This is appalling, but there's a bigger story here: Eligible parents aren't signing their kids up for the free and reduced meals programs.
This is not an education/paperwork issue, it's bad parenting. The least educated parents in your community know enough to register their children for free-or-reduced meals.
Ironically, it's the "educated" parents who are too proud to ask for help. If you care about your kids, you will make sure they have access to food. You either buy it for them, or you take all necessary steps to acquire it for them any other way -- the schools in my area basically give it away (free - if eligible - or reduced @ about $3/week for 10 meals).
This story should be more about the stigma of poverty and asking for help in this generation of parents which is leading to hungry kids. These school officials are trying to make a valid point, unfortunately they're doing a really bad job of it and turning the story from the one we should be focusing on, to the one that sells more click throughs.