CACFP Income Eligibility Guidance for Child Care Centers

Meal reimbursement rates are based on household size and income noted on each Income Eligibility Form (IEF) compared to the current Income Eligibility Guidelines. The three meal reimbursement rates (categories) are free, reduced-price, and paid and are determined as a percentage of the poverty guidelines.

An IEF must be on file at the center for each child claimed for free and reduced-price meals. If a parent or legal guardian does not choose to complete the IEF, then the child must be claimed in the paid category.

Income information must be kept confidential.

All IEFs must be kept for three federal fiscal years plus the current contract year after the date the final claim for the fiscal year was submitted. If audit findings have not been resolved, the IEF must be kept as long as necessary to resolve the issues raised by the audit.

Title XX

Family Support Division (Title XX) children must have a completed IEF on file. These “state pay” children are not automatically classified as free or reduced. Any child who does not have a completed IEF in addition to the Title XX documentation must be claimed in the paid meal category.

Effective Dates

Child care centers have flexibility concerning the effective date of certification for program benefits. For the purposes of non-school institutions, the date to be used to make this determination may be either the date the parent or guardian signed the IEF or the date on which the center representative signs the form to certify the eligibility of the child. However, if the date of the parent/guardian's signature is not within the month of certification or the immediately preceding month, the effective date must be the date the center representative signs the form. Child care centers must decide which date they will rely on as the effective date and apply this date consistently to all IEFs received.

• The IEF should be considered current and valid until the last day of the month in which the form was approved, signed, and dated by the center representative one year earlier. This means an IEF that was approved on September 12, 2025 is valid until the last day of September 2026. A new IEF must be completed by the parent or guardian in the “anniversary” month each year. Reuse of an expired IEF or use of correction fluid or other means to alter the IEF will invalidate the form.
• Centers may not re-evaluate old IEFs when new income guidelines are issued in July. In addition, the center may not request that a new IEF be completed sooner than the one-year anniversary. The only exception is if the child is currently approved in the paid or reduced-price meal category and the household income is reduced, or the household size increases. It may benefit the center to request that another IEF be completed since the household may be approved for a different meal reimbursement rate.
• The Child Nutrition and WIC Reauthorization Act of 2004 (Public Law 108- 265) modified requirements relating to reporting changes in income during the period of eligibility covered by the application. Households are not required to report changes in circumstances, such as increases in income, decreases in household size, or when the household is no longer certified eligible for benefits with the Supplemental Nutrition Assistance Program (SNAP [formerly Food Stamps]) or Temporary Assistance for Needy Families (TANF). Once a household is approved for free or reduced-price meal reimbursement, the household remains eligible for a period not to exceed 12 months, regardless of a change in household income.
• If the parent or guardian completes the IEF before the actual date of enrollment for care, the center should collect a new IEF from the parent or guardian if more than two months have lapsed. For example, Johnny Jones' parents completed the IEF in January 2026. However, Johnny did not enroll and start attending the center until May 2026. A new IEF must be completed for Johnny at the time he actually started attending the center since more than two months lapsed between the completion of the form and the actual enrollment date.

The center representative must review, sign, and date the IEF as soon as it is received from the parent. Failure to do so may result in the reclassification of the child from the free or reduced category to the paid category.

Parent Letter

The parent letter and a blank IEF must be given to the parent or guardian. The letter and the instructions outline the required information needed for completing the form. This letter is updated each year. Be sure to use the most current parent letter with the IEF.

Pricing programs (centers that charge a separate fee for meals) do not use this parent letter. For a copy of the pricing letter, contact the Child and Adult Care Food Program (CACFP) office at 800-733-6251.

Income Eligibility Guidelines

The United States Department of Agriculture (USDA) updates the income eligibility guidelines yearly. When reviewing IEFs, use the most current income guidelines.

Once approved for free or reduced-price meal benefits, a child is eligible for those benefits for one full year after the IEF has been signed and dated, regardless of changes in income or household size that may occur throughout the year. Centers may not re-evaluate IEFs when new income guidelines are issued in July of each year. For example, if a parent completes an IEF in January 2026, eligibility will be based on income guidelines issued in July 2025. When the new income guidelines are issued in July 2026, the center may not re-evaluate the IEF completed in January 2026 using the new income guidelines. The eligibility must continue to be based on the income guidelines in effect at the time the form was initially completed and reviewed.

If, during a monitoring review, it is found that children were incorrectly classified or that the IEF has expired, the center will have to repay the CACFP.  Therefore, it is very important that IEFs be carefully reviewed.

Foster Child

A foster child, whose care and placement is the responsibility of the child welfare agency or who is placed by the court with a caretaker household, is eligible for free meal benefits without completing an IEF if the child care center obtains documentation verifying that the child’s placement in the household is the responsibility of the state or the court. The eligibility of foster children applies only to children formally placed by the child welfare agency or the court. It does not apply to informal arrangements that may exist outside of the state or the court-based systems.

Households with foster and non-foster children may choose to include the foster child as a household member (as well as any personal income* earned by the foster child) on the same household application that includes their non-foster children. This may help the foster family’s non-foster children qualify for free or reduced-price meals based on household size and income. Community Food and Nutrition Assistance (CFNA) will certify the foster child for free meals (with appropriate supporting documentation as described above). They will then make an eligibility determination for the remainder of the household based on the household’s income. Foster payments received by the family from the child welfare agency are not considered income and do not need to be reported on the IEF.

*Personal income for foster children is defined as:
Funds that are specified by the welfare agency as being for the personal use of the child. If no funds are specified, the funds received from the welfare agency are not to be considered as income.

Money received in hand from any source. This includes, but is not limited to, funds received from trust accounts, monies provided by the child’s family for personal use, and earnings from the child’s employment other than occasional or part-time jobs.

Adopted (Foster) Child

If an application is being made for an adopted (foster) child, the child is no longer considered a foster child. The child is considered the child of the adoptive parents as if born to the parents biologically after the adoption is final. The family may continue to receive adoption assistance, but these funds must be listed as part of the household income. An adopted child is not categorically eligible for free reimbursement and must have a completed IEF for the household unit.

Child Living with One Parent, Other Relative(s), or Friends

In cases where no specific welfare agency or court is legally responsible for the child, or where the child is living with one parent, other relative(s), or friends of the family, the child is considered to be a member of the household with whom she/he resides. Children of divorced or separated parents are generally part of the household that has custody.

Joint Custody

When joint custody has been awarded, and the child physically changes residence, the child is considered part of the household where she/he resides. In these situations, if both parents apply for benefits at the same child care for the child, and different eligibility statuses result, the greatest benefit level is used. For example, if the mother’s situation results in eligibility for free meals, but the father’s application does not qualify for free or reduced meal rates, the child would receive free meals regardless of which parent had custody at the time.

Meal Reimbursement Rates Information

Meals are reimbursed in child care centers according to the meal category (free, reduced-price, or paid) determined by an accurately completed and approved IEF. The meal reimbursement rates are effective from July 1 through June 30. The reimbursement rates include the value of commodities or “cash-in-lieu of commodities,” which facilities receive as additional assistance for each lunch or supper served to participants in the program. The current meal reimbursement rates are located on the CACFP website.

Pricing Programs Only

An institution is operating a pricing program if a separately identifiable charge is made for a meal(s) served to enrolled participants. Federal regulations require that the participant letter contain certain information. A sample letter to the participant for pricing institutions is available upon request from the Missouri Department of Health and Senior Services – Community Food and Nutrition Assistance.