or local educational agency as of 
April 1 of the prior school year, 
up to a maximum of 100 percent. 
‘‘(III) PAYMENT
FOR
OTHER 
MEALS.—The percentage of meals 
served that is not described in sub-
clause (II) shall be reimbursed at the 
rate provided under section 4. 
‘‘(vi) APPLICATIONS.—A school or 
local educational agency that receives spe-
cial assistance payments under this sub-
paragraph may not be required to collect 
applications for free and reduced price 
lunches. 
‘‘(vii) MULTIPLIER.— 
‘‘(I) PHASE-IN.—For each school 
year beginning on or before July 1, 
2013, the multiplier shall be 1.6. 
‘‘(II) FULL IMPLEMENTATION.— 
For each school year beginning on or 
after July 1, 2014, for a local edu-
cational agency that makes the elec-
tion described in clause (ii), on behalf 
of all schools in the agency or on be-
half of certain schools in the agency, 
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for a new period of 4 years, in consid-
eration of the finding of the report re-
quired under clause (xii), the Sec-
retary may use— 
‘‘(aa) a multiplier between 
1.3 and 1.6; and 
‘‘(bb) subject to item (aa), a 
different multiplier for different 
schools or local educational agen-
cies. 
‘‘(viii) THRESHOLD.— 
‘‘(I) PHASE-IN.—For each school 
year beginning on or before July 1, 
2013, the threshold shall be 40 per-
cent. 
‘‘(II) FULL IMPLEMENTATION.— 
For each school year beginning on or 
after July 1, 2014, the Secretary may 
use a threshold that is less than 40 
percent. 
‘‘(ix) PHASE-IN.— 
‘‘(I) IN GENERAL.—In selecting 
States for participation during the 
phase-in period, the Secretary shall 
select States with an adequate num-
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ber and variety of schools and local 
educational agencies that could ben-
efit from the option under this sub-
paragraph, as determined by the Sec-
retary. 
‘‘(II) 
LIMITATION.—The 
Sec-
retary may not approve additional 
schools and local educational agencies 
to receive special assistance payments 
under this subparagraph after the 
Secretary has approved schools and 
local educational agencies in— 
‘‘(aa) for the school year be-
ginning on July 1, 2011, 3 
States; and 
‘‘(bb) for each of the school 
years beginning July 1, 2012, 
and July 1, 2013, an additional 4 
States per school year. 
‘‘(x) ELECTION OF OPTION.— 
‘‘(I) IN
GENERAL.—For each 
school year beginning on or after July 
1, 2014, any local educational agency 
eligible to make the election described 
in clause (ii) for all schools in the 
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agency or on behalf of certain schools 
in the agency may elect to receive spe-
cial assistance payments under clause 
(iii) for the next school year if, not 
later than June 30 of the current 
school year, the local educational 
agency submits to the State agency 
the percentage of identified students 
at the school or local educational 
agency. 
‘‘(II) STATE AGENCY NOTIFICA-
TION.—Not later than May 1 of each 
school year beginning on or after July 
1, 2011, each State agency with 
schools or local educational agencies 
that may be eligible to elect to receive 
special assistance payments under this 
subparagraph shall notify— 
‘‘(aa) each local educational 
agency that meets or exceeds the 
threshold described in clause 
(viii) that the local educational 
agency is eligible to elect to re-
ceive special assistance payments 
under clause (iii) for the next 4 
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school years, of the blended reim-
bursement rate the local edu-
cational agency would receive 
under clause (iii), and of the pro-
cedures for the local educational 
agency to make the election; 
‘‘(bb) each local educational 
agency that receives special as-
sistance payments under clause 
(iii) of the blended reimburse-
ment rate the local educational 
agency 
would 
receive 
under 
clause (iv); 
‘‘(cc) each local educational 
agency in the fourth year of 
electing to receive special assist-
ance payments under this sub-
paragraph that does not meet the 
threshold described in clause 
(viii) but that meets or exceeds a 
percentage that is 10 percentage 
points lower than the threshold 
described in clause (viii) and that 
receives special assistance pay-
ments under clause (iv), that the 
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local educational agency may 
continue to receive such pay-
ments for the next school year, of 
the blended reimbursement rate 
the 
local 
educational 
agency 
would receive under clause (v), 
and of the procedures for the 
local educational agency to make 
the election; and 
‘‘(dd) each local educational 
agency that does not meet the 
threshold described in clause 
(viii) but that meets or exceeds a 
percentage that is 10 percentage 
points lower than the threshold 
described in clause (viii) that the 
local educational agency may be 
eligible to elect to receive special 
assistance payments under clause 
(iii) if the threshold described in 
clause (viii) is met by April 1 of 
the school year or if the thresh-
old is met for a subsequent 
school year. 
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‘‘(III) PUBLIC NOTIFICATION OF 
LOCAL
EDUCATIONAL
AGENCIES.— 
Not later than May 1 of each school 
year beginning on or after July 1, 
2011, each State agency with 1 or 
more schools or local educational 
agencies eligible to elect to receive 
special assistance payments under 
clause (iii) shall submit to the Sec-
retary, and the Secretary shall pub-
lish, lists of the local educational 
agencies receiving notices under sub-
clause (II). 
‘‘(IV) PUBLIC NOTIFICATION OF 
SCHOOLS.—Not later than May 1 of 
each school year beginning on or after 
July 1, 2011, each local educational 
agency in a State with 1 or more 
schools eligible to elect to receive spe-
cial assistance payments under clause 
(iii) shall submit to the State agency, 
and the State agency shall publish— 
‘‘(aa) a list of the schools 
that meet or exceed the threshold 
described in clause (viii); 
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‘‘(bb) a list of the schools 
that do not meet the threshold 
described in clause (viii) but that 
meet or exceed a percentage that 
is 10 percentage points lower 
than the threshold described in 
clause (viii) and that are in the 
fourth year of receiving special 
assistance payments under clause 
(iv); and 
‘‘(cc) a list of the schools 
that do not meet the threshold 
described in clause (viii) but that 
meet or exceed a percentage that 
is 10 percentage points lower 
than the threshold described in 
clause (viii). 
‘‘(xi) IMPLEMENTATION.— 
‘‘(I) GUIDANCE.—Not later than 
90 days after the date of enactment of 
this subparagraph, the Secretary shall 
issue guidance to implement this sub-
paragraph. 
‘‘(II) REGULATIONS.—Not later 
than December 31, 2013, the Sec-
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retary shall promulgate regulations 
that establish procedures for State 
agencies, local educational agencies, 
and schools to meet the requirements 
of this subparagraph, including exer-
cising the option described in this sub-
paragraph. 
‘‘(III) 
PUBLICATION.—If 
the 
Secretary uses the authority provided 
in clause (vii)(II)(bb) to use a dif-
ferent multiplier for different schools 
or local educational agencies, for each 
school year beginning on or after July 
1, 2014, not later than April 1, 2014, 
the Secretary shall publish on the 
website of the Secretary a table that 
indicates— 
‘‘(aa) each local educational 
agency that may elect to receive 
special 
assistance 
payments 
under clause (ii); 
‘‘(bb) the blended reimburse-
ment rate that each local edu-
cational agency would receive; 
and 
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‘‘(cc) an explanation of the 
methodology used to calculate the 
multiplier or threshold for each 
school or local educational agen-
cy. 
‘‘(xii) REPORT.—Not later than De-
cember 31, 2013, the Secretary shall pub-
lish and submit to the Committee on Edu-
cation and Labor of the House of Rep-
resentatives and the Committee on Agri-
culture, Nutrition, and Forestry of the 
Senate, a report that describes— 
‘‘(I) an estimate of the number 
of schools and local educational agen-
cies eligible to elect to receive special 
assistance payments under this sub-
paragraph that do not elect to receive 
the payments; 
‘‘(II) for schools and local edu-
cational agencies described in sub-
clause (I)— 
‘‘(aa) barriers to participa-
tion in the special assistance op-
tion under this subparagraph, as 
described by the nonparticipating 
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jlentini on DSKJ8SOYB1PROD with BILLS
schools and local educational 
agencies; and 
‘‘(bb) changes to the special 
assistance option under this sub-
paragraph that would make eligi-
ble schools and local educational 
agencies more likely to elect to 
receive special assistance pay-
ments; 
‘‘(III) for schools and local edu-
cational agencies that elect to receive 
special assistance payments under this 
subparagraph— 
‘‘(aa) the number of schools 
and local educational agencies; 
‘‘(bb) an estimate of the per-
centage of identified students and 
the percentage of enrolled stu-
dents who were certified to re-
ceive free or reduced price meals 
in the school year prior to the 
election to receive special assist-
ance payments under this sub-
paragraph, and a description of 
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how the ratio between those per-
centages compares to 1.6; 
‘‘(cc) an estimate of the 
number and share of schools and 
local 
educational 
agencies 
in 
which more than 80 percent of 
students are certified for free or 
reduced price meals that elect to 
receive special assistance pay-
ments under that clause; and 
‘‘(dd) whether any of the 
schools or local educational agen-
cies stopped electing to receive 
special 
assistance 
payments 
under this subparagraph; 
‘‘(IV) the impact of electing to 
receive special assistance payments 
under this subparagraph on— 
‘‘(aa) program integrity; 
‘‘(bb) whether a breakfast 
program is offered; 
‘‘(cc) the type of breakfast 
program offered; 
‘‘(dd) the nutritional quality 
of school meals; and 
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‘‘(ee) program participation; 
and 
‘‘(V) the multiplier and thresh-
old, as described in clauses (vii) and 
(viii) respectively, that the Secretary 
plans to use for each school year be-
ginning on or after July 1, 2014, and 
the rationale for any change in the 
multiplier or threshold. 
‘‘(xiii) 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 
clause (xii) $5,000,000, to remain 
available until September 30, 2014. 
‘‘(II) RECEIPT
AND
ACCEPT-
ANCE.—The Secretary shall be enti-
tled to receive, shall accept, and shall 
use to carry out clause (xii) the funds 
transferred under subclause (I), with-
out further appropriation.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
11(a)(1)(B) of the Richard B. Russell National 
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School Lunch Act (42 U.S.C. 1759a(a)(1)(B)) is 
amended by striking ‘‘or (E)’’ and inserting ‘‘(E), or 
(F)’’. 
(b) UNIVERSAL MEAL SERVICE THROUGH SOCIO-
ECONOMIC DATA.—Section 11 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1759a) is amended 
by adding at the end the following: 
‘‘(g) UNIVERSAL MEAL SERVICE THROUGH SOCIO-
ECONOMIC DATA.— 
‘‘(1) IN
GENERAL.—To the maximum extent 
practicable, the Secretary shall identify alternatives 
to— 
‘‘(A) the daily counting by category of 
meals provided by school lunch programs under 
this Act and the school breakfast program es-
tablished by section 4 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773); and 
‘‘(B) the use of annual applications as the 
basis for eligibility to receive free meals or re-
duced price meals under this Act. 
‘‘(2) ALTERNATIVE METHODS.— 
‘‘(A) IN
GENERAL.—Alternatives under 
paragraph (1) shall— 
‘‘(i) consider the recommendations of 
the Committee on National Statistics of 
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the National Academy of Sciences relating 
to use of the American Community Survey 
of the Bureau of the Census and other 
data sources; and 
‘‘(ii) include a method based on a 
periodic socioeconomic survey of house-
holds of children attending school in a 
school food authority that meets the re-
quirements of subparagraph (E). 
‘‘(B) USE OF ALTERNATIVE METHODS.— 
At the discretion of the Secretary, alternative 
methods described in subparagraph (A) that 
provide accurate and effective means of pro-
viding meal reimbursement consistent with the 
eligibility status of students may be— 
‘‘(i) implemented for use in schools or 
by school food authorities that agree— 
‘‘(I) to serve all breakfasts and 
lunches at no charge to students in 
accordance with regulations issued by 
the Secretary; and 
‘‘(II) to pay, from sources other 
than Federal funds, the costs of serv-
ing any lunches and breakfasts that 
are in excess of the value of assistance 
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received under this Act or the Child 
Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) with respect to the num-
ber of lunches and breakfasts served 
during the applicable period; or 
‘‘(ii) further tested through dem-
onstration projects carried out by the Sec-
retary in accordance with subparagraph 
(C). 
‘‘(C) DEMONSTRATION PROJECTS.— 
‘‘(i) IN GENERAL.—For the purpose 
of carrying out demonstration projects de-
scribed in subparagraph (B), the Secretary 
may waive any requirement of this Act re-
lating to— 
‘‘(I) counting of meals provided 
by school lunch or breakfast pro-
grams; 
‘‘(II) applications for eligibility 
for free or reduced priced meals; or 
‘‘(III) required direct certifi-
cation under section 9(b)(4). 
‘‘(ii) NUMBER
OF
PROJECTS.—The 
Secretary may— 
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‘‘(I) carry out the demonstration 
projects using data from the Amer-
ican Community Survey described in 
subparagraph (A)(i) in not more than 
5 local educational agencies; and 
‘‘(II) carry out the demonstration 
projects using socioeconomic survey 
data in not more than 3 local edu-
cational agencies. 
‘‘(iii) LIMITATION.—A demonstration 
project carried out under this paragraph 
shall have a duration of not more than 3 
years. 
‘‘(iv) EVALUATION.—Not later than 4 
years after implementing a demonstration 
project under this paragraph, the Sec-
retary, using comparisons with local edu-
cational agencies with similar demographic 
characteristics, shall evaluate each dem-
onstration project carried out under this 
paragraph, which shall include an evalua-
tion of— 
‘‘(I) the accuracy of the 1 or 
more methodologies adopted as com-
pared to the daily counting by cat-
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egory of meals provided by school 
meal programs under this Act or the 
Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.) and the use of 
annual applications as the basis for 
eligibility to receive free or reduced 
price meals under those Acts; 
‘‘(II) the effect of the 1 or more 
methodologies adopted on participa-
tion in programs under those Acts; 
‘‘(III) the effect of the 1 or more 
methodologies adopted on administra-
tion of programs under those Acts; 
and 
‘‘(IV) such other matters as the 
Secretary determines to be appro-
priate. 
‘‘(v) REPORT.—Not later than 90 
days after the completion of the evaluation 
under clause (iv), the Secretary shall sub-
mit to the Committee on Education and 
Labor of the House of Representatives and 
the Committee on Agriculture, Nutrition, 
and Forestry of the Senate, a report that 
describes the results of such evaluation. 
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‘‘(D) IMPLEMENTATION
PRIORITY.—The 
Secretary shall give priority consideration for 
the implementation of a socioeconomic survey 
method described in subparagraph (A)(ii) by a 
local educational agency that uses data from a 
socioeconomic survey as an alternative to daily 
counting and claiming on or after the date of 
enactment of this paragraph. 
‘‘(E) SOCIOECONOMIC
SURVEY
PARAM-
ETERS.—The Secretary shall establish require-
ments for, and approve, any alternative method 
that is implemented, or tested through a dem-
onstration project under this paragraph, using 
socioeconomic survey data which, at a min-
imum, shall— 
‘‘(i) be based on a socioeconomic sur-
vey, using generally accepted statistical 
methods, that is designed, developed, and 
implemented using funds from non-Federal 
sources; 
‘‘(ii) be consistent with the Office of 
Management and Budget Standards and 
Guidelines for Statistical Surveys; 
‘‘(iii) ensure that the survey is drawn 
from a complete, comprehensive, and accu-
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rate list of households of students enrolled 
in the schools to which the results will be 
applied; 
‘‘(iv) include a scientifically rigorous 
implementation plan to achieve an overall 
response rate of at least 80 percent and an 
item response rate of at least 70 percent 
for any item in the survey used to deter-
mine free and reduced price eligibility of 
students enrolled in the schools to which 
the results will be applied; 
‘‘(v) provide a plan for an alternative 
method of counting and claiming reimburs-
able meals if the socioeconomic survey fails 
to meet the minimum requirements estab-
lished by the Secretary; and 
‘‘(vi) reflect any additional criteria as 
established by the Secretary.’’. 
SEC. 105. YEAR-ROUND SCHOOL BASED MEAL SERVICE. 
(a) AMENDMENT.—The Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et seq.) is amended 
by inserting after 17A the following: 
‘‘SEC. 17B. YEAR-ROUND SCHOOL BASED MEAL SERVICE. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program to assist 5 States through grants-in-aid and other 
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means, awarded on a competitive basis, to provide meals 
and supplements (in this section referred to as an ‘out- 
of-school meal service’) to eligible children participating 
in out-of-school programs sponsored by eligible elementary 
and secondary schools. 
‘‘(b) PRIORITY CONSIDERATION.—In awarding as-
sistance to States under subsection (a), the Secretary shall 
give priority consideration to States that— 
‘‘(1) demonstrate administrative and oper-
ational capacity to oversee, based on criteria estab-
lished by the Secretary, an out-of-school meal serv-
ice; 
‘‘(2) demonstrate support for out-of-school pro-
grams; 
‘‘(3) provide a plan for outreach and implemen-
tation to reach children eligible for free or reduced 
price school meals under this Act or the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.), including 
children of households at risk of food insecurity, as 
determined by the Secretary; and 
‘‘(4) meet such other such considerations as de-
termined by the Secretary. 
‘‘(c) MEAL LIMITS.—The number of meals provided 
to an eligible child under this section may not exceed 1 
meal and 1 supplement per day. 
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‘‘(d) REIMBURSEMENT.— 
‘‘(1) AT-RISK CHILDREN.—A meal or supple-
ment provided under this section to an eligible child 
at a site that is located in an area in which poor eco-
nomic conditions exist shall be— 
‘‘(A) in the case of a meal, reimbursed at 
the rate at which free meals are reimbursed 
under section 4 and 11 of this Act or section 
4(b) of the Child Nutrition Act of 1966 (42 
U.S.C. 1773(b)), as adjusted pursuant to sec-
tion 11(a)(3) of this Act; 
‘‘(B) in the case of a supplement, reim-
bursed at the rate at which free supplements 
are reimbursed under section 17(c)(3), as ad-
justed pursuant to section 11(a)(3); and 
‘‘(C) served without charge. 
‘‘(2) OTHER
CHILDREN.—A meal or supple-
ment provided under this section to an eligible child 
at a site that is not described in paragraph (1) shall 
be— 
‘‘(A) in the case of a meal, reimbursed at 
the rate at which free meals are reimbursed 
under section 4 and 11 of this Act or section 
4(b) of the Child Nutrition Act of 1966 (42 
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U.S.C. 1773(b)), as adjusted pursuant to sec-
tion 11(a)(3) of this Act; and 
‘‘(B) in the case of a supplement, reim-
bursed at the rate in which free supplements 
are reimbursed under section 17(c)(3), as ad-
justed pursuant to section 11(a)(3). 
‘‘(e) REIMBURSEMENT LIMITATION.—An eligible ele-
mentary or secondary school may not claim reimburse-
ment for the same meals served under this section, section 
17A, section 13(a)(11), or section 17(r) on the same day. 
‘‘(f) OPERATIONAL REQUIREMENTS.—The Secretary 
shall establish requirements governing the operation of the 
out-of-school meal service authorized under this section to 
ensure that the meal service is operated in conformance 
with applicable operational and oversight requirements. 
‘‘(g) REPORT.—Not later than 4 years after the date 
of the enactment of this section, the Secretary shall sub-
mit to the Committee on Education and Labor of the 
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate, a report 
that describes— 
‘‘(1) the participation in the out-of-school meal 
service authorized under this section; 
‘‘(2) the monitoring and oversight requirements 
governing the operation of the meal service; 
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‘‘(3) the financial and administrative impact to 
eligible elementary and secondary schools partici-
pating in the meal service; and 
‘‘(4) any recommendations by the Secretary 
concerning the operation and administration of the 
meal service under this section. 
‘‘(h) DEFINITIONS.—For purposes of this section: 
‘‘(1) AREA IN WHICH POOR ECONOMIC CONDI-
TIONS EXIST.—The term ‘area in which poor eco-
nomic conditions exist’ has the meaning given the 
term ‘areas in which poor economic conditions exist’, 
except that the term shall be applied by substituting 
‘out-of-school-program 
authorized 
under 
section 
17B’ for ‘program’. 
‘‘(2) ELIGIBLE
CHILD.—The term ‘eligible 
child’ means a school child who is not more than 18 
years of age, except that such age limitation shall 
not apply to a child described in section 12(d)(1)(A). 
‘‘(3) ELIGIBLE ELEMENTARY AND SECONDARY 
SCHOOL.—The term ‘eligible elementary and sec-
ondary school’ means a school that— 
‘‘(A) operates school lunch programs under 
this Act; and 
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‘‘(B) sponsors out-of-school programs at 
sites that provide an educational or enrichment 
purpose during— 
‘‘(i) the extended-school day, week, or 
school year; or 
‘‘(ii) non-school hours or periods when 
school is not in session. 
‘‘(4) OUT-OF-SCHOOL
PROGRAM.—The term 
‘out-of-school program’ means a program provided 
for eligible children— 
‘‘(A) during non-school hours or periods 
when school is not in session, such as before or 
after school; 
‘‘(B) during any period that is an exten-
sion of the school day, school week, or school 
year; and 
‘‘(C) on weekends, holidays, and during 
school breaks and vacations.’’. 
(b) CONFORMING AMENDMENT.— 
(1) MEAL
SUPPLEMENTS
FOR
CHILDREN
IN 
AFTERSCHOOL CARE.—Section 17A(c) of the Rich-
ard B. Russell National School Lunch Act (42 
U.S.C. 1766a(c)) is amended by adding at the end 
the following: 
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‘‘(3) LIMITATION.—An eligible elementary or 
secondary school may not claim reimbursement for 
the same meals served under this section, section 
17B, section 13(a)(11), or section 17(r) on the same 
day.’’. 
(2) PROGRAM
FOR
AT-RISK
SCHOOL
CHIL-
DREN.—Section 17(r)(4) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(r)(D)) 
is amended by adding at the end the following: 
‘‘(D) REIMBURSEMENT
LIMITATION.—An 
institution may not claim reimbursement for 
the same meals served under this subsection, 
section 17A, section 17B, or section 13(a)(11) 
on the same day.’’. 
SEC. 106. SCHOOL BREAKFAST EXPANSION GRANTS. 
Section 4 of the Child Nutrition Act of 1966 (42 
U.S.C. 1773) is amended by adding at the end the fol-
lowing: 
‘‘(f) GRANTS FOR EXPANSION OF SCHOOL BREAK-
FAST PROGRAMS.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a program to award grants, on a com-
petitive basis, to State educational agencies for 
the purpose of providing subgrants to local edu-
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cational agencies for qualifying schools or 
groups of qualifying schools to establish or ex-
pand the school breakfast program at the quali-
fying schools. 
‘‘(B) ADMINISTRATION.—In carrying out 
this subsection, the Secretary shall— 
‘‘(i) develop an appropriate competi-
tive application process; and 
‘‘(ii) make information available to 
State educational agencies concerning the 
availability of funds under this subsection. 
‘‘(C) BEST PRACTICES.— 
‘‘(i) IN GENERAL.—Prior to awarding 
grants under this subsection, the Secretary 
shall make available to State educational 
agencies and local educational agencies in-
formation regarding the most effective 
mechanisms by which to increase school 
breakfast participation among eligible chil-
dren at qualifying schools. 
‘‘(ii) 
REQUIREMENT.—In 
awarding 
subgrants under paragraph (3), a State 
educational agency may award such sub-
grants only to local educational agencies 
for qualifying schools or groups of quali-
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fying schools that have adopted, or provide 
assurances that the subgrant funds will be 
used to adopt, the most effective mecha-
nisms identified by the Secretary under 
clause (i). 
‘‘(D) LOW-INCOME
SCHOOL
OUTREACH 
AND PRIORITY.— 
‘‘(i) 
OUTREACH
TO
LOW-INCOME 
SCHOOLS.—Prior to awarding subgrants 
under paragraph (3), a State educational 
agency shall inform the local educational 
agencies within the State with qualifying 
schools that have the highest proportion of 
students certified as eligible for free and 
reduced price meals, as compared to other 
qualifying schools in other local edu-
cational agencies within the State, of the 
eligibility of such agencies for subgrants 
provided under this subsection. 
‘‘(ii) PRIORITY.—In awarding sub-
grants under paragraph (3), a State edu-
cational agency shall give priority to local 
educational 
agencies 
with 
qualifying 
schools in which at least 75 percent of the 
students are eligible for free or reduced- 
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price school lunches under the school lunch 
program established under the Richard B. 
Russell National School Lunch Act (42 
U.S.C. 1751 et seq.). 
‘‘(2) GRANTS TO STATE EDUCATIONAL AGEN-
CIES.—To be eligible to receive a grant under this 
subsection, a State educational agency shall submit 
to the Secretary an application at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
‘‘(3) SUBGRANTS
TO
LOCAL
EDUCATIONAL 
AGENCIES.— 
‘‘(A) IN
GENERAL.—A State educational 
agency that receives a grant under this sub-
section— 
‘‘(i) shall use the grant funds to pro-
vide subgrants to local educational agen-
cies for qualifying schools or groups of 
qualifying schools; and 
‘‘(ii) may reserve not more than 5 
percent of the grant funds for administra-
tion and oversight of the subgrants award-
ed under this paragraph. 
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made available by the child’s school on any 
day, regardless of any unpaid fees. 
‘‘(iii) REDUCED
PRICE
MEALS.—All 
children who are certified as eligible for re-
duced price meals shall be offered the re-
imbursable meal that is made available by 
the child’s school on any day, if a child 
pays the reduced price meal charge for 
that day, regardless of any unpaid fees. 
‘‘(iv) PAID MEALS.—All children who 
are not eligible for free or reduced price 
meals shall be offered the reimbursable 
meal that is made available by the child’s 
school on any day, if a child pays the paid 
meal charge for that day, regardless of any 
unpaid fees. 
‘‘(v) HOUSEHOLDS IN ARREARS.—For 
a child from a household that has out-
standing debt owed to a local educational 
agency for a reimbursable meal, the local 
educational agency— 
‘‘(I) shall promptly notify the 
parent or guardian of such household 
of the amount of the debt and how to 
rectify the debt, and conduct follow-up 
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