The information in this second year report (school year 2012-13), the first year new lunch standards were implemented, will provide data for observing the improvements resulting from the implementation of the Healthy, Hunger-Free Kids Act. Data was collected from a survey of all state child nutrition directors and a nationally representative sample of school food authorities.

The Food and Nutrition Service conducted the Direct Certification with Medicaid (DC-M) demonstration that enables selected States and districts to use household income data from Medicaid files to directly certify students for free school meals. This report focuses on the experiences of States and districts conducting DC-M during School Year (SY) 2013-2014, the second year of the demonstration. It examines whether DC-M leads to changes in the percentage of students certified, the number of meals served, Federal reimbursements, and certification costs incurred by districts. It also assesses State-level administrative costs and identifies the challenges that States and districts face when implementing DC-M.