This study—authorized by the 2010 Child Nutrition Act—tests innovative strategies to end childhood hunger.
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.
The Healthy, Hunger-Free Kids Act of 2010 (HHFKA; PL 111-296) required the USDA Food and Nutrition Administration 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 study is to describe current methods of direct certification used by state and local agencies and challenges facing states and local education agencies in attaining high matching rates.
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.
This report responds to the requirement of PL 110-246 to assess the effectiveness of state and local efforts to directly certify children for free school meals. Direct certification is a process conducted by the states and by local educational agencies to certify eligible children for free meals without the need for household applications.
Student eligibility for free meals is determined by application or by direct certification. Although direct certification systems vary by State and LEA, all such systems are designed to eliminate the need for paper applications. Effective in SY 2011-12, LEAs must conduct direct certification three times per year: once at or around the start of the school year, and again three and six months after that initial effort. All direct certification systems now match student enrollment lists against SNAP agency records and the records of other assistance agencies whose participants are categorically eligible for free meals. The matching process, whether automated or manual, requires no action by the children’s parents or guardians.
To ensure program integrity, school districts must sample household applications certified for free or reduced-price meals, contact the households, and verify eligibility. This process (known as household verification) can be burdensome for both school officials and households. Direct verification uses information from certain other means-tested programs to verify eligibility without contacting applicants. Potential benefits include: less burden for households, less work for school officials, and fewer students with school meal benefits terminated because of nonresponse to verification requests.
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.
This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004/05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications.