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.

The Healthy, Hunger-Free Kids Act of 2010 (HHFKA; PL 111-296) required the USDA Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

The purpose of this pilot was to test possible methods that could lead to valid estimations of the number of meals served by family day care homes. The estimated number of meals served can be used to develop estimates of over- and under-counts of meal claims that result in erroneous payments.