This report examines the impact of using Medicaid data to directly certify students for free and reduced-price school meals in the NSLP and SBP in fifteen states in school year 2019-20. It assesses outcomes related to certification, participation, federal reimbursement, and state administrative costs in SY 2019-20 and over the course of the demonstration.

This White Paper examines whether any additional means-tested programs might be feasible for use in the direct certification of school-age children participating in school meals or for verification of household income on meal applications.

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. 

Program errors and the risk of erroneous payments in the National School Lunch Program (NSLP) and School Breakfast Program (SBP) continue to be a concern. Slightly more than one in five students were certified inaccurately or erroneously denied benefits in school year (SY) 2005-06. New data estimates the gross cost of school meals erroneous payments due to certification error at about $935 million while other operational errors represent about $860 million.