The State agency may request
documentation to support the accuracy of the LEA’s system. If the State agency determines the
technology-based system is inadequate, it may require the LEA to conduct a confirmation review
of each application selected for verification.
Once any required confirmation reviews are completed, the LEA will proceed with verification if
the initial determination was correct or incorrect, as follows:
LEA Responsibilities Following a Status Change [7 CFR 245.6a(e)(1)(i)(A-C)]
No Change in Status

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.

Status Change from
Free to Reduced
Price

Status Change from
Free or Reduced
Price to Paid

The LEA:
• Does not change the child’s status;
• Verifies the application;
•

Notifies the household of the correct eligibility status after
verification is completed and, if required, sends the household a
notice of adverse action.

The LEA:
• Immediately sends the household a notice of adverse action;
• Does not verify the application;
• Selects a similar application, such as another error prone
application, for verification; and
• Follows the confirmation review procedures for the selected
application.

Replacing Applications
After completing the confirmation reviews, the LEA may, on a case-by-case basis, replace up to
five percent of applications selected [7 CFR 245.6a(e)(2)]. Applications may be replaced when
the LEA believes the household would be unable to satisfactorily respond to the verification
request.

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If five percent of total applications in the LEA results in less than one application total, one
application may still be replaced. All results of the five percent calculation are rounded up to the
next whole number. Any application removed must be replaced with another approved
application selected on the same basis. For example, an error prone application must be
substituted for a withdrawn error prone application. The newly selected application must then
have confirmation review.
When an application is selected for verification
and, prior to hearing back from the household in
question, that household is found on a direct
certification list, the application does not have to
be replaced in the verification sample pool. The
application would be marked as a direct
certification in the appropriate box in Section 3 of
the FNS-742. LEAs should include these
applications in Field 5-5 (Number of applications
selected for verification) of the FNS-742 and indicate the number of these applications that are
being converted to direct certification in the remarks portion of the FNS-742.

Household Notification of Selection
Once post-selection procedures are complete, the LEA proceeds with household notification.
Requirements for household notification of selection for verification are included at
7 CFR 245.6a(f). When a household is selected for verification, the LEA must inform the
household, in writing, of its selection and must provide a list of the documents or other forms of
evidence the household must submit to the LEA. When the LEA uses agency records or direct
verification to confirm eligibility, a letter or email informing the household of its selection for
verification is not required, as verification is completed.
Any communications with households concerning verification must be in an understandable and
uniform format and, to the maximum extent practicable, in a language that parents and guardians
can understand [7 CFR 245.6a(f)]. State agencies and LEAs are expected to have a system in
place to provide written verification notices in the parent or guardian’s primary language, and to
provide oral assistance if the parent or guardian has difficulty understanding the written request.
Translations of FNS prototype verification materials are available at:
http://www.fns.usda.gov/school-meals/translated-applications. For more information, see:
Application Content.

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The household notification letter must include the following:
•
•

•
•

•

•

•

•

•

An indication that the household was selected for verification.
A modified Use of Information Statement as follows:
The Richard B. Russell National School Lunch Act requires the information requested in
order to verify your children’s eligibility for free or reduced price meals. If you do not
provide the information or provide incomplete information, your children may no longer
receive free or reduced price meals.
The full USDA Nondiscrimination Statement.
If a child is receiving benefits based on income, a list of the types of acceptable information
that may be provided to confirm current income:
o Pay stubs;
o Award letters from assistance agencies for benefits such as Social Security or SSI; or
o Support payment decrees from courts.
If a child is receiving benefits based on categorical
eligibility, an indication the household may provide
proof that a child or any household member is receiving
benefits under an Assistance Programs or that a child is
Other Source Categorically Eligible instead of providing
income information.
A warning that information must be provided by a date
specified by the LEA and that failure to do so will result
in termination of benefits.
A notice that documentation of income or receipt of assistance may be provided from any
point in time between the month prior to application and the time the household is required to
provide income documentation.
The name of a determining official who can answer questions and provide assistance.
The household must be able to contact a LEA or school official who can either assist them
directly or who can refer the caller to a specific person for help.
o If the household is unable to obtain assistance during their initial call, the LEA or
school official must attempt to initiate further assistance.
A telephone number the household can call at no cost for assistance.
o The LEA may establish a toll-free number or allow the household to reverse the
charges if any households in that LEA are outside the local calling area.
o The LEA may also provide different telephone numbers for each local calling area
within the LEA.

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Sources for Verification
When a household is selected for verification, it must provide “sources of information” to the
LEA to confirm current income or participation in a categorically eligible program. According to
7 CFR 245.6a(a)(7), sources of information may include written evidence, collateral contacts,
and systems of records. Households which dispute the validity of information acquired through
collateral contacts or a system of records must be given the opportunity to provide other
documentation [7 CFR 245.6a(a)(7)(iv)].
Acceptable documentation of income or receipt of assistance from any of the following 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.
Written Evidence
Written evidence is the primary source of eligibility confirmation for all households
[7 CFR 245.6A(A)(7(i)]. Written evidence most often includes pay stubs from employers or
award letters from assistance agencies or other government agencies.
•

For income eligible applications, acceptable written evidence contains: the name of the
household member; the amount of income received; the frequency received; and the date
the income was received. A pay stub with no dates would be insufficient written evidence
for an income eligible application.

•

For categorically eligible Assistance Program applications, an official letter or notice
indicating the child or any household member is receiving benefits from the program,
such as a notice of eligibility, would be acceptable written evidence. A document from an
Assistance Program that does not specify the certification period does not meet the
documentation for verification. For example, an identification card from an Assistance
Program (SNAP or TANF) is not acceptable as verification unless it contains an
expiration date [7 CFR 245.6a(f)(3)].

•

For Other Source Categorically Eligible applications, an official letter, notice, or list
from the appropriate State agency, social service agency, program office or coordinator,
or court would be acceptable written evidence.

The verifying official should examine the documentation provided to ensure the child for whom
the application was made is part of a household currently participating in an eligible program or
is a foster child. EBT cards cannot be used to confirm eligibility in SNAP and therefore cannot
be used for categorical eligibility purposes.

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If a household does not have satisfactory documentation, the household may request a signed,
dated letter from the appropriate office to verify the child is part of a household currently
receiving benefits. If written evidence is insufficient to confirm the income information on the
application, the LEA may require use of collateral contacts.
Collateral Contacts
A collateral contact is a person outside of the
household who is knowledgeable about the
household’s circumstances and can confirm a
household’s income level or participation in
Assistance Programs or Other Source Categorical
Eligibility Programs [7 CFR 245.6a(a)(7(ii)].
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
a collateral contact or designates a contact that is unacceptable to the verifying official. In either
case, no contact may be made without first notifying the household and obtaining its consent.
At the time of the notice, the household may consent to the contact or provide acceptable
documentation in another form. If the household refuses to choose one of these options, the
household’s eligibility will be terminated in accordance with normal verification procedures.
All information provided by collateral contacts (written or oral) 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 Assistance Program households that provided a case number on the
application may be accomplished by submitting a list of names and case numbers to the local
Assistance Program office for confirmation of certification of receipt of benefits from agency
records. More information can be found in Direct Verification.

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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
[7 CFR 245.6a(a)(7(iii)]. These records are not considered collateral contacts. Although Program
regulations do not require LEAs to notify households of selection when verification is made
through agency records, such agencies may have their own notification requirements.
If available to the verifying official, wage and benefit information maintained by the State
employment agency may be used to verify households. Such records are State records, and the
release of information maintained by State employment offices is governed by State law.
Other examples of agency records include information concerning SNAP, FDPIR, or TANF
eligibility, or information from agencies serving foster, homeless, migrant, or runaway children.
If the LEA contacts the other agency to obtain agency records well in advance of the November
15 deadline and the other agency does not respond, the LEA has a valid reason to ask the State
agency to extend the deadline. More information can be found in Direct Verification.

When a Household Provides Pay Stubs
Households may provide pay stubs with income from employment. If a weekly pay stub is
representative of what the household normally receives each week, one pay stub is sufficient.
If the household submits a pay stub including overtime, the determining 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 overtime is a one-time or sporadic source
of income, income should be calculated based on the regular monthly income without overtime.

Indication of “No Income”
If a household is selected for verification, and the household’s 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. The collateral contact may
be asked to document the duration and type of assistance that is provided to the household.

Direct Verification
Section 9(b)(3)(F) of the NSLA and Program regulations at 7 CFR 245.6a(g) permit LEAs to
“directly” verify approved applications selected for verification. Direct verification involves
using records from public agencies to verify household income or household participation in an
eligible program, helping relieve families of additional paperwork and reducing the gap in meal
benefits for eligible children resulting from non-response. Direct verification may be completed
at the State or local level, or through a joint effort at both levels.
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LEAs are not required to conduct direct verification. However, State agencies and LEAs are
encouraged to expand use of direct verification. Any LEA that intends to conduct direct
verification must contact the State agency for assistance with establishing a direct verification
method. Direct verification may be used when the household application, certified based on case
number, is subject to verification under the LEA’s use of alternative sample size.
LEAs may conduct direct verification activities with Assistance Programs and with the agency
that administers Medicaid and CHIP at the State level. 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.
If verification results in an increase in benefits (for example a child who is moved from the
reduced price to free category) the change is effective immediately and must be implemented no
later than three operating days from the date verification was completed. Households should be
promptly notified through the method the LEA uses to notify the household of approval for
benefits. For more information, see: SP 32-2006: Clarification of Direct Verification,
http://www.fns.usda.gov/sp32-2006-clarification-direct-verification.
Names Submitted for Direct Verification
The LEA must only submit the names of children certified for meal benefits and listed on the
application when submitting names to the agency administering an eligible program
[7 CFR 245.6a(g)(1)]. The names of other household members (all adults, children who are not
attending school, or children not approved for free and reduced price benefits) cannot be
submitted for direct verification purposes. For purposes of direct verification, when the data
indicates one child is participating in an eligible Assistance Program, all eligible children in the
household are verified. If none of the children in the household are confirmed through direct
verification, regular verification procedures must be followed.

Types of Direct Verification
Direct Verification with Assistance Programs
If information obtained through direct verification of an application for meal benefits indicates a
child is participating in an eligible Assistance Program, no additional verification is required.
The eligibility status of the child (or children) listed on the application is considered verified
[7 CFR 245.6a(g)(2)].

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Direct Verification with Medicaid and CHIP
If information obtained through direct verification with Medicaid or CHIP confirms a child’s
eligibility status, no additional verification is required. Medicaid and CHIP records that may be
used to verify eligibility will depend upon State income limits for these programs.
• If the State income limit for participation is at or below 133 percent of the Federal
poverty line, verification for children approved for FREE MEALS is complete.
• If the State income limit for participation is at or below 185 percent of the Federal
poverty line, verification for children approved for REDUCED PRICE MEALS
is complete.
Please see the following table, Direct Verification with Medicaid or CHIP, for more information
about direct verification with Medicaid and CHIP.

States with Medicaid
or CHIP Income
Limits of 133 Percent
or Less
[7 CFR 245.6a(g)(3)]:

States with Medicaid
or CHIP Income
Limits Between 133
and 185 Percent
[7 CFR 245.6a(g)(4)]:

Direct Verification with Medicaid or CHIP
If the income limit for Medicaid or CHIP is at or below 133 percent of
the Federal poverty line, or if households with income at or below 133
percent of the Federal poverty line can be identified through Medicaid
or CHIP participation, records from these agencies may be used to
verify eligibility.
If the income limit used for Medicaid or CHIP is between 133 and 185
percent of the Federal poverty line, direct verification information must
include:
•

The percentage of the Federal poverty line upon which the
applicant’s participation is based; or

•

The income and household size used by Medicaid or CHIP to
determine that the applicant is either at or below 133 percent or
between 133 and 185 percent of the Federal poverty line.

Documentation Timeframe
The NSLA requires information used for direct verification to be the most recent information
available. This information may not be dated more than 180 days prior to the date of the
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.
For direct verification, LEAs and State agencies may use:
• The latest available information for one month, within the 180-day requirement; or
• Information for all months from the month prior to application through the month direct
verification is conducted.
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For example, a State agency or LEA could use data for the month of September or (if available)
data for all months August through October.
If information provided by the public agency does not verify eligibility (i.e. the public agency
provides incomplete or inconsistent information) the LEA must proceed with regular verification
activities. Households may dispute the validity of income information acquired through direct
verification and shall be given the opportunity to provide other documentation.
[7 CFR 245.6a(g)(6)].

Verification Follow-Up
The NSLA requires LEAs to conduct verification follow-up activities. To continue the
verification process after 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.

Following Up with Households
The LEA must make at least one attempt to contact the household when the household does not
adequately respond to the request for verification [7 CFR 245.6a(f)(6)]. “Non-response” includes
no response and incomplete or ambiguous responses that do not permit the LEA to resolve
children’s eligibility for free and reduced price meals. The required follow-up attempt may be in
writing (mail or e-mail) or by telephone or text message. The LEA must document contact was
attempted. Additionally, the LEA must ensure LEP households are provided adequate language
assistance and understand the need to respond to the verification request, as outlined in Section
9(b)(8) of the NSLA and USDA LEP guidance.
The LEA must make a follow-up attempt when:
• The household does not respond to the initial request for verification;
• The household submits insufficient or obsolete written evidence;
• The household does not designate collateral contacts; or
• The collateral contacts are unable or unwilling to provide the requested evidence.
When following up with households, the LEA:
• Must inform the household that failure to provide adequate written evidence or failure to
designate an adequate collateral contact will result in termination of benefits;
• Must attempt to obtain the missing written evidence or collateral contact information; and
• Must contact the household to complete the verification process, if the collateral contact
is unwilling or unable to provide the requested information.
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If, after at least one follow-up attempt, the household responds and provides all needed evidence,
verification is considered complete for the household. As appropriate, the LEA would complete
verification by:
• Informing the household there is no change in benefits;
• Notifying the household its benefits will be increased; or
• Sending notice of adverse action.
LEAs are encouraged but not required to conduct additional
follow-up if a household fails to provide adequate
documentation after the first required follow-up. LEAs are
permitted to contract with a third party to assist with the
required follow-up activity. Any third party is subject to the
confidentiality requirements outlined in Program regulations.
For more information, see: SP 13-2005: Verification Activities
- Reauthorization 2004 Implementation Memo,
http://www.fns.usda.gov/verification-activities-%E2%80%93reauthorization-2004-implementation-memo-sp-13.
If the household does not respond or fails to provide adequate
documentation after the required follow-up (and, if applicable,
additional follow-ups), verification is considered complete for
the household when notice of adverse action is sent. A household’s refusal to cooperate with
efforts to verify will result in the termination of household benefits. Households refusing to
complete the verification process are counted toward meeting the LEA’s required sample of
verified applications [7 CFR 245.6a(f)4)]

When Verification is Considered Complete
The following examples demonstrate how the LEA determines whether or not a household
response is adequate and whether follow-up is required.
•

•

Household Action: The household submits either adequate written evidence or collateral
contact corroboration of income or categorical eligibility.
o Verification Status and Action: Verification is considered complete for this
household.
Household Action: The household submits either adequate written evidence or collateral
contact corroboration of income indicating that the children should receive either a
greater or lesser level of benefits.

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•

•

o Verification Status and Action: Verification is considered complete for this
household when the household is notified that its benefits will be increased or
decreased. If benefits are decreased, a notice of adverse action must be sent before
verification is considered complete.
Household Action: The household indicates, verbally or in writing, that it no longer
wishes to receive free or reduced price benefits.
o Verification Status and Action: Verification is considered complete when the
notice of adverse action is sent.
Household Action: The application provided case numbers. It is determined that no
household member is receiving benefits from an Assistance Program.
o Verification Status and Action: Verification is considered complete when the
notice of adverse action is sent.

Households must be notified of any reduction in benefits, and must be informed of their right to
reapply for benefits at any time [7 CFR 245.6a(f)(7)]. If benefits are decreased, a notice of
adverse action must be sent. LEAs must provide 10 days advance notification to households that
are to receive a reduction or termination of benefits, prior to the actual reduction or termination
[7 CFR 245.6a(j)].

Record Retention
All verified applications must be readily retrievable on an individual school basis. All documents
submitted by the household for the purpose of confirming eligibility, reproductions of those
documents, or annotations made by the determining official indicating which documents were
submitted by the household and the date of submission also must be retained, along with all
relevant correspondence between the households selected for verification and the school or LEA
[7 CFR 245.6a(h)]. This documentation, including documentation concerning any appeals, must
be kept by the LEA to demonstrate compliance with the verification requirements when LEAs
are reviewed by State or Federal officials. The documentation must be kept for a minimum of
three years, after the date of the fiscal year to which they pertain.
LEAs must also 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.

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Individual Applications
For each application verified, 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. When verification information is
needed for Administrative Review purposes, the LEA
must be able to provide the following information for
each school selected for review:
• Copies of all relevant correspondence between the households selected for verification
and the LEA, including notices of adverse action and records of follow-up attempts,
information obtained from collateral contacts, etc.
• One of the following for all documentation used to verify eligibility:
o All documents submitted by the household or reproductions of those documents;
o Direct verification results; or
o Documentation from Assistance Program or Other Categorically Eligible Program
officials, with dates of receipt of benefits and date of the information provided.
• Documentation for any change in eligibility as a result of verification, including:
o The reason for the change;
o The date the household was notified;
o The date it became effective, if necessary; and
o If applicable, records of follow-up attempts and results for termination for
non-response.
• The title and signature of the verifying official.
• Criteria for replacing applications for verification.
In cases where the actual documents or photocopies submitted by the household 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).

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Section 6: Questions and Answers
1. Is the LEA required to provide a no-cost telephone option, even if no households live
outside the local calling area?
Yes. The LEA is not required to have a toll-free number, but parents and guardians must be
able to call collect [7 CFR 245.6a(f)(5)]. This helps to ensure parents and guardians can
contact the LEA during the LEA’s operating hours if they work outside the local calling area.
2. What if the LEA is using other agency records to verify applications, and the agency
does not respond before the November 15 deadline?
The LEA should document its attempt to contact the appropriate agency in advance of the
November 15 deadline. This would demonstrate good faith, and would be a valid reason for
the State agency to extend the deadline.
3. A household voluntarily provides pay stubs that conflict with the income information
on the household’s application. According to the application, the household is eligible
for free meals, but according to the pay stubs, it appears the household is not eligible.
What should the determining official do?
Under these circumstances, the 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, giving the household an opportunity to resolve the discrepancy during the
advance notice of adverse action.
• 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 which action is appropriate. Regardless of
the action taken, the inconsistency must be resolved expeditiously.
4. How is overtime income counted for the purposes of verification?
The LEA official should work with the household to determine whether overtime during the
verification month is representative of overtime worked in other months. If the overtime is a
rare or sporadic source of income, the household’s income should be calculated on the
regular monthly income without the overtime.
5. If a household is paid weekly, and submits a pay stub for a week, must the LEA request
pay stubs for a whole month?
If the weekly pay stub is representative of the household’s regular weekly income, one pay
stub if sufficient.

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6. 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 a school district before the
information can be verified, verification cannot be completed. To meet minimum verification
requirements, a new application must be selected.

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Appendix A: Policy Statement
The free and reduced price policy statement must contain, at a minimum, the following:
• Names of officials, 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);
• The LEA’s specific procedures to accept applications for benefits and its direct
certification procedures;
• Description of the methods 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 and reduced price meals or free milk;
• An assurance that the school will abide by the hearing procedures and the
nondiscrimination practices;
• A copy of the application form and letter to households;
• A 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, this does not
prevent a foster child from receiving free meal benefits;
• An 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 the source of their status on the application;
• 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 and reduced price meals or free milk; and
• 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:
o Media release;
o Notice to households of approval or denial of benefits;
o Notice to households of selection for verification;
o Notice to households of adverse action; and
o Notice of eligibility, based on direct certification.
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Amendments
Unless there is a substantive change made to the free and reduced price policy of the LEA, the
policy statement need not be changed and resubmitted for State agency approval. Routine
changes, such as inclusion of the new IEGs, are not sufficient to require resubmission.
The LEA must amend its policy statement for any substantive changes to its free and reduced
price policy and include a description of the change. In all cases, the LEA must have an
approved policy statement on file at the State agency that accurately describes its current free
and reduced price policies. Amendments must be submitted for approval by the State agency by
October 15. The amendments must be approved by the State agency prior to implementation.
The amendments must reflect:
• Changes made necessary by law or regulations;
• Changes made by the LEA (e.g., changes in collection procedures, designation of new
approving or hearing officials, changes in procedures for accepting applications, revisions
in the letter to households or application for free and reduced price meals or free milk);
• Additional information specified by the State agency.
LEAs Operating the Special Milk Program (SMP)
A free policy statement must be approved by the State agency or FNSRO 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 Applications
Paper-Based Prototype
LEAs are encouraged to use the FNS Prototype Application for Free and Reduced Price School
Meals to support access to school meals for eligible children. The Prototype Application
complies with Federal requirements and meets all criteria examined during Administrative
Reviews. These materials, updated in SY 2016-2017, may be adapted for direct use by State and
local agencies or used as a reference for designing an effective application packet.
The Prototype Application for Free and Reduced Price School Meals, which may be viewed and
downloaded at: https://www.fns.usda.gov/school-meals/applying-free-and-reduced-price-schoolmeals, is accompanied by the following materials:
• Prototype letter to households, titled Frequently Asked Questions About Free and
Reduced Price School Meals
• Prototype Application instructions, titled How to Apply for Free and Reduced Price
School Meals
• Prototype information sharing authorizations:
o Sharing Information with Medicaid/CHIP
o Sharing Information with Other Programs
• Prototype verification materials:
o We Must Check Your Application
o We Have Checked Your Application
• Prototype household benefit issuance notifications:
o Notice to Households of Approval/Denial of Benefits
o Notice of Direct Certification
Updates to the paper prototype in SY 2016-2017 included several design modifications intended
to simplify the application for households and improve application processing by local officials.
Inclusion of these elements on the application is optional:
• The income reporting fields in the paper prototype ask for income sums in whole dollars
only. Standard rounding rules apply. To round amounts to the nearest whole dollar, round
down amounts from 1 to 49 cents and round up amounts from 50 to 99 cents. For
example, a weekly income of $305.47 would be rounded down to $305.
• In recognition that children do not receive income on a regular basis, the paper prototype
separates income reporting sections for adult and child household members. Household
member reporting sections for infants, children, and students up to grade 12 are apart
from those for adult household members. This is intended to reduce the risk of duplicate
entries and more accurately reflect a list of all household members. Income for children is
then totaled into a single reporting field.
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•

•

•

The paper prototype includes a “grade” field in the children and students reporting
section. The additional identifying information will assist in the matching of student
names to existing enrollment figures.
The paper prototype includes a “For School or District Use Only” section to assist in the
review process for determining officials. This feature was included on prior application
designs and has been returned to the application based on feedback from State and local
officials.
The paper prototype has moved the “Source of Income” table from the instructions
document to the top of the reverse side of the Prototype Application.

LEAs are encouraged to accept the paper prototype when submitted by households, even if the
prototype is not identical to the application provided by the LEA.
FNS has translated all of the paper prototype materials into 49 non-English languages. The
translated applications are available on the FNS website: http://www.fns.usda.gov/schoolmeals/applying-free-and-reduced-price-school-meals.
Web-Based Prototype
On November 30, 2016, FNS released its first Web-Based Prototype Application for Free and
Reduced Price School Meals v1.0. While use of this application’s design and/or programming
code is optional, FNS encourages adoption of its critical integrity features.
Reducing error rates in the NSLP and SBP was a key motivation behind the development of the
Web-Based Prototype Application. The new model application incorporates research-backed
design features intended to reduce applicant error that can lead to improper over-certification or
mistaken denial of program benefits.
State and local agencies may choose to adapt the Web-Based Prototype Application for their own
use, or may borrow design features from the prototype when developing their own web-based
applications. FNS also encourages software vendors that serve the school market to incorporate
any or all of the prototype’s integrity features into their own products. The application was
developed using “open source” code, so it is free to use and copy without charge. Notably, the
application is mobile-friendly, and will recognize the type of device the applicant is using and
adjust accordingly.
The Web-Based Prototype Application materials are not structured for direct or immediate use by
households. These materials must be adapted and integrated with appropriate data management
systems maintained at the State and/or local levels prior to household use. The Web-Based
Prototype Application will require some initial investment in order to complete this integration,
and the cost will vary depending on a number of factors, including any systems already in place
and capabilities of available information technology (IT) resources. However, the extensive
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coding work that contributed to the development of the prototype as-released represents a
significant down payment on the total programming and implementation costs associated with
designing a web-based application from the ground up.
The FNS website provides many resources related to the Web-Based Prototype Application,
including a web-based interactive demo, Q&A guidance, a comprehensive guide, and a
downloadable copy of the source code for the electronic application. To view the resources,
please visit: http://www.fns.usda.gov/school-meals/web-based-prototype-application. The
demonstration version of the application on the USDA web site is just a model. School districts
must not direct their families to the demo; it is not a national school meal application.
States may adopt/adapt any or all of these materials, or develop their own State specific forms.
States may also permit local level agencies to design application materials. Local officials
seeking guidance or information about prototype application materials for their State may contact
the State agency responsible for the administration of the CNPs. State agency contact
information is available at: http://www.fns.usda.gov/school-meals/school-meals-contacts.

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OMB # 0584-0026
Expiration Date XX/XX/20XX

Appendix C: Prototype Agreement for Disclosure of Free
and Reduced Price Information

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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 U.S.C. 1751
et seq.) (NSLA) or Child Nutrition Act of 1966 (42 U.S.C. 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 U.S.C. 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 Children’s Health Insurance Program (CHIP). 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.

Program

CHECK ALL THAT APPLY
Information Authorized

Medicaid or the State Children’s Health Insurance
Program (CHIP), 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/CHIP, administered
by a State agency or local agency.

Eligibility status only;
Prior consent not required.

Specify Program:
Federal health program other than Medicaid/CHIP
Specify Program:
Local health program

No eligibility information
unless prior parental or
guardian consent is obtained.

Specify Program:

No eligibility information
unless prior parental or
guardian consent is obtained.

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:
Federal education program
Specify Program:

Eligibility status only;
consent not required.

III. Responsibilities
[Insert Name of Determining Agency] will:
When required, secure the consent of parents/guardians 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 CHIP, notify parents/guardians of potential disclosures and provide
opportunity for parents/guardians to elect not to have information disclosed;

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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) __________________________________________________
Use children's free and reduced price eligibility information for the following specific
purpose(s):
____________________________________________________________________________
____________________________________________________________________________
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 the 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)
____________________________________________________________________________
____________________________________________________________________________

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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)
____________________________________________________________________________
____________________________________________________________________________
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 U.S.C. 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, and 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: ___________________

Signature: ___________________

Title: ____________________

Date: _______________________

Phone: ___________________
Determining Agency Administrator:
Name: ___________________

Signature: ___________________

Title: ____________________

Date: _______________________

Phone: ___________________

*Any attachments will become part of this agreement.

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Appendix D: Policy Memos
May 10, 2017

SP 29-2017: 2017 Edition: Overcoming the Unpaid Meal Challenge:
Proven Strategies from Our Nation’s Schools

March 23, 2017

SP 23-2017: Unpaid Meal Charges: Guidance and Q&A

March 15, 2017

SP 19-2017: Reporting Annual Income on School Meal Applications

December 1, 2016

SP 08 CACFP 04 SFSP 03-2017: Area Eligibility in Child Nutrition
Programs

December 1, 2016

SP 09-2017: 2017 Edition of Questions and Answers for the National
School Lunch Program’s Seamless Summer Option

October 7, 2016

SP 04-2017: Model Functional Requirements for State and Local
Information Technology Systems

September 30, 2016 SP 61-2016: Fall 2016 Edition: Community Eligibility Provision:
Planning and Implementation Guidance
September 9, 2016

SP 54-2016: Community Eligibility Provision: Guidance and Updated
Q&As

August 10, 2016

SP 43-2016 (v.2): Ensuring Access to Free and Reduced Price School
Meals for Low-Income Students

August 8, 2016

SP 51-2016: Ensuring Year-long Eligibility in the School Lunch and
School Breakfast Programs

July 8, 2016

SP 46-2016: Unpaid Meal Charges: Local Meal Charge Policies

July 8, 2016

SP 47-2016: Unpaid Meal Charges: Clarification on Collection of
Delinquent Meal Payments

May 24, 2016

SP 37-2016: Meaningful Access for Persons with Limited English
Proficiency in the School Meal Programs: Guidance and Q&As

April 29, 2016

SP 34-2016: Revised Prototype Free and Reduced Price Application
Materials for SY2016-17

December 28, 2015

SP 21-2016: Fiscal Year Reporting Timeline and Reporting Table
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December 7, 2015

SP 16 CACFP 06 SFSP 10-2016: Disclosure Requirements for the Child
Nutrition Programs

October 8, 2014

SP 02-2015: Online Fees in the School Meal Programs

June 19, 2014

SP 51-2014: Eligibility Effective Date for Directly Certified Students

April 30, 2014

SP 44-2014: Questions and Answers Related to the Independent Review
of Applications

April 24, 2014

SP 42 SFSP 17 CACFP 11-2014 Sharing Aggregate Data to Expand
Program Access and Services in Child Nutrition Programs

January 22, 2014

SP 17-2014: Discretionary Elimination of Reduced Price Charges in the
School Meal Programs

December 3, 2013

SP 11 CACFP 06 SFSP 11-2011: Effective Date of Free or Reduced Price
Meal Eligibility Determinations

June 25, 2013

SP 48-2013: Extending Flexibility for RCCIs in the NSLP

May 17, 2013

SP 40 CACFP 13 SFSP 13-2013: Q&As Regarding the Participation of
Head Start Programs in Child Nutrition Programs

November 28, 2012

SP 09 CACFP 04-2013: Streamlining At-risk Meal Participation for
School Food Authorities

August 24, 2012

SP 45-2012: Preventing Overt Identification of Children Certified for Free
or Reduced Price School Meals

July 16, 2016

SP 38-2012: Residential Child Care Institutions exception for safety if
serving Multiple Age/Grade Groups

April 10, 2012

SP 13-2012: Verification for Cause in the School Meal Programs

October 24, 2011

SP 02-2012: Verification and Reporting of Foster Children

June 15, 2011

SP 40-2011: Outreach to Households on the Availability of the School
Breakfast Program

April 1, 2011

SP 26 CACFP 15 SFSP 10-2011: Eligibility of Children Evacuated from
Japan and Bahrain
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December 6, 2010

SP 11 CACFP 02 SFSP 01-2011: Effects of Busing on Area Eligibility in
the CACFP, SFSP, and Afterschool Snack and the Seamless Summer
Option served through NSLP

September 15, 2010 SP 06 CACFP 03 SFSP 04-2010: Exclusion of Military Combat Pay

May 3, 2010

SP 25 CACFP 11 SFSP 10-2010: Q&As on Extending Categorical
Eligibility to Additional Children in a Household

April 19, 2010

SP 22 CACFP 10 SFSP 08-2010: Categorical Eligibility—Temporary
Assistance to Needy Families

January 29, 2010

SP 17 CACFP 07 SFSP 07-2010: Eligibility of Haitian Refugees for the
Child Nutrition Programs

August 27, 2009

SP 38 CACFP 08 SFSP 07-2009: Extending Categorical Eligibility to
Additional Children in a Household

September 29, 2008 SP 40-2008: Reaffirmation of Policy on Limited Disclosure of Children's
Eligibility Information to the National Assessment of Educational
Progress (NAEP)
March 26, 2008

SP 18-2008: Rebates from the Economic Stimulus Act of 2008

January 15, 2008

SP 07-2008: Charter School Involvement in the NSLP and SBP

June 15, 2007

SP 12 CACFP 09 SFSP 07-2007: Electronic Record and Reporting
Systems

May 1, 2007

SP 10 CACFP 07 SFSP 06-2007: Update on Electronic Transactions in the
Child Nutrition Programs

January 29, 2007

SP 04-2007: Scanned Income Applications

August 31, 2006

SP 32-2006: Clarification of Direct Verification

August 25, 2006

SP 30 CACFP 14 SFSP 07-2006: U.S. Armed Forces Family
Supplemental Subsistence Allowance – Permanently Excluded from
Income Consideration for the Child Nutrition Programs

July 25, 2006

SP 27-2006: Verification Sample Size

March 2, 2006

SP 14-2006: Reauthorization 2004: Communications Concerning
Verification Activities

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February 9, 2006

SP 12-2006: Commercial Software Used in School Nutrition Programs

December 23, 2005

SP 08-2006: Reauthorization 2004: Communication with Households

October 29, 2005

SP 02 CACFP 02 SFSP 01-2006: Treatment of Family Subsistence
Supplemental Allowance and National Flood Insurance Program payments
in Income Eligibility Determinations for Food and Nutrition Service
Programs

August 30, 2005

SP 17-2005: Initial Carry-over of Previous Year's Eligibility Reauthorization 2004: Implementation Memo - SP 17

March 10, 2005

SP 13-2005: Verification Activities - Reauthorization 2004
Implementation Memo SP-13

September 17, 2004 [No Code]: Guidance on Determining Categorical Eligibility for Free
Lunches and Breakfasts for Youth Served under the Runaway and
Homeless Youth Act

The full list of current NSLP policy memoranda is available on the School Program Policy Page.
Policy memorandum specific to the other CNPs are available on the CACFP Policy Page and
the SFSP Policy Page.

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Glossary of Acronyms
CACFP

Child and Adult Care Food Program

CEP

Community Eligibility Provision

CFR

Code of Federal Regulations

CHIP

Children’s Health Insurance Program

CNA

Child Nutrition Act

DEIP

Deployment Extension Incentive Pay

DOD

Department of Defense

EBT

Electronic Benefit Transfer

FDPIR

Food Distribution Program on Indian Reservations

FERPA

Family Educational Rights and Privacy Act

FNS

Food and Nutrition Service

FNSRO

Food and Nutrition Service Regional Office

FSSA

Family Subsistence Supplemental Allowance

FYSB

Family and Youth Services Bureau

IEGs

Income Eligibility Guidelines

ISP

Identified Student Percentage

LEA

Local Educational Agency

LEP

Limited English Proficiency

NAEP

National Assessment of Educational Progress

NFIP

National Flood Insurance Program

NSLA

National School Lunch Act

RCCI

Residential Child Care Institution

ROAP

Regional Office Administered Program
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SBP

School Breakfast Program

SFA

School Food Authority

SMP

Special Milk Program

SFSP

Summer Food Service Program

SNAP

Supplemental Nutrition Assistance Program

SSI

Supplemental Security Income

SSN

Social Security Number

SY

School Year

TANF

Temporary Assistance to Needy Families

WIC

Special Supplemental Nutrition Program for Women, Infants, and Children

USDA

United States Department of Agriculture

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Additional Resources
To keep up to date on Child Nutrition Program regulations, policy, and application changes,
program operators can use the following resources:
•

Child Nutrition Programs - PartnerWeb (State agencies only)
https://www.partnerweb.usda.gov

•

USDA-FNS School Programs Website
http://www.fns.usda.gov/school-meals/child-nutrition-programs

•

USDA-FNS School Programs Policy Page
https://www.fns.usda.gov/school-meals/policy/all

•

GovDelivery
https://service.govdelivery.com/accounts/USFNS/subscriber/new

•

Code of Federal Regulations Part 245 - Determining Eligibility for Free and Reduced
Price Meals and Free Milk in Schools
https://www.ecfr.gov/cgi-bin/textidx?SID=923dcc3cddf97f5b00569aaea0206369&mc=true&tpl=/ecfrbrowse/Title07/7cfr245
_main_02.tpl

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