This bill mandates that the Department of Education actively pursue participation in the Medicaid direct certification methodology for the school meals program, specifically for free and reduced-price meals for students in public kindergarten, elementary, and secondary schools. The bill stipulates that the Department of Health and Human Services will provide assistance to the Department of Education in this endeavor. The new legal language introduced in the bill emphasizes the requirement for the Department of Education to seek participation in the USDA's Demonstration Projects to Evaluate Direct Certification with Medicaid, while no existing legal language is deleted.

The fiscal impact of the bill indicates that while it does not allocate new funding or positions, it could lead to significant increases in state expenditures related to education funding. The estimated increase in adequacy funding due to the identification of additional free and reduced-price meal eligible students could exceed $49 million annually, particularly affecting the fiscal years 2027 and 2028. Additionally, the bill anticipates an increase in state aid for nutrition programs and necessitates new staffing and system changes within the Department of Education and the Department of Health and Human Services to accommodate the new certification process. Overall, the bill aims to enhance access to school meals for eligible students by leveraging Medicaid eligibility data.