S1431-119

1. Short title This Act may be cited as the School Meal Modernization and Hunger Elimination Act.

2. Direct certification Section 9(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)) is amended— in paragraph (4)(F)(iii)(II)(bb), by inserting in not more than 3 school years after measures; and in paragraph (5)— in the paragraph heading, by striking Discretionary certification and inserting Direct certification of additional low-income children; in the matter preceding subparagraph (A), by striking may certify and inserting (including any school operated by the Bureau of Indian Education) shall certify; in subparagraph (B), by inserting a closing parenthesis before the semicolon at the end; in subparagraph (D), by striking or at the end; and in subparagraph (E)— in clause (i), by striking or at the end; in clause (ii)— by striking who and inserting whom; and by striking the period at the end and inserting a semicolon; and by adding at the end the following: a child whose placement with a caregiver was carried out with the involvement 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. 601 et seq.) or a Tribal child welfare agency, without regard to whether the agency is responsible for the care and placement of the child; a child for whom an adoption assistance payment is made under section 473(a) of the Social Security Act (42 U.S.C. 673(a)) or under a similar State-funded or State-operated program, as determined by the Secretary; a child for whom a kinship guardianship assistance payment is made under section 473(d) of the Social Security Act (42 U.S.C. 673(d)) or under a similar State-funded or State-operated program, as determined by the Secretary, without regard to whether the child was previously in foster care; or a child of a family that— lives in housing dedicated to low-income families with a caregiver who is a grandparent or another older person that cares for the child full-time; or receives housing or housing assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.); or a child who receives supplemental security income payments under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.). (iii)a child whose placement with a caregiver was carried out with the involvement 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. 601 et seq.) or a Tribal child welfare agency, without regard to whether the agency is responsible for the care and placement of the child;(iv)a child for whom an adoption assistance payment is made under section 473(a) of the Social Security Act (42 U.S.C. 673(a)) or under a similar State-funded or State-operated program, as determined by the Secretary;(v)a child for whom a kinship guardianship assistance payment is made under section 473(d) of the Social Security Act (42 U.S.C. 673(d)) or under a similar State-funded or State-operated program, as determined by the Secretary, without regard to whether the child was previously in foster care; or(vi)a child of a family that—(I)lives in housing dedicated to low-income families with a caregiver who is a grandparent or another older person that cares for the child full-time; or(II)receives housing or housing assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.); or(F)a child who receives supplemental security income payments under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.)..

3. Eligibility of transferred children; retroactive reimbursement Section 9(b)(9) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(9)) is amended— by redesignating subparagraph (C) as subparagraph (D); by inserting after subparagraph (B) the following: In this subparagraph, the term covered child means a child that— has been determined eligible for free or reduced price meals under this Act by a local educational agency (referred to in this subparagraph as the original local educational agency); and transfers to another school that is under the jurisdiction of a different local educational agency (referred to in this subparagraph as the new local educational agency). An eligibility determination made by an original local educational agency with respect to a covered child shall be transferred to, and honored by, the new local educational agency, including the period for which that determination was authorized, subject to an extension under clause (iii). A new local educational agency shall honor the eligibility determination for a covered child under clause (ii) for a period that is 1 year longer than the period for which that determination was authorized by the original local educational agency if the covered child began living with a caregiver— during the 12-month period preceding the date on which the covered child is enrolled in a school under the jurisdiction of a new local educational agency; and who is a grandparent or other relative and— has legal authority to secure services for the child through an educational or healthcare consent affidavit, power of attorney, or other legal documentation; or has legal custody of the child or has commenced the process of seeking legal custody of the child in a court of law. in subparagraph (D) (as so redesignated)— by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately; in the matter preceding subclause (I) (as so redesignated), by striking Except as and all that follows through (3)(H)(ii) and inserting the following: Except as otherwise specified in clause (ii), subparagraph (C), subparagraphs (E) and (H)(ii) of paragraph (3) by adding at the end the following: A school food authority shall extend the eligibility determination made by a local educational agency with respect to a child for a period that is 1 year longer than the period for which that determination was authorized by the local educational agency, if the child began living with a caregiver— during the 12-month period preceding the date on which the covered child is enrolled in the new school; and who is a grandparent or other relative and— has legal authority to secure services for the child through an educational or healthcare consent affidavit, power of attorney, or other legal documentation; or has legal custody of the child or has commenced the process of seeking legal custody of the child in a court of law. by adding at the end the following: In this subparagraph: The term change in eligibility means, with respect to eligibility for the school lunch program under this Act— a change from eligibility for reduced price meals to eligibility for free meals; and a change from noneligibility to eligibility for free or reduced price meals. The term meal claim means any documentation provided by a school food authority to a State agency in order to receive reimbursement under this Act for the cost of a meal served to a child by the school food authority. The term previously submitted, with respect to a meal claim, means a meal claim submitted on or after the retroactive date. The term retroactive date means the first day of the current school year. A local educational agency shall— revise and resubmit a previously submitted meal claim to reflect a change in eligibility described in subclause (i)(I)(aa) of a child; and submit a meal claim for any meal provided on or after the retroactive date for a child that has a change of eligibility described in subclause (i)(I)(bb). The Secretary shall reimburse each meal claim submitted by a local educational agency under subclause (I). A local educational agency that receives a reimbursement under clause (ii)(II) shall reimburse the household of a child for any fees paid by the household on or after the retroactive date and prior to the change in eligibility of the child. (C)Eligibility of transferred children(i)Definition of covered childIn this subparagraph, the term covered child means a child that—(I)has been determined eligible for free or reduced price meals under this Act by a local educational agency (referred to in this subparagraph as the original local educational agency); and(II)transfers to another school that is under the jurisdiction of a different local educational agency (referred to in this subparagraph as the new local educational agency).(ii)EligibilityAn eligibility determination made by an original local educational agency with respect to a covered child shall be transferred to, and honored by, the new local educational agency, including the period for which that determination was authorized, subject to an extension under clause (iii).(iii)Extension of durationA new local educational agency shall honor the eligibility determination for a covered child under clause (ii) for a period that is 1 year longer than the period for which that determination was authorized by the original local educational agency if the covered child began living with a caregiver—(I)during the 12-month period preceding the date on which the covered child is enrolled in a school under the jurisdiction of a new local educational agency; and(II)who is a grandparent or other relative and—(aa)has legal authority to secure services for the child through an educational or healthcare consent affidavit, power of attorney, or other legal documentation; or(bb)has legal custody of the child or has commenced the process of seeking legal custody of the child in a court of law.; (i)In generalExcept as otherwise specified in clause (ii), subparagraph (C), subparagraphs (E) and (H)(ii) of paragraph (3); and (ii)Extension for certain childrenA school food authority shall extend the eligibility determination made by a local educational agency with respect to a child for a period that is 1 year longer than the period for which that determination was authorized by the local educational agency, if the child began living with a caregiver—(I)during the 12-month period preceding the date on which the covered child is enrolled in the new school; and(II)who is a grandparent or other relative and—(aa)has legal authority to secure services for the child through an educational or healthcare consent affidavit, power of attorney, or other legal documentation; or(bb)has legal custody of the child or has commenced the process of seeking legal custody of the child in a court of law.; and (E)Retroactive reimbursement(i)DefinitionsIn this subparagraph:(I)Change in eligibilityThe term change in eligibility means, with respect to eligibility for the school lunch program under this Act—(aa)a change from eligibility for reduced price meals to eligibility for free meals; and(bb)a change from noneligibility to eligibility for free or reduced price meals.(II)Meal claimThe term meal claim means any documentation provided by a school food authority to a State agency in order to receive reimbursement under this Act for the cost of a meal served to a child by the school food authority.(III)Previously submittedThe term previously submitted, with respect to a meal claim, means a meal claim submitted on or after the retroactive date.(IV)Retroactive dateThe term retroactive date means the first day of the current school year.(ii)Retroactivity(I)Submission of meal claimsA local educational agency shall—(aa)revise and resubmit a previously submitted meal claim to reflect a change in eligibility described in subclause (i)(I)(aa) of a child; and(bb)submit a meal claim for any meal provided on or after the retroactive date for a child that has a change of eligibility described in subclause (i)(I)(bb).(II)Reimbursement by SecretaryThe Secretary shall reimburse each meal claim submitted by a local educational agency under subclause (I).(iii)Reimbursement to familiesA local educational agency that receives a reimbursement under clause (ii)(II) shall reimburse the household of a child for any fees paid by the household on or after the retroactive date and prior to the change in eligibility of the child..

4. Expanding automatic eligibility Section 9(b)(12)(A) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(12)(A)) is amended— by conforming the margins of clauses (iv) through (vii) to the margin of clause (iii); and in clause (vii)— in subclause (I), by striking or at the end; in subclause (II)— by striking who and inserting whom; and by striking the period at the end and inserting a semicolon; and by adding at the end the following: a child whose placement with a caregiver was carried out with the involvement 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. 601 et seq.) or a Tribal child welfare agency, without regard to whether the agency is responsible for the care and placement of the child; a child for whom an adoption assistance payment is made under section 473(a) of the Social Security Act (42 U.S.C. 673(a)) or under a similar State-funded or State-operated program, as determined by the Secretary; a child for whom a kinship guardianship assistance payment is made under section 473(d) of the Social Security Act (42 U.S.C. 673(d)) or under a similar State-funded or State-operated program, as determined by the Secretary, without regard to whether the child was previously in foster care; or a child of a family that— lives in housing dedicated to low-income families with a caregiver who is a grandparent or another older person that cares for the child full-time; or receives housing or housing assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.). Section 9(d)(2) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended— in subparagraph (D), by striking (iv) or (v) and inserting (ii), (iii), (iv), (v), or (vii); in subparagraph (E), by adding or after the semicolon; by striking subparagraph (F); and by redesignating subparagraph (G) as subparagraph (F) and conforming the margin of the subparagraph appropriately. (III)a child whose placement with a caregiver was carried out with the involvement 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. 601 et seq.) or a Tribal child welfare agency, without regard to whether the agency is responsible for the care and placement of the child;(IV)a child for whom an adoption assistance payment is made under section 473(a) of the Social Security Act (42 U.S.C. 673(a)) or under a similar State-funded or State-operated program, as determined by the Secretary;(V)a child for whom a kinship guardianship assistance payment is made under section 473(d) of the Social Security Act (42 U.S.C. 673(d)) or under a similar State-funded or State-operated program, as determined by the Secretary, without regard to whether the child was previously in foster care; or(VI)a child of a family that—(aa)lives in housing dedicated to low-income families with a caregiver who is a grandparent or another older person that cares for the child full-time; or(bb)receives housing or housing assistance under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.)..

5. Universal medicaid direct certification Section 9(b)(15) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(15)) is amended— in subparagraph (A)— by striking clause (i) and inserting the following: The term eligible child means a child who— is eligible for and receiving medical assistance under the Medicaid program; and is a member of a family with an income as measured by the Medicaid program that does not exceed, in the case of eligibility for free meals, 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, in the case of eligibility for reduced price meals, the applicable family size income level under the income eligibility guidelines for reduced price meals; or 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 item (aa). The term eligible child includes a child who is eligible for and receiving medical assistance under the Medicaid program under subclause (I) of section 1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i))— on the basis of receiving aid or assistance under the State plan approved under part E of title IV of that Act (42 U.S.C. 670 et seq.); by reason of section 473(b) of that Act (42 U.S.C. 673(b)); or under subclause (II) of section 1902(a)(10)(A)(i) of that Act (42 U.S.C. 1396a(a)(10)(A)(i)). by adding at the end the following: The term without further application has the meaning given the term in paragraph (4)(G). by striking subparagraphs (B) through (H) and inserting the following: For the school year beginning on July 1, 2025, and each school year thereafter, each State shall enter into an agreement described in subparagraph (C) with the 1 or more State agencies conducting eligibility determinations for the Medicaid program. Subject to subparagraph (D) and paragraph (6), an agreement entered into under subparagraph (B) shall establish procedures under which an eligible child shall be certified as eligible, without further application, for— free or reduced price lunch under this Act; and free or reduced price breakfast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). Each agreement entered into under subparagraph (B) shall ensure that a child who is simultaneously eligible for reduced price meals under this paragraph or based on an income eligibility determination, and for free meals based on documentation provided under subsection (d)(2), shall be certified for free meals. Subject to paragraph (6), and according to an agreement entered into under subparagraph (B), the local educational agency conducting eligibility determinations under that agreement shall certify an eligible child as eligible, without further application, for— free or reduced price lunch under this Act; and free or reduced price breakfast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (i)Eligible child(I)In generalThe term eligible child means a child who—(aa)(AA)is eligible for and receiving medical assistance under the Medicaid program; and(BB)is a member of a family with an income as measured by the Medicaid program that does not exceed, in the case of eligibility for free meals, 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, in the case of eligibility for reduced price meals, the applicable family size income level under the income eligibility guidelines for reduced price meals; or(bb)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 item (aa).(II)Other childrenThe term eligible child includes a child who is eligible for and receiving medical assistance under the Medicaid program under subclause (I) of section 1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i))—(aa)on the basis of receiving aid or assistance under the State plan approved under part E of title IV of that Act (42 U.S.C. 670 et seq.);(bb)by reason of section 473(b) of that Act (42 U.S.C. 673(b)); or(cc)under subclause (II) of section 1902(a)(10)(A)(i) of that Act (42 U.S.C. 1396a(a)(10)(A)(i)).; and (iii)Without further applicationThe term without further application has the meaning given the term in paragraph (4)(G).; and (B)AgreementFor the school year beginning on July 1, 2025, and each school year thereafter, each State shall enter into an agreement described in subparagraph (C) with the 1 or more State agencies conducting eligibility determinations for the Medicaid program.(C)Procedures(i)In generalSubject to subparagraph (D) and paragraph (6), an agreement entered into under subparagraph (B) shall establish procedures under which an eligible child shall be certified as eligible, without further application, for—(I)free or reduced price lunch under this Act; and(II)free or reduced price breakfast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).(ii)Free mealsEach agreement entered into under subparagraph (B) shall ensure that a child who is simultaneously eligible for reduced price meals under this paragraph or based on an income eligibility determination, and for free meals based on documentation provided under subsection (d)(2), shall be certified for free meals.(D)CertificationSubject to paragraph (6), and according to an agreement entered into under subparagraph (B), the local educational agency conducting eligibility determinations under that agreement shall certify an eligible child as eligible, without further application, for—(i)free or reduced price lunch under this Act; and(ii)free or reduced price breakfast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)..

6. Direct certification for children receiving Social Security income Section 9(b) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end the following: In the case of direct certification under paragraph (5) or (12)(A) of a child who receives supplemental security income payments under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), the Commissioner of Social Security shall provide a local educational agency with the data necessary to certify the child in accordance with a data-sharing agreement between the Commissioner and the State in which the local educational agency is located. (16)Data from Social Security administrationIn the case of direct certification under paragraph (5) or (12)(A) of a child who receives supplemental security income payments under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), the Commissioner of Social Security shall provide a local educational agency with the data necessary to certify the child in accordance with a data-sharing agreement between the Commissioner and the State in which the local educational agency is located..

8. Enhancing the community eligibility option Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(F)) is amended— in clause (iv)— in subclause (I)(bb)— by striking as of April 1 of the prior school year and inserting during the period beginning on April 1 of the prior school year and ending on the last day of that school year; and by striking as of April 1 of the school year prior and all that follows through subparagraph and inserting during the period beginning on April 1 of the covered school year and ending on the last day of the covered school year; and by adding at the end the following: In this clause, the term covered school year means the school year prior to the first school year that a school or local educational agency elected to receive special assistance payments under this subparagraph. by striking clause (vii) and inserting the following: For each school year beginning on or after July 1, 2025, the multiplier shall be 2.5. in clause (x)— in subclause (I), by striking for the next school year if, not later than June 30 of the current school year, and inserting if; in subclause (II)(aa), by inserting , based on counts conducted by schools of identified students beginning on or after April 1 of that school year, after clause (viii); and in subclause (IV)(aa), by inserting , based on counts conducted by schools of identified students beginning on or after April 1 of that school year, after clause (viii). Section 11(a)(1)(F)(xi) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(F)(xi)) is amended by striking subclause (III). (III)Definition of covered school yearIn this clause, the term covered school year means the school year prior to the first school year that a school or local educational agency elected to receive special assistance payments under this subparagraph.; (vii)MultiplierFor each school year beginning on or after July 1, 2025, the multiplier shall be 2.5.; and

9. Statewide free universal school meals demonstration projects Section 11(a)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by adding at the end the following: In this subparagraph: The term demonstration project means a demonstration project carried out under clause (ii). The term eligible school means a school that participates in the school lunch program under this Act and the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). The term eligible school does not include residential child care institutions (as defined in section 210.2 of title 7, Code of Federal Regulations (or successor regulations)). The term identified students has the meaning given the term in subparagraph (F)(i). The term selected State means a State selected to carry out a demonstration project under clause (iii)(I). Not later than July 1, 2026, the Secretary shall carry out demonstration projects in selected States under which school meals are provided at no charge to every student at an eligible school in the selected State. The Secretary shall select not more than 5 States to each carry out a demonstration project. A State seeking to carry out a demonstration project shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. In carrying out subclause (I), the Secretary shall give priority to a State based on— the level of childhood poverty in the State; the extent to which the State has implemented subparagraph (F); the extent to which the direct certification rate of the State meets the required percentage (as defined in section 9(b)(4)(F)(i)); the extent to which the State demonstrates a commitment to providing technical assistance to local educational agencies that will implement the demonstration project in the State; and the extent to which the State demonstrates a commitment to providing non-Federal funding under clause (vi)(III). A demonstration project shall begin in a selected State on the first day of the school year in that State. For each month of the first school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying— 1.9; and the percentage of identified students in eligible schools in the State as of the last day of the prior school year, up to a maximum of 100 percent. For each month of the second school year and each subsequent school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying— 1.9; and the higher of— the percentage of identified students in eligible schools as of the last day of the prior school year; and the percentage of identified students in eligible schools as of the last day of the school year prior to the first school year during which a demonstration project is carried out, up to a maximum of 100 percent. With respect to the reimbursable meals described in subclauses (I) and (II) for which a selected State is not receiving special assistance payments under this clause, the reimbursement rate shall be the rate provided under section 4. A special assistance payment made under this clause shall be in lieu of any other special assistance payment made under this paragraph. Each selected State shall, in the school year preceding the first school year during which the demonstration project shall be carried out in the State— identify each eligible school in the State; in consultation with the Secretary, combine the percentage of identified students across eligible schools for the purpose of calculating the maximum reimbursement rate to ensure that the special assistance payments received under clause (v) are for the maximum amount; inform local educational agencies of the demonstration project; and coordinate with local educational agencies to provide information about the demonstration project to parents or guardians of students attending eligible schools. As part of a demonstration project, an eligible school in a selected State— shall not collect applications for free and reduced price lunches under this Act; and shall make school meals available to all children at the school at no charge. Each selected State may support the demonstration project using— funds from State and local sources that are used for the maintenance of the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and State revenues appropriated or used for program purposes under section 7. In addition to the funding received under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), each selected State shall provide funding from non-Federal sources to ensure that local educational agencies in the State receive the free reimbursement rate for not less than 90 percent of the meals served at eligible schools. A selected State that receives special assistance payments at the free reimbursement rate under subparagraph (F) for more than 90 percent of the meals served at eligible schools during the school year preceding the first school year during which a demonstration project is carried out shall continue to receive the free reimbursement rate for not less than the same percentage of meals in each school year during which a demonstration project is carried out. Not later than September 30, 2030, the Secretary, acting through the Administrator of the Food and Nutrition Service, shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committees on Agriculture and Education and Labor of the House of Representatives a report that evaluates the impact of each demonstration project in a selected State with respect to— academic achievement, absenteeism, tardiness, the school environment, child food insecurity in the selected State, and other key factors identified in consultation with the Secretary of Education; the rate of participation in the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) among identified students and other students; school meal services, finances, and operations in the selected State; administrative costs to the selected State and the school food authorities participating in the demonstration project; and the integrity of the operation of the free lunch program under this Act in the selected State. On October 1, 2026, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this clause $3,000,000, to remain available until September 30, 2030. The Secretary shall be entitled to receive, shall accept, and shall use to carry out this clause the funds transferred under item (aa), without further appropriation. (G)Statewide free universal school meals demonstration projects(i)DefinitionsIn this subparagraph:(I)Demonstration projectThe term demonstration project means a demonstration project carried out under clause (ii).(II)Eligible school(aa)In generalThe term eligible school means a school that participates in the school lunch program under this Act and the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).(bb)ExclusionThe term eligible school does not include residential child care institutions (as defined in section 210.2 of title 7, Code of Federal Regulations (or successor regulations)).(III)Identified studentsThe term identified students has the meaning given the term in subparagraph (F)(i).(IV)Selected StateThe term selected State means a State selected to carry out a demonstration project under clause (iii)(I).(ii)EstablishmentNot later than July 1, 2026, the Secretary shall carry out demonstration projects in selected States under which school meals are provided at no charge to every student at an eligible school in the selected State.(iii)State selection(I)In generalThe Secretary shall select not more than 5 States to each carry out a demonstration project.(II)ApplicationsA State seeking to carry out a demonstration project shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.(III)PriorityIn carrying out subclause (I), the Secretary shall give priority to a State based on—(aa)the level of childhood poverty in the State;(bb)the extent to which the State has implemented subparagraph (F);(cc)the extent to which the direct certification rate of the State meets the required percentage (as defined in section 9(b)(4)(F)(i));(dd)the extent to which the State demonstrates a commitment to providing technical assistance to local educational agencies that will implement the demonstration project in the State; and(ee)the extent to which the State demonstrates a commitment to providing non-Federal funding under clause (vi)(III).(iv)Start dateA demonstration project shall begin in a selected State on the first day of the school year in that State.(v)Special assistance payments(I)First yearFor each month of the first school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying—(aa)1.9; and(bb)the percentage of identified students in eligible schools in the State as of the last day of the prior school year, up to a maximum of 100 percent.(II)Subsequent yearsFor each month of the second school year and each subsequent school year during which a demonstration project is carried out, a selected State shall receive special assistance payments at the rate for free meals for a percentage of all reimbursable meals served in eligible schools in the State in an amount equal to the product obtained by multiplying—(aa)1.9; and(bb)the higher of—(AA)the percentage of identified students in eligible schools as of the last day of the prior school year; and(BB)the percentage of identified students in eligible schools as of the last day of the school year prior to the first school year during which a demonstration project is carried out, up to a maximum of 100 percent.(III)Payment for other mealsWith respect to the reimbursable meals described in subclauses (I) and (II) for which a selected State is not receiving special assistance payments under this clause, the reimbursement rate shall be the rate provided under section 4.(IV)Payments in lieu ofA special assistance payment made under this clause shall be in lieu of any other special assistance payment made under this paragraph.(vi)State implementation(I)Preliminary activitiesEach selected State shall, in the school year preceding the first school year during which the demonstration project shall be carried out in the State—(aa)identify each eligible school in the State;(bb)in consultation with the Secretary, combine the percentage of identified students across eligible schools for the purpose of calculating the maximum reimbursement rate to ensure that the special assistance payments received under clause (v) are for the maximum amount;(cc)inform local educational agencies of the demonstration project; and(dd)coordinate with local educational agencies to provide information about the demonstration project to parents or guardians of students attending eligible schools.(II)Meal serviceAs part of a demonstration project, an eligible school in a selected State—(aa)shall not collect applications for free and reduced price lunches under this Act; and(bb)shall make school meals available to all children at the school at no charge.(III)Non-Federal funding(aa)In generalEach selected State may support the demonstration project using—(AA)funds from State and local sources that are used for the maintenance of the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773); and(BB)State revenues appropriated or used for program purposes under section 7.(bb)Non-Federal contributionsIn addition to the funding received under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), each selected State shall provide funding from non-Federal sources to ensure that local educational agencies in the State receive the free reimbursement rate for not less than 90 percent of the meals served at eligible schools.(cc)Continuation of free rateA selected State that receives special assistance payments at the free reimbursement rate under subparagraph (F) for more than 90 percent of the meals served at eligible schools during the school year preceding the first school year during which a demonstration project is carried out shall continue to receive the free reimbursement rate for not less than the same percentage of meals in each school year during which a demonstration project is carried out.(vii)Report(I)In generalNot later than September 30, 2030, the Secretary, acting through the Administrator of the Food and Nutrition Service, shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committees on Agriculture and Education and Labor of the House of Representatives a report that evaluates the impact of each demonstration project in a selected State with respect to—(aa)academic achievement, absenteeism, tardiness, the school environment, child food insecurity in the selected State, and other key factors identified in consultation with the Secretary of Education;(bb)the rate of participation in the free lunch program under this Act and the free breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) among identified students and other students;(cc)school meal services, finances, and operations in the selected State;(dd)administrative costs to the selected State and the school food authorities participating in the demonstration project; and(ee)the integrity of the operation of the free lunch program under this Act in the selected State.(II)Funding(aa)In generalOn October 1, 2026, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out this clause $3,000,000, to remain available until September 30, 2030.(bb)Receipt and acceptanceThe Secretary shall be entitled to receive, shall accept, and shall use to carry out this clause the funds transferred under item (aa), without further appropriation..

10. State performance on enrolling children receiving program benefits for free school meals Section 4301(b) of the Food, Conservation, and Energy Act of 2008 (42 U.S.C. 1758a(b)) is amended— in paragraph (2), by striking and at the end; in paragraph (3), by striking the period at the end and inserting ; and; and by adding at the end the following: in the case of a State identified under clause (ii)(I) of section 9(b)(4)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)(F)), a description of— the technical assistance provided to the State; and the progress made by the State in implementing the measures and meeting the goals described in items (aa) through (cc) of clause (iii)(II) of that section. (4)in the case of a State identified under clause (ii)(I) of section 9(b)(4)(F) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)(F)), a description of—(A)the technical assistance provided to the State; and(B)the progress made by the State in implementing the measures and meeting the goals described in items (aa) through (cc) of clause (iii)(II) of that section..