‘‘(III) training local educational 
agency staff. 
‘‘(ii) REQUIREMENT.—The Secretary 
shall use funds made available under this 
subparagraph to provide— 
‘‘(I) initial grants of $50,000 to 
each State agency; and 
‘‘(II) the remainder of the funds 
through competitive grants based on 
criteria established by the Secretary. 
‘‘(iii) 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 
this subparagraph $15,000,000, to re-
main available until expended. 
‘‘(II) RECEIPT
AND
ACCEPT-
ANCE.—The Secretary shall be enti-
tled to receive, shall accept, and shall 
use to carry out this subparagraph 
the funds transferred under subclause 
(I), without further appropriation.’’. 
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(b) DIRECT CERTIFICATION PILOT PROGRAM.—Sec-
tion 9(b) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(b)) (as amended by subsection (a)) 
is amended by adding at the end the following: 
‘‘(15) DIRECT
CERTIFICATION
PILOT
PRO-
GRAM.— 
‘‘(A) IN GENERAL.—For the school year 
beginning July 1, 2010, the Secretary shall 
carry out a pilot program to evaluate the use of 
program data, including data relating to med-
ical assistance under the State Medicaid pro-
gram under title XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.) or child health assist-
ance under the State children’s health insur-
ance program under title XXI of that Act (42 
U.S.C. 1397aa et seq.), for direct certification 
of children for reduced price school meals. 
‘‘(B) 
REQUIREMENTS.—The 
evaluation 
shall include— 
‘‘(i) an analysis of the number of chil-
dren directly certified for reduced price 
meals; 
‘‘(ii) an assessment of— 
‘‘(I) the workload reduction for 
school districts associated with proc-
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essing fewer paper applications and 
having a smaller verification sample; 
and 
‘‘(II) the workload associated 
with directly certifying children for re-
duced price meals; 
‘‘(iii) an analysis of the number of 
children made eligible for reduced price 
meals who would have been eligible for 
paid meals or free meals if a paper appli-
cation had been submitted on behalf of the 
child; and 
‘‘(iv) testing of various mechanisms to 
ensure that no child receives a lower level 
of benefits as a result of the pilot than the 
child would have received had a paper ap-
plication been submitted and approved. 
‘‘(C) REPORT.—Not later than December 
31, 2011, the Secretary shall submit to the 
Committee on Agriculture, Nutrition, and For-
estry of the Senate and the Committee on Edu-
cation and Labor of the House of Representa-
tives a report describing the results of the pilot 
program under this paragraph. 
‘‘(D) FUNDING.— 
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‘‘(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 Sec-
retary 
to 
carry 
out 
this 
paragraph 
$4,000,000, to remain available until ex-
pended. 
‘‘(ii) RECEIPT
AND
ACCEPTANCE.— 
The Secretary shall be entitled to receive, 
shall accept, and shall use to carry out this 
paragraph the funds transferred under 
clause (i), without further appropriation.’’. 
(c) DIRECT CERTIFICATION OF CHILDREN OF MILI-
TARY PERSONNEL.—Section 9(b) of the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 1758(b)) (as 
amended by subsection (b)) is amended by adding at the 
end the following: 
‘‘(16) DIRECT CERTIFICATION OF CHILDREN OF 
MILITARY PERSONNEL.—Subject to paragraph (6), 
any local educational agency may certify any child as 
eligible for free lunches or breakfasts, without fur-
ther application (as defined in paragraph (4)(G)), by 
directly communicating with the appropriate com-
mander at the military installation or facility con-
cerned to obtain documentation of the status of the 
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child as a member of a household that is eligible for 
a supplemental subsistence allowance for low-income 
members with dependents under section 402a of title 
37, United States Code.’’. 
(d) AGREEMENT FOR DIRECT CERTIFICATION AND 
COOPERATION BY STATE MEDICAID AND CHIP AGEN-
CIES.— 
(1) IN GENERAL.—Section 1902(a)(7) of the 
Social Security Act (42 U.S.C. 1396a(a)(7)) is 
amended— 
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
realigning the left margins accordingly; 
(B) in clause (ii) (as so redesignated)— 
(i) by striking ‘‘at State option,’’; 
(ii) by inserting ‘‘certify or’’ before 
‘‘verify the certification of eligibility’’; and 
(iii) by adding ‘‘and’’ after the semi-
colon; 
(C) by striking ‘‘provide safeguards’’ and 
inserting ‘‘provide— 
‘‘(A) safeguards’’; and 
(D) by adding at the end the following: 
‘‘(B) that, notwithstanding the option 
under subsection (e)(13) (relating to Express 
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Lane eligibility), not later than July 1, 2010, 
the State shall enter into an agreement with the 
State agency administering the school lunch 
program established under the Richard B. Rus-
sell National School Lunch Act under which the 
State shall establish procedures to ensure 
that— 
‘‘(i) any child receiving medical assist-
ance under the State plan under this title 
or child health assistance under a State 
child health plan under title XXI whose 
family income does not exceed 133 percent 
of the poverty line (as defined in section 
673(2) of the Community Services Block 
Grant Act, including any revision required 
by such section) applicable to a family of 
the size involved, shall be certified as eligi-
ble for free lunches under the Richard B. 
Russell National School Lunch Act and 
free breakfasts under the Child Nutrition 
Act of 1966 without further application; 
and 
‘‘(ii) the State agencies responsible for 
administering the State plan under this 
title, the State child health plan under title 
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XXI, and for carrying out child nutrition 
programs (as defined in section 25(b) of 
the Richard B. Russell National School 
Lunch Act) cooperate in carrying out para-
graphs (3)(F) and (14) of section 9(b) of 
that Act;’’. 
(2) EFFECTIVE DATE.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), the amendments made by this 
subsection take effect on the date of enactment 
of this Act. 
(B) EXTENSION OF EFFECTIVE DATE FOR 
STATE
LAW
AMENDMENT.—In the case of a 
State plan under title XIX of the Social Secu-
rity Act (42 U.S.C. 1396 et seq.) which the 
Secretary of Health and Human Services deter-
mines requires State legislation in order for the 
plan to meet the additional requirements im-
posed by the amendments made by this section, 
the State plan shall not be regarded as failing 
to comply with the requirements of the amend-
ments made by this section solely on the basis 
of its failure to meet such additional require-
ments before the first day of the first calendar 
quarter beginning after the close of the first 
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regular session of the State legislature that be-
gins after the date of the enactment of this Act. 
For purposes of the previous sentence, in the 
case of a State that has a 2-year legislative ses-
sion, each year of the session is considered to 
be a separate regular session of the State legis-
lature. 
SEC. 5. HUNGER FREE SCHOOLS. 
(a) ELIGIBILITY.—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 fol-
lowing: 
‘‘(F) DATA-BASED ELIGIBILITY.— 
‘‘(i) IN GENERAL.—A school or local 
educational agency may elect to receive 
special assistance payments under clause 
(ii) in lieu of special assistance payments 
otherwise made available under this para-
graph based on applications for free and 
reduced price lunches if the school or local 
educational agency— 
‘‘(I) elects to serve all children in 
the school or local educational agency 
free lunches and breakfasts under the 
school lunch program and school 
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breakfast program established under 
section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773), during a pe-
riod of 5 successive school years; and 
‘‘(II) pays, from sources other 
than Federal funds, the costs of serv-
ing the lunches or breakfasts that are 
in excess of the value of assistance re-
ceived under this Act and the Child 
Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.). 
‘‘(ii) ALTERNATIVE DATA SOURCES.— 
Subject to criteria established by the Sec-
retary not later than December 31, 2010, 
special assistance payments under clause 
(i) may be based on an estimate of the 
number of children eligible for free and re-
duced 
price 
lunches 
under 
section 
9(b)(1)(A) derived from recent data other 
than applications, including— 
‘‘(I) a socioeconomic survey of a 
representative sample of households of 
students, which may exclude students 
who have been directly certified under 
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paragraphs (4), (5), (14), (15), and 
(16) of section 9(b); 
‘‘(II) data from the American 
Community Survey of the Bureau of 
the Census; 
‘‘(III) data on receipt of income- 
tested public benefits by students or 
the households of students or income 
data collected by public benefit pro-
grams, including— 
‘‘(aa) the supplemental nu-
trition assistance program estab-
lished under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2011 
et seq.); 
‘‘(bb) the medical assistance 
program under the State Med-
icaid program under title XIX of 
the Social Security Act (42 
U.S.C. 1396 et seq.); 
‘‘(cc) the supplemental secu-
rity income program established 
under title XVI of that Act (42 
U.S.C. 1381 et seq.); and 
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‘‘(dd) the program of block 
grants to States for temporary 
assistance for needy families es-
tablished under part A of title IV 
of that Act (42 U.S.C. 601 et 
seq.); or 
‘‘(IV) other data, including State 
or local survey data and State or local 
tax records. 
‘‘(iii) REVIEW AND APPROVAL.—The 
Secretary shall— 
‘‘(I) review any proposal sub-
mitted by a school or local educational 
agency that relies on the alternative 
data sources described in clause (ii) to 
develop an estimate of the number of 
children eligible for free and reduced 
price 
lunches 
under 
section 
9(b)(1)(A); and 
‘‘(II) approve the proposals that 
meet the criteria established under 
clause (ii). 
‘‘(iv) PAYMENTS.— 
‘‘(I) FREE
MEALS.—For each 
month of the period during which a 
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school or local educational agency de-
scribed in clause (i) serves free 
lunches or breakfasts to all enrolled 
children, special assistance payments 
at the rate for free meals shall be 
made for a percentage of all reimburs-
able meals served that is equal to the 
percentage of students estimated to be 
eligible for free meals. 
‘‘(II) REDUCED PRICE MEALS.— 
For each month of the period during 
which the school or local educational 
agency serves free lunches or break-
fasts to all enrolled children, special 
assistance payments at the rate for 
reduced price meals shall be made for 
a percentage of all reimbursable meals 
served that is equal to the percentage 
of students estimated to be eligible for 
reduced price meals. 
‘‘(III) OTHER MEALS.—For each 
month of the period during which the 
school or local educational agency 
serves free lunches or breakfasts to all 
enrolled children, special assistance 
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payments at the rate provided under 
section 4 shall be made for the re-
mainder of the reimbursable meals 
served. 
‘‘(v) RENEWALS.— 
‘‘(I) IN GENERAL.—A school or 
local educational agency described in 
clause (i) may reapply to the Sec-
retary at the end of the period de-
scribed in clause (i), and at the end of 
each period thereafter for which the 
school or local educational agency re-
ceives special assistance payments 
under this subparagraph, for the pur-
pose of continuing to receive the reim-
bursements and assistance for a sub-
sequent 5-school-year period. 
‘‘(II) APPROVAL.—The Secretary 
shall approve an application under 
this clause if available socioeconomic 
data demonstrate that the income 
level of the population of the school or 
local educational agency has remained 
consistent with or below the income 
level of the population of the school or 
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local educational agency in the last 
year in which reimbursement rates 
were determined under clause (ii). 
‘‘(III) DATA.—Not later than 
December 31, 2010, the Secretary 
shall establish criteria regarding the 
socioeconomic data that may be used 
by a school or local educational agen-
cy when applying for a renewal of the 
special assistance payments for a sub-
sequent 5-school-year period. 
‘‘(G) HIGH-POVERTY AREAS.— 
‘‘(i) IN GENERAL.—A school or local 
educational agency may elect to receive 
special assistance payments under clause 
(ii) in lieu of special assistance payments 
otherwise made available under this para-
graph based on applications for free and 
reduced price lunches if the school or local 
educational agency— 
‘‘(I) during a period of 2 succes-
sive school years, selects to serve all 
children in the school or local edu-
cational agency free lunches and 
breakfasts under the school lunch pro-
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gram under this Act and the school 
breakfast program established under 
section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773); 
‘‘(II) pays, from sources other 
than Federal funds, the costs of serv-
ing the lunches or breakfasts that are 
in excess of the value of assistance re-
ceived under this Act and the Child 
Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) and during the prior 
school year, directly certified under 
paragraphs (4), (5), (14), (15), and 
(16) of section 9(b) at least 40 per-
cent of the enrolled students; or 
‘‘(III) that received payments 
under this subparagraph for the prior 
school year, directly certifies under 
paragraphs (4), (5), (14), (15), and 
(16) of section 9(b) at least 30 per-
cent of the enrolled students. 
‘‘(ii) PAYMENTS.— 
‘‘(I) IN
GENERAL.—For each 
month of the school year, special as-
sistance payments at the rate for free 
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meals shall be made under this sub-
paragraph for a percentage of all re-
imbursable meals served in an amount 
equal the product obtained by multi-
plying— 
‘‘(aa) 1.5; by 
‘‘(bb) the percentage of stu-
dents directly certified under 
paragraphs (4), (5), (14), (15), 
and (16) of section 9(b), up to a 
maximum of 100 percent. 
‘‘(II) OTHER MEALS.—The per-
centage of meals served that is not de-
scribed in subclause (I) shall be reim-
bursed at the rate provided under sec-
tion 4. 
‘‘(iii) ELECTION OF OPTION.— 
‘‘(I) IN
GENERAL.—Any school 
or local educational agency eligible for 
the option under clause (i) may elect 
to receive special assistance payments 
under clause (ii) for the next school 
year if the school or local educational 
agency provides to the State agency 
evidence of the percentage of students 
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directly certified not later than June 
30 of the current school year. 
‘‘(II) STATE AGENCY NOTIFICA-
TION.—Not later than May 1 of each 
school year, each State agency shall 
notify— 
‘‘(aa) any local educational 
agency that appears, based on re-
ported 
verification 
summary 
data, to have directly certified at 
least 40 percent of the enrolled 
students for the current school 
year, that the local educational 
agency may be eligible to elect to 
receive special assistance pay-
ments under clause (ii) for the 
next school year and explain the 
procedures for the local edu-
cational agency to make such an 
election; and 
‘‘(bb) any local educational 
agency that appears, based on re-
ported 
verification 
summary 
data, to have directly certified at 
least 30 percent of the enrolled 
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students for the current school 
year, that the local educational 
agency may become eligible to 
elect to receive special assistance 
payments under clause (ii) for a 
future school year if the local 
educational agency directly cer-
tifies at least 40 percent of the 
enrolled students. 
‘‘(III) LOCAL EDUCATION AGEN-
CY
NOTIFICATION.—Not later than 
May 1 of each school year, each local 
educational agency shall notify— 
‘‘(aa) any school that di-
rectly certified at least 40 per-
cent of the enrolled students for 
the current school year, that the 
school is eligible to elect to re-
ceive special assistance payments 
under clause (ii) for the next 
school year and explain the pro-
cedures for the school to make 
such an election; and 
‘‘(bb) any school that di-
rectly certified at least 30 per-
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cent of the enrolled students for 
the current school year, that the 
school may become eligible to 
elect to receive special assistance 
payments under clause (ii) for a 
future school year if the school 
directly certifies at least 40 per-
cent of the enrolled students. 
‘‘(IV) PROCEDURES.—Not later 
than December 31, 2010, the Sec-
retary shall establish procedures for 
State agencies, local educational agen-
cies, and schools to meet the require-
ments of this subparagraph and exer-
cise the options provided under this 
subparagraph.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
11(a)(1)(B) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1759a(a)(1)(B)) is amended by 
striking ‘‘or (E)’’ and inserting ‘‘(E), (F), or (G)’’. 
Æ 
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