[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1431 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 1431

 To amend the Richard B. Russell National School Lunch Act to improve 
 program requirements and direct certification, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2025

 Mr. Fetterman introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Richard B. Russell National School Lunch Act to improve 
 program requirements and direct certification, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Meal Modernization and Hunger 
Elimination Act''.

SEC. 2. DIRECT CERTIFICATION.

    Section 9(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(b)) is amended--
            (1) in paragraph (4)(F)(iii)(II)(bb), by inserting ``in not 
        more than 3 school years'' after ``measures''; and
            (2) in paragraph (5)--
                    (A) in the paragraph heading, by striking 
                ``Discretionary certification'' and inserting ``Direct 
                certification of additional low-income children'';
                    (B) in the matter preceding subparagraph (A), by 
                striking ``may certify'' and inserting ``(including any 
                school operated by the Bureau of Indian Education) 
                shall certify'';
                    (C) in subparagraph (B), by inserting a closing 
                parenthesis before the semicolon at the end;
                    (D) in subparagraph (D), by striking ``or'' at the 
                end; and
                    (E) in subparagraph (E)--
                            (i) in clause (i), by striking ``or'' at 
                        the end;
                            (ii) in clause (ii)--
                                    (I) by striking ``who'' and 
                                inserting ``whom''; and
                                    (II) by striking the period at the 
                                end and inserting a semicolon; and
                            (iii) by adding at the end the following:
                    ``(iii) a child whose placement with a caregiver 
                was carried out with the involvement of an agency that 
                administers a State plan under part B or E of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.) or a 
                Tribal child welfare agency, without regard to whether 
                the agency is responsible for the care and placement of 
                the child;
                    ``(iv) a child for whom an adoption assistance 
                payment is made under section 473(a) of the Social 
                Security Act (42 U.S.C. 673(a)) or under a similar 
                State-funded or State-operated program, as determined 
                by the Secretary;
                    ``(v) a child for whom a kinship guardianship 
                assistance payment is made under section 473(d) of the 
                Social Security Act (42 U.S.C. 673(d)) or under a 
                similar State-funded or State-operated program, as 
                determined by the Secretary, without regard to whether 
                the child was previously in foster care; or
                    ``(vi) a child of a family that--
                            ``(I) lives in housing dedicated to low-
                        income families with a caregiver who is a 
                        grandparent or another older person that cares 
                        for the child full-time; or
                            ``(II) receives housing or housing 
                        assistance under the Native American Housing 
                        Assistance and Self-Determination Act of 1996 
                        (25 U.S.C. 4101 et seq.); or
                    ``(F) a child who receives supplemental security 
                income payments under title XVI of the Social Security 
                Act (42 U.S.C. 1381 et seq.).''.

SEC. 3. ELIGIBILITY OF TRANSFERRED CHILDREN; RETROACTIVE REIMBURSEMENT.

    Section 9(b)(9) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(b)(9)) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D);
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Eligibility of transferred children.--
                            ``(i) Definition of covered child.--In this 
                        subparagraph, the term `covered child' means a 
                        child that--
                                    ``(I) has been determined eligible 
                                for free or reduced price meals under 
                                this Act by a local educational agency 
                                (referred to in this subparagraph as 
                                the `original local educational 
                                agency'); and
                                    ``(II) transfers to another school 
                                that is under the jurisdiction of a 
                                different local educational agency 
                                (referred to in this subparagraph as 
                                the `new local educational agency').
                            ``(ii) Eligibility.--An eligibility 
                        determination made by an original local 
                        educational agency with respect to a covered 
                        child shall be transferred to, and honored by, 
                        the new local educational agency, including the 
                        period for which that determination was 
                        authorized, subject to an extension under 
                        clause (iii).
                            ``(iii) Extension of duration.--A new local 
                        educational agency shall honor the eligibility 
                        determination for a covered child under clause 
                        (ii) for a period that is 1 year longer than 
                        the period for which that determination was 
                        authorized by the original local educational 
                        agency if the covered child began living with a 
                        caregiver--
                                    ``(I) during the 12-month period 
                                preceding the date on which the covered 
                                child is enrolled in a school under the 
                                jurisdiction of a new local educational 
                                agency; and
                                    ``(II) who is a grandparent or 
                                other relative and--
                                            ``(aa) has legal authority 
                                        to secure services for the 
                                        child through an educational or 
                                        healthcare consent affidavit, 
                                        power of attorney, or other 
                                        legal documentation; or
                                            ``(bb) has legal custody of 
                                        the child or has commenced the 
                                        process of seeking legal 
                                        custody of the child in a court 
                                        of law.'';
            (3) in subparagraph (D) (as so redesignated)--
                    (A) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and indenting 
                appropriately;
                    (B) in the matter preceding subclause (I) (as so 
                redesignated), by striking ``Except as'' and all that 
                follows through ``(3)(H)(ii)'' and inserting the 
                following:
                            ``(i) In general.--Except as otherwise 
                        specified in clause (ii), subparagraph (C), 
                        subparagraphs (E) and (H)(ii) of paragraph 
                        (3)''; and
                    (C) by adding at the end the following:
                            ``(ii) Extension for certain children.--A 
                        school food authority shall extend the 
                        eligibility determination made by a local 
                        educational agency with respect to a child for 
                        a period that is 1 year longer than the period 
                        for which that determination was authorized by 
                        the local educational agency, if the child 
                        began living with a caregiver--
                                    ``(I) during the 12-month period 
                                preceding the date on which the covered 
                                child is enrolled in the new school; 
                                and
                                    ``(II) who is a grandparent or 
                                other relative and--
                                            ``(aa) has legal authority 
                                        to secure services for the 
                                        child through an educational or 
                                        healthcare consent affidavit, 
                                        power of attorney, or other 
                                        legal documentation; or
                                            ``(bb) has legal custody of 
                                        the child or has commenced the 
                                        process of seeking legal 
                                        custody of the child in a court 
                                        of law.''; and
            (4) by adding at the end the following:
                    ``(E) Retroactive reimbursement.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Change in eligibility.--The 
                                term `change in eligibility' means, 
                                with respect to eligibility for the 
                                school lunch program under this Act--
                                            ``(aa) a change from 
                                        eligibility for reduced price 
                                        meals to eligibility for free 
                                        meals; and
                                            ``(bb) a change from 
                                        noneligibility to eligibility 
                                        for free or reduced price 
                                        meals.
                                    ``(II) Meal claim.--The term `meal 
                                claim' means any documentation provided 
                                by a school food authority to a State 
                                agency in order to receive 
                                reimbursement under this Act for the 
                                cost of a meal served to a child by the 
                                school food authority.
                                    ``(III) Previously submitted.--The 
                                term `previously submitted', with 
                                respect to a meal claim, means a meal 
                                claim submitted on or after the 
                                retroactive date.
                                    ``(IV) Retroactive date.--The term 
                                `retroactive date' means the first day 
                                of the current school year.
                            ``(ii) Retroactivity.--
                                    ``(I) Submission of meal claims.--A 
                                local educational agency shall--
                                            ``(aa) revise and resubmit 
                                        a previously submitted meal 
                                        claim to reflect a change in 
                                        eligibility described in 
                                        subclause (i)(I)(aa) of a 
                                        child; and
                                            ``(bb) submit a meal claim 
                                        for any meal provided on or 
                                        after the retroactive date for 
                                        a child that has a change of 
                                        eligibility described in 
                                        subclause (i)(I)(bb).
                                    ``(II) Reimbursement by 
                                secretary.--The Secretary shall 
                                reimburse each meal claim submitted by 
                                a local educational agency under 
                                subclause (I).
                            ``(iii) Reimbursement to families.--A local 
                        educational agency that receives a 
                        reimbursement under clause (ii)(II) shall 
                        reimburse the household of a child for any fees 
                        paid by the household on or after the 
                        retroactive date and prior to the change in 
                        eligibility of the child.''.

SEC. 4. EXPANDING AUTOMATIC ELIGIBILITY.

    (a) In General.--Section 9(b)(12)(A) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)(12)(A)) is amended--
            (1) by conforming the margins of clauses (iv) through (vii) 
        to the margin of clause (iii); and
            (2) in clause (vii)--
                    (A) in subclause (I), by striking ``or'' at the 
                end;
                    (B) in subclause (II)--
                            (i) by striking ``who'' and inserting 
                        ``whom''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (C) by adding at the end the following:
                            ``(III) a child whose placement with a 
                        caregiver was carried out with the involvement 
                        of an agency that administers a State plan 
                        under part B or E of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.) or a 
                        Tribal child welfare agency, without regard to 
                        whether the agency is responsible for the care 
                        and placement of the child;
                            ``(IV) a child for whom an adoption 
                        assistance payment is made under section 473(a) 
                        of the Social Security Act (42 U.S.C. 673(a)) 
                        or under a similar State-funded or State-
                        operated program, as determined by the 
                        Secretary;
                            ``(V) a child for whom a kinship 
                        guardianship assistance payment is made under 
                        section 473(d) of the Social Security Act (42 
                        U.S.C. 673(d)) or under a similar State-funded 
                        or State-operated program, as determined by the 
                        Secretary, without regard to whether the child 
                        was previously in foster care; or
                            ``(VI) a child of a family that--
                                    ``(aa) lives in housing dedicated 
                                to low-income families with a caregiver 
                                who is a grandparent or another older 
                                person that cares for the child full-
                                time; or
                                    ``(bb) receives housing or housing 
                                assistance under the Native American 
                                Housing Assistance and Self-
                                Determination Act of 1996 (25 U.S.C. 
                                4101 et seq.).''.
    (b) Conforming Amendments.--Section 9(d)(2) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
            (1) in subparagraph (D), by striking ``(iv) or (v)'' and 
        inserting ``(ii), (iii), (iv), (v), or (vii)'';
            (2) in subparagraph (E), by adding ``or'' after the 
        semicolon;
            (3) by striking subparagraph (F); and
            (4) by redesignating subparagraph (G) as subparagraph (F) 
        and conforming the margin of the subparagraph appropriately.

SEC. 5. UNIVERSAL MEDICAID DIRECT CERTIFICATION.

    Section 9(b)(15) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(b)(15)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (i) and inserting the 
                following:
                            ``(i) Eligible child.--
                                    ``(I) In general.--The term 
                                `eligible child' means a child who--
                                            ``(aa)(AA) is eligible for 
                                        and receiving medical 
                                        assistance under the Medicaid 
                                        program; and
                                            ``(BB) is a member of a 
                                        family with an income as 
                                        measured by the Medicaid 
                                        program that does not exceed, 
                                        in the case of eligibility for 
                                        free meals, 133 percent of the 
                                        poverty line (as defined in 
                                        section 673(2) of the Community 
                                        Services Block Grant Act (42 
                                        U.S.C. 9902(2)), including any 
                                        revision required by such 
                                        section) applicable to a family 
                                        of the size used for purposes 
                                        of determining eligibility for 
                                        the Medicaid program, or, in 
                                        the case of eligibility for 
                                        reduced price meals, the 
                                        applicable family size income 
                                        level under the income 
                                        eligibility guidelines for 
                                        reduced price meals; or
                                            ``(bb) is a member of a 
                                        household (as that term is 
                                        defined in section 245.2 of 
                                        title 7, Code of Federal 
                                        Regulations (or successor 
                                        regulations)) with a child 
                                        described in item (aa).
                                    ``(II) Other children.--The term 
                                `eligible child' includes a child who 
                                is eligible for and receiving medical 
                                assistance under the Medicaid program 
                                under subclause (I) of section 
                                1902(a)(10)(A)(i) of the Social 
                                Security Act (42 U.S.C. 
                                1396a(a)(10)(A)(i))--
                                            ``(aa) on the basis of 
                                        receiving aid or assistance 
                                        under the State plan approved 
                                        under part E of title IV of 
                                        that Act (42 U.S.C. 670 et 
                                        seq.);
                                            ``(bb) by reason of section 
                                        473(b) of that Act (42 U.S.C. 
                                        673(b)); or
                                            ``(cc) under subclause (II) 
                                        of section 1902(a)(10)(A)(i) of 
                                        that Act (42 U.S.C. 
                                        1396a(a)(10)(A)(i)).''; and
                    (B) by adding at the end the following:
                            ``(iii) Without further application.--The 
                        term `without further application' has the 
                        meaning given the term in paragraph (4)(G).''; 
                        and
            (2) by striking subparagraphs (B) through (H) and inserting 
        the following:
                    ``(B) Agreement.--For the school year beginning on 
                July 1, 2025, and each school year thereafter, each 
                State shall enter into an agreement described in 
                subparagraph (C) with the 1 or more State agencies 
                conducting eligibility determinations for the Medicaid 
                program.
                    ``(C) Procedures.--
                            ``(i) In general.--Subject to subparagraph 
                        (D) and paragraph (6), an agreement entered 
                        into under subparagraph (B) shall establish 
                        procedures under which an eligible child shall 
                        be certified as eligible, without further 
                        application, for--
                                    ``(I) free or reduced price lunch 
                                under this Act; and
                                    ``(II) free or reduced price 
                                breakfast under section 4 of the Child 
                                Nutrition Act of 1966 (42 U.S.C. 1773).
                            ``(ii) Free meals.--Each agreement entered 
                        into under subparagraph (B) shall ensure that a 
                        child who is simultaneously eligible for 
                        reduced price meals under this paragraph or 
                        based on an income eligibility determination, 
                        and for free meals based on documentation 
                        provided under subsection (d)(2), shall be 
                        certified for free meals.
                    ``(D) Certification.--Subject to paragraph (6), and 
                according to an agreement entered into under 
                subparagraph (B), the local educational agency 
                conducting eligibility determinations under that 
                agreement shall certify an eligible child as eligible, 
                without further application, for--
                            ``(i) free or reduced price lunch under 
                        this Act; and
                            ``(ii) free or reduced price breakfast 
                        under section 4 of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1773).''.

SEC. 6. DIRECT CERTIFICATION FOR CHILDREN RECEIVING SOCIAL SECURITY 
              INCOME.

    Section 9(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(b)) is amended by adding at the end the following:
            ``(16) Data from social security administration.--In the 
        case of direct certification under paragraph (5) or (12)(A) of 
        a child who receives supplemental security income payments 
        under title XVI of the Social Security Act (42 U.S.C. 1381 et 
        seq.), the Commissioner of Social Security shall provide a 
        local educational agency with the data necessary to certify the 
        child in accordance with a data-sharing agreement between the 
        Commissioner and the State in which the local educational 
        agency is located.''.

SEC. 7. DIRECT CERTIFICATION IMPROVEMENT GRANTS AND TECHNICAL 
              ASSISTANCE.

    Section 9(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(b)) (as amended by section 6) is amended by adding at 
the end the following:
            ``(17) Direct certification improvement grants and 
        technical assistance.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible entity.--The term `eligible 
                        entity' means--
                                    ``(I) a State agency; and
                                    ``(II) a Tribal organization.
                            ``(ii) Indian tribe.--The term `Indian 
                        Tribe' has the meaning given the term in 
                        section 4 of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 5304).
                            ``(iii) Rate of direct certification.--The 
                        term `rate of direct certification' means the 
                        percentage of children eligible for direct 
                        certification under paragraphs (4) and (5) for 
                        a school year that were directly certified 
                        under those paragraphs for that school year.
                            ``(iv) Tribal organization.--The term 
                        `Tribal organization' has the meaning given the 
                        term in section 4 of the Indian Self-
                        Determination and Education Assistance Act (25 
                        U.S.C. 5304).
                    ``(B) Grants.--
                            ``(i) In general.--The Secretary shall 
                        provide grants to eligible entities that 
                        administer the school lunch program under this 
                        Act to improve the rate of direct certification 
                        in the State or Indian Tribe in which the 
                        eligible entity is located.
                            ``(ii) Priority.--In providing grants under 
                        clause (i), the Secretary shall give priority 
                        to States and Tribal organizations with the 
                        lowest rates of direct certification.
                            ``(iii) Use of funds.--An eligible entity 
                        that receives a grant under clause (i) shall 
                        use the grant funds to pay costs relating to 
                        improving the rate of direct certification in 
                        the State or Indian Tribe, as applicable, 
                        including the cost of--
                                    ``(I) improving technology relating 
                                to direct certification;
                                    ``(II) providing technical 
                                assistance to local educational 
                                agencies;
                                    ``(III) newly implementing or 
                                revising a direct certification system 
                                or process in the State (including at 
                                local educational agencies in the 
                                State) or Indian Tribe, including the 
                                cost of equipment; and
                                    ``(IV) coordinating with multiple 
                                public benefits programs to increase 
                                the rate of direct certification, 
                                including by conducting feasibility 
                                studies and demonstration projects 
                                under section 18(c).
                    ``(C) Food distribution program on indian 
                reservations.--
                            ``(i) In general.--The Secretary shall 
                        provide grants to States and Tribal 
                        organizations administering the food 
                        distribution program on Indian reservations 
                        under section 4(b) of the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2013(b))--
                                    ``(I) in the case of a Tribal 
                                organization, if applicable, to 
                                establish a rate of direct 
                                certification of children that are 
                                members of households receiving 
                                assistance under that program; or
                                    ``(II) to improve the rate of 
                                direct certification of children that 
                                are members of households receiving 
                                assistance under that program.
                            ``(ii) Use of funds.--A State or Tribal 
                        organization receiving a grant under this 
                        subparagraph shall use the funds to pay the 
                        costs described in subparagraph (B)(iii).
                    ``(D) Technical assistance.--The Secretary shall 
                provide technical assistance to assist the recipients 
                of grants under subparagraphs (B) and (C), and other 
                eligible entities, as appropriate, in improving the 
                rates of direct certification.
                    ``(E) Funding.--
                            ``(i) In general.--On October 1, 2025, out 
                        of any funds in the Treasury not otherwise 
                        appropriated, the Secretary of the Treasury 
                        shall transfer to the Secretary to carry out 
                        this paragraph $28,000,000, to remain available 
                        until expended.
                            ``(ii) Food distribution program on indian 
                        reservations.--Of the funds transferred to the 
                        Secretary under clause (i), the Secretary shall 
                        use not less than $2,000,000 to carry out 
                        subparagraph (C).
                            ``(iii) Technical assistance.--Of the funds 
                        transferred to the Secretary under clause (i), 
                        the Secretary shall use not more than 
                        $3,000,000 to carry out subparagraph (D).
                            ``(iv) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, shall 
                        accept, and shall use to carry out this 
                        paragraph the funds transferred under clause 
                        (i), without further appropriation.''.

SEC. 8. ENHANCING THE COMMUNITY ELIGIBILITY OPTION.

    (a) In General.--Section 11(a)(1)(F) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1759a(a)(1)(F)) is amended--
            (1) in clause (iv)--
                    (A) in subclause (I)(bb)--
                            (i) by striking ``as of April 1 of the 
                        prior school year'' and inserting ``during the 
                        period beginning on April 1 of the prior school 
                        year and ending on the last day of that school 
                        year''; and
                            (ii) by striking ``as of April 1 of the 
                        school year prior'' and all that follows 
                        through ``subparagraph'' and inserting ``during 
                        the period beginning on April 1 of the covered 
                        school year and ending on the last day of the 
                        covered school year''; and
                    (B) by adding at the end the following:
                                    ``(III) Definition of covered 
                                school year.--In this clause, the term 
                                `covered school year' means the school 
                                year prior to the first school year 
                                that a school or local educational 
                                agency elected to receive special 
                                assistance payments under this 
                                subparagraph.'';
            (2) by striking clause (vii) and inserting the following:
                            ``(vii) Multiplier.--For each school year 
                        beginning on or after July 1, 2025, the 
                        multiplier shall be 2.5.''; and
            (3) in clause (x)--
                    (A) in subclause (I), by striking ``for the next 
                school year if, not later than June 30 of the current 
                school year,'' and inserting ``if'';
                    (B) in subclause (II)(aa), by inserting ``, based 
                on counts conducted by schools of identified students 
                beginning on or after April 1 of that school year,'' 
                after ``clause (viii)''; and
                    (C) in subclause (IV)(aa), by inserting ``, based 
                on counts conducted by schools of identified students 
                beginning on or after April 1 of that school year,'' 
                after ``clause (viii)''.
    (b) Conforming Amendment.--Section 11(a)(1)(F)(xi) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(F)(xi)) is 
amended by striking subclause (III).

SEC. 9. STATEWIDE FREE UNIVERSAL SCHOOL MEALS DEMONSTRATION PROJECTS.

    Section 11(a)(1) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1759a(a)(1)) is amended by adding at the end the 
following:
                    ``(G) Statewide free universal school meals 
                demonstration projects.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Demonstration project.--The 
                                term `demonstration project' means a 
                                demonstration project carried out under 
                                clause (ii).
                                    ``(II) Eligible school.--
                                            ``(aa) In general.--The 
                                        term `eligible school' means a 
                                        school that participates in the 
                                        school lunch program under this 
                                        Act and the school breakfast 
                                        program under section 4 of the 
                                        Child Nutrition Act of 1966 (42 
                                        U.S.C. 1773).
                                            ``(bb) Exclusion.--The term 
                                        `eligible school' does not 
                                        include residential child care 
                                        institutions (as defined in 
                                        section 210.2 of title 7, Code 
                                        of Federal Regulations (or 
                                        successor regulations)).
                                    ``(III) Identified students.--The 
                                term `identified students' has the 
                                meaning given the term in subparagraph 
                                (F)(i).
                                    ``(IV) Selected state.--The term 
                                `selected State' means a State selected 
                                to carry out a demonstration project 
                                under clause (iii)(I).
                            ``(ii) Establishment.--Not later than July 
                        1, 2026, the Secretary shall carry out 
                        demonstration projects in selected States under 
                        which school meals are provided at no charge to 
                        every student at an eligible school in the 
                        selected State.
                            ``(iii) State selection.--
                                    ``(I) In general.--The Secretary 
                                shall select not more than 5 States to 
                                each carry out a demonstration project.
                                    ``(II) Applications.--A State 
                                seeking to carry out a demonstration 
                                project shall submit to the Secretary 
                                an application at such time, in such 
                                manner, and containing such information 
                                as the Secretary may require.
                                    ``(III) Priority.--In carrying out 
                                subclause (I), the Secretary shall give 
                                priority to a State based on--
                                            ``(aa) the level of 
                                        childhood poverty in the State;
                                            ``(bb) the extent to which 
                                        the State has implemented 
                                        subparagraph (F);
                                            ``(cc) the extent to which 
                                        the direct certification rate 
                                        of the State meets the required 
                                        percentage (as defined in 
                                        section 9(b)(4)(F)(i));
                                            ``(dd) the extent to which 
                                        the State demonstrates a 
                                        commitment to providing 
                                        technical assistance to local 
                                        educational agencies that will 
                                        implement the demonstration 
                                        project in the State; and
                                            ``(ee) the extent to which 
                                        the State demonstrates a 
                                        commitment to providing non-
                                        Federal funding under clause 
                                        (vi)(III).
                            ``(iv) Start date.--A demonstration project 
                        shall begin in a selected State on the first 
                        day of the school year in that State.
                            ``(v) Special assistance payments.--
                                    ``(I) First year.--For each month 
                                of the first school year during which a 
                                demonstration project is carried out, a 
                                selected State shall receive special 
                                assistance payments at the rate for 
                                free meals for a percentage of all 
                                reimbursable meals served in eligible 
                                schools in the State in an amount equal 
                                to the product obtained by 
                                multiplying--
                                            ``(aa) 1.9; and
                                            ``(bb) the percentage of 
                                        identified students in eligible 
                                        schools in the State as of the 
                                        last day of the prior school 
                                        year, up to a maximum of 100 
                                        percent.
                                    ``(II) Subsequent years.--For each 
                                month of the second school year and 
                                each subsequent school year during 
                                which a demonstration project is 
                                carried out, a selected State shall 
                                receive special assistance payments at 
                                the rate for free meals for a 
                                percentage of all reimbursable meals 
                                served in eligible schools in the State 
                                in an amount equal to the product 
                                obtained by multiplying--
                                            ``(aa) 1.9; and
                                            ``(bb) the higher of--

                                                    ``(AA) the 
                                                percentage of 
                                                identified students in 
                                                eligible schools as of 
                                                the last day of the 
                                                prior school year; and

                                                    ``(BB) the 
                                                percentage of 
                                                identified students in 
                                                eligible schools as of 
                                                the last day of the 
                                                school year prior to 
                                                the first school year 
                                                during which a 
                                                demonstration project 
                                                is carried out, up to a 
                                                maximum of 100 percent.

                                    ``(III) Payment for other meals.--
                                With respect to the reimbursable meals 
                                described in subclauses (I) and (II) 
                                for which a selected State is not 
                                receiving special assistance payments 
                                under this clause, the reimbursement 
                                rate shall be the rate provided under 
                                section 4.
                                    ``(IV) Payments in lieu of.--A 
                                special assistance payment made under 
                                this clause shall be in lieu of any 
                                other special assistance payment made 
                                under this paragraph.
                            ``(vi) State implementation.--
                                    ``(I) Preliminary activities.--Each 
                                selected State shall, in the school 
                                year preceding the first school year 
                                during which the demonstration project 
                                shall be carried out in the State--
                                            ``(aa) identify each 
                                        eligible school in the State;
                                            ``(bb) in consultation with 
                                        the Secretary, combine the 
                                        percentage of identified 
                                        students across eligible 
                                        schools for the purpose of 
                                        calculating the maximum 
                                        reimbursement rate to ensure 
                                        that the special assistance 
                                        payments received under clause 
                                        (v) are for the maximum amount;
                                            ``(cc) inform local 
                                        educational agencies of the 
                                        demonstration project; and
                                            ``(dd) coordinate with 
                                        local educational agencies to 
                                        provide information about the 
                                        demonstration project to 
                                        parents or guardians of 
                                        students attending eligible 
                                        schools.
                                    ``(II) Meal service.--As part of a 
                                demonstration project, an eligible 
                                school in a selected State--
                                            ``(aa) shall not collect 
                                        applications for free and 
                                        reduced price lunches under 
                                        this Act; and
                                            ``(bb) shall make school 
                                        meals available to all children 
                                        at the school at no charge.
                                    ``(III) Non-federal funding.--
                                            ``(aa) In general.--Each 
                                        selected State may support the 
                                        demonstration project using--

                                                    ``(AA) funds from 
                                                State and local sources 
                                                that are used for the 
                                                maintenance of the free 
                                                lunch program under 
                                                this Act and the free 
                                                breakfast program under 
                                                section 4 of the Child 
                                                Nutrition Act of 1966 
                                                (42 U.S.C. 1773); and

                                                    ``(BB) State 
                                                revenues appropriated 
                                                or used for program 
                                                purposes under section 
                                                7.

                                            ``(bb) Non-federal 
                                        contributions.--In addition to 
                                        the funding received under this 
                                        Act and the Child Nutrition Act 
                                        of 1966 (42 U.S.C. 1771 et 
                                        seq.), each selected State 
                                        shall provide funding from non-
                                        Federal sources to ensure that 
                                        local educational agencies in 
                                        the State receive the free 
                                        reimbursement rate for not less 
                                        than 90 percent of the meals 
                                        served at eligible schools.
                                            ``(cc) Continuation of free 
                                        rate.--A selected State that 
                                        receives special assistance 
                                        payments at the free 
                                        reimbursement rate under 
                                        subparagraph (F) for more than 
                                        90 percent of the meals served 
                                        at eligible schools during the 
                                        school year preceding the first 
                                        school year during which a 
                                        demonstration project is 
                                        carried out shall continue to 
                                        receive the free reimbursement 
                                        rate for not less than the same 
                                        percentage of meals in each 
                                        school year during which a 
                                        demonstration project is 
                                        carried out.
                            ``(vii) Report.--
                                    ``(I) In general.--Not later than 
                                September 30, 2030, the Secretary, 
                                acting through the Administrator of the 
                                Food and Nutrition Service, shall 
                                submit to the Committee on Agriculture, 
                                Nutrition, and Forestry of the Senate 
                                and the Committees on Agriculture and 
                                Education and Labor of the House of 
                                Representatives a report that evaluates 
                                the impact of each demonstration 
                                project in a selected State with 
                                respect to--
                                            ``(aa) academic 
                                        achievement, absenteeism, 
                                        tardiness, the school 
                                        environment, child food 
                                        insecurity in the selected 
                                        State, and other key factors 
                                        identified in consultation with 
                                        the Secretary of Education;
                                            ``(bb) the rate of 
                                        participation in the free lunch 
                                        program under this Act and the 
                                        free breakfast program under 
                                        section 4 of the Child 
                                        Nutrition Act of 1966 (42 
                                        U.S.C. 1773) among identified 
                                        students and other students;
                                            ``(cc) school meal 
                                        services, finances, and 
                                        operations in the selected 
                                        State;
                                            ``(dd) administrative costs 
                                        to the selected State and the 
                                        school food authorities 
                                        participating in the 
                                        demonstration project; and
                                            ``(ee) the integrity of the 
                                        operation of the free lunch 
                                        program under this Act in the 
                                        selected State.
                                    ``(II) Funding.--
                                            ``(aa) In general.--On 
                                        October 1, 2026, out of any 
                                        funds in the Treasury not 
                                        otherwise appropriated, the 
                                        Secretary of the Treasury shall 
                                        transfer to the Secretary to 
                                        carry out this clause 
                                        $3,000,000, to remain available 
                                        until September 30, 2030.
                                            ``(bb) Receipt and 
                                        acceptance.--The Secretary 
                                        shall be entitled to receive, 
                                        shall accept, and shall use to 
                                        carry out this clause the funds 
                                        transferred under item (aa), 
                                        without further 
                                        appropriation.''.

SEC. 10. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM 
              BENEFITS FOR FREE SCHOOL MEALS.

    Section 4301(b) of the Food, Conservation, and Energy Act of 2008 
(42 U.S.C. 1758a(b)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) in the case of a State identified under clause 
        (ii)(I) of section 9(b)(4)(F) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1758(b)(4)(F)), a 
        description of--
                    ``(A) the technical assistance provided to the 
                State; and
                    ``(B) the progress made by the State in 
                implementing the measures and meeting the goals 
                described in items (aa) through (cc) of clause 
                (iii)(II) of that section.''.
                                 <all>