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 stipulates that the Department of Health and Human Services will assist the Department of Education in this endeavor. The new legal language inserted into the current law includes the requirement for the Department of Education to seek participation in the USDA's Demonstration Projects to Evaluate Direct Certification with Medicaid. There are no deletions from current law noted in the bill.

The fiscal impact of the bill is significant, with potential increases in state expenditures estimated to exceed $49 million annually once fully implemented. This increase is attributed to the anticipated rise in the number of students eligible for free and reduced-price meals through the Medicaid direct certification process. The bill does not provide funding or authorize new positions, but it does project an increase in state aid for nutrition programs and additional staffing costs for the Department of Education. The Department of Health and Human Services may also incur one-time costs related to system changes necessary for implementing the new certification process. Overall, the bill aims to enhance access to school meals for eligible students while potentially increasing state funding for education.