USDA Eligibility Manual for School Meals PDF

Eligibility Manual for School Meals Determining and Verifying Eligibility USDA Food and Nutrition Services Child Nutrition Programs July 18, 2017 This edition incorporates clarifications identified by the Food and Nutrition Service and State agencies, as well as applicable guidance issued since the last revision in July 2016. Notable changes are highlighted in yellow throughout the manual. Formatting changes and minor changes to the language are not highlighted, as they do not represent a change in policy. In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: [email protected]. USDA is an equal opportunity provider, employer, and lender. 1 Table of Contents About This Guidance...................................................................................................................... 5 Section 1: Getting Started............................................................................................................... 7 Child Nutrition Programs............................................................................................................ 7 Key Requirements....................................................................................................................... 7 Policy Statements.................................................................................................................... 8 Public Outreach Requirements................................................................................................ 8 Definitions................................................................................................................................. 14 Section 1: Questions and Answers............................................................................................ 21 Section 2: The Basis of Eligibility................................................................................................ 22 Determining Eligibility Based on Income Applications........................................................... 22 Determining Household Composition................................................................................... 22 Determining Household Reportable Income......................................................................... 24 Determining Household Reportable Income - Special Situations......................................... 27 Income Exclusions................................................................................................................. 30 Determining Categorical Eligibility Using an Application....................................................... 33 Assistance Program Participants........................................................................................... 33 Other Source Categorically Eligible Program Participants................................................... 34 The Direct Certification Process............................................................................................... 35 Assistance Program Participants........................................................................................... 36 Other Source Categorical Eligibility..................................................................................... 37 Other Source Categorical Eligibility Descriptions.................................................................... 38 Area Eligibility.......................................................................................................................... 43 Section 3: Establishing Eligibility................................................................................................ 46 Carryover of Previous Year’s Eligibility.................................................................................. 46 Transfer of Eligibility................................................................................................................ 48 Transferring Between LEAs.................................................................................................. 49 Processing Applications............................................................................................................ 50 Application Processing Timeframe....................................................................................... 50 2 Denied Applications.............................................................................................................. 56 Special Situations When Determining Eligibility................................................................. 59 Reviewing Applications Based on Income............................................................................... 60 Assessing Completeness of Income Applications................................................................. 61 Income Conversions.............................................................................................................. 61 Determining Eligibility for Applications Based on Income.................................................. 62 Assessing Completeness of Categorically Eligible Applications............................................. 63 Determining Eligibility for Categorically Eligible Applications.............................................. 64 Reviewing Direct Certification for Assistance Programs......................................................... 65 Required Documentation for All Direct Certification Options............................................. 66 Mandatory SNAP Direct Certification.................................................................................. 66 TANF and FDPIR Direct Certification................................................................................. 67 Methods and Frequency of Direct Certification Efforts........................................................ 68 Notification of Eligibility Established Through Direct Certification.................................... 69 Record Retention....................................................................................................................... 69 Applications.............................................................................................................................. 69 Direct Certification Documents............................................................................................. 70 Special Provisions.................................................................................................................. 70 Section 3: Questions and Answers............................................................................................ 72 Section 4: The School Meal Application...................................................................................... 74 Application Overview............................................................................................................... 74 Application Content............................................................................................................... 74 Application Formats.............................................................................................................. 79 Application Types.................................................................................................................. 80 Section 4: Questions and Answers............................................................................................ 82 Section 5: Confidentiality and Disclosure.................................................................................... 83 Confidentiality Requirements................................................................................................... 84 Preventing Overt Identification................................................................................................. 84 Disclosure Requirements........................................................................................................... 86 Notification and Notice......................................................................................................... 90 Penalties for Improper Disclosure............................................................................................. 93 3 Section 5: Questions and Answers............................................................................................ 94 Section 6: Verification.................................................................................................................. 96 Verification Overview............................................................................................................... 96 Key Verification Terms......................................................................................................... 98 Initial Steps for Verification.................................................................................................. 98 Verification for Cause........................................................................................................... 99 Application Selection Procedures........................................................................................... 101 Available Sample Sizes....................................................................................................... 101 Qualifying to Use an Alternate Sample Size....................................................................... 102 Post-Selection Procedures................................................................................................... 103 Household Notification of Selection................................................................................... 105 Sources for Verification.......................................................................................................... 107 Direct Verification................................................................................................................... 109 Types of Direct Verification................................................................................................ 110 Documentation Timeframe.................................................................................................. 111 Verification Follow-Up........................................................................................................... 112 Following Up with Households........................................................................................... 112 When Verification is Considered Complete........................................................................ 113 Record Retention................................................................................................................. 114 Section 6: Questions and Answers.......................................................................................... 116 Appendix A: Policy Statement.................................................................................................... 118 Appendix B: Prototype Applications.......................................................................................... 120 Appendix C: Prototype Agreement for Disclosure of Free and Reduced Price Information..... 123 Appendix D: Policy Memos........................................................................................................ 127 Glossary of Acronyms................................................................................................................ 131 Additional Resources.................................................................................................................. 133 4 About This Guidance Millions of children across the nation participate in the Federal Child Nutrition Programs (CNPs) each day, receiving benefits that make an important contribution to their overall nutrition and academic success. In 2016, an average of 30.3 million children participated in the National School Lunch Program (NSLP) and 14.5 million children participated in the School Breakfast Program (SBP) each day school was in session. Seventy-three percent of all lunches and 85 percent of all breakfasts were served at the free and reduced price rate. The Eligibility Manual for School Meals provides comprehensive information on the Federal requirements, policies, and procedures for establishing eligibility in the Programs. This is intended to help State and local educational agencies (LEAs) accurately determine, certify, and verify children’s eligibility for free and reduced price school meals and free milk. The United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) understands the importance of reducing paperwork and administrative errors, emphasizing flexibility in how the Programs operate, and maintaining strong accountability for outcomes, all while promoting access for eligible families. It is critical that State and local procedures encourage and support effective methods for establishing eligibility, including direct certification, to reach children who qualify for benefits, but who are not participating. The Eligibility Manual provides practical information for State and local agencies responsible for administering the School Meal Programs, including guidance on determining eligibility for free and reduced price meals and free milk, protecting student privacy, and ensuring the accuracy of eligibility determinations through the verification process. By using this manual, State and local agencies can ensure their policies and procedures for establishing eligibility are effective, improve Program integrity, and reduce administrative burden, without compromising access for families in need. While the requirements in this manual are generally directed towards LEAs, FNS recognizes there is wide variation in the structure of school districts at the local level. As such, in some cases, the school food authority (SFA) may assume responsibility for certain requirements included in this manual. Additionally, CNP operators will find this manual useful when establishing eligibility for individual children in the Summer Food Service Program (SFSP) or 5 for children and adult participants in the Child and Adult Care Food Program (CACFP). The income eligibility, categorical eligibility, confidentiality, and disclosure sections of this manual are also applicable to the SFSP and CACFP. The sections of the Eligibility Manual include: Section 1: An overview of the CNPs: the NSLP, SBP, CACFP, and SFSP. Section 2: Information about determining eligibility based on household size and income, Assistance Program participation, and Other Source Categorical Eligibility designations. Section 3: A guide to processing and reviewing applications and notifying households of application approval or denial. Section 4: An overview of application requirements and information about various application types and formats. Section 5: A guide to confidentiality and disclosure requirements, including when, how, and to whom a child’s eligibility status or other eligibility information may be disclosed. Section 6: An overview of the verification requirements for the School Meal Programs. Appendices: Additional resources LEAs may use to learn more about eligibility determinations in the CNPs. This edition replaces the Eligibility Manual issued in July 2016. FNS issues this guidance periodically to ensure that CNP operators have current policy information to begin the application and certification process at the start of each school year. LEAs and other CNP institutions and sponsors should contact the appropriate State agency for additional guidance. State agencies should direct questions to the appropriate FNS Regional Office (FNSRO). Statutory Authority Statutory authority for the CNPs includes the Richard B. Russell National School Lunch Act (NSLA) and the Child Nutrition Act of 1966 (CNA). The statutory citations are, respectively, 42 United States Code 1751 et seq. and 42 United States Code 1771 et seq. Regulatory authority is found in the Code of Federal Regulations (CFR), as follows: 7 CFR Part 210, National School Lunch Program (NSLP) 7 CFR Part 215, Special Milk Program for Children (SMP) 7 CFR Part 220, School Breakfast Program (SBP) 7 CFR Part 225, Summer Food Service Program (SFSP) 7 CFR Part 226, Child and Adult Care Food Program (CACFP) 7 CFR Part 245, Determining Eligibility for Free and Reduced Price Meals and Free Milk in Schools 6 Section 1: Getting Started In this section, you will find information on: The administration of USDA’s CNPs, Policy requirements for operating the CNPs, Public outreach requirements for LEAs, and A list of key terms used throughout the Eligibility Manual. Child Nutrition Programs At the Federal level, the CNPs are administered by USDA-FNS. At the State level, the programs are administered by a designated State agency. If State law prevents State administration, programs may be administered by the appropriate FNSRO, often referred to as a Regional Office Administered Program (ROAP). According to 7 CFR 245.1(a), State agencies that administer the CNPs must issue free and reduced price policy guidance and any other instructions necessary to LEAs and other program sponsors to ensure awareness of Federal and State requirements pertaining to free and reduced price meals and free milk. Participating LEAs must provide free and reduced price meal benefits to eligible children in accordance with the statutory and regulatory requirements as detailed in this manual. Key Requirements All schools participating in NSLP or SBP must make free and reduced price meals available to all eligible children. All schools and institutions participating in the free milk option of the SMP must make free milk available to eligible children [7 CFR 245.1(a)]. No person shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under the CNPs [7 CFR 15.1]. 7 Policy Statements According to 7 CFR 245.10(a), each LEA participating in the NSLP and SBP must have an approved free and reduced price policy statement on file at the appropriate State agency (or the FNSRO, if the LEA participates under a ROAP). Likewise, each LEA participating in the SMP with the free milk option must have an approved policy statement on file. If some schools in an LEA participate in the SMP and others participate in the NSLP or SBP, the LEA may submit a single policy statement for all of its schools. When an LEA begins participation in the NSLP, SBP, or SMP, the LEA must submit a policy statement to the State agency for approval as part of the application process. Once approved, the policy statement becomes a permanent document, though it must be amended when the LEA makes a substantive change in its free and reduced price policy statement [7 CFR 245.10(c)]. The State agency provides specific instructions on the development of the policy statement and policy approval process [7 CFR 245.10(a)(1)]. Please see Appendix A for the requirements for the policy statement and amendments. Public Outreach Requirements As required at 7 CFR 245.5(a), near the beginning of each school year the public must be notified that free and reduced price meals and free milk are available. This notice must include the eligibility criteria for free and reduced price meals or free milk. The public notice must be provided to the local news media, the unemployment office, and any major employers contemplating large layoffs in the attendance area of the school [7 CFR 245.5(a)(2)]. The State agency may issue the public release on behalf of all LEAs in the State. In this case, the free and reduced price policy statement must specify the responsibilities the State agency will assume, such as sending the public release to the local media and employment offices, and the names of the schools covered under the policy. Copies of the public release must be made available upon request to any interested person [7 CFR 245.5(b)]. In addition to the required notification at the beginning of the school year, LEAs are strongly encouraged to share information about the availability of school meals in routine contacts throughout the school year. LEAs may post the application on school or district websites, provide information in newsletters regularly sent to families, and use other existing notification methods (e.g., print, telephone, email, text message, and social media) to encourage eligible families to apply. LEAs must ensure that communication with applicants, participants, members of the public, and companions with disabilities are as effective as communications with people without disabilities through the provision of auxiliary aids and services, such as alternative formats, taped text, audio recordings, Brailed materials, large print and sign language interpreters [28 CFR 35.160]. 8 Additionally, in order to participate in the School Meal Programs, program operators must comply with the USDA regulation Non Discrimination on the Basis of Handicap in Programs or Activities Receiving Federal Financial Assistance [7 CFR 15b]. This includes ensuring children with disabilities have an equal opportunity to participate in and benefit from the NSLP and SBP. For more detailed guidance about accommodating disabilities, please see issued SP 26-2017: Accommodating Disabilities in the School Meal Programs: Guidance and Questions and Answers (Q&As), https://www.fns.usda.gov/school-meals/accommodating-disabilities-school- meal-programs-guidance-and-qas. LEAs also must take reasonable steps to ensure meaningful access to their programs and activities by persons with limited English proficiency. More information about this requirement may be found in Application Content and in SP 37-2016: Meaningful Access for Persons with Limited English Proficiency in the School Meal Programs: Guidance and Q&As, http://www.fns.usda.gov/meaningful-access-persons-limited-english-proficiency-lep-school- meal-programs-guidance-and-qas. Public Media Release The public media release must include the same information supplied in the letter to households. Additionally, the public release must contain the Federal Income Eligibility Guidelines (IEGs) for free as well as reduced price school meals. However, a public release solely for the SMP only provides the free IEGs, and is not required to provide the reduced price IEGs. To view the current IEGs, please see: http://www.fns.usda.gov/school-meals/ income-eligibility-guidelines. The public release also must explain the following information: When known to the LEA, households will be notified of their children’s eligibility for free meals based on their participation (or a household member’s participation) in the: o Supplemental Nutrition Assistance Program (SNAP); o Food Distribution Program on Indian Reservations (FDPIR); or o Temporary Assistance for Needy Families (TANF), if the State program meets Federal standards. 9 When known to the LEA, households will be notified of any child’s eligibility for free meals based on the individual child’s designation as Other Source Categorically Eligible, as defined by law. Children are determined Other Source Categorically Eligible if they are: o Homeless, o Migrant, o Runaway, o A foster child, or o Enrolled in Head Start or an eligible pre-kindergarten program (see: SP 40-2013: Q&As Regarding the Participation of Head Start Programs in Child Nutrition Programs, https://www.fns.usda.gov/qas-regarding-participation- head-start-programs-child-nutrition-programs-0). If children or households receive benefits under Assistance Programs or Other Source Categorically Eligible Programs and are not listed on the notice of eligibility and are not notified by the school of their free meal benefits, the parent or guardian should contact the school or should submit an income application. Households notified of their children’s eligibility must contact the LEA or school if they choose to decline the free meal benefits. Information Letters to Households To inform families about the availability of free and reduced price meals or free milk, schools must distribute information letters to the households of children attending the school [7 CFR 245.5(a)(1)]. LEAs are encouraged to inform households that all school-aged children in income-eligible households can receive school meal benefits regardless of a child’s immigration status. In addition, the letter may inform households that LEAs do not release information for immigration-related purposes in the usual course of operating CNPs. The information letter must be sent to households before children begin attending school. The letters may be distributed by the postal service, e-mailed to the parent or guardian, or included in information packets provided to students. LEAs also are encouraged to provide applications and information about school meals in routine household contacts throughout the school year through school newsletters, social media updates, or other household notification processes. Information letters may not, however, be sent to households at the end of the school year for the subsequent school year, nor can the LEA accept and process applications before the federally defined school year, which begins on July 1. (Year-round schools, however, may distribute the letters in June.) Direct certification allows LEAs to establish student eligibility for free meals using participant data from other means-tested programs, eliminating the need for an application. (See: The Direct Certification Process.) LEAs must ensure all households receive either a direct certification notification of their child’s approval or, for those children not directly certified, an application 10 for free and reduced price meal benefits [7 CFR 245.6(c)(6) and 7 CFR 256.6(c)(6)(ii)]. Notification of a child’s eligibility through direct certification may be done through e-mail if the LEA has an e-mail address for a parent or guardian. When distributing the application materials for those children not directly certified, LEAs must prevent the overt identification of those children determined eligible through the direct certification process and who do not need application materials [7 CFR 245.6(b)(10)]. See Preventing Overt Identification for more information. As outlined at 7 CFR 245.5(a), the information letters must include: The IEGs, as follows: o For schools participating in the NSLP and/or SBP only, the information letter must include the reduced price guidelines and an explanation that households with incomes at or below the reduced price income limit may be eligible for free or reduced price meals. o For schools participating in the SMP with the free milk option only, the information letter must include the free guidelines. o For schools participating in the NSLP and/or SBP, and also participating in the SMP with the free milk option (e.g. for split-session kindergarten students), the information letter must include the free and reduced price guidelines. Instructions on how to apply for free and reduced price meals or free milk, including: o Local contacts and mailing addresses, prominently displayed. o An explanation of how to submit an application to a school or LEA office. o Instructions for where to direct questions about the application process. o General application information:  A household may apply for benefits at any time during the school year. Children of parents or guardians who become unemployed or experience a financial hardship mid-year may become eligible for free and reduced price meals or free milk at any point during the school year.  Only one application is required for all children in the household attending schools in the same LEA.  No application is necessary if the household was notified by the LEA their children have been directly certified. If the household is not sure if their children have been directly certified, the household should contact the school.  Only the last four digits of the Social Security Number of the household’s primary wage earner or another adult household member (or an indication of “none”) is needed when submitting the application.  Information submitted on the application may be subject to verification. 11  Special Supplemental Nutrition Program for Women, Infants and Children (WIC) participants may be certified as eligible for free and reduced price meals through the application process. An explanation of Assistance Program (SNAP, FDPIR, or TANF) household eligibility: o Categorical eligibility for free meal benefits is extended to all children in a household when the application lists an Assistance Program’s case number for any household member. o Households with any member who is currently certified to receive Assistance Program benefits may submit an application with abbreviated information as indicated on the application and instructions. An explanation of Other Source Categorically Eligibility: o Households with children who are categorically eligible through an Other Source Categorically Eligible designation may be eligible for free benefits and should contact the school or LEA for assistance in receiving benefits. o A foster child is categorically eligible for free meals and may be included as a member of the foster family if the foster family chooses to also apply for benefits for other children. Including children in foster care as household members may help other children in the household qualify for benefits. o If non-foster children in a foster family are not eligible for free or reduced price meal benefits, an eligible foster child will still receive free benefits. An explanation of eligibility determinations: o An application for free and reduced price benefits cannot be approved unless complete eligibility information is submitted, as indicated on the application and in the instructions. o A household may appeal the application decision, using the hearing procedure described in the LEA’s free and reduced price policy statement. An explanation of carryover policy: o For up to 30 operating days into the new school year (or until a new eligibility determination is made, whichever comes first) an individual child’s free or reduced price eligibility status from the previous year will continue within the same LEA. o When the carryover period ends, unless the household is notified that their children are directly certified or the household submits an application that is approved, the children’s meals must be claimed at the paid rate. Though encouraged to do so, the LEA is not required to send a reminder or a notice of expired eligibility. 12 The full USDA Nondiscrimination Statement, revised as of October 2015, as follows: In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632- 9992. Submit your completed form or letter to USDA by: (1) Mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) Fax: (202) 690-7442; or (3) E-mail: [email protected]. This institution is an equal opportunity provider. Information Letters for Late Enrollments Households enrolling new students in an LEA after the start of the school year must be provided an information letter, application, and materials when they enroll, and the LEA must determine eligibility promptly [7 CFR 245.6(a)(1)]. The LEA must notify the household of the children's eligibility and provide free or reduced price meal benefits to eligible children within 10 operating days of receiving the application from the household [7 CFR 245.6(c)(6)(i)]. If the LEA has the capability, the status of any newly enrolled child must be checked for participation in an Assistance Program and in Other Source Categorical Eligibility at the time of enrollment. 13 Definitions Assistance Programs: Receipt of benefits by any household member from certain Assistance Programs conveys categorical (automatic) eligibility for free school meals to all children in the household. The determination is made through direct certification for Assistance Programs or through an application with appropriate case numbers. The Assistance Programs that convey categorical eligibility to all children in the household are: Supplemental Nutrition Assistance Program Food Distribution Program on Indian Reservations Temporary Assistance for Needy Families Automated Data Matching: The most common direct certification method used to directly certify children. Matches are made between student enrollment records and benefit recipient records from Assistance Programs, foster care agencies, Head Start Programs, Migrant Education Programs, and agencies working with homeless and runaway children, or other appropriate State or local agencies to establish categorical eligibility. There are two common automated data matching processes: Local-level: The State agency distributes relevant data to the LEA and the LEA matches the data to the children’s enrollment records. State or central-level matching: The State agency is responsible for a system that matches a list of children enrolled in schools in the NLSP with a list of children receiving Assistance Program benefits and then provides relevant information to the LEA to process at the local level. Carryover of Eligibility: When a child transitions from one standard counting and claiming school to another standard counting and claiming school within the same LEA between school years, the child’s eligibility status from the previous school year is carried into the current school year for up to 30 operating days, beginning on the first operating day of school. A child’s prior year’s eligibility remains in effect until a new eligibility determination is made or, if no determination is made, for up to 30 operating days [7 CFR 245.6(c)(2)]. For more information, see: Carryover of Previous Year’s Eligibility. Categorical Eligibility: Automatic eligibility for free meals or free milk due to a child’s (or any household member’s) receipt of benefits under an Assistance Program, or a child’s designation as Other Source Categorically Eligible [7 CFR 245.2]. There are two ways children may be classified as categorically eligible: Participation in an Assistance Program [7 CFR 245.6(b)(7)]: A child or any member of the household receives benefits from an Assistance Program, as determined either through direct certification or an application with the appropriate case number. 14 Other Source Categorically Eligible designation [7 CFR 245.6(b)(8)]: A child is documented as meeting the applicable definition, as defined in this section, as: o Homeless, runaway, or migrant child; o Foster child; or o Enrolled in a federally-funded Head Start or comparable State- or Indian Tribal Organization-funded Head Start or pre-kindergarten program. An individual child’s eligibility for free benefits under any of the Other Source Categorically Eligible Programs does not convey to other children in the household [7 CFR 245.6(b)(8)]. Except for a foster child, the household indication of Other Source Categorically Eligible Status must be confirmed through documentation prior to certifying the child’s eligibility for free meals. If documentation does not confirm eligibility for an Other Source Categorically Eligibility, the household should be asked to resubmit the application and include income information. Community Eligibility Provision (CEP): Rather than collecting school meal applications to make individual eligibility determinations, schools that adopt CEP are reimbursed using a formula based on the percentage of students who are normally certified for free school meals without an application, such as students who participate in the Supplemental Nutrition Assistance Program and homeless students. See the Community Eligibility Provision Resource Center: https://www.fns.usda.gov/school-meals/community-eligibility-provision-resource-center. Determining Official: An LEA official responsible for determining children’s eligibility for free and reduced price benefits. An employee of a food service management company may act as an agent for the LEA in various aspects of the application, certification, and verification processes. The company’s employee must comply with all requirements, including limited disclosure of individual eligibility information. However, the LEA is ultimately responsible for ensuring that all requirements are met and that the information on the application remains the property of the LEA and may not be used or possessed by the food service management company for any use other than to determine eligibility for free and reduced price meals. This also applies when an LEA and/or SFA contracts with an Educational Service Provider to manage these functions. See SP 07-2008: Charter School Involvement in the National School Lunch and Breakfast Programs, https://www.fns.usda.gov/sp07-2008-charter-school-involvement-nslp-and-sbp. Direct Certification: Determining children eligible for free benefits based on documentation obtained directly from appropriate State or local agencies or other authorized individuals. Direct certification of a child’s eligibility status should not involve the household. The communication exchange should be between an appropriate agency and the State agency, LEA, or school. 15 Direct Certification for Assistance Programs: A process conducted through automated data matching or an exchange of information between the Assistance Program agency and the State agency or LEA. No application from the household is necessary. Letters from Temporary Assistance for Needy Families and Food Distribution Program on Indian Reservations agencies submitted by households are considered direct certification. However, direct certification for Supplemental Nutrition Assistance Program households must be conducted using an automated data matching process [7 CFR 245.6(b)(1)]. If a household provides a Supplemental Nutrition Assistance Program eligibility letter to the LEA or school, the letter must be used to establish eligibility, but it is not considered direct certification for reporting purposes. Direct Certification for Other Source Categorically Eligible Programs: A process conducted through an automated data matching or an exchange of information between appropriate State or local agencies and officials from Other Source Categorically Eligible Programs, such as the LEA’s homeless liaison. Direct certification also may be conducted using lists of eligible children provided to the State agency or LEA from appropriate officials of these programs. Letters and contacts from officials of these may also be used as direct certification. [7 CFR 245.6(b)(2)] Direct Verification: The use of public records as a means to verify children’s eligibility for free and reduced price benefits. Direct verification may be conducted with Assistance Program agencies or appropriate officials of Other Source Categorically Eligible Programs to confirm eligibility for free meals. Direct verification with Medicaid or the Children’s Health Insurance Program may confirm eligibility for either free or reduced price meals, depending on the Medicaid or Children’s Health Insurance Program eligibility criteria in the State. Direct verification may be used for applications included in the verification sample or those verified for cause. [7 CFR 245.6a(g)] Extension of Categorical Eligibility for Assistance Programs: A child or other household member’s receipt of benefits from an Assistance Program automatically extends eligibility for free benefits to all children who are members of the household. [7 CFR 245.6(b)(7)] Food Distribution Program on Indian Reservations (FDPIR): FDPIR is a Federal program that provides United States Department of Agriculture foods to low-income households living on Indian reservations, and to Native American families residing in designated areas near reservations and in the State of Oklahoma. Children from households that receive benefits from FDPIR are deemed categorically eligible for free school meals. See Food Distribution Program on Indian Reservations: http://www.fns.usda.gov/fdpir/food-distribution-program-indian- reservations-fdpir. Food Service Management Company: A Food Service Management Company is a commercial enterprise or a nonprofit organization that may be contracted with by the SFA or LEA to manage any aspect of the school food service. 16 Foster Child: An Other Source Categorical Eligibility Program designation for a child who is formally placed by a court or a State child welfare agency. Whether placed by the State child welfare agency or a court, in order for a child to be considered categorically eligible for free meals, the State must retain legal custody of the child. This definition does not apply to informal arrangements or permanent guardianship placements that may exist outside of State or court-based systems. [7 CFR 245.2] Free Meal: A meal served in the National School Lunch Program or School Breakfast Program to a child eligible for such benefits under 7 CFR Part 245. Neither the child nor any member of the household pays or is required to work in the school or in the school’s food service to receive a free meal. [7 CFR 245.2] Free Milk: Milk served in the Special Milk Program to a child eligible for free milk under 7 CFR Part 245. Neither the child nor any member of the household pays or is required to work in the school or in the school’s food service to receive free milk. [7 CFR 245.2] Head Start: An Other Source Categorically Eligible Program, which refers to Federal Head Start and any State-funded pre-kindergarten program that use eligibility criteria that are identical or more stringent than Federal Head Start. [7 CFR 245.2] Homeless: An Other Source Categorically Eligible Program designation for a child who is identified by the LEA’s homeless liaison or by an official of a homeless shelter as lacking a fixed, regular, and adequate nighttime residence. [7 CFR 245.2] Household: A group of related or nonrelated individuals who are living as one economic unit. The term “family” has the same definition as “household” under 7 CFR Part 245.2. Income Eligibility Guidelines (IEGs): The family-size income levels prescribed annually by the Secretary of Agriculture for determining eligibility for free and reduced price meals and free milk. The free guidelines are 130 percent of the Federal poverty guidelines. The reduced price guidelines are 185 percent of the Federal poverty guidelines. See School Meals - Income Eligibility Guidelines: http://www.fns.usda.gov/school-meals/income-eligibility-guidelines. Local Educational Agency (LEA): According to 7 CFR 210.2, the term “local educational agency” refers to: A public board of education or other public or private nonprofit authority legally constituted within a State for the administrative control of public or private nonprofit schools in a political subdivision of a State; An administrative agency or combination of school districts recognized by the State; Any other public or private nonprofit agency with administrative control and direction of public or private nonprofit schools or residential child care institutions; or The State educational agency that, in any State or territory, serves as the sole educational agency for all public or private nonprofit schools. 17 Limited English Proficiency (LEP): A limited ability to read, speak, write, or understand English. Local educational agencies, schools and other entities that receive Federal financial assistance, including reimbursements for meals from United States Department of Agriculture, must take reasonable steps to ensure meaningful access to their programs and activities by persons with limited English proficiency. See SP 37-2016: Meaningful Access for Persons with Limited English Proficiency in the School Meal Programs: Guidance and Q&As, http://www.fns.usda.gov/meaningful-access-persons-limited-english-proficiency-lep-school- meal-programs-guidance-and-qas. Migrant: An Other Source Categorical Eligibility designation for a child who is enrolled in the Migrant Education Program as determined by the State or local Migrant Education Program coordinator or as documented by an appropriate local educational agency official, such as the homeless liaison. [7 CFR 245.2] Mixed Households: Those households that include children designated as Other Source Categorically Eligible and other children who are not. [7 CFR 245.2] Operating Days: The days on which reimbursable meals or milk are provided by a school or another program sponsor. [7 CFR 245.2] Other Source Categorically Eligible: Categories that make children automatically eligible for free benefits, either through direct certification or application. A child’s eligibility for free benefits under Other Source Categorical Eligibility does not extend to any other child in the household. A child is Other Source Categorically Eligible if they are: Enrolled in Federal Head Start; Enrolled in State- or Indian Tribal Organization-funded pre-kindergarten programs that use eligibility criteria that are identical or more stringent than Federal Head Start; Determined to be homeless by the LEA’s homeless liaison or by an official of a homeless shelter; Determined to be a migrant by the State or local Migrant Education Program coordinator or homeless liaison; Determined to be a runaway who is identified by the local education liaison as receiving assistance through a program under the Runaway and Homeless Youth Act; or Determined to be a foster child whose care and placement is the responsibility of the State, or who is formally placed by a court with a caretaker household through which the State retains legal custody of the child. Overt Identification: Any action that may result in a child being recognized as certified for (or potentially eligible to receive) free or reduced price school meals or free milk. Local educational agencies and school food authorities must assure that a child’s eligibility status is not 18 disclosed at any point in the process of providing free and reduced price meals or free milk, including: When the child or household is notified of the availability of free and reduced price benefits; During certification and notification of eligibility; During the provision of meals in the cafeteria; At the point of service; During the provision of additional services, such as educational services to low income children; or When the child pays for their meals. See SP 45-2012: Preventing Overt Identification of Children Certified for Free or Reduced Price School Meals, http://www.fns.usda.gov/preventing-overt-identification-children-certified-free- or-reduced-price-school-meals. Reduced Price Meal: A lunch priced at 40 cents or less, an afterschool snack priced at 15 cents or less, or a breakfast priced at 30 cents or less, served to a child certified as eligible for such benefits under 7 CFR Part 245. Residential Child Care Institution (RCCI): Any distinct part of a public or nonprofit private institution that: Maintains children in residence; Operates principally for the care of children; and If private, is licensed by the State or local government to provide residential child care services under the appropriate licensing code. The definitions of “School” and “Child” in 7 CFR 210.2, 215.2 and 220.2, outline the requirements for eligible Residential Child Care Institutions and eligible residents. Runaway: An Other Source Categorical Eligibility designation for a child who is identified by the LEA’s homeless liaison or a program official as receiving assistance from a program under the Runaway and Homeless Youth Act. [7 CFR 245.2] School Food Authority (SFA): The governing body responsible for the administration of one or more schools. The SFA has the authority to enter into a legal agreement with the State administrating agency to operate the School Meal Programs. [7 CFR 210.2] School Year (SY): The period from July 1 through June 30. [7 CFR 210.2] 19 Supplemental Nutrition Assistance Program (SNAP): SNAP offers nutrition assistance to millions of eligible, low-income individuals and families and provides economic benefits to communities. Children from households that receive benefits under SNAP are deemed categorically eligible for free school meals. See Supplemental Nutrition Assistance Program: http://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program-snap. Temporary Assistance for Needy Families (TANF): A Federal designation for a State-funded program under Part A of Title IV of the Social Security Act. Each State has its own name and acronym for the program. Categorical eligibility for free benefits is limited to beneficiaries in States with TANF standards that are comparable to or more restrictive than those in effect on June 1, 1995. See SP 22-2010, CACFP 10-2010, SFSP 08-2010: Categorical Eligibility— Temporary Assistance to Needy Families, http://www.fns.usda.gov/sp22-2010-categorical- eligibility%E2%80%94temporary-assistance-needy-families. Without Further Application: “Without further application” means that no action is required by the household of a child who has been directly certified to receive free meal benefits. [42 U.S.C 1758(b)(4)(G)(i)] Working Days: The days when school is open and teachers or school administration are on-site, but the reimbursable meal service is not in operation. A Glossary of Acronyms is also included at the end of the manual. 20 Section 1: Questions and Answers 1. When should schools distribute information about the application, and when should schools distribute the household application itself? Schools should send the information letter to households very early in the school year, which begins July 1. Applications should also be distributed on July 1 or soon thereafter. Distributing applications early in the school year ensures households have sufficient time to complete and return the application prior to the first day of school. Additionally, schools are encouraged to provide families with information about the School Meal Programs in routine contacts throughout the school year, and remind families that applications may be submitted at any time during the school year. Information letters may not, however, be sent to households before the end of one school year for the subsequent year, nor can the LEA accept and process applications before the federally defined school year. (Note: Year-round schools may distribute the letters in June.) 2. May schools require all households to complete and submit an application for free and reduced price meals? No. Schools may not require households to complete and submit an application. It is the household’s choice to complete and submit an application for meal benefits. However, LEAs must inform households that they may receive meal benefits if they are eligible. 3. May schools include IEGs for free school meals, in addition to including the IEGs for reduced price meals, when sending out the application and any descriptive materials? No. The application and any descriptive materials distributed to households may only contain the income levels for reduced price school meal eligibility. This requirement is statutory [42 U.S.C 1758 (b)(2)(B)(i) and (ii)]. 21 Section 2: The Basis of Eligibility This section provides an overview of how to determine: Household composition when making an income eligibility determination, Household reportable income and income exclusions, Categorical eligibility based on participation in Assistance Programs, and Categorical eligibility through an Other Source Categorical Eligibility designation. Determining Eligibility Based on Income Applications To establish income eligibility for a household, determining officials must compare the household size and the total household gross income to the applicable IEGs. Families may ask determining officials to explain whom to include as a household member or what to include as income when submitting the application. This section explains the overarching requirements for determining household composition and income and provides guidance on how to handle special situations. LEAs with additional questions should contact the State agency for further clarification. Determining Household Composition For the purpose of making an eligibility determination for free and reduced priced benefits, household composition is based on an economic unit. An economic unit is a group of related or unrelated individuals who are not residents of an institution or boarding house but who are living as one economic unit, and whose members share housing, significant income, and expenses [7 CFR 245.2]. Generally, individuals residing in the same house or apartment unit are an economic unit. However, more than one economic unit may reside together in the same house. Separate economic units in the same residence are characterized by prorating expenses and by economic independence from one another. Please see the following table for a review of special situations to consider when determining household composition. 22 Special Situations for Determining Household Composition Adopted child An adopted child for whom a household has accepted legal responsibility is considered to be a member of the household. If the household receives assistance payments or a subsidy for the adoption, the assistance payments or subsidy are included as income. Child attending an institution or Residential Child Care Institution (RCCI) A child who attends, but does not reside in an institution or RCCI is considered a member of the household in which the child is a resident. Child residing in an institution or RCCI A child who is a resident of a non-participating institution and attends a participating school during the week, or a child who resides in a participating RCCI, is considered a household of one. Child away at school A child who is temporarily away at school (e.g., attending boarding school or college) is included as a member of the household. A child attending a participating boarding school who applies for meal benefits is also considered a member of the parent’s or guardian’s household. Eligibility is determined based on the family’s size and income. Child living with one parent, relative or friend In cases where the child is living with one parent, relative, or friend, the child is considered to be a member of the household with whom the child resides. Children of divorced or separated parents are considered part of the household with custody. Families with joint custody In joint custody situations, a child may physically change residence regularly. If both parents/guardians apply for meal benefits within the same LEA, but the eligibility determination is different, the greater benefit level is used. For example, if one parent or guardian’s application results in eligibility for free meals but the other parent or guardian’s application is denied, the child would receive free meals regardless of where the child resided on a given school day. However, one parent or guardian may elect not to have the child receive free or reduced price meal benefits while residing with them. When the child is residing with this parent or guardian, the school should respect their wishes and allow the parent or guardian to pay for the meals. In this situation, the child’s meals must be claimed at the paid rate. Emancipated child A child living alone or as a separate economic unit is considered to be a household of one. If an emancipated child lives alone as a household of one, or as a member of a household with no adult household members, the emancipated child must sign the application. No portion of the Social Security Number is required on the application of an emancipated child. 23 Special Situations for Determining Household Composition Child paying room and board Separate economic units are usually characterized by prorating most household expenses. Children living within a household and paying for room and board are usually paying a token amount, and are not economically independent of the household. Therefore, in most situations, these children are not considered to be a household of one and are instead included in the larger household for purposes of determining eligibility. Foreign exchange student A foreign exchange student is considered to be a member of the household (the “host household”) in which the foreign exchange student resides. Foster child A foster child is a child whose care and placement is the responsibility of an agency that administers a State plan under Part B or E of Title IV of the Social Security Act, or a child who is formally placed with a relative or other caretaker household by a court or State child welfare agency. For CNP eligibility purposes, a foster child is considered a member of the foster parents’ household if the child is placed through a formal arrangement by a court or State child welfare agency. Whether placed by the State child welfare agency or a court, in order for a child to be considered categorically eligible for free meals, the State must retain legal custody of the child. Family members living apart from family Family members who are living apart on a temporary basis are considered household members. Family members who are not living with the household for an extended period of time are not considered members of the household for purposes of determining eligibility. Deployed service personnel Members of the armed services who are activated or deployed in support of any military combat operation are counted as household members. Determining Household Reportable Income Households must report current income on a free and reduced price application. Income is any money (before deductions), received on a recurring basis, including earnings, pensions, and child or spousal support, unless an income source is specifically excluded by law for the CNPs. (See: Income Exclusions.) Gross earned income means all money earned before deductions such as income taxes, employee’s Social Security taxes, insurance premiums, and bonds. Current income means the gross income received by a household, before deductions, for the current month, or the amount projected for the first month for which the application is filled out, or for the month prior to application. If this income is higher or lower than 24 usual and does not fairly or accurately represent the household’s actual circumstances, the household may, in conjunction with determining officials, project its annual rate of income. FNS does not set any specific requirements regarding the frequency (e.g., weekly, bi-weekly, monthly) at which household income is reported on an application. While in most cases earners report income on a more frequent basis, there is no prohibition against annual income reporting. For more information, see: SP 19-2017: Reporting Annual Income on School Meal Applications, https://www.fns.usda.gov/school-meals/reporting-annual-income-school-meal- applications. Indicating Income and Income Sources Each household must provide the total amount of current gross income. The application must identify the source of the income earned by adults or children as applicable, and the adult or child who received it (such as wages or Social Security) [7 CFR 245.6(a)(5)(i) and 245.6(a)(5)(ii)]. Indication of No Income Each household member must be listed on the application, even if they have no reportable income. Household members must be asked to report their status as zero income earners. This may be done by indicating zero or no income. A paper application must include a clear and easy to understand instruction that communicates to households that any income field left blank is a positive indication there is no income to report. When no income is provided for any of the adult household members, the application is still considered complete. On web-based applications, LEAs may incorporate functionality that prevents applicants from progressing or making a final submission when fields have been left blank. This eliminates the possibility of blank fields altogether, and is recommended as an integrity-promoting feature. Web-based applications may also include error or warning messages that highlight missing information and/or direct the applicant to fields where that information must be submitted. If local officials have knowledge or available information suggesting a household has intentionally misreported its income, including by leaving the income fields blank, the LEA must verify the household’s application for cause [7 CFR 245.6a(c)(7)]. For more information, see Verification for Cause. 25 The following table, Determining Household Reportable Income, provides an overview of income types to include when determining household reportable income. Determining Household Reportable Income Category Description Wages, salaries, tips, commissions, and cash bonuses; Net income from self-owned business, including farms; Strike benefits, unemployment compensation, and worker’s Earnings compensation; and from work Military basic pay and cash bonuses and allowances for off-base housing, food, and clothing (excluding combat pay, Family Subsistence Supplemental Allowance, and privatized housing allowances; for more information, see Income Exclusions). Unemployment benefits; Worker’s compensation; Supplemental Security Income (SSI); Regular cash assistance from State or local governments; Public Alimony payments; assistance, alimony, Child support payments; pensions and Veteran’s benefits; child support Pensions; Retirement Social Security (including railroad retirement and black lung benefits); Private pensions or disability benefits; and Adoption assistance payments. Income from trusts or estates; Annuities; Any other Investment income; income Earned interest; regularly Net rental income; received Regular cash payments from outside household; Cash withdrawn from savings; and Any other money regularly available to pay for children’s meals. 26 Determining Household Reportable Income - Special Situations USDA has identified several “special situations” LEAs may encounter when determining children’s eligibility for free and reduced price meals. This section provides guidance for LEAs to use when determining eligibility in special situations. Projected Income for Seasonal Workers Certain workers, such as seasonal workers, experience income fluctuations throughout the year, meaning they earn more money in some months than in other months. For these workers, reporting the previous month’s income may distort the household’s actual financial circumstances. In these situations, the household may project its annual rate of income, and report this amount as its current income. If the prior year’s income provides an accurate reflection of the household’s current annual rate of income, the prior year may be used as a basis for the projected annual rate of income. The LEA must determine the period of time any earnings are received for seasonal workers, as well as the amount and source. Seasonal workers with annual employment contracts, such as school employees, may choose to have their salaries paid over a shorter period of time. To treat these employees in the same manner as employees who choose to have their salaries paid over the full year, the LEA must determine the full amount of income available contractually on an annual basis, and convert all income sources to annual amounts. Income for the Self-Employed Self-employed persons may use their previous year’s income as a basis to project their current year’s net income, unless their current net income provides a more accurate measure. Self-employed persons are credited with net income rather than gross income. Net income for self-employed farmers, for example, is figured by subtracting the farmer’s operating expenses from the gross receipts. Deductible business expenses include: o The cost of goods purchased; o Rent; o Utilities; o Depreciation charges; o Wages and salaries paid; and o Business taxes. 27 Non-deductible business expenses include: o The value of salable merchandise used by the proprietors of retail businesses; and o Personal, Federal, State, or local income taxes. Gross receipts include: o The total income from goods sold or services rendered by the business; o The value of all products sold; o Money received from the rental of land, buildings, or equipment to others; and o Incidental receipts from the sale of items such as wood, sand, or gravel. Operating expenses include: o Cost of feed, fertilizer, seed, and other farming supplies; o Cash wages paid to employees; o Depreciation charges; o Cash rent; o Interest on farm mortgages; o Farm building repairs; and o Farm taxes. Income from Wages and Self-Employment For a household with income from wages and self-employment, each amount must be listed separately. When a household experiences a business loss, income from wages must not be reduced by the amount of the business loss. If income from self-employment is negative, it is listed as zero. Income from Rental Properties For households with rental properties, income includes money derived from the rental of rooms, apartments, homes and other leases. The treatment of rental income is similar to the treatment of self-employment income. Military Benefits For non-deployed service members, income includes benefits paid directly to the service member, such as food and clothing allowances. Income also includes housing allowances for households living off-base in the general commercial or private real estate market. For deployed service members, income only includes the portion of a deployed service member’s income made available to the household by the deployed service member, (or on their behalf). For more information, see: SP 06-2010, CACFP 03-2010, SFSP 04-2010: Exclusion of Military Combat Pay, https://www.fns.usda.gov/cacfp-03-2010r-exclusion-military-combat-pay. 28 Foster Child’s Income If a household where a foster child resides applies for benefits for their non-foster children, the foster child may be included as a household member and any personal income received by the foster child is reportable. The foster child’s income can be from a part-time job held by the child, or from any funds provided to the child for the child’s personal use. Child’s Income The current earnings of a child, regardless of age, or student grade 12 or below who is a full-time or regular part-time employee, must be listed on the application as income. Additionally, children’s income from other sources, such as Supplemental Security Income or Social Security, must be listed on the application as income. Infrequent earnings, such as income from occasional baby-sitting or mowing lawns, are not counted as income and should not be listed on the application. The same requirement applies to children residing in an RCCI: only the income earned from full-time or regular part-time employment or personally received by the child, while in residence at the RCCI, is considered income. For more information, see Income Exclusions. Alimony and Child Support Any money received by a household in the form of alimony or child support is considered income to the receiving household. Money paid by a household in the form of alimony or child support is not excluded as income for that household. Garnished Wages and Bankruptcy In the case of garnished wages and income ordered to be used in a specified manner, the total gross income must be considered regardless of the portions garnished or used to pay creditors. 29 Income Exclusions Income excluded from the determination of a household’s eligibility for free and reduced price meal benefits includes: Any cash income or value of benefits excluded by statute, such as the value of benefits under SNAP or FDPIR and some Federal educational benefits; Payments received from a foster care agency or court for the care of foster children; Student financial assistance provided for the costs of attendance at an educational institution, such as grants and scholarships awarded to meet educational expenses and not available to pay for meals; Loans, such as bank loans, since these funds are only temporarily available and must be repaid; and Infrequent earnings received on an irregular basis, such as payment for occasional baby-sitting or yard work. With regard to eligibility determinations for the CNPs, FNS has adopted the income exclusions provided under the Social Security Act and other Federal laws. A number of these exclusions are discussed below. This manual does not list all sources of income excluded from the eligibility determination. To view a list of all income sources excluded by the Social Security Act, please see: Section 1612 of the Social Security Act (https://www.ssa.gov/OP_Home/ssact/title16b /1612.htm#ACT-B1612-B). To see a list of income sources excluded by other Federal laws, see: Appendix to Subpart K of Part 416—List of Types of Income Excluded under the SSI Program as Provided by Federal Laws Other Than the Social Security Act (http://www.socialsecurity.gov/OP_Home/cfr20/416/416-app-k.htm). Unless a source of income is specifically listed as excluded by the Social Security Act or Appendix to Subpart K, it should be included as income on the household application. Determining officials should contact the State agency when there is a question of whether specific payments are to be included as income. The following tables provide examples of payments from Federal programs excluded as income and examples of other payments excluded as income in the CNPs. Please note, this is not an exhaustive list. 30 Examples of Payments Excluded as Income Category Description SNAP, WIC, Value of assistance to children and their families under the NSLA, the and CNP CNA of 1966, and the Food and Nutrition Act of 2008. Benefits Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Housing Payments received under the Cranston-Gonzales National Affordable assistance Housing Act, P.L. 101-625. Payments received under the Housing and Community Development Act of 1987. Any payment to volunteers under Title I (VISTA and others) and Title II (RSVP, foster grandparents, and others) of the Domestic Volunteer Service Act of 1973 to the extent excluded by the Act. Volunteer Payments to volunteers under Section 8(b)(1)(B) of the Small Business payments Act (SCORE and ACE). Payments and allowances to individuals participating in AmeriCorps to the extent excluded by the National and Community Service Act of 1990. The value of any child care provided or arranged, or any payment or reimbursement for costs incurred for such care, under the Child Care and Development Block Grant Act, as amended by Section 8(b) of Child care P.L. 102-586,106 Stat. 5035. Value of any “at-risk” block grant child care payments made under Section 5081 of P.L. 101-508, which amended Section 402 of the Social Security Act. Old age Payments received under the Old Age Assistance Claims Settlement assistance Act, except for per capita shares in excess of $2,000. Student financial assistance received under Title IV of the Higher Education Act of 1965, including the Pell Grant, Supplemental Education Opportunity Grant, State Student Incentive Grants, National Student Direct Student Loan, PLUS, College Work Study, and Byrd Honor financial aid Scholarship Programs, to the extent excluded by the Act. Payments received under the Carl D. Perkins Vocational Education Act, as amended by the Carl D. Perkins Vocational and Applied Technology Act Amendments of 1990, P.L. 101-392. 31 Examples of Payments Excluded as Income Category Description National Flood Insurance Program (NFIP) payments received by property owners. See: SP 02-2006, CACFP 02-2006, SFSP 01-2006: Treatment of Family Subsistence Supplemental Allowance and National Flood Insurance Program payments in Income Eligibility Disaster Determinations for Food and Nutrition Service Programs, assistance https://www.fns.usda.gov/treatment-family-subsistence-supplemental- allowance-and-national-flood-insurance-program-payments-0. Payments under the Disaster Relief Act of 1974, as amended by the Disaster Relief and Emergency Assistance Amendments of 1989, P.L. 100-707. Utility Payments under the Low-income Home Energy Assistance Act, assistance P.L. 99-125. Payments under the Agent Orange Compensation Exclusion Act, P.L. 101-201. Family Subsistence Supplemental Allowance (FSSA). See: SP 30-2006, CACFP 14-2006, SFSP 07-2006: U.S. Armed Forces Family Supplemental Subsistence Allowance – Permanently Excluded from Military Income Consideration for the Child Nutrition Programs, compensation https://www.fns.usda.gov/us-armed-forces-family-supplemental- subsistence-allowance-%E2%80%93-permanently-excluded-income-1. Privatized housing allowances to service members living in housing covered under the Military Housing Privatization Initiative. (See: Department of Defense (DOD) Military Housing Privatization for a description of this type of housing, http://www.acq.osd.mil/housing/). Deployment Extension Incentive Pay (DEIP) given to active-duty service members who agree to extend their military service by completing deployment with their units without re-enlisting. This exemption applies only until the service members return to their home station. DEIP payments provided to service members who are not considered deployed are not exempt. Combat pay Also exclude combat pay: o Received in addition to the service member’s basic pay; o Received as a result of deployment to (or service in) an area that has been designated as a combat zone; and o Not received by the service member prior to deployment to or service in the designated combat zone. 32 Examples of Payments Excluded as Income Category Description Income derived from certain sub-marginal land of the U.S. that is held Land payments in trust for certain Indian tribes. Institutionalized Payments from any source directly received by an RCCI on a child’s child’s income behalf are not considered as income to the child. Lump sum payments or large cash settlements are not counted as income since they are not received on a regular basis. These funds may be provided as compensation for a loss that must be replaced, such as Lump sum payment from an insurance company for fire damage to a house. payments Note: When lump sum payments are put into a savings account and the household regularly draws from that account for living expenses, the amount withdrawn is counted as income. In-kind benefits (housing for clergy, cars for salespersons, employee medical or dental benefits, etc.) are not cash payments and, therefore, In-kind benefits are not considered as income for the purpose of determining free and reduced price eligibility. School officials are not in a position to determine the value of in-kind benefits. Determining Categorical Eligibility Using an Application This section describes establishing eligibility for children who are automatically eligible for free meals or free milk because they (or another member of their household) receive Assistance Program benefits, or because they are determined individually eligible through an Other Source Categorically Eligible designation. In general, categorical eligibility may be established through the application process or through the direct certification process. For more information about direct certification, see The Direct Certification Process. Assistance Program Participants A child who is a member of a household that receives Assistance Program benefits (SNAP, TANF, FDPIR) is categorically eligible for free meals or milk. If one child or adult in the household receives Assistance Program benefits, categorical eligibility for free meal benefits through the CNPs is extended to all children in that household [7 CFR 245.6(b)(7)]. LEAs are required to use direct certification to identify children receiving SNAP benefits. (See: Mandatory SNAP Direct Certification.) LEAs may still accept SNAP notification letters to a household as a secondary method of recognizing categorical eligibility for free meals for SNAP 33 households [7 CFR 245.6(b)(5)(ii)(A)]. If a household provides a SNAP eligibility letter to the LEA or school, the letter must be used to establish eligibility, but it is not considered direct certification for reporting purposes. When using an application to establish eligibility, LEAs must give households the opportunity to provide SNAP, TANF, or FDPIR case numbers or identifiers for any household member [7 CFR 245.6(a)(6)]. Households receiving benefits under Assistance Programs must list a case number when submitting an application. Determining officials must ensure the Assistance Program’s case number or identifier listed on the application is consistent with the format used by the Assistance Program in the State. If the case number seems incorrect, the LEA should contact the household or the local Assistance Program agency to confirm the household’s eligibility or verify the application for cause. (See: Verification for Cause.) When a household submits an application indicating an Assistance Program: The applicable Assistance Program must be identified and the program case number must match the applicable Assistance Program. The child must be given free meals. The LEA official should compare the applications with case numbers to the direct certification list to determine if any children listed on the application are on that list. o When a match is found:  The application must be disregarded;  The household must be placed on the direct certification list; and  Categorical eligibility must be extended to all children in the household. o When a match is not found, the LEA should:  Contact the household for further clarification; or  Verify the application for cause. Other Source Categorically Eligible Program Participants Children designated as Other Source Categorically Eligible can also be determined eligible for free meals through the application process. To determine Other Source Categorical Eligibility through the application, the household must submit an application indicating the applicable program. Only the individual children designated on the application as participating in an Other Source Categorically Eligible Program may receive free meal benefits. Other Source Categorical Eligibility of one child in a household does not convey free eligibility to other children in the household [7 CFR 245.6(b)(8)]. 34 If the household submits an application with income and also indicates Other Source Categorical Eligibility for one or more children, the LEA must confirm the children’s status before meal benefits can be provided. If a household submits an application indicating both income and Other Source Categorical Eligibility, and the LEA cannot confirm the children’s status, the LEA must process the application using the income information provided. If Other Source Categorical Eligibility is documented for all children in the household, the determination based on income is superseded. However, if some children in the household are not determined Other Source Categorically Eligible, the income determination remains in effect for those children. When a household submits an application indicating Other Source Categorical Eligibility: The applicable programs must be indicated. The LEA official must contact the Other Source Categorically Eligible agency liaison to confirm that the children are eligible for the applicable program. FNS recommends LEAs confirm contact information for the agency liaisons at the beginning of each school year. The Direct Certification Process Direct certification allows LEAs to certify children as eligible for free meal benefits using participant data from other means-tested programs (as permitted), eliminating the need for an application. The direct certification process uses information provided by State or local agencies administering Assistance Programs and Other Source Categorically Eligible Programs. The data exchange, most often completed by using either State or local-level matching, may use automated data matching, an e-mail exchange, or an exchange of faxes with appropriate agency officials. Automated data matching is required for SNAP, and encouraged for TANF and FDPIR [7 CFR 245.6(b)(4)]. The exchange must include a date and signature. An electronic signature is acceptable. See: SP 10-2007, CACFP 07-2007, SFSP 06-2007: Update on Electronic Transactions in the Child Nutrition Programs, http://www.fns.usda.gov/update-electronic-transactions-child-nutrition-programs-1. There are many steps State agencies and LEAs can take to improve the direct certification process and increase access among eligible children. For an overview of strategies to improve the process, see SP 43-2016 (v.2): Ensuring Access to Free and Reduce Price School Meals for Low-Income Students - Revised, http://www.fns.usda.gov/ensuring-access-free-and-reduced- price-school-meals-low-income-students. 35 Assistance Program Participants Eligibility for free meals is extended to all children in a household if any member of the household receives Assistance Program (SNAP, TANF, FDPIR) benefits [7 CFR 245.6(b)(7)]. LEAs are encouraged to take appropriate steps to identify children who are part of a household receiving benefits, but were not identified through the direct certification process. For example, LEAs may review school district enrollment records or reference submitted meal benefit applications to find potential matches that were missed through the direct certification process. According to 7 CFR 245.6(b)(1), LEAs must directly certify children in SNAP households using an automated data matching technique. For example, the LEA can compare the student enrollment records and the SNAP benefit recipient records. In addition, an LEA may obtain a list (signed and dated) of SNAP-eligible children from an appropriate agency official via fax or e-mail. LEAs are encouraged to work with agency liaisons to identify eligible students and to consistently check and match student records with information from these agencies, ensuring privacy protections are in place as, required by 7 CFR 245.6(f). The following are acceptable methods for identifying Assistance Program eligible children [7 CFR 245.2]: A household application including a case number for any household member. (See: Assessing Completeness of Categorically Eligible Applications.) A letter from an Assistance Program agency official or a letter from an Assistance Program agency provided to the household, which in turn, the household provides to the school. A list of eligible children provide by local Assistance Program officials, including a signature and the date. Completion of an application by a local school official with direct knowledge of the child’s status [7 CFR 245.6(d)]. Direct Certification with Medicaid Beginning in SY 2016-2017, FNS began conducting new demonstrations to evaluate direct certification using Medicaid data in the NSLP and SBP. The demonstrations are conducted under the administrative pilot authority in Section 18(c) of the NSLA. State agencies that administer the NSLP and SBP were invited to apply to participate in these new demonstrations to evaluate direct certification with Medicaid. 36 Under the demonstrations, State agencies match school enrollment data with Medicaid eligibility data to identify children who receive Medicaid, or live with a child who receives Medicaid, and whose family income, before expenses and deductions, does not exceed: 130 percent of the Federal Poverty Level for free school meal eligibility; or 185 percent of the Federal Poverty Level for reduced price meal eligibility For more information about the pilot program, see: SP 23-2016: Request for Applications to Participate in New Demonstration to Evaluate Direct Certification with Medicaid, https://www.fns.usda.gov/request-applications-participate-new-demonstrations-evaluate-direct- certification-medicaid. Other Source Categorical Eligibility To ensure eligible children are promptly connected with meal benefits, LEAs must have an agreement with the Other Source Categorically Eligible Program designated officials. The agreement must include an overview of procedures to follow when exchanging information and confirming the children’s status, and must ensure privacy protections are in place, as required by 7 CFR 245.6(f). FNS also encourages LEAs to communicate with Other Source Categorically Eligible agency officials in preparation for the direct certification data exchange. This communication should occur prior to the beginning of each school year. Additionally, throughout the school year, school officials are encouraged to consistently check and match student records with these programs. The following are acceptable methods for identifying Other Source Categorically Eligible children: A household application indicating “Other Source Categorical Eligibility” for one or more children. A form letter from an Other Source Categorically Eligible agency to the household, which in turn, the household provides to the school. A signed and dated list of eligible children exchanged between the Other Source Categorically Eligible officials and the LEA. A list of Other Source Categorically Eligible children compiled by the LEA and submitted to the determining official. Completion of an application by a local school official with direct knowledge of the child’s status [7 CFR 245.6(d)]. If form letters are sent to Categorically Eligible households or direct computer matches (which might not include the designated official’s original signature) are used to determine Categorical Eligibility, the LEA must have documentation including correspondence or a written agreement between the Other Source Categorically Eligible Program designated officials and the LEA. 37 Other Source Categorical Eligibility Descriptions This section provides in-depth information about Other Source Categorical Eligibility designations, which apply to migrant, runaway, homeless, and foster children. Children enrolled in Head Start or enrolled in an eligible pre-kindergarten program with eligibility criteria identical to or more stringent than Federal Head Start are also categorically eligible for free meals. For more information about Head Start, please see SP 40-2013, CACFP 11-2013, SF

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