To be eligible for free or reduced-price lunches, students must meet certain income guidelines. The income guidelines are based on the federal poverty guidelines and vary depending on the number of people in a household. Households with incomes at or below 130% of the federal poverty guidelines are eligible for free lunches. Households with incomes between 130% and 185% of the federal poverty guidelines are eligible for reduced-price lunches.
The USDA reimburses schools for the cost of providing free and reduced-price lunches. The reimbursement rates are based on the type of meal served and the student's eligibility status. Schools are also reimbursed for administrative costs associated with the program.