HR 649 — Whole Milk for Healthy Kids Act of 2025

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

 * * * * * * *

 NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

 Sec. 9. (a)(1)(A) Lunches served by schools participating in 
the school lunch program under this Act shall meet minimum 
nutritional requirements prescribed by the Secretary on the 
basis of tested nutritional research, except that the minimum 
nutritional requirements--
 (i) shall not be construed to prohibit the 
 substitution of foods to accommodate the medical or 
 other special dietary needs of individual students; and
 (ii) shall, at a minimum, be based on the weekly 
 average of the nutrient content of school lunches.
 (B) The Secretary shall provide technical assistance and 
training, including technical assistance and training in the 
preparation of lower-fat versions of foods commonly used in the 
school lunch program under this Act, to schools participating 
in the school lunch program to assist the schools in complying 
with the nutritional requirements prescribed by the Secretary 
pursuant to subparagraph (A) and in providing appropriate meals 
to children with medically certified special dietary needs. The 
Secretary shall provide additional technical assistance to 
schools that are having difficulty maintaining compliance with 
the requirements.
 (2) Fluid milk.--
 [(A) In general.--Lunches served by schools 
 participating in the school lunch program under 
 this Act--
 [(i) shall offer students a variety 
 of fluid milk. Such milk shall be 
 consistent with the most recent Dietary 
 Guidelines for Americans published 
 under section 301 of the National 
 Nutrition Monitoring and Related 
 Research Act of 1990 (7 U.S.C. 5341);
 [(ii) may offer students flavored and 
 unflavored fluid milk and lactose-free 
 fluid milk; and
 [(iii) shall provide a substitute for 
 fluid milk for students whose 
 disability restricts their diet, on 
 receipt of a written statement from a 
 licensed physician that identifies the 
 disability that restricts the student's 
 diet and that specifies the substitute 
 for fluid milk.]
 (A) In general.--Lunches served by schools 
 participating in the school lunch program under 
 this Act--
 (i) shall offer students a variety of 
 fluid milk;
 (ii) may offer students flavored and 
 unflavored organic or non-organic 
 whole, reduced-fat, low-fat, and fat-
 free fluid milk and lactose-free fluid 
 milk; and
 (iii) shall provide a substitute for 
 fluid milk for students whose 
 disability restricts their diet, on 
 receipt of a written statement from a 
 licensed physician, parent, or legal 
 guardian that identifies the disability 
 that restricts the student's diet and 
 that specifies the substitute for fluid 
 milk.
 (B) Substitutes.--
 (i) Standards for substitution.--A 
 school may substitute for the fluid 
 milk provided under subparagraph (A), a 
 nondairy beverage that is nutritionally 
 equivalent to fluid milk and meets 
 nutritional standards established by 
 the Secretary (which shall, among other 
 requirements to be determined by the 
 Secretary, include fortification of 
 calcium, protein, vitamin A, and 
 vitamin D to levels found in cow's 
 milk) for students who cannot consume 
 fluid milk because of a medical or 
 other special dietary need other than a 
 disability described in subparagraph 
 (A)(iii).
 (ii) Notice.--The substitutions may 
 be made if the school notifies the 
 State agency that the school is 
 implementing a variation allowed under 
 this subparagraph, and if the 
 substitution is requested by written 
 statement of a medical authority or by 
 a student's parent or legal guardian 
 that identifies the medical or other 
 special dietary need that restricts the 
 student's diet, except that the school 
 shall not be required to provide 
 beverages other than beverages the 
 school has identified as acceptable 
 substitutes.
 (iii) Excess expenses borne by school 
 food authority.--Expenses incurred in 
 providing substitutions under this 
 subparagraph that are in excess of 
 expenses covered by reimbursements 
 under this Act shall be paid by the 
 school food authority.
 (C) Restrictions on sale of milk 
 prohibited.--A school that participates in the 
 school lunch program under this Act shall not 
 directly or indirectly restrict the sale or 
 marketing of fluid milk products by the school 
 (or by a person approved by the school) at any 
 time or any place--
 (i) on the school premises; or
 (ii) at any school-sponsored event.
 (D) Saturated fat.--Milk fat included in any 
 fluid milk provided under subparagraph (A) 
 shall not be considered saturated fat for 
 purposes of measuring compliance with the 
 allowable average saturated fat content of a 
 meal under section 210.10 of title 7, Code of 
 Federal Regulations (or successor regulations).
 (E) Prohibition on certain purchases.--The 
 Secretary shall prohibit schools participating 
 in the school lunch program under this Act from 
 purchasing or offering milk produced by a China 
 state-owned enterprise.
 (F) Limitation on authority.--The Secretary 
 may not prohibit any school participating in 
 the school lunch program under this Act from 
 offering students the milk described in 
 subparagraph (A)(ii).
 (3) Students in senior high schools that participate in the 
school lunch program under this Act (and, when approved by the 
local school district or nonprofit private schools, students in 
any other grade level) shall not be required to accept offered 
foods they do not intend to consume, and any such failure to 
accept offered foods shall not affect the full charge to the 
student for a lunch meeting the requirements of this subsection 
or the amount of payments made under this Act to any such 
school for such lunch.
 (4) Provision of information.--
 (A) Guidance.--Prior to the beginning of the 
 school year beginning July 2004, the Secretary 
 shall issue guidance to States and school food 
 authorities to increase the consumption of 
 foods and food ingredients that are recommended 
 for increased serving consumption in the most 
 recent Dietary Guidelines for Americans 
 published under section 301 of the National 
 Nutrition Monitoring and Related Research Act 
 of 1990 (7 U.S.C. 5341).
 (B) Rules.--Not later than 2 years after the 
 date of enactment of this paragraph, the 
 Secretary shall promulgate rules, based on the 
 most recent Dietary Guidelines for Americans, 
 that reflect specific recommendations, 
 expressed in serving recommendations, for 
 increased consumption of foods and food 
 ingredients offered in school nutrition 
 programs under this Act and the Child Nutrition 
 Act of 1966 (42 U.S.C. 1771 et seq.).
 (C) Procurement and processing of food 
 service products and commodities.--The 
 Secretary shall--
 (i) identify, develop, and 
 disseminate to State departments of 
 agriculture and education, school food 
 authorities, local educational 
 agencies, and local processing 
 entities, model product specifications 
 and practices for foods offered in 
 school nutrition programs under this 
 Act and the Child Nutrition Act of 1966 
 (42 U.S.C. 1771 et seq.) to ensure that 
 the foods reflect the most recent 
 Dietary Guidelines for Americans 
 published under section 301 of the 
 National Nutrition Monitoring and 
 Related Research Act of 1990 (7 U.S.C. 
 5341);
 (ii) not later than 1 year after the 
 date of enactment of this 
 subparagraph--
 (I) carry out a study to 
 analyze the quantity and 
 quality of nutritional 
 information available to school 
 food authorities about food 
 service products and 
 commodities; and
 (II) submit to Congress a 
 report on the results of the 
 study that contains such 
 legislative recommendations as 
 the Secretary considers 
 necessary to ensure that school 
 food authorities have access to 
 the nutritional information 
 needed for menu planning and 
 compliance assessments; and
 (iii) to the maximum extent 
 practicable, in purchasing and 
 processing commodities for use in 
 school nutrition programs under this 
 Act and the Child Nutrition Act of 1966 
 (42 U.S.C. 1771 et seq.), purchase the 
 widest variety of healthful foods that 
 reflect the most recent Dietary 
 Guidelines for Americans.
 (5) Water.--Schools participating in the school lunch 
 program under this Act shall make available to children 
 free of charge, as nutritionally appropriate, potable 
 water for consumption in the place where meals are 
 served during meal service.
 (b)(1)(A) Not later than June 1 of each fiscal year, the 
Secretary shall prescribe income guidelines for determining 
eligibility for free and reduced price lunches during the 12-
month period beginning July 1 of such fiscal year and ending 
June 30 of the following fiscal year. The income guidelines for 
determining eligibility for free lunches shall be 130 percent 
of the applicable family size income levels contained in the 
nonfarm income poverty guidelines prescribed by the Office of 
Management and Budget, as adjusted annually in accordance with 
subparagraph (B). The income guidelines for determining 
eligibility for reduced price lunches for any school year shall 
be 185 percent of the applicable family size income levels 
contained in the nonfarm income poverty guidelines prescribed 
by the Office of Management and Budget, as adjusted annually in 
accordance with subparagraph (B). The Office of Management and 
Budget guidelines shall be revised at annual intervals, or at 
any shorter interval deemed feasible and desirable.
 (B) The revision required by subparagraph (A) of this 
paragraph shall be made by multiplying--
 (i) the official poverty line (as defined by the 
 Office of Management and Budget); by
 (ii) the percentage change in the Consumer Price 
 Index during the annual or other interval immediately 
 preceding the time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 
30 days after the date on which the consumer price index data 
required to compute the adjustment becomes available.
 (2)(A) Following the determination by the Secretary under 
paragraph (1) of this subsection of the income eligibility 
guidelines for each school year, each State educational agency 
shall announce the income eligibility guidelines, by family 
size, to be used by schools in the State in making 
determinations of eligibility for free and reduced price 
lunches. Local school authorities shall, each year, publicly 
announce the income eligibility guidelines for free and reduced 
price lunches on or before the opening of school.
 (B) Applications and descriptive material.--
 (i) In general.--Applications for free and 
 reduced price lunches, in such form as the 
 Secretary may prescribe or approve, and any 
 descriptive material, shall be distributed to 
 the parents or guardians of children in 
 attendance at the school, and shall contain 
 only the family size income levels for reduced 
 price meal eligibility with the explanation 
 that households with incomes less than or equal 
 to these values would be eligible for free or 
 reduced price lunches.
 (ii) Income eligibility guidelines.--Forms 
 and descriptive material distributed in 
 accordance with clause (i) may not contain the 
 income eligibility guidelines for free lunches.
 (iii) Contents of descriptive material.--
 (I) In general.--Descriptive material 
 distributed in accordance with clause 
 (i) shall contain a notification that--
 (aa) participants in the 
 programs listed in subclause 
 (II) may be eligible for free 
 or reduced price meals; and
 (bb) documentation may be 
 requested for verification of 
 eligibility for free or reduced 
 price meals.
 (II) Programs.--The programs referred 
 to in subclause (I)(aa) are--
 (aa) the special supplemental 
 nutrition program for women, 
 infants, and children 
 established by section 17 of 
 the Child Nutrition Act of 1966 
 (42 U.S.C. 1786);
 (bb) the supplemental 
 nutrition assistance program 
 established under the Food and 
 Nutrition Act of 2008 (7 U.S.C. 
 2011 et seq.);
 (cc) the food distribution 
 program on Indian reservations 
 established under section 4(b) 
 of the Food and Nutrition Act 
 of 2008 (7 U.S.C. 2013(b)); and
 (dd) a State program funded 
 under the program of block 
 grants to States for temporary 
 assistance for needy families 
 established under part A of 
 title IV of the Social Security 
 Act (42 U.S.C. 601 et seq.).
 (3) Household applications.--
 (A) Definition of household application.--In 
 this paragraph, the term ``household 
 application'' means an application for a child 
 of a household to receive free or reduced price 
 school lunches under this Act, or free or 
 reduced price school breakfasts under the Child 
 Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
 for which an eligibility determination is made 
 other than under paragraph (4) or (5).
 (B) Eligibility determination.--
 (i) In general.--An eligibility 
 determination shall be made on the 
 basis of a complete household 
 application executed by an adult member 
 of the household or in accordance with 
 guidance issued by the Secretary.
 (ii) Electronic signatures and 
 applications.--A household application 
 may be executed using an electronic 
 signature if--
 (I) the application is 
 submitted electronically; and
 (II) the electronic 
 application filing system meets 
 confidentiality standards 
 established by the Secretary.
 (C) Children in household.--
 (i) In general.--The household 
 application shall identify the names of 
 each child in the household for whom 
 meal benefits are requested.
 (ii) Separate applications.--A State 
 educational agency or local educational 
 agency may not request a separate 
 application for each child in the 
 household that attends schools under 
 the same local educational agency.
 (D) Verification of sample.--
 (i) Definitions.--In this 
 subparagraph:
 (I) Error prone 
 application.--The term ``error 
 prone application'' means an 
 approved household application 
 that--
 (aa) indicates 
 monthly income that is 
 within $100, or an 
 annual income that is 
 within $1,200, of the 
 income eligibility 
 limitation for free or 
 reduced price meals; or
 (bb) in lieu of the 
 criteria established 
 under item (aa), meets 
 criteria established by 
 the Secretary.
 (II) Non-response rate.--The 
 term ``non-response rate'' 
 means (in accordance with 
 guidelines established by the 
 Secretary) the percentage of 
 approved household applications 
 for which verification 
 information has not been 
 obtained by a local educational 
 agency after attempted 
 verification under 
 subparagraphs (F) and (G).
 (ii) Verification of sample.--Each 
 school year, a local educational agency 
 shall verify eligibility of the 
 children in a sample of household 
 applications approved for the school 
 year by the local educational agency, 
 as determined by the Secretary in 
 accordance with this subsection.
 (iii) Sample size.--Except as 
 otherwise provided in this paragraph, 
 the sample for a local educational 
 agency for a school year shall equal 
 the lesser of--
 (I) 3 percent of all 
 applications approved by the 
 local educational agency for 
 the school year, as of October 
 1 of the school year, selected 
 from error prone applications; 
 or
 (II) 3,000 error prone 
 applications approved by the 
 local educational agency for 
 the school year, as of October 
 1 of the school year.
 (iv) Alternative sample size.--
 (I) In general.--If the 
 conditions described in 
 subclause (IV) are met, the 
 verification sample size for a 
 local educational agency shall 
 be the sample size described in 
 subclause (II) or (III), as 
 determined by the local 
 educational agency.
 (II) 3,000/3 percent 
 option.--The sample size 
 described in this subclause 
 shall be the lesser of 3,000, 
 or 3 percent of, applications 
 selected at random from 
 applications approved by the 
 local educational agency for 
 the school year, as of October 
 1 of the school year.
 (III) 1,000/1 percent plus 
 option.--
 (aa) In general.--The 
 sample size described 
 in this subclause shall 
 be the sum of--
 (AA) the 
 lesser of 
 1,000, or 1 
 percent of, all 
 applications 
 approved by the 
 local 
 educational 
 agency for the 
 school year, as 
 of October 1 of 
 the school 
 year, selected 
 from error 
 prone 
 applications; 
 and
 (BB) the 
 lesser of 500, 
 or \1/2\ of 1 
 percent of, 
 applications 
 approved by the 
 local 
 educational 
 agency for the 
 school year, as 
 of October 1 of 
 the school 
 year, that 
 provide a case 
 number (in lieu 
 of income 
 information) 
 showing 
 participation 
 in a program 
 described in 
 item (bb) 
 selected from 
 those approved 
 applications 
 that provide a 
 case number (in 
 lieu of income 
 information) 
 verifying the 
 participation.
 (bb) Programs.--The 
 programs described in 
 this item are--
 (AA) the 
 supplemental 
 nutrition 
 assistance 
 program 
 established 
 under the Food 
 and Nutrition 
 Act of 2008 (7 
 U.S.C. 2011 et 
 seq.);
 (BB) the food 
 distribution 
 program on 
 Indian 
 reservations 
 established 
 under section 
 4(b) of the 
 Food and 
 Nutrition Act 
 of 2008 (7 
 U.S.C. 
 2013(b)); and
 (CC) a State 
 program funded 
 under the 
 program of 
 block grants to 
 States for 
 temporary 
 assistance for 
 needy families 
 established 
 under part A of 
 title IV of the 
 Social Security 
 Act (42 U.S.C. 
 601 et seq.) 
 that the 
 Secretary 
 determines 
 complies with 
 standards 
 established by 
 the Secretary 
 that ensure 
 that the 
 standards under 
 the State 
 program are 
 comparable to 
 or more 
 restrictive 
 than those in 
 effect on June 
 1, 1995.
 (IV) Conditions.--The 
 conditions referred to in 
 subclause (I) shall be met for 
 a local educational agency for 
 a school year if--
 (aa) the nonresponse 
 rate for the local 
 educational agency for 
 the preceding school 
 year is less than 20 
 percent; or
 (bb) the local 
 educational agency has 
 more than 20,000 
 children approved by 
 application by the 
 local educational 
 agency as eligible for 
 free or reduced price 
 meals for the school 
 year, as of October 1 
 of the school year, 
 and--
 (AA) the 
 nonresponse 
 rate for the 
 preceding 
 school year is 
 at least 10 
 percent below 
 the nonresponse 
 rate for the 
 second 
 preceding 
 school year; or
 (BB) in the 
 case of the 
 school year 
 beginning July 
 2005, the local 
 educational 
 agency attempts 
 to verify all 
 approved 
 household 
 applications 
 selected for 
 verification 
 through use of 
 public agency 
 records from at 
 least 2 of the 
 programs or 
 sources of 
 information 
 described in 
 subparagraph 
 (F)(i).
 (v) Additional selected 
 applications.--A sample for a local 
 educational agency for a school year 
 under clauses (iii) and (iv)(III)(AA) 
 shall include the number of additional 
 randomly selected approved household 
 applications that are required to 
 comply with the sample size 
 requirements in those clauses.
 (E) Preliminary review.--
 (i) Review for accuracy.--
 (I) In general.--Prior to 
 conducting any other 
 verification activity for 
 approved household applications 
 selected for verification, the 
 local educational agency shall 
 ensure that the initial 
 eligibility determination for 
 each approved household 
 application is reviewed for 
 accuracy by an individual other 
 than the individual making the 
 initial eligibility 
 determination, unless otherwise 
 determined by the Secretary.
 (II) Waiver.--The 
 requirements of subclause (I) 
 shall be waived for a local 
 educational agency if the local 
 educational agency is using a 
 technology-based solution that 
 demonstrates a high level of 
 accuracy, to the satisfaction 
 of the Secretary, in processing 
 an initial eligibility 
 determination in accordance 
 with the income eligibility 
 guidelines of the school lunch 
 program.
 (ii) Correct eligibility 
 determination.--If the review indicates 
 that the initial eligibility 
 determination is correct, the local 
 educational agency shall verify the 
 approved household application.
 (iii) Incorrect eligibility 
 determination.--If the review indicates 
 that the initial eligibility 
 determination is incorrect, the local 
 educational agency shall (as determined 
 by the Secretary)--
 (I) correct the eligibility 
 status of the household;
 (II) notify the household of 
 the change;
 (III) in any case in which 
 the review indicates that the 
 household is not eligible for 
 free or reduced-price meals, 
 notify the household of the 
 reason for the ineligibility 
 and that the household may 
 reapply with income 
 documentation for free or 
 reduced-price meals; and
 (IV) in any case in which the 
 review indicates that the 
 household is eligible for free 
 or reduced-price meals, verify 
 the approved household 
 application.
 (F) Direct verification.--
 (i) In general.--Subject to clauses 
 (ii) and (iii), to verify eligibility 
 for free or reduced price meals for 
 approved household applications 
 selected for verification, the local 
 educational agency may (in accordance 
 with criteria established by the 
 Secretary) first obtain and use income 
 and program participation information 
 from a public agency administering--
 (I) the supplemental 
 nutrition assistance program 
 established under the Food and 
 Nutrition Act of 2008 (7 U.S.C. 
 2011 et seq.);
 (II) the food distribution 
 program on Indian reservations 
 established under section 4(b) 
 of the Food and Nutrition Act 
 of 2008 (7 U.S.C. 2013(b));
 (III) the temporary 
 assistance for needy families 
 program funded under part A of 
 title IV of the Social Security 
 Act (42 U.S.C. 601 et seq.);
 (IV) the State medicaid 
 program under title XIX of the 
 Social Security Act (42 U.S.C. 
 1396 et seq.); or
 (V) a similar income-tested 
 program or other source of 
 information, as determined by 
 the Secretary.
 (ii) Free meals.--Public agency 
 records that may be obtained and used 
 under clause (i) to verify eligibility 
 for free meals for approved household 
 applications selected for verification 
 shall include the most recent available 
 information (other than information 
 reflecting program participation or 
 income before the 180-day period ending 
 on the date of application for free 
 meals) that is relied on to 
 administer--
 (I) a program or source of 
 information described in clause 
 (i) (other than clause 
 (i)(IV)); or
 (II) the State plan for 
 medical assistance under title 
 XIX of the Social Security Act 
 (42 U.S.C. 1396 et seq.) in--
 (aa) a State in which 
 the income eligibility 
 limit applied under 
 section 1902(l)(2)(C) 
 of that Act (42 U.S.C. 
 1396a(l)(2)(C)) is not 
 more than 133 percent 
 of the official poverty 
 line described in 
 section 1902(l)(2)(A) 
 of that Act (42 U.S.C. 
 1396a(l)(2)(A)); or
 (bb) a State that 
 otherwise identifies 
 households that have 
 income that is not more 
 than 133 percent of the 
 official poverty line 
 described in section 
 1902(l)(2)(A) of that 
 Act (42 U.S.C. 
 1396a(l)(2)(A)).
 (iii) Reduced price meals.--Public 
 agency records that may be obtained and 
 used under clause (i) to verify 
 eligibility for reduced price meals for 
 approved household applications 
 selected for verification shall include 
 the most recent available information 
 (other than information reflecting 
 program participation or income before 
 the 180-day period ending on the date 
 of application for reduced price meals) 
 that is relied on to administer--
 (I) a program or source of 
 information described in clause 
 (i) (other than clause 
 (i)(IV)); or
 (II) the State plan for 
 medical assistance under title 
 XIX of the Social Security Act 
 (42 U.S.C. 1396 et seq.) in--
 (aa) a State in which 
 the income eligibility 
 limit applied under 
 section 1902(l)(2)(C) 
 of that Act (42 U.S.C. 
 1396a(l)(2)(C)) is not 
 more than 185 percent 
 of the official poverty 
 line described in 
 section 1902(l)(2)(A) 
 of that Act (42 U.S.C. 
 1396a(l)(2)(A)); or
 (bb) a State that 
 otherwise identifies 
 households that have 
 income that is not more 
 than 185 percent of the 
 official poverty line 
 described in section 
 1902(l)(2)(A) of that 
 Act (42 U.S.C. 
 1396a(l)(2)(A)).
 (iv) Evaluation.--Not later than 3 
 years after the date of enactment of 
 this subparagraph, the Secretary shall 
 complete an evaluation of--
 (I) the effectiveness of 
 direct verification carried out 
 under this subparagraph in 
 decreasing the portion of the 
 verification sample that must 
 be verified under subparagraph 
 (G) while ensuring that 
 adequate verification 
 information is obtained; and
 (II) the feasibility of 
 direct verification by State 
 agencies and local educational 
 agencies.
 (v) Expanded use of direct 
 verification.--If the Secretary 
 determines that direct verification 
 significantly decreases the portion of 
 the verification sample that must be 
 verified under subparagraph (G), while 
 ensuring that adequate verification 
 information is obtained, and can be 
 conducted by most State agencies and 
 local educational agencies, the 
 Secretary may require a State agency or 
 local educational agency to implement 
 direct verification through 1 or more 
 of the programs described in clause 
 (i), as determined by the Secretary, 
 unless the State agency or local 
 educational agency demonstrates (under 
 criteria established by the Secretary) 
 that the State agency or local 
 educational agency lacks the capacity 
 to conduct, or is unable to implement, 
 direct verification.
 (G) Household verification.--
 (i) In general.--If an approved 
 household application is not verified 
 through the use of public agency 
 records, a local educational agency 
 shall provide to the household written 
 notice that--
 (I) the approved household 
 application has been selected 
 for verification; and
 (II) the household is 
 required to submit verification 
 information to confirm 
 eligibility for free or reduced 
 price meals.
 (ii) Phone number.--The written 
 notice in clause (i) shall include a 
 toll-free phone number that parents and 
 legal guardians in households selected 
 for verification can call for 
 assistance with the verification 
 process.
 (iii) Followup activities.--If a 
 household does not respond to a 
 verification request, a local 
 educational agency shall make at least 
 1 attempt to obtain the necessary 
 verification from the household in 
 accordance with guidelines and 
 regulations promulgated by the 
 Secretary.
 (iv) Contract authority for school 
 food authorities.--A local educational 
 agency may contract (under standards 
 established by the Secretary) with a 
 third party to assist the local 
 educational agency in carrying out 
 clause (iii).
 (H) Verification deadline.--
 (i) General deadline.--
 (I) In general.--Subject to 
 subclause (II), not later than 
 November 15 of each school 
 year, a local educational 
 agency shall complete the 
 verification activities 
 required for the school year 
 (including followup 
 activities).
 (II) Extension.--Under 
 criteria established by the 
 Secretary, a State may extend 
 the deadline established under 
 subclause (I) for a school year 
 for a local educational agency 
 to December 15 of the school 
 year.
 (ii) Eligibility changes.--Based on 
 the verification activities, the local 
 educational agency shall make 
 appropriate modifications to the 
 eligibility determinations made for 
 household applications in accordance 
 with criteria established by the 
 Secretary.
 (I) Local conditions.--In the case of a 
 natural disaster, civil disorder, strike, or 
 other local condition (as determined by the 
 Secretary), the Secretary may substitute 
 alternatives for--
 (i) the sample size and sample 
 selection criteria established under 
 subparagraph (D); and
 (ii) the verification deadline 
 established under subparagraph (H).
 (J) Individual review.--In accordance with 
 criteria established by the Secretary, the 
 local educational agency may, on individual 
 review--
 (i) decline to verify no more than 5 
 percent of approved household 
 applications selected under 
 subparagraph (D); and
 (ii) replace the approved household 
 applications with other approved 
 household applications to be verified.
 (K) Feasibility study.--
 (i) In general.--The Secretary shall 
 conduct a study of the feasibility of 
 using computer technology (including 
 data mining) to reduce--
 (I) overcertification errors 
 in the school lunch program 
 under this Act;
 (II) waste, fraud, and abuse 
 in connection with this 
 paragraph; and
 (III) errors, waste, fraud, 
 and abuse in other nutrition 
 programs, as determined to be 
 appropriate by the Secretary.
 (ii) Report.--Not later than 180 days 
 after the date of enactment of this 
 paragraph, the Secretary shall submit 
 to the Committee on Education and the 
 Workforce of the House of 
 Representatives and the Committee on 
 Agriculture, Nutrition, and Forestry of 
 the Senate a report describing--
 (I) the results of the 
 feasibility study conducted 
 under this subsection;
 (II) how a computer system 
 using technology described in 
 clause (i) could be 
 implemented;
 (III) a plan for 
 implementation; and
 (IV) proposed legislation, if 
 necessary, to implement the 
 system.
 (4) Direct certification for children in supplemental 
 nutrition assistance program households.--
 (A) In general.--Subject to subparagraph (D), 
 each State agency shall enter into an agreement 
 with the State agency conducting eligibility 
 determinations for the supplemental nutrition 
 assistance program established under the Food 
 and Nutrition Act of 2008 (7 U.S.C. 2011 et 
 seq.).
 (B) Procedures.--Subject to paragraph (6), 
 the agreement shall establish procedures under 
 which a child who is a member of a household 
 receiving assistance under the supplemental 
 nutrition assistance program shall be certified 
 as eligible for free lunches under this Act and 
 free breakfasts under the Child Nutrition Act 
 of 1966 (42 U.S.C. 1771 et seq.), without 
 further application.
 (C) Certification.--Subject to paragraph (6), 
 under the agreement, the local educational 
 agency conducting eligibility determinations 
 for a school lunch program under this Act and a 
 school breakfast program under the Child 
 Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) 
 shall certify a child who is a member of a 
 household receiving assistance under the 
 supplemental nutrition assistance program as 
 eligible for free lunches under this Act and 
 free breakfasts under the Child Nutrition Act 
 of 1966 (42 U.S.C. 1771 et seq.), without 
 further application.
 (D) Applicability.--This paragraph applies 
 to--
 (i) in the case of the school year 
 beginning July 2006, a school district 
 that had an enrollment of 25,000 
 students or more in the preceding 
 school year;
 (ii) in the case of the school year 
 beginning July 2007, a school district 
 that had an enrollment of 10,000 
 students or more in the preceding 
 school year; and
 (iii) in the case of the school year 
 beginning July 2008 and each subsequent 
 school year, each local educational 
 agency.
 (E) Performance awards.--
 (i) In general.--Effective for each 
 of the school years beginning July 1, 
 2011, July 1, 2012, and July 1, 2013, 
 the Secretary shall offer performance 
 awards to States to encourage the 
 States to ensure that all children 
 eligible for direct certification under 
 this paragraph are certified in 
 accordance with this paragraph.
 (ii) Requirements.--For each school 
 year described in clause (i), the 
 Secretary shall--
 (I) consider State data from 
 the prior school year, 
 including estimates contained 
 in the report required under 
 section 4301 of the Food, 
 Conservation, and Energy Act of 
 2008 (42 U.S.C. 1758a); and
 (II) make performance awards 
 to not more than 15 States that 
 demonstrate, as determined by 
 the Secretary--
 (aa) outstanding 
 performance; and
 (bb) substantial 
 improvement.
 (iii) Use of funds.--A State agency 
 that receives a performance award under 
 clause (i)--
 (I) shall treat the funds as 
 program income; and
 (II) may transfer the funds 
 to school food authorities for 
 use in carrying out the 
 program.
 (iv) Funding.--
 (I) In general.--On October 
 1, 2011, and each subsequent 
 October 1 through October 1, 
 2013, out of any funds in the 
 Treasury not otherwise 
 appropriated, the Secretary of 
 the Treasury shall transfer to 
 the Secretary--
 (aa) $2,000,000 to 
 carry out clause 
 (ii)(II)(aa); and
 (bb) $2,000,000 to 
 carry out clause 
 (ii)(II)(bb).
 (II) Receipt and 
 acceptance.--The Secretary 
 shall be entitled to receive, 
 shall accept, and shall use to 
 carry out this clause the funds 
 transferred under subclause 
 (I), without further 
 appropriation.
 (v) Payments not subject to judicial 
 review.--A determination by the 
 Secretary whether, and in what amount, 
 to make a performance award under this 
 subparagraph shall not be subject to 
 administrative or judicial review.
 (F) Continuous improvement plans.--
 (i) Definition of required 
 percentage.--In this subparagraph, the 
 term ``required percentage'' means--
 (I) for the school year 
 beginning July 1, 2011, 80 
 percent;
 (II) for the school year 
 beginning July 1, 2012, 90 
 percent; and
 (III) for the school year 
 beginning July 1, 2013, and 
 each school year thereafter, 95 
 percent.
 (ii) Requirements.--Each school year, 
 the Secretary shall--
 (I) identify, using data from 
 the prior year, including 
 estimates contained in the 
 report required under section 
 4301 of the Food, Conservation, 
 and Energy Act of 2008 (42 
 U.S.C. 1758a), States that 
 directly certify less than the 
 required percentage of the 
 total number of children in the 
 State who are eligible for 
 direct certification under this 
 paragraph;
 (II) require the States 
 identified under subclause (I) 
 to implement a continuous 
 improvement plan to fully meet 
 the requirements of this 
 paragraph, which shall include 
 a plan to improve direct 
 certification for the following 
 school year; and
 (III) assist the States 
 identified under subclause (I) 
 to develop and implement a 
 continuous improvement plan in 
 accordance with subclause (II).
 (iii) Failure to meet performance 
 standard.--
 (I) In general.--A State that 
 is required to develop and 
 implement a continuous 
 improvement plan under clause 
 (ii)(II) shall be required to 
 submit the continuous 
 improvement plan to the 
 Secretary, for the approval of 
 the Secretary.
 (II) Requirements.--At a 
 minimum, a continuous 
 improvement plan under 
 subclause (I) shall include--
 (aa) specific 
 measures that the State 
 will use to identify 
 more children who are 
 eligible for direct 
 certification, 
 including improvements 
 or modifications to 
 technology, information 
 systems, or databases;
 (bb) a timeline for 
 the State to implement 
 those measures; and
 (cc) goals for the 
 State to improve direct 
 certification results.
 (G) Without further application.--
 (i) In general.--In this paragraph, 
 the term ``without further 
 application'' means that no action is 
 required by the household of the child.
 (ii) Clarification.--A requirement 
 that a household return a letter 
 notifying the household of eligibility 
 for direct certification or eligibility 
 for free school meals does not meet the 
 requirements of clause (i).
 (5) Discretionary certification.--Subject to 
 paragraph (6), any local educational agency may certify 
 any child as eligible for free lunches or breakfasts, 
 without further application, by directly communicating 
 with the appropriate State or local agency to obtain 
 documentation of the status of the child as--
 (A) a member of a family that is receiving 
 assistance under the temporary assistance for 
 needy families program funded under part A of 
 title IV of the Social Security Act (42 U.S.C. 
 601 et seq.) that the Secretary determines 
 complies with standards established by the 
 Secretary that ensure that the standards under 
 the State program are comparable to or more 
 restrictive than those in effect on June 1, 
 1995;
 (B) a homeless child or youth (defined as 1 
 of the individuals described in section 725(2) 
 of the McKinney-Vento Homeless Assistance Act 
 (42 U.S.C. 11434a(2));
 (C) served by the runaway and homeless youth 
 grant program established under the Runaway and 
 Homeless Youth Act (42 U.S.C. 5701 et seq.);
 (D) a migratory child (as defined in section 
 1309 of the Elementary and Secondary Education 
 Act of 1965 (20 U.S.C. 6399)); or
 (E)(i) a foster child whose care and 
 placement is the responsibility of an agency 
 that administers a State plan under part B or E 
 of title IV of the Social Security Act (42 
 U.S.C. 621 et seq.); or
 (ii) a foster child who a court has placed 
 with a caretaker household.
 (6) Use or disclosure of information.--
 (A) In general.--The use or disclosure of any 
 information obtained from an application for 
 free or reduced price meals, or from a State or 
 local agency referred to in paragraph (3)(F), 
 (4), or (5), shall be limited to--
 (i) a person directly connected with 
 the administration or enforcement of 
 this Act or the Child Nutrition Act of 
 1966 (42 U.S.C. 1771 et seq.) 
 (including a regulation promulgated 
 under either Act);
 (ii) a person directly connected with 
 the administration or enforcement of--
 (I) a Federal education 
 program;
 (II) a State health or 
 education program administered 
 by the State or local 
 educational agency (other than 
 a program carried out under 
 title XIX or XXI of the Social 
 Security Act (42 U.S.C. 1396 et 
 seq.; 42 U.S.C. 1397aa et 
 seq.)); or
 (III) a Federal, State, or 
 local means-tested nutrition 
 program with eligibility 
 standards comparable to the 
 school lunch program under this 
 Act;
 (iii)(I) the Comptroller General of 
 the United States for audit and 
 examination authorized by any other 
 provision of law; and
 (II) notwithstanding any other 
 provision of law, a Federal, State, or 
 local law enforcement official for the 
 purpose of investigating an alleged 
 violation of any program covered by 
 this paragraph or paragraph (3)(F), 
 (4), or (5);
 (iv) a person directly connected with 
 the administration of the State 
 medicaid program under title XIX of the 
 Social Security Act (42 U.S.C. 1396 et 
 seq.) or the State children's health 
 insurance program under title XXI of 
 that Act (42 U.S.C. 1397aa et seq.) 
 solely for the purposes of--
 (I) identifying children 
 eligible for benefits under, 
 and enrolling children in, 
 those programs, except that 
 this subclause shall apply only 
 to the extent that the State 
 and the local educational 
 agency or school food authority 
 so elect; and
 (II) verifying the 
 eligibility of children for 
 programs under this Act or the 
 Child Nutrition Act of 1966 (42 
 U.S.C. 1771 et seq.); and
 (v) a third party contractor 
 described in paragraph (3)(G)(iv).
 (B) Limitation on information provided.--
 Information provided under clause (ii) or (v) 
 of subparagraph (A) shall be limited to the 
 income eligibility status of the child for whom 
 application for free or reduced price meal 
 benefits is made or for whom eligibility 
 information is provided under paragraph (3)(F), 
 (4), or (5), unless the consent of the parent 
 or guardian of the child for whom application 
 for benefits was made is obtained.
 (C) Criminal penalty.--A person described in 
 subparagraph (A) who publishes, divulges, 
 discloses, or makes known in any manner, or to 
 any extent not authorized by Federal law 
 (including a regulation), any information 
 obtained under this subsection shall be fined 
 not more than $1,000 or imprisoned not more 
 than 1 year, or both.
 (D) Requirements for waiver of 
 confidentiality.--A State that elects to 
 exercise the option described in subparagraph 
 (A)(iv)(I) shall ensure that any local 
 educational agency or school food authority 
 acting in accordance with that option--
 (i) has a written agreement with 1 or 
 more State or local agencies 
 administering health programs for 
 children under titles XIX and XXI of 
 the Social Security Act (42 U.S.C. 1396 
 et seq. and 1397aa et seq.) that 
 requires the health agencies to use the 
 information obtained under subparagraph 
 (A) to seek to enroll children in those 
 health programs; and
 (ii)(I) notifies each household, the 
 information of which shall be disclosed 
 under subparagraph (A), that the 
 information disclosed will be used only 
 to enroll children in health programs 
 referred to in subparagraph (A)(iv); 
 and
 (II) provides each parent or guardian 
 of a child in the household with an 
 opportunity to elect not to have the 
 information disclosed.
 (E) Use of disclosed information.--A person 
 to which information is disclosed under 
 subparagraph (A)(iv)(I) shall use or disclose 
 the information only as necessary for the 
 purpose of enrolling children in health 
 programs referred to in subparagraph (A)(iv).
 (7) Free and reduced price policy statement.--
 (A) In general.--After the initial 
 submission, a local educational agency shall 
 not be required to submit a free and reduced 
 price policy statement to a State educational 
 agency under this Act unless there is a 
 substantive change in the free and reduced 
 price policy of the local educational agency.
 (B) Routine change.--A routine change in the 
 policy of a local educational agency (such as 
 an annual adjustment of the income eligibility 
 guidelines for free and reduced price meals) 
 shall not be sufficient cause for requiring the 
 local educational agency to submit a policy 
 statement.
 (8) Communications.--
 (A) In general.--Any communication with a 
 household under this subsection or subsection 
 (d) shall be in an understandable and uniform 
 format and, to the maximum extent practicable, 
 in a language that parents and legal guardians 
 can understand.
 (B) Electronic availability.--In addition to 
 the distribution of applications and 
 descriptive material in paper form as provided 
 for in this paragraph, the applications and 
 material may be made available electronically 
 via the Internet.
 (9) Eligibility for free and reduced price lunches.--
 (A) Free lunches.--Any child who is a member 
 of a household whose income, at the time the 
 application is submitted, is at an annual rate 
 which does not exceed the applicable family 
 size income level of the income eligibility 
 guidelines for free lunches, as determined 
 under paragraph (1), shall be served a free 
 lunch.
 (B) Reduced price lunches.--
 (i) In general.--Any child who is a 
 member of a household whose income, at 
 the time the application is submitted, 
 is at an annual rate greater than the 
 applicable family size income level of 
 the income eligibility guidelines for 
 free lunches, as determined under 
 paragraph (1), but less than or equal 
 to the applicable family size income 
 level of the income eligibility 
 guidelines for reduced price lunches, 
 as determined under paragraph (1), 
 shall be served a reduced price lunch.
 (ii) Maximum price.--The price 
 charged for a reduced price lunch shall 
 not exceed 40 cents.
 (C) Duration.--Except as otherwise specified 
 in paragraph (3)(E), (3)(H)(ii), and section 
 11(a), eligibility for free or reduced price 
 meals for any school year shall remain in 
 effect--
 (i) beginning on the date of 
 eligibility approval for the current 
 school year; and
 (ii) ending on a date during the 
 subsequent school year determined by 
 the Secretary.
 (10) No physical segregation of or other discrimination 
against any child eligible for a free lunch or a reduced price 
lunch under this subsection shall be made by the school nor 
shall there be any overt identification of any child by special 
tokens or tickets, announced or published list of names, or by 
other means.
 (11) Any child who has a parent or guardian who (A) is 
responsible for the principal support of such child and (B) is 
unemployed shall be served a free or reduced price lunch, 
respectively, during any period (i) in which such child's 
parent or guardian continues to be unemployed and (ii) the 
income of the child's parents or guardians during such period 
of unemployment falls within the income eligibility criteria 
for free lunches or reduced price lunches, respectively, based 
on the current rate of income of such parents or guardians. 
Local educational agencies shall publicly announce that such 
children are eligible for free or reduced price lunch, and 
shall make determinations with respect to the status of any 
parent or guardian of any child under clauses (A) and (B) of 
the preceding sentence on the basis of a statement executed in 
such form as the Secretary may prescribe by such parent or 
guardian. No physical segregation of, or other discrimination 
against, any child eligible for a free or reduced price lunch 
under this paragraph shall be made by the school nor shall 
there be any overt identification of any such child by special 
tokens or tickets, announced or published lists of names, or by 
any other means.
 (12)(A) A child shall be considered automatically eligible 
for a free lunch and breakfast under this Act and the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively, 
without further application or eligibility determination, if 
the child is--
 (i) a member of a household receiving assistance 
 under the supplemental nutrition assistance program 
 authorized under the Food and Nutrition Act of 2008 (7 
 U.S.C. 2011 et seq.);
 (ii) a member of a family (under the State program 
 funded under part A of title IV of the Social Security 
 Act (42 U.S.C. 601 et seq.)) that the Secretary 
 determines complies with standards established by the 
 Secretary that ensure that the standards under the 
 State program are comparable to or more restrictive 
 than those in effect on June 1, 1995;
 (iii) enrolled as a participant in a Head Start 
 program authorized under the Head Start Act (42 U.S.C. 
 9831 et seq.), on the basis of a determination that the 
 child meets the eligibility criteria prescribed under 
 section 645(a)(1)(B) of the Head Start Act (42 U.S.C. 
 9840(a)(1)(B));
 (iv) a homeless child or youth (defined as 1 
 of the individuals described in section 725(2) 
 of the McKinney-Vento Homeless Assistance Act 
 (42 U.S.C. 11434a(2)));
 (v) served by the runaway and homeless youth 
 grant program established under the Runaway and 
 Homeless Youth Act (42 U.S.C. 5701 et seq.);
 (vi) a migratory child (as defined in section 
 1309 of the Elementary and Secondary Education 
 Act of 1965 (20 U.S.C. 6399)); or
 (vii)(I) a foster child whose care and 
 placement is the responsibility of an agency 
 that administers a State plan under part B or E 
 of title IV of the Social Security Act (42 
 U.S.C. 621 et seq.); or
 (II) a foster child who a court has 
 placed with a caretaker household.
 (B) Proof of receipt of supplemental nutrition assistance 
program benefits or assistance under the State program funded 
under part A of title IV of the Social Security Act (42 U.S.C. 
601 et seq.) that the Secretary determines complies with 
standards established by the Secretary that ensure that the 
standards under the State program are comparable to or more 
restrictive than those in effect on June 1, 1995, or of 
enrollment or participation in a Head Start program on the 
basis described in subparagraph (A)(iii), shall be sufficient 
to satisfy any verification requirement imposed under this 
subsection.
 (13) Exclusion of certain military housing 
 allowances.--The amount of a basic allowance provided 
 under section 403 of title 37, United States Code, on 
 behalf of a member of a uniformed service for housing 
 that is acquired or constructed under subchapter IV of 
 chapter 169 of title 10, United States Code, or any 
 related provision of law, shall not be considered to be 
 income for the purpose of determining the eligibility 
 of a child who is a member of the household of the 
 member of a uniformed service for free or reduced price 
 lunches under this Act.
 (14) Combat pay.--
 (A) Definition of combat pay.--In this 
 paragraph, the term ``combat pay'' means any 
 additional payment under chapter 5 of title 37, 
 United States Code, or otherwise designated by 
 the Secretary to be appropriate for exclusion 
 under this paragraph, that is received by or 
 from a member of the United States Armed Forces 
 deployed to a designated combat zone, if the 
 additional pay--
 (i) is the result of deployment to or 
 service in a combat zone; and
 (ii) was not received immediately 
 prior to serving in a combat zone.
 (B) Exclusion.--Combat pay shall not be 
 considered to be income for the purpose of 
 determining the eligibility for free or reduced 
 price meals of a child who is a member of the 
 household of a member of the United States 
 Armed Forces.
 (15) Direct certification for children receiving 
 medicaid benefits.--
 (A) Definitions.--In this paragraph:
 (i) Eligible child.--The term 
 ``eligible child'' means a child--
 (I)(aa) who is eligible for 
 and receiving medical 
 assistance under the Medicaid 
 program; and
 (bb) who is a member of a 
 family with an income as 
 measured by the Medicaid 
 program before the application 
 of any expense, block, or other 
 income disregard, that does not 
 exceed 133 percent of the 
 poverty line (as defined in 
 section 673(2) of the Community 
 Services Block Grant Act (42 
 U.S.C. 9902(2), including any 
 revision required by such 
 section)) applicable to a 
 family of the size used for 
 purposes of determining 
 eligibility for the Medicaid 
 program; or
 (II) who is a member of a 
 household (as that term is 
 defined in section 245.2 of 
 title 7, Code of Federal 
 Regulations (or successor 
 regulations) with a child 
 described in subclause (I).
 (ii) Medicaid program.--The term 
 ``Medicaid program'' means the program 
 of medical assistance established under 
 title XIX of the Social Security Act 
 (42 U.S.C. 1396 et seq.).
 (B) Demonstration project.--
 (i) In general.--The Secretary, 
 acting through the Administrator of the 
 Food and Nutrition Service and in 
 cooperation with selected State 
 agencies, shall conduct a demonstration 
 project in selected local educational 
 agencies to determine whether direct 
 certification of eligible children is 
 an effective method of certifying 
 children for free lunches and 
 breakfasts under section 9(b)(1)(A) of 
 this Act and section 4(e)(1)(A) of the 
 Child Nutrition Act of 1966 (42 U.S.C. 
 1773(e)(1)(A)).
 (ii) Scope of project.--The Secretary 
 shall carry out the demonstration 
 project under this subparagraph--
 (I) for the school year 
 beginning July 1, 2012, in 
 selected local educational 
 agencies that collectively 
 serve 2.5 percent of students 
 certified for free and reduced 
 price meals nationwide, based 
 on the most recent available 
 data;
 (II) for the school year 
 beginning July 1, 2013, in 
 selected local educational 
 agencies that collectively 
 serve 5 percent of students 
 certified for free and reduced 
 price meals nationwide, based 
 on the most recent available 
 data; and
 (III) for the school year 
 beginning July 1, 2014, and 
 each subsequent school year, in 
 selected local educational 
 agencies that collectively 
 serve 10 percent of students 
 certified for free and reduced 
 price meals nationwide, based 
 on the most recent available 
 data.
 (iii) Purposes of the project.--At a 
 minimum, the purposes of the 
 demonstration project shall be--
 (I) to determine the 
 potential of direct 
 certification with the Medicaid 
 program to reach children who 
 are eligible for free meals but 
 not certified to receive the 
 meals;
 (II) to determine the 
 potential of direct 
 certification with the Medicaid 
 program to directly certify 
 children who are enrolled for 
 free meals based on a household 
 application; and
 (III) to provide an estimate 
 of the effect on Federal costs 
 and on participation in the 
 school lunch program under this 
 Act and the school breakfast 
 program established by section 
 4 of the Child Nutrition Act of 
 1966 (42 U.S.C. 1773) of direct 
 certification with the Medicaid 
 program.
 (iv) Cost estimate.--For each of 2 
 school years of the demonstration 
 project, the Secretary shall estimate 
 the cost of the direct certification of 
 eligible children for free school meals 
 through data derived from--
 (I) the school meal programs 
 authorized under this Act and 
 the Child Nutrition Act of 1966 
 (42 U.S.C. 1771 et seq.);
 (II) the Medicaid program; 
 and
 (III) interviews with a 
 statistically representative 
 sample of households.
 (C) Agreement.--
 (i) In general.--Not later than July 
 1 of the first school year during which 
 a State agency will participate in the 
 demonstration project, the State agency 
 shall enter into an agreement with the 
 1 or more State agencies conducting 
 eligibility determinations for the 
 Medicaid program.
 (ii) Without further application.--
 Subject to paragraph (6), the agreement 
 described in subparagraph (D) shall 
 establish procedures under which an 
 eligible child shall be certified for 
 free lunches under this Act and free 
 breakfasts under section 4 of the Child 
 Nutrition Act of 1966 (42 U.S.C. 1773), 
 without further application (as defined 
 in paragraph (4)(G)).
 (D) Certification.--For the school year 
 beginning on July 1, 2012, and each subsequent 
 school year, subject to paragraph (6), the 
 local educational agencies participating in the 
 demonstration project shall certify an eligible 
 child as eligible for free lunches under this 
 Act and free breakfasts under the Child 
 Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
 without further application (as defined in 
 paragraph (4)(G)).
 (E) Site selection.--
 (i) In general.--To be eligible to 
 participate in the demonstration 
 project under this subsection, a State 
 agency shall submit to the Secretary an 
 application at such time, in such 
 manner, and containing such information 
 as the Secretary may require.
 (ii) Considerations.--In selecting 
 States and local educational agencies 
 for participation in the demonstration 
 project, the Secretary may take into 
 consideration such factors as the 
 Secretary considers to be appropriate, 
 which may include--
 (I) the rate of direct 
 certification;
 (II) the share of individuals 
 who are eligible for benefits 
 under the supplemental 
 nutrition assistance program 
 established under the Food and 
 Nutrition Act of 2008 (7 U.S.C. 
 2011 et seq.) who participate 
 in the program, as determined 
 by the Secretary;
 (III) the income eligibility 
 limit for the Medicaid program;
 (IV) the feasibility of 
 matching data between local 
 educational agencies and the 
 Medicaid program;
 (V) the socioeconomic profile 
 of the State or local 
 educational agencies; and
 (VI) the willingness of the 
 State and local educational 
 agencies to comply with the 
 requirements of the 
 demonstration project.
 (F) Access to data.--For purposes of 
 conducting the demonstration project under this 
 paragraph, the Secretary shall have access to--
 (i) educational and other records of 
 State and local educational and other 
 agencies and institutions receiving 
 funding or providing benefits for 1 or 
 more programs authorized under this Act 
 or the Child Nutrition Act of 1966 (42 
 U.S.C. 1771 et seq.); and
 (ii) income and program participation 
 information from public agencies 
 administering the Medicaid program.
 (G) Report to congress.--
 (i) In general.--Not later than 
 October 1, 2014, the Secretary shall 
 submit to the Committee on Education 
 and Labor of the House of 
 Representatives and the Committee on 
 Agriculture, Nutrition, and Forestry of 
 the Senate, an interim report that 
 describes the results of the 
 demonstration project required under 
 this paragraph.
 (ii) Final report.--Not later than 
 October 1, 2015, the Secretary shall 
 submit a final report to the committees 
 described in clause (i).
 (H) Funding.--
 (i) In general.--On October 1, 2010, 
 out of any funds in the Treasury not 
 otherwise appropriated, the Secretary 
 of the Treasury shall transfer to the 
 Secretary to carry out subparagraph (G) 
 $5,000,000, to remain available until 
 expended.
 (ii) Receipt and acceptance.--The 
 Secretary shall be entitled to receive, 
 shall accept, and shall use to carry 
 out subparagraph (G) the funds 
 transferred under clause (i), without 
 further appropriation.
 (c) School lunch programs under this Act shall be operated on 
a nonprofit basis. Commodities purchased under the authority of 
section 32 of the Act of August 24, 1935, may be donated by the 
Secretary to schools, in accordance with the needs as 
determined by local school authorities, for utilization in the 
school lunch program under this Act as well as to other schools 
carrying out nonprofit school lunch programs and institutions 
authorized to receive such commodities. The requirements of 
this section relating to the service of meals without cost or 
at a reduced cost shall apply to the lunch program of any 
school utilizing commodities donated under any provision of 
law.
 (d)(1) The Secretary shall require as a condition of 
eligibility for receipt of free or reduced price lunches that 
the member of the household who executes the application 
furnish the last 4 digits of the social security account number 
of the parent or guardian who is the primary wage earner 
responsible for the care of the child for whom the application 
is made, or that of another appropriate adult member of the 
child's household, as determined by the Secretary.
 (2) No member of a household may be provided a free or 
reduced price lunch under this Act unless--
 (A) appropriate documentation relating to the income 
 of such household (as prescribed by the Secretary) has 
 been provided to the appropriate local educational 
 agency so that the local educational agency may 
 calculate the total income of such household;
 (B) documentation showing that the household is 
 participating in the supplemental nutrition assistance 
 program under the Food and Nutrition Act of 2008 has 
 been provided to the appropriate local educational 
 agency;
 (C) documentation has been provided to the 
 appropriate local educational agency showing that the 
 family is receiving assistance under the State program 
 funded under part A of title IV of the Social Security 
 Act that the Secretary determines complies with 
 standards established by the Secretary that ensure that 
 the standards under the State program are comparable to 
 or more restrictive than those in effect on June 1, 
 1995;
 (D) documentation has been provided to the 
 appropriate local educational agency showing that the 
 child meets the criteria specified in clauses (iv) or 
 (v) of subsection (b)(12)(A);
 (E) documentation has been provided to the 
 appropriate local educational agency showing the status 
 of the child as a migratory child (as defined in 
 section 1309 of the Elementary and Secondary Education 
 Act of 1965 (20 U.S.C. 6399));
 (F)(i) documentation has been provided to the 
 appropriate local educational agency showing the status 
 of the child as a foster child whose care and placement 
 is the responsibility of an agency that administers a 
 State plan under part B or E of title IV of the Social 
 Security Act (42 U.S.C. 621 et seq.); or
 (ii) documentation has been provided to the 
 appropriate local educational agency showing 
 the status of the child as a foster child who a 
 court has placed with a caretaker household; or
 (G) documentation has been provided to the 
 appropriate local educational agency showing the status 
 of the child as an eligible child (as defined in 
 subsection (b)(15)(A)).
 (e) A school or school food authority participating in a 
program under this Act may not contract with a food service 
company to provide a la carte food service unless the company 
agrees to offer free, reduced price, and full-price 
reimbursable meals to all eligible children.
 (f) Nutritional Requirements.--
 (1) In general.--Schools that are participating in 
 the school lunch program or school breakfast program 
 shall serve lunches and breakfasts that--
 (A) are consistent with the goals of the most 
 recent Dietary Guidelines for Americans 
 published under section 301 of the National 
 Nutrition Monitoring and Related Research Act 
 of 1990 (7 U.S.C. 5341); and
 (B) consider the nutrient needs of children 
 who may be at risk for inadequate food intake 
 and food insecurity.
 (2) To assist schools in meeting the requirements of this 
subsection, the Secretary--
 (A) shall--
 (i) develop, and provide to schools, 
 standardized recipes, menu cycles, and food 
 product specification and preparation 
 techniques; and
 (ii) provide to schools information regarding 
 nutrient standard menu planning, assisted 
 nutrient standard menu planning, and food-based 
 menu systems; and
 (B) may provide to schools information regarding 
 other approaches, as determined by the Secretary.
 (3) Use of any reasonable approach.--
 (A) In general.--A school food service authority may 
 use any reasonable approach, within guidelines 
 established by the Secretary in a timely manner, to 
 meet the requirements of this subsection, including--
 (i) using the school nutrition meal pattern 
 in effect for the 1994-1995 school year; and
 (ii) using any of the approaches described in 
 paragraph (3).
 (B) Nutrient analysis.--The Secretary may not require 
 a school to conduct or use a nutrient analysis to meet 
 the requirements of this subsection.
 (4) Waiver of requirement for weighted averages for 
 nutrient analysis.--During the period ending on 
 September 30, 2010, the Secretary shall not require the 
 use of weighted averages for nutrient analysis of menu 
 items and foods offered or served as part of a meal 
 offered or served under the school lunch program under 
 this Act or the school breakfast program under section 
 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
 (g) Not later than 1 year after the date of enactment of this 
subsection, the Secretary shall provide a notification to 
Congress that justifies the need for production records 
required under section 210.10(b) of title 7, Code of Federal 
Regulations, and describes how the Secretary has reduced 
paperwork relating to the school lunch and school breakfast 
programs.
 (h) Food Safety.--
 (1) In general.--A school participating in the school 
 lunch program under this Act or the school breakfast 
 program under section 4 of the Child Nutrition Act of 
 1966 (42 U.S.C. 1773) shall--
 (A) at least twice during each school year, 
 obtain a food safety inspection conducted by a 
 State or local governmental agency responsible 
 for food safety inspections;
 (B) post in a publicly visible location a 
 report on the most recent inspection conducted 
 under subparagraph (A); and
 (C) on request, provide a copy of the report 
 to a member of the public.
 (2) State and local government inspections.--Nothing 
 in paragraph (1) prevents any State or local government 
 from adopting or enforcing any requirement for more 
 frequent food safety inspections of schools.
 (3) Audits and reports by states.--For fiscal year 
 2024, each State shall annually--
 (A) audit food safety inspections of schools 
 conducted under paragraphs (1) and (2); and
 (B) submit to the Secretary a report of the 
 results of the audit.
 (4) Audit by the secretary.--For fiscal year 2024, 
 the Secretary shall annually audit State reports of 
 food safety inspections of schools submitted under 
 paragraph (3).
 (5) School food safety program.--
 (A) In general.--Each school food authority 
 shall implement a school food safety program, 
 in the preparation and service of each meal 
 served to children, that complies with any 
 hazard analysis and critical control point 
 system established by the Secretary.
 (B) Applicability.--Subparagraph (A) shall 
 apply to any facility or part of a facility in 
 which food is stored, prepared, or served for 
 the purposes of the school nutrition programs 
 under this Act or section 4 of the Child 
 Nutrition Act of 1966 (42 U.S.C. 1773).
 (i) Single Permanent Agreement Between State Agency and 
School Food Authority; Common Claims Form.--
 (1) In general.--If a single State agency administers 
 any combination of the school lunch program under this 
 Act, the school breakfast program under section 4 of 
 the Child Nutrition Act of 1966 (42 U.S.C. 1773), the 
 summer food service program for children under section 
 13 of this Act, or the child and adult care food 
 program under section 17 of this Act, the agency 
 shall--
 (A) require each school food authority to 
 submit to the State agency a single agreement 
 with respect to the operation by the authority 
 of the programs administered by the State 
 agency; and
 (B) use a common claims form with respect to 
 meals and supplements served under the programs 
 administered by the State agency.
 (2) Additional requirement.--The agreement described 
 in paragraph (1)(A) shall be a permanent agreement that 
 may be amended as necessary.
 (j) Purchases of Locally Produced Foods.--The Secretary 
shall--
 (1) encourage institutions receiving funds under this 
 Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 
 et seq.) to purchase unprocessed agricultural products, 
 both locally grown and locally raised, to the maximum 
 extent practicable and appropriate;
 (2) advise institutions participating in a program 
 described in paragraph (1) of the policy described in 
 that paragraph and paragraph (3) and post information 
 concerning the policy on the website maintained by the 
 Secretary; and
 (3) allow institutions receiving funds under this Act 
 and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
 seq.), including the Department of Defense Fresh Fruit 
 and Vegetable Program, to use a geographic preference 
 for the procurement of unprocessed agricultural 
 products, both locally grown and locally raised.
 (k) Information on the School Nutrition Environment.--
 (1) In general.--The Secretary shall--
 (A) establish requirements for local 
 educational agencies participating in the 
 school lunch program under this Act and the 
 school breakfast program established by section 
 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
 1773) to report information about the school 
 nutrition environment, for all schools under 
 the jurisdiction of the local educational 
 agencies, to the Secretary and to the public in 
 the State on a periodic basis; and
 (B) provide training and technical assistance 
 to States and local educational agencies on the 
 assessment and reporting of the school 
 nutrition environment, including the use of any 
 assessment materials developed by the 
 Secretary.
 (2) Requirements.--In establishing the requirements 
 for reporting on the school nutrition environment under 
 paragraph (1), the Secretary shall--
 (A) include information pertaining to food 
 safety inspections, local wellness policies, 
 meal program participation, the nutritional 
 quality of program meals, and other information 
 as determined by the Secretary; and
 (B) ensure that information is made available 
 to the public by local educational agencies in 
 an accessible, easily understood manner in 
 accordance with guidelines established by the 
 Secretary.
 (3) Authorization of appropriations.--There are 
 authorized to be appropriated to carry out this 
 subsection such sums as are necessary for each of 
 fiscal years 2011 through 2015.
 (l) Food Donation Program.--
 (1) In general.--Each school and local educational 
 agency participating in the school lunch program under 
 this Act may donate any food not consumed under such 
 program to eligible local food banks or charitable 
 organizations.
 (2) Guidance.--
 (A) In general.--Not later than 180 days 
 after the date of the enactment of this 
 subsection, the Secretary shall develop and 
 publish guidance to schools and local 
 educational agencies participating in the 
 school lunch program under this Act to assist 
 such schools and local educational agencies in 
 donating food under this subsection.
 (B) Updates.--The Secretary shall update such 
 guidance as necessary.
 (3) Liability.--Any school or local educational 
 agency making donations pursuant to this subsection 
 shall be exempt from civil and criminal liability to 
 the extent provided under the Bill Emerson Good 
 Samaritan Food Donation Act (42 U.S.C. 1791).
 (4) Definition.--In this subsection, the term 
 ``eligible local food banks or charitable 
 organizations'' means any food bank or charitable 
 organization which is exempt from tax under section 
 501(c)(3) of the Internal Revenue Code of 1986 (26 
 U.S.C. 501(c)(3)).

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