This manual contains information on Federal requirements regarding the determination and verification of eligibility for free and reduced price meals in the National School Lunch Program and the School Breakfast Program. These provisions also apply to the determination of eligibility for free milk under the Special Milk Program and are generally applicable to the Child and Adult Care Food Program and the Summer Food Service Program when individual children's eligibility must be established. Local school food service operators should also confer with their State agency to determine which procedures and options are followed in their State. This manual replaces the Eligibility Guidance for School Meals Manual issued in August 2001. This updated version reflects changes made as a result of the Child Nutrition and WIC Reauthorization Act of 2004, final and interim regulations, and policy clarifications issued since August 2001. Appended are: (1) Policy Statement; (2) Link to Application Materials; (3) Prototype agreement for Medicaid/SCHIP; (4) Disclosure: What May be Released Chart Update on Electronic Transactions; in the Child Nutrition Programs (May 1, 2007 memorandum); and (5) Verification Tools.