STATE DISBURSEMENT TO SCHOOLS.

SEC. 701. STATE DISBURSEMENT TO SCHOOLS. (a) In General.—Section 8 of the National School Lunch Act (42 U.S.C. 1757) is amended— (1) in the third sentence, by striking “Nothing” and all that follows through “educational agency to” and inserting “The State educational agency may”; (2) by striking the fourth and fifth sentences; (3) by redesignating the first through seventh sentences, as amended by paragraph (2), as subsections (a) through (g), respectively; (4) in subsection (b), as redesignated by paragraph (3), by striking “the preceding sentence” and inserting “subsection (a)”; and (5) in subsection (d), as redesignated by paragraph (3), by striking “Such food costs” and inserting “Use of funds paid to States”. (b) Definition of Child.—Section 12(d) of the National School Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the end the following: “(9) Child.— “(A) In general.—The term ‘child’ includes an indi-vidual, regardless of age, who— “(i) is determined by a State educational agency, in accordance with regulations prescribed by the Secretary, to have one or more mental or physical disabilities; and “(ii) is attending any institution, as defined in section 17(a), or any nonresidential public or nonprofit private school of high school grade or under, for the purpose of participating in a school program established for individuals with mental or physical dis-abilities. “(B) Relationship to child and adult care food program.—No institution that is not otherwise eligible to participate in the program under section 17 shall be considered eligible because of this paragraph.” .