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 effective date of the act is set to be upon its passage.

The fiscal impact of the bill is significant, with potential increases in state expenditures estimated to exceed $49 million annually once fully implemented. The bill does not allocate funding or authorize new positions, but it anticipates an increase in state aid for nutrition programs and additional staffing costs related to the implementation of the Medicaid direct certification process. The Department of Education estimates that the new methodology could identify approximately 47,687 students eligible for free and reduced-price meals, leading to increased funding for adequacy programs in public and charter schools. Additionally, the bill is expected to enhance participation in school nutrition programs, resulting in increased federal and state funding, while also potentially decreasing local food service sales revenue.