Summary
This rule rescinds an unnecessary reporting requirement for the school meals application verification process.
Effective date: This rule is effective on June 6, 2025.
Request for Comments
Comments must be received by July 7, 2025.
Comments can be submitted through the Federal e-rulemaking portal at https://www.regulations.gov and should reference the document number and the date and page number of this issue of the Federal Register. FNS strongly prefers comments be submitted electronically. However, written comments may be submitted (i.e., postmarked) via mail to Docket No. FNS-2025-0008, FNS, USDA, 1320 Braddock Place, Alexandria, VA 22314. All comments submitted in response to this notice of interim final rulemaking will be included in the record and will be made available to the public.
Please be advised that the identity of individuals or entities submitting comments will be made public on the internet at the address provided above. Parties who wish to comment anonymously may do so by entering “N/A” in the fields that would identify the commenter. A plain language summary of this notice of interim final rule is available at https://www.regulations.gov in the docket for this rulemaking.
Supplementary Information
In school year 2023-24, school districts approved 1.52 million applications for free or reduced-price school meals. Each year, school districts must verify a sample of those applications for certification error, i.e., errors made in determining a household's eligibility for free or reduced-price meal benefits.
Additionally, current regulations (7 CFR 245.12(i)). require state education agencies to report to FNS any ameliorative actions that they have taken or intend to take in local educational agencies with high levels of applications changed due to verification.
Review and verification of school meals applications is an important oversight and corrective action process required under Federal law, and consistent with Agriculture Secretary Rollins's priorities to protect both program participants and taxpayers, and to minimize the risk of program abuse. USDA has not made changes to the annual requirement to conduct verification or report verification outcomes to USDA. Nor does USDA change the requirement that states analyze annual verification outcomes to identify any potential problems and the appropriate corrective action. USDA is eliminating only the annual reporting of corrective actions taken or proposed in response to this analysis.
The ameliorative action reporting requirement included in paragraph 245.12(i) is an unnecessary burden on program operators. Consistent with Executive Order 14192, “Unleashing Prosperity through Deregulation,” FNS rescinds the reporting requirement for ameliorative action. To the extent there is any uncertainty about the costs and benefits of the 7 CFR 245.12(i) regulations, it is the policy of USDA to err on the side of deregulation. USDA's limited resources should be focused on fairly and rationally enforcing a discrete and manageable number of regulations.
Accordingly, 7 CFR part 245 is amended as follows:
PART 245—DETERMINING ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS AND FREE MILK IN SCHOOLS
The authority citation for part 245 continues to read as follows:
Authority: 42 USC 1752, 1758, 1759a, 1772, 1773, and 1779.
§ 245.12 Action by State agencies and FNSROs.
Amend § 245.12 by revising paragraph (i) to read as follows:
(i) No later than February 1, 2013, and by February 1st each year thereafter, each State agency must collect annual verification data from each local educational agency as described in § 245.6a(h). Each State agency must analyze these data, determine if there are potential problems, and formulate corrective actions and technical assistance activities that will support the objective of certifying only those children eligible for free or reduced price meals. No later than March 15, 2013, and by March 15th each year thereafter, each State agency must report to FNS, in a consolidated electronic file by local educational agency, the verification information that has been reported to it as required under § 245.6a(h). State agencies are encouraged to collect and report any or all verification data elements before the required dates.