This report examines the impact of using Medicaid data to directly certify students for free and reduced-price school meals in the National School Lunch and School Breakfast Programs in 15 states in school year 2017-18. Certification, participation and reimbursement outcomes for Cohort 1 states in their second year of implementation and Cohort 2 states in their first year of implementation are discussed.

This report examines in-depth the accomplishments, challenges, and lessons learned from 20 states that received and completed Administrative Review and Training (ART) Grants by the end of FY 2017. ART Grants provide funding for diverse activities aimed at reducing administrative error, including training for administrative personnel and improving state-level technologies in the National School Lunch and School Breakfast Program.

The Administrative Review is the process state agencies use to assess compliance with federal requirements of SFAs participating in the National School Lunch Program and the School Breakfast Program. This study assesses the AR process by examining the results from a purposive sample of ARs. The study also describes in-depth how nine selected state agencies conduct their ARs, and ways the process could be further improved.

FNS provides state administrative expense (SAE) funds to state agencies to support administration and oversight of federal child nutrition programs in their state. This study examines the formula used for allocations of SAE funds, identifies factors that influence state agency spending, and presents a series of options for consideration to potentially improve SAE allocations and procedures.

The study generates national estimates of administrative error in eligibility determinations and benefit issuance for free or reduced-price school meals.  For school year 2012-2013, local education agencies correctly certified 96.4% of students who applied for meal benefits.  LEAs assigned the correct free, reduced-price, or paid status to a slightly smaller 96.2% of students. 

The Healthy, Hunger-Free Kids Act directed USDA to study the extent to which school food authorities  participating in the National School Lunch and School Breakfast programs pay indirect costs to local education agencies. It specifically requested an assessment of the methodologies used to establish indirect costs, the types and amounts of indirect costs that are charged and not charged to the school foodservice account, and the types and amounts of indirect costs recovered by LEAs.

Under the Community Eligibility Provision, schools do not collect or process meal applications for free and reduced-price meals served in the National School Lunch Program and School Breakfast Program. Schools must serve all meals at no cost with any costs in excess of the federal reimbursement paid from non-federal sources.