‘‘(AA) the lesser of 3,000 
or 3 percent of approved ap-
plications selected at random 
by 
the 
local 
educational 
agencies from all approved 
applications; or 
‘‘(BB) the lesser of 1,000 
or 1 percent of all approved 
applications 
selected 
from 
applications 
that 
indicate 
monthly income that is with-
in $100, or annual income 
that is within $1,200, of the 
income eligibility limits for 
free or reduced price meals, 
plus the lesser of 500 or 1⁄2 of 
1 percent of approved appli-
cations that provided a case 
number in lieu of income in-
formation showing participa-
tion in the food stamp pro-
gram or Temporary Assist-
ance for Needy Families pro-
gram selected from those ap-
proved applications that pro-
vided a case number in lieu 
of 
income 
information 
verifying such participation. 
‘‘(bb) For all other local edu-
cational agencies, the sample se-
lected shall be the lesser of 3,000 
or 3 percent of all approved ap-
plications selected from applica-
tions that indicate monthly in-
come that is within $100, or an-
nual 
income 
that 
is 
within 
$1,200, of the income eligibility
limits for free or reduced price 
meals. If, for any local edu-
cational agency, the total number 
of such applications is less than 
3,000 or 3 percent of all approved 
applications, the local educational 
agency shall select additional ap-
plications at random from all ap-
proved applications in order to 
obtain 
a 
total 
sample 
for 
verification of 3,000 or 3 percent 
of all approved applications. 
‘‘(V) SUBSTITUTIONS.—
‘‘(aa) IN GENERAL.—In ac-
cordance with the regulations pre-
scribed by the Secretary, the local 
educational agency may, upon in-
dividual review, decline to verify 
any application selected under 
subclause (IV) and replace it with 
another application to be verified. 
Such agency may decline to verify 
no more than 2 percent of the ap-
plications selected for verification 
under this subclause. 
‘‘(bb) SUBSTITUTE CRITERIA 
IN CASES OF EMERGENCIES.—The 
Secretary may substitute alter-
native criteria for the sample size 
and sample selection criteria in 
subclause (IV) to address a nat-
ural 
disaster, 
civil 
disorder, 
strike, or other local condition. 
‘‘(VI) DIRECT VERIFICATION.—
‘‘(aa) IN GENERAL.—In ac-
cordance with regulations promul-
gated 
by 
the 
Secretary, 
in 
verifying the sample selected in
accordance with subclause (IV), 
the local educational agency may 
first obtain from certain public 
agencies administering the pro-
grams identified in item (bb) of 
this subclause, and similar in-
come-tested programs, information 
to verify eligibility for free or re-
duced price meals. 
‘‘(bb) 
PUBLIC
AGENCY 
RECORDS.—Public agency records 
that may be used to verify eligi-
bility for free meals shall include 
income information relied upon 
within 
months 
prior 
to 
verification under subclause (IV) 
in the administration of the fol-
lowing programs: the food stamp 
program established under the 
Food Stamp Act of 1977 (7 
U.S.C. 2011 et seq.); the State 
program funded under part A of 
title IV of the Social Security Act; 
the Food Distribution Program on 
Indian Reservations (FDPIR) au-
thorized under section 4(b) of the 
Food Stamp Act of 1977 (7 
U.S.C. 2013(b)); and the State 
Medicaid program under title 
XIX of the Social Security Act 
(42 U.S.C. 1396 et seq.) in a 
State in which the income eligi-
bility limit described in section 
1902(l)(2)(C) of the Social Secu-
rity Act is no higher than 133 
percent of the income official pov-
erty line as specified in section 
1902(l)(2)(A) of such Act, in the 
case of eligibility for free meals, 
and 185 percent of the income of-
ficial poverty line as specified in 
such section in the case of reduced 
price meals. 
‘‘(VII) PLAIN, UNDERSTANDABLE 
LANGUAGE.—Any and all communica-
tions to parents regarding verification 
under subclause (IV) shall be in an un-
derstandable and uniform format, and, 
to the extent practicable, in a language 
that parents can understand.
‘‘(ii) 
DIRECT
CERTIFICATION
FOR 
CHILDREN IN FOOD STAMP HOUSEHOLDS.—
‘‘(I) IN
GENERAL.—Each State 
agency shall, to the extent practicable, 
enter into an agreement with the State 
agency conducting eligibility deter-
minations for the food stamp program 
established under the Food Stamp Act 
of 1977 (7 U.S.C. 2011 et seq.). 
‘‘(II) PROCEDURES.—Subject to 
clause (iv), the agreement shall estab-
lish procedures under which a child 
who is a member of a household receiv-
ing assistance under the program re-
ferred to in subclause (I) shall be cer-
tified as eligible for free meals under 
this Act, without further application. 
‘‘(III) DIRECT CERTIFICATION.—
Subject to clause (iv), under the agree-
ment, the local educational agency con-
ducting eligibility determinations for a 
school meal program conducted under 
this Act shall certify a child who is a 
member of a household receiving assist-
ance under the program referred to in
subclause (I) as eligible for free meals 
under this Act without further applica-
tion. 
‘‘(IV) NOTICE.—The appropriate 
local educational agency shall provide 
annually to the parents or guardians 
of all students who are members of a 
household receiving assistance under 
the program referred to in subclause 
(I), notification, in an understandable 
and uniform format, and, to the extent 
practicable, in a language that parents 
can understand, that any school-aged 
child in that household is eligible for 
free lunches or breakfasts. 
‘‘(iii) DIRECT CERTIFICATION OF CHIL-
DREN IN OTHER HOUSEHOLDS.—Subject to 
clause (iv), any local educational agency 
may certify any child as eligible for free 
lunches or breakfasts, without further appli-
cation, by directly communicating with the 
appropriate State or local agency to obtain 
documentation of such child’s status as a 
migratory child, as such term is defined in 
section 1309(2) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 
6399(2)), or a member of a family that is 
receiving assistance under a State program 
funded under part A of title IV of the Social 
Security Act if the Secretary determines the 
State program complies with standards es-
tablished 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) DISCLOSURE OF INFORMATION.—
The use or disclosure of any information ob-
tained from an application for free or re-
duced price meals, or from a State or local 
agency referred to in clauses (ii) and (iii), 
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.), or a 
regulation issued pursuant to either 
Act; 
‘‘(II) a person directly connected 
with the administration or enforcement 
of—
‘‘(aa) a Federal education 
program; 
‘‘(bb) a State health or edu-
cation program administered by 
the State or local educational 
agency (other than a program 
carried out under title XIX of the 
Social Security Act (42 U.S.C. 
1396 et seq.); or 
‘‘(cc) a Federal, State, or 
local means-tested nutrition pro-
gram with eligibility standards
comparable to the program under 
this section; 
‘‘(III)(aa) the Comptroller Gen-
eral of the United States for audit and 
examination authorized by any other 
provision of law; and 
‘‘(bb) notwithstanding any other 
provision of law, a Federal, State, or 
local law enforcement official for the 
purpose of investigating an alleged vio-
lation of any program requirements 
under paragraph (1) or this para-
graph; and
‘‘(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 purpose of identi-
fying children eligible for benefits 
under, and enrolling children in, such 
programs, except that this subclause 
shall apply only to the extent that the 
State and the local educational agency 
so elect. 
‘‘(v) LIMITATION.—Information pro-
vided under clause (iv)(II) shall be limited 
to the income eligibility status of the child 
for whom application for free or reduced 
price meal benefits was made or for whom 
eligibility information was provided under 
clause (ii) or (iii), unless the consent of the 
parent or guardian of the child for whom 
application for benefits was made is ob-
tained.
‘‘(II)(aa) notifies each household, 
the information of which shall be dis-
closed under clause (iv), that the infor-
mation disclosed will be used only to 
enroll children in health programs re-
ferred to in clause (iv)(IV); and 
‘‘(bb) provides each parent or 
guardian of a child in the household 
with an opportunity to elect not to 
have the information disclosed. 
‘‘(viii) USE OF DISCLOSED INFORMA-
TION.—A person to which information is 
disclosed under clause (iv)(IV) shall use or 
disclose the information only as necessary 
for the purpose of enrolling children in 
health programs referred to in clause 
(iv)(IV). 
‘‘(D) FREE
AND
REDUCED
PRICE
POLICY 
STATEMENT.—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 un-
less there is a substantive change in the free and 
reduced price policy of the local educational 
agency. A routine change in the policy of a local
educational agency, such as an annual adjust-
ment 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.’’. 
(b) CONFORMING AMENDMENT.—Section 9(b)(6)(B) of 
the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(b)(6)(B) is amended by inserting ‘‘, or docu-
mentation showing the child’s status as a migratory child, 
as such term is defined in section 1309(2) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6399(2))’’ 
after ‘‘subparagraph (A)(iii)’’. 
SEC. 202. DURATION OF ELIGIBILITY FOR FREE AND RE-
DUCED PRICE LUNCHES. 
Section 9(b)(3) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)(3)) is amended to 
read as follows: 
‘‘(3) 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 guide-
lines for free lunches, as determined under para-
graph (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 eligi-
bility guidelines for free lunches, as deter-
mined under paragraph (1), but less than 
or equal to the applicable family size in-
come level of the income eligibility guide-
lines for reduced price lunches, as deter-
mined 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 spec-
ified 
in 
section 
11(a) 
or 
section 
9(b)(2)(C)(i)(IV), 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 the date of the begin-
ning of school in the subsequent school year 
or as otherwise specified by the Secretary.’’. 
SEC. 203. CERTIFICATION BY LOCAL EDUCATIONAL AGEN-
CIES. 
(a) CERTIFICATION BY LOCAL EDUCATIONAL AGEN-
CY.—Section 9 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1758) is further amended—
(1) in subsection (b)(5), by striking ‘‘Local school 
authorities’’ and inserting ‘‘Local educational agen-
cies’’; and 
(2) in subsection (d)(2)—
(A) by striking ‘‘local school food authority’’ 
each place it appears and inserting ‘‘local edu-
cational agency’’; and 
(B) in subparagraph (A), by striking ‘‘such 
authority’’ and inserting ‘‘the local educational 
agency’’. 
(b) DEFINITION OF LOCAL EDUCATIONAL AGENCY.—
Section 12(d) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1760(d)) is amended—
(1) by redesignating paragraphs (3) through (8) 
as paragraphs (4) through (9), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) LOCAL EDUCATIONAL AGENCY.—
‘‘(A) IN
GENERAL.—The term ‘local edu-
cational agency’ has the meaning given the term 
in section 9101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
‘‘(B) INCLUSION.—The term ‘local edu-
cational agency’ includes, in the case of a pri-
vate nonprofit school food authority, an appro-
priate entity determined by the Secretary.’’. 
(c) 
SCHOOL
BREAKFAST
PROGRAM.—Section 
4(b)(1)(E) of the Child Nutrition Act of 1966 (42 U.S.C. 
1773(b)(1)(E)) is amended by striking ‘‘school food author-
ity’’ each place it appears and inserting ‘‘local educational 
agency’’. 
SEC. 204. COMPLIANCE AND ACCOUNTABILITY. 
Section 22 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769c) is amended by inserting ‘‘and 
local educational agencies’’ after ‘‘food service authorities’’ 
each place it appears. 
SEC. 205. TECHNOLOGY IMPROVEMENT. 
(a) PRIORITY
FOR REALLOCATED FUNDS.—Section 
7(a)(5)(B)(ii) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(a)(5)(B)(ii)) is amended by inserting the following 
new sentence at the end: ‘‘The Secretary shall give priority 
consideration to States that will use the funds for improve-