This report examines the impact of using Medicaid data to directly certify students for free and reduced-price school meals in the National School Lunch and School Breakfast Programs in 15 states in school year 2017-18. Certification, participation and reimbursement outcomes for Cohort 1 states in their second year of implementation and Cohort 2 states in their first year of implementation are discussed.

The Healthy, Hunger-Free Kids Act of 2010 (HHFKA; PL 111-296) required the USDA Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

The purpose of this study is to describe current methods of direct certification used by state and local agencies and challenges facing states and local education agencies in attaining high matching rates. 

Student eligibility for free meals is determined by application or by direct certification. Although direct certification systems vary by State and LEA, all such systems are designed to eliminate the need for paper applications. Effective in SY 2011-12, LEAs must conduct direct certification three times per year: once at or around the start of the school year, and again three and six months after that initial effort. All direct certification systems now match student enrollment lists against SNAP agency records and the records of other assistance agencies whose participants are categorically eligible for free meals. The matching process, whether automated or manual, requires no action by the children’s parents or guardians.

This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004/05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications.