...How about rules for ... free and reduced lunch programs, anyone want to double check me on those?
Regarding "free and reduced price meals and free milk in school", 42 USC § 1758(b)(1)(A) says that the Secretary shall prescribe income eligibility guidelines each year. The Secretary has made such a regulation in 7 CFR 245.3, which says that each state agency or regional office "shall by July 1 of each year announce family-size income standards to be used by local educational agencies". In other words, the Secretary has further delegated this power to state agencies and regional offices, subject only to the fact that the further delegated regulations must be "in accordance with Income Eligibility Guidelines published by the Department by notice in the Federal Register". 7 CFR 245.3(a).
The aforementioned Income Eligibility Guidelines for July 1, 2015 through June 30, 2016 are published at
80 Fed Reg 17026 (March 31, 2015). Under the heading "Definition of Income", the Guidelines say that "income" includes "net rental income". The term "net rental income" is not defined or further explained, which means that each state agency or regional office can adopt its own definition of this term. That said, the clear intent appears to be to allow some expenses. If a state agency or regional office did not allow any expenses to be deducted from rental income, their local regulations would not be "in accordance with" the Guidelines published in the Federal Register and the local regulations would be invalid to the extent of the conflict.