Technically the IRS should be taxing the free breakfasts, lunches and dinners given by school systems to students without regard to income tests. Should issue W-2s to the parents. If they are on food stamps, reduce the amount of food stamps by the amount of free meals furnished. If they are not on food stamps the parents must declare the amount as income.
I was going to post pretty much the same thing. Why aren’t free school lunches considered income?