Subject to the 10,000 statewide student limitation described in paragraph (1), a local educational agency serving students, not less than 50 percent of whom are eligible for a free or reduced price school lunch under the Richard B. Russell National School Lunch Act (
42 U.S.C.
1751 et seq.) or the Child Nutrition Act of 1966 (
42 U.S.C.
1771 et seq.), shall be eligible to participate in the demonstration project.