This bill mandates the Department of Education to 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 includes new legal language that requires the Department of Education to seek participation in the USDA's Demonstration Projects to Evaluate Direct Certification with Medicaid, while also stipulating that the Department of Health and Human Services will assist as needed in this process. The bill will take effect upon its passage.

The fiscal impact of the bill is significant, with potential increases in state education funding due to the anticipated rise in the number of students eligible for free and reduced-price meals through Medicaid certification. It is estimated that the implementation could lead to an increase in adequacy funding of up to $49 million per year, particularly affecting the fiscal years 2027 and 2028. Additionally, the bill does not provide funding or authorize new positions, but it does indicate that the Department of Education may need to hire new staff and incur costs related to system changes to accommodate the new certification process. Overall, the bill aims to enhance access to school meals for eligible students while potentially increasing state and federal funding for school nutrition programs.