Attachment C - Richard B. Russell National School Lunch Act

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT
[Chapter 281 of the 79th Congress, Approved June 4, 1946, 60 Stat.
230]
[As Amended Through P.L. 116–94, Enacted December 20, 2019]
øCurrency: This publication is a compilation of the text of Chapter 281 of the 79th
Congress. It was last amended by the public law listed in the As Amended
Through note above and below at the bottom of each page of the pdf version and
reflects current law through the date of the enactment of the public law listed at
https://www.govinfo.gov/app/collection/comps/¿
øNote: While this publication does not represent an official version of any Federal
statute, substantial efforts have been made to ensure the accuracy of its contents.
The official version of Federal law is found in the United States Statutes at Large
and in the United States Code. The legal effect to be given to the Statutes at
Large and the United States Code is established by statute (1 U.S.C. 112, 204).¿
TABLE OF CONTENTS 1
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1. ø1751 note¿ Short title.
2. ø1751¿ Declaration of policy.
3. ø1752¿ Appropriations authorized.
4. ø1753¿ Apportionments to States.
5. ø1754¿ Nutrition promotion.
6. ø1755¿ Direct Federal expenditures.
7. ø1756¿ Payments to States.
8. ø1757¿ State disbursement to schools.
9. ø1758¿ Nutritional and other program requirements.
9A. ø1758b¿ Local school wellness policy.
10. ø1759¿ Disbursement to schools by the Secretary.
11. ø1759a¿ Special assistance.
12. ø1760¿ Miscellaneous provisions and definitions.
13. ø1761¿ Summer food service program for children.
14. ø1762a¿ Commodity distribution program.
16. ø1765¿ Election to receive cash payments.
17. ø1766¿ Child and adult care food program.
17A. ø1766a¿ Meal supplements for children in afterschool care.
18. ø1769¿ Pilot projects.
19. ø1769a¿ Fresh fruit and vegetable program.
20. ø1769b¿ Department of Defense overseas dependents’ schools.
21. ø1769b–1¿ Training, technical assistance, and food service management institute.
22. ø1769c¿ Compliance and accountability.
23. ø1769d¿ Childhood hunger research.
24. ø1769e¿ State childhood hunger challenge grants.
25. ø1769f¿ Duties of the Secretary relating to nonprocurement debarment.
26. ø1769g¿ Information clearinghouse.
28. ø1769i¿ Program evaluation.
29. ø1769j¿ Ensuring safety of school meals.

1 This

table of contents is not part of the Act but is included for user convenience. The
numbers in brackets refer to section numbers in title 42, United States Code.

1
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Sec. 2

RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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AN ACT To provide assistance to the States in the establishment, maintenance,
operation, and expansion of school lunch programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, ø42 U.S.C. 1751
note¿ That this Act may be cited as the ‘‘Richard B. Russell National School Lunch Act’’. 2
DECLARATION OF POLICY

SEC. 2. ø42 U.S.C. 1751¿ It is hereby declared to be the policy
of Congress, as a measure of national security, to safeguard the
health and well-being of the Nation’s children and to encourage the
domestic consumption of nutritious agricultural commodities and
other food, by assisting the States, through grants-in-aid and other
means, in providing an adequate supply of foods and other facilities
for the establishment, maintenance, operation, and expansion of
nonprofit school lunch programs.
APPROPRIATIONS AUTHORIZED

SEC. 3. ø42 U.S.C. 1752¿ For each fiscal year there is hereby
authorized to be appropriated, out of money in the Treasury not
otherwise appropriated, such sums as may be necessary to enable
the Secretary of Agriculture (hereinafter referred to as the ‘‘Secretary’’) to carry out the provisions of this Act, other than sections
13 and 17. Appropriations to carry out the provisions of this Act
and of the Child Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿
for any fiscal year are authorized to be made a year in advance of
the beginning of the fiscal year in which the funds will become
available for disbursement to the States. Notwithstanding any
other provision of law, any funds appropriated to carry out the provisions of such Acts shall remain available for the purposes of the
Act for which appropriated until expended.
APPORTIONMENTS TO STATES

SEC. 4. ø42 U.S.C. 1753¿ (a) The sums appropriated for any
fiscal year pursuant to the authorizations contained in section 3 of
this Act shall be available to the Secretary for supplying agricultural commodities and other food for the program in accordance
with the provisions of this Act.
(b)(1) The Secretary shall make food assistance payments to
each State educational agency each fiscal year, at such times as the
Secretary may determine, from the sums appropriated for such
purpose, in a total amount equal to the product obtained by multiplying—
(A) the number of lunches (consisting of a combination of
foods which meet the minimum nutritional requirements prescribed by the Secretary under section 9(a) of this Act) served
during such fiscal year in schools in such State which participate in the school lunch program under this Act under agreements with such State educational agency; by
2 P.L.

December 20, 2019

79–396, 60 Stat. 230, June 4, 1946.

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(B) the national average lunch payment prescribed in
paragraph (2) of this subsection.
(2) The national average lunch payment for each lunch served
shall be 10.5 cents (as adjusted pursuant to section 11(a) of this
Act) except that for each lunch served in school food authorities in
which 60 percent or more of the lunches served in the school lunch
program during the second preceding school year were served free
or at a reduced price, the national average lunch payment shall be
2 cents more.
(3) ADDITIONAL REIMBURSEMENT.—
(A) REGULATIONS.—
(i) PROPOSED REGULATIONS.—Notwithstanding section 9(f), not later than 18 months after the date of enactment of this paragraph, the Secretary shall promulgate proposed regulations to update the meal patterns
and nutrition standards for the school lunch program
authorized under this Act and the school breakfast
program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) based on recommendations made by the Food and Nutrition Board
of the National Research Council of the National
Academy of Sciences.
(ii) INTERIM OR FINAL REGULATIONS.—
(I) IN GENERAL.—Not later than 18 months
after promulgation of the proposed regulations
under clause (i), the Secretary shall promulgate
interim or final regulations.
(II) DATE OF REQUIRED COMPLIANCE.—The
Secretary shall establish in the interim or final
regulations a date by which all school food authorities participating in the school lunch program
authorized under this Act and the school breakfast program established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) are required to comply with the meal pattern and nutrition standards established in the interim or final
regulations.
(iii) REPORT TO CONGRESS.—Not later than 90
days after the date of enactment of this paragraph,
and each 90 days thereafter until the Secretary has
promulgated interim or final regulations under clause
(ii), the Secretary shall submit to the Committee on
Education and Labor of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate a quarterly report on progress
made toward promulgation of the regulations described in this subparagraph.
(B) PERFORMANCE-BASED REIMBURSEMENT RATE INCREASE.—Beginning on the later of the date of promulgation of the implementing regulations described in subparagraph (A)(ii), the date of enactment of this paragraph, or
October 1, 2012, the Secretary shall provide additional reimbursement for each lunch served in school food authorities determined to be eligible under subparagraph (D).
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(C) ADDITIONAL REIMBURSEMENT.—
(i) IN GENERAL.—Each lunch served in school food
authorities determined to be eligible under subparagraph (D) shall receive an additional 6 cents, adjusted
in accordance with section 11(a)(3), to the national
lunch average payment for each lunch served.
(ii) DISBURSEMENT.—The State agency shall disburse funds made available under this paragraph to
school food authorities eligible to receive additional reimbursement.
(D) ELIGIBLE SCHOOL FOOD AUTHORITY.—To be eligible
to receive an additional reimbursement described in this
paragraph, a school food authority shall be certified by the
State to be in compliance with the interim or final regulations described in subparagraph (A)(ii).
(E) FAILURE TO COMPLY.—Beginning on the later of
the date described in subparagraph (A)(ii)(II), the date of
enactment of this paragraph, or October 1, 2012, school
food authorities found to be out of compliance with the
meal patterns or nutrition standards established by the
implementing regulations shall not receive the additional
reimbursement for each lunch served described in this
paragraph.
(F) ADMINISTRATIVE COSTS.—
(i) IN GENERAL.—Subject to clauses (ii) and (iii),
the Secretary shall make funds available to States for
State activities related to training, technical assistance, certification, and oversight activities of this
paragraph.
(ii) PROVISION OF FUNDS.—The Secretary shall
provide funds described in clause (i) to States administering a school lunch program in a manner proportional to the administrative expense allocation of each
State during the preceding fiscal year.
(iii) FUNDING.—
(I) IN GENERAL.—In the later of the fiscal year
in which the implementing regulations described
in subparagraph (A)(ii) are promulgated or the fiscal year in which this paragraph is enacted, and
in the subsequent fiscal year, the Secretary shall
use not more than $50,000,000 of funds made
available under section 3 to make payments to
States described in clause (i).
(II) RESERVATION.—In providing funds to
States under clause (i), the Secretary may reserve
not more than $3,000,000 per fiscal year to support Federal administrative activities to carry out
this paragraph.
SEC. 5. ø42 U.S.C. 1754¿ NUTRITION PROMOTION.
(a) IN GENERAL.—Subject to the availability

of funds made
available under subsection (g), the Secretary shall make payments
to State agencies for each fiscal year, in accordance with this section, to promote nutrition in food service programs under this Act
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and the school breakfast program established under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(b) TOTAL AMOUNT FOR EACH FISCAL YEAR.—The total amount
of funds available for a fiscal year for payments under this section
shall equal not more than the product obtained by multiplying—
(1) 1⁄2 cent; by
(2) the number of lunches reimbursed through food service
programs under this Act during the second preceding fiscal
year in schools, institutions, and service institutions that participate in the food service programs.
(c) PAYMENTS TO STATES.—
(1) ALLOCATION.—Subject to paragraph (2), from the
amount of funds available under subsection (g) for a fiscal
year, the Secretary shall allocate to each State agency an
amount equal to the greater of—
(A) a uniform base amount established by the Secretary; or
(B) an amount determined by the Secretary, based on
the ratio that—
(i) the number of lunches reimbursed through food
service programs under this Act in schools, institutions, and service institutions in the State that participate in the food service programs; bears to
(ii) the number of lunches reimbursed through the
food service programs in schools, institutions, and
service institutions in all States that participate in the
food service programs.
(2) REDUCTIONS.—The Secretary shall reduce allocations to
State agencies qualifying for an allocation under paragraph
(1)(B), in a manner determined by the Secretary, to the extent
necessary to ensure that the total amount of funds allocated
under paragraph (1) is not greater than the amount appropriated under subsection (g).
(d) USE OF PAYMENTS.—
(1) USE BY STATE AGENCIES.—A State agency may reserve,
to support dissemination and use of nutrition messages and
material developed by the Secretary, up to—
(A) 5 percent of the payment received by the State for
a fiscal year under subsection (c); or
(B) in the case of a small State (as determined by the
Secretary), a higher percentage (as determined by the Secretary) of the payment.
(2) DISBURSEMENT TO SCHOOLS AND INSTITUTIONS.—Subject
to paragraph (3), the State agency shall disburse any remaining amount of the payment to school food authorities and institutions participating in food service programs described in subsection (a) to disseminate and use nutrition messages and material developed by the Secretary.
(3) SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.—In
addition to any amounts reserved under paragraph (1), in the
case of the summer food service program for children established under section 13, the State agency may—
(A) retain a portion of the funds made available under
subsection (c) (as determined by the Secretary); and
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(B) use the funds, in connection with the program, to
disseminate and use nutrition messages and material developed by the Secretary.
(e) DOCUMENTATION.—A State agency, school food authority,
and institution receiving funds under this section shall maintain
documentation of nutrition promotion activities conducted under
this section.
(f) REALLOCATION.—The Secretary may reallocate, to carry out
this section, any amounts made available to carry out this section
that are not obligated or expended, as determined by the Secretary.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section, to remain available until expended.
DIRECT FEDERAL EXPENDITURES

SEC. 6. ø42 U.S.C. 1755¿ (a) The funds provided by appropriation or transfer from other accounts for any fiscal year for carrying
out the provisions of this Act, and for carrying out the provisions
of the Child Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿, other
than section 3 thereof ø(42 U.S.C. 1772)¿, less
(1) not to exceed 31⁄2 per centum thereof which per centum
is hereby made available to the Secretary for the Secretary’s
administrative expenses under this Act and under the Child
Nutrition Act of 1966;
(2) the amount apportioned by the Secretary pursuant to
section 4 of this Act and the amount appropriated pursuant to
sections 11 and 13 of this Act and sections 4 and 7 of the Child
Nutrition Act of 1966 ø(42 U.S.C. 1773 and 1776)¿; and
(3) not to exceed 1 per centum of the funds provided for
carrying out the programs under this Act and the programs
under the Child Nutrition Act of 1966, other than section 3,
which per centum is hereby made available to the Secretary to
supplement the nutritional benefits of these programs through
grants to States and other means for nutritional training and
education for workers, cooperators, and participants in these
programs, for pilot projects and the cash-in-lieu of commodities
study required to be carried out under section 18 of this Act,
and for necessary surveys and studies of requirements for food
service programs in furtherance of the purposes expressed in
section 2 of this Act and section 2 of the Child Nutrition Act
of 1966 ø(ø(42 U.S.C. 1773 and 1776)¿,
shall be available to the Secretary during such year for direct expenditure by the Secretary for agricultural commodities and other
foods to be distributed among the States and schools and service
institutions participating in the food service programs under this
Act and under the Child Nutrition Act of 1966 in accordance with
the needs as determined by the local school and service institution
authorities. Except as provided in the next 2 sentences, any school
participating in food service programs under this Act may refuse
to accept delivery of not more than 20 percent of the total value
of agricultural commodities and other foods tendered to it in any
school year; and if a school so refuses, that school may receive, in
lieu of the refused commodities, other commodities to the extent
that other commodities are available to the State during that year.
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Any school food authority may refuse some or all of the fresh fruits
and vegetables offered to the school food authority in any school
year and shall receive, in lieu of the offered fruits and vegetables,
other more desirable fresh fruits and vegetables that are at least
equal in value to the fresh fruits and vegetables refused by the
school food authority. The value of any fresh fruits and vegetables
refused by a school under the preceding sentence for a school year
shall not be used to determine the 20 percent of the total value of
agricultural commodities and other foods tendered to the school
food authority in the school year under the second sentence. The
provisions of law contained in the proviso of the Act of June 28,
1937 ø; 15 U.S.C. 713c¿, facilitating operations with respect to the
purchase and disposition of surplus agricultural commodities under
section 32 of the Act approved August 24, 1935, ø; 7 U.S.C. 612c¿
shall, to the extent not inconsistent with the provisions of this Act,
also be applicable to expenditures of funds by the Secretary under
this Act. In making purchases of such agricultural commodities and
other foods, the Secretary shall not issue specifications which restrict participation of local producers unless such specifications will
result in significant advantages to the food service programs authorized by this Act and the Child Nutrition Act of 1966.
(b) The Secretary shall deliver, to each State participating in
the school lunch program under this Act, commodities valued at
the total level of assistance authorized under subsection (c) for each
school year for the school lunch program in the State, not later
than September 30 of the following school year.
(c)(1)(A) The national average value of donated foods, or cash
payments in lieu thereof, shall be 11 cents, adjusted on July 1,
1982, and each July 1 thereafter to reflect changes in the Price
Index for Food Used in Schools and Institutions. The Index shall
be computed using 5 major food components in the Bureau of Labor
Statistics’ Producer Price Index (cereal and bakery products, meats,
poultry and fish, dairy products, processed fruits and vegetables,
and fats and oils). Each component shall be weighed using the
same relative weight as determined by the Bureau of Labor Statistics.
(B) The value of food assistance for each meal shall be adjusted
each July 1 by the annual percentage change in a 3-month average
value of the Price Index for Foods Used in Schools and Institutions
for March, April, and May each year. Such adjustment shall be
computed to the nearest 1⁄4 cent.
(C) For each school year, the total commodity assistance or
cash in lieu thereof available to a State for the school lunch program shall be calculated by multiplying the number of lunches
served in the preceding school year by the rate established by subparagraph (B). After the end of each school year, the Secretary
shall reconcile the number of lunches served by schools in each
State with the number of lunches served by schools in each State
during the preceding school year and increase or reduce subsequent
commodity assistance or cash in lieu thereof provided to each State
based on such reconciliation.
(D) Among those commodities delivered under this section, the
Secretary shall give special emphasis to high protein foods, meat,
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and meat alternates (which may include domestic seafood commodities and their products).
(E) Notwithstanding any other provision of this section, not
less than 75 percent of the assistance provided under this subsection shall be in the form of donated foods for the school lunch
program.
(2) To the maximum extent feasible, each State agency shall
offer to each school food authority under its jurisdiction that participates in the school lunch program and receives commodities, agricultural commodities and their products, the per meal value of
which is not less than the national average value of donated foods
established under paragraph (1). Each such offer shall include the
full range of such commodities and products that are available
from the Secretary to the extent that quantities requested are sufficient to allow efficient delivery to and within the State.
(d) Beginning with the school year ending June 30, 1981, the
Secretary shall not offer commodity assistance based upon the
number of breakfasts served to children under section 4 of the
Child Nutrition Act of 1966 ø(42 U.S.C. 1773)¿.
(e)(1) Subject to paragraph (2), in each school year the Secretary shall ensure that not less than 12 percent of the assistance
provided under section 4, this section, and section 11 shall be in
the form of—
(A) commodity assistance provided under this section, including cash in lieu of commodities and administrative costs
for procurement of commodities under this section; or
(B) during the period beginning October 1, 2003, and ending September 30, 2018, commodities provided by the Secretary under any provision of law.
(2) If amounts available to carry out the requirements of the
sections described in paragraph (1) are insufficient to meet the requirement contained in paragraph (1) for a school year, the Secretary shall, to the extent necessary, use the authority provided
under section 14(a) to meet the requirement for the school year.
(f) PILOT PROJECT FOR PROCUREMENT OF UNPROCESSED FRUITS
AND VEGETABLES.—
(1) IN GENERAL.—The Secretary shall conduct a pilot
project under which the Secretary shall facilitate the procurement of unprocessed fruits and vegetables in not more than 8
States receiving funds under this Act.
(2) PURPOSE.—The purpose of the pilot project required by
this subsection is to provide selected States flexibility for the
procurement of unprocessed fruits and vegetables by permitting each State—
(A) to utilize multiple suppliers and products established and qualified by the Secretary; and
(B) to allow geographic preference, if desired, in the
procurement of the products under the pilot project.
(3) SELECTION AND PARTICIPATION.—
(A) IN GENERAL.—The Secretary shall select States for
participation in the pilot project in accordance with criteria
established by the Secretary and terms and conditions established for participation.
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(B) REQUIREMENT.—The Secretary shall ensure that at
least 1 project is located in a State in each of—
(i) the Pacific Northwest Region;
(ii) the Northeast Region;
(iii) the Western Region;
(iv) the Midwest Region; and
(v) the Southern Region.
(4) PRIORITY.—In selecting States for participation in the
pilot project, the Secretary shall prioritize applications based
on—
(A) the quantity and variety of growers of local fruits
and vegetables in the States on a per capita basis;
(B) the demonstrated commitment of the States to
farm-to-school efforts, as evidenced by prior efforts to increase and promote farm-to-school programs in the States;
and
(C) whether the States contain a sufficient quantity of
local educational agencies, various population sizes, and
geographical locations.
(5) RECORDKEEPING AND REPORTING REQUIREMENTS.—
(A) RECORDKEEPING REQUIREMENT.—States selected to
participate in the pilot project, and participating school
food authorities within those States, shall keep records of
the fruits and vegetables received under the pilot project
in such manner and form as requested by the Secretary.
(B) REPORTING REQUIREMENT.—Each participating
State shall submit to the Secretary a report on the success
of the pilot project in the State, including information on—
(i) the quantity and cost of each type of fruit and
vegetable received by the State under the pilot project;
and
(ii) the benefit provided by those procurements in
conducting school food service in the State, including
meeting school meal requirements.
PAYMENTS TO STATES

SEC. 7. ø42 U.S.C. 1756¿ (a)(1) Funds appropriated to carry
out section 4 of this Act during any fiscal year shall be available
for payment to the States for disbursement by State educational
agencies in accordance with such agreements, not inconsistent with
the provisions of this Act, as may be entered into by the Secretary
and such State educational agencies for the purpose of assisting
schools within the States in obtaining agricultural commodities and
other foods for consumption by children in furtherance of the school
lunch program authorized under this Act. For any school year, such
payments shall be made to a State only if, during such school year,
the amount of the State revenues (excluding State revenues derived from the operation of the program) appropriated or used specifically for program purposes (other than any State revenues expended for salaries and administrative expenses of the program at
the State level) is not less than 30 percent of the funds made available to such State under section 4 of this Act for the school year
beginning July 1, 1980.
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(2) If, for any school year, the per capita income of a State is
less than the average per capita income of all the States, the
amount required to be expended by a State under paragraph (1) for
such year shall be an amount bearing the same ratio to the amount
equal to 30 percent of the funds made available to such State
under section 4 of this Act for the school year beginning July 1,
1980, as the per capita income of such State bears to the average
per capita income of all the States.
(b) The State revenues provided by any State to meet the requirement of subsection (a) shall, to the extent the State deems
practicable, be disbursed to schools participating in the school
lunch program under this Act. No State in which the State educational agency is prohibited by law from disbursing State appropriated funds to private schools shall be required to match Federal
funds made available for meals served in such schools, or to disburse, to such schools, any of the State revenues required to meet
the requirements of subsection (a).
(c) The Secretary shall certify to the Secretary of the Treasury,
from time to time, the amounts to be paid to any State under this
section and shall specify when such payments are to be made. The
Secretary of the Treasury shall pay to the State, at the time or
times fixed by the Secretary, the amounts so certified.
(d) Notwithstanding any other provision of law, the Secretary
may enter into an agreement with a State agency, acting on the
request of a school food service authority, under which funds payable to the State under section 4 or 11 may be used by the Secretary for the purpose of purchasing commodities for use by the
school food service authority in meals served under the school
lunch program under this Act.
STATE DISBURSEMENT TO SCHOOLS

SEC. 8. ø42 U.S.C. 1757¿ (a) Funds paid to any State during
any fiscal year pursuant to section 4 shall be disbursed by the
State educational agency, in accordance with such agreements approved by the Secretary as may be entered into by such State agency and the schools in the State, to those schools in the State which
the State educational agency, taking into account need and attendance, determines are eligible to participate in the school lunch program.
(b) The agreements described in subsection (a) shall be permanent agreements that may be amended as necessary.
(c) The State educational agency may suspend or terminate
any such agreement in accordance with regulations prescribed by
the Secretary.
(d) Use of funds paid to States may include, in addition to the
purchase price of agricultural commodities and other foods, the cost
of processing, distributing, transporting, storing, or handling thereof.
(e) In no event shall such disbursement for food to any school
for any fiscal year exceed an amount determined by multiplying
the number of lunches served in the school in the school lunch program under this Act during such year by the maximum per meal
reimbursement rate for the State, for the type of lunch served, as
prescribed by the Secretary.
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(f) In any fiscal year in which the national average payment
per lunch determined under section 4 is increased above the
amount prescribed in the previous fiscal year, the maximum per
meal reimbursement rate for the type of lunch served, shall be increased by a like amount.
(g) Lunch assistance disbursements to schools under this section and under section 11 of this Act may be made in advance or
by way of reimbursement in accordance with procedures prescribed
by the Secretary.
NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

SEC. 9. ø42 U.S.C. 1758¿ (a)(1)(A) Lunches served by schools
participating in the school lunch program under this Act shall meet
minimum nutritional requirements prescribed by the Secretary on
the basis of tested nutritional research, except that the minimum
nutritional requirements—
(i) shall not be construed to prohibit the substitution of
foods to accommodate the medical or other special dietary
needs of individual students; and
(ii) shall, at a minimum, be based on the weekly average
of the nutrient content of school lunches.
(B) The Secretary shall provide technical assistance and training, including technical assistance and training in the preparation
of lower-fat versions of foods commonly used in the school lunch
program under this Act, to schools participating in the school lunch
program to assist the schools in complying with the nutritional requirements prescribed by the Secretary pursuant to subparagraph
(A) and in providing appropriate meals to children with medically
certified special dietary needs. The Secretary shall provide additional technical assistance to schools that are having difficulty
maintaining compliance with the requirements.
(2) FLUID MILK.—
(A) IN GENERAL.—Lunches served by schools participating in the school lunch program under this Act—
(i) shall offer students a variety of fluid milk.
Such milk shall be consistent with the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341);
(ii) may offer students flavored and unflavored
fluid milk and lactose-free fluid milk; and
(iii) shall provide a substitute for fluid milk for
students whose disability restricts their diet, on receipt of a written statement from a licensed physician
that identifies the disability that restricts the student’s diet and that specifies the substitute for fluid
milk.
(B) SUBSTITUTES.—
(i) STANDARDS FOR SUBSTITUTION.—A school may
substitute for the fluid milk provided under subparagraph (A), a nondairy beverage that is nutritionally
equivalent to fluid milk and meets nutritional standards established by the Secretary (which shall, among
other requirements to be determined by the Secretary,
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include fortification of calcium, protein, vitamin A, and
vitamin D to levels found in cow’s milk) for students
who cannot consume fluid milk because of a medical
or other special dietary need other than a disability
described in subparagraph (A)(iii).
(ii) NOTICE.—The substitutions may be made if
the school notifies the State agency that the school is
implementing a variation allowed under this subparagraph, and if the substitution is requested by written
statement of a medical authority or by a student’s parent or legal guardian that identifies the medical or
other special dietary need that restricts the student’s
diet, except that the school shall not be required to
provide beverages other than beverages the school has
identified as acceptable substitutes.
(iii) EXCESS EXPENSES BORNE BY SCHOOL FOOD AUTHORITY.—Expenses incurred in providing substitutions under this subparagraph that are in excess of
expenses covered by reimbursements under this Act
shall be paid by the school food authority.
(C) RESTRICTIONS ON SALE OF MILK PROHIBITED.—A
school that participates in the school lunch program under
this Act shall not directly or indirectly restrict the sale or
marketing of fluid milk products by the school (or by a person approved by the school) at any time or any place—
(i) on the school premises; or
(ii) at any school-sponsored event.
(3) Students in senior high schools that participate in the
school lunch program under this Act (and, when approved by the
local school district or nonprofit private schools, students in any
other grade level) shall not be required to accept offered foods they
do not intend to consume, and any such failure to accept offered
foods shall not affect the full charge to the student for a lunch
meeting the requirements of this subsection or the amount of payments made under this Act to any such school for such lunch.
(4) PROVISION OF INFORMATION.—
(A) GUIDANCE.—Prior to the beginning of the school
year beginning July 2004, the Secretary shall issue guidance to States and school food authorities to increase the
consumption of foods and food ingredients that are recommended for increased serving consumption in the most
recent Dietary Guidelines for Americans published under
section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341).
(B) RULES.—Not later than 2 years after the date of
enactment of this paragraph, the Secretary shall promulgate rules, based on the most recent Dietary Guidelines for
Americans, that reflect specific recommendations, expressed in serving recommendations, for increased consumption of foods and food ingredients offered in school
nutrition programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).
(C) PROCUREMENT AND PROCESSING OF FOOD SERVICE
PRODUCTS AND COMMODITIES.—The Secretary shall—
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(i) identify, develop, and disseminate to State departments of agriculture and education, school food
authorities, local educational agencies, and local processing entities, model product specifications and practices for foods offered in school nutrition programs
under this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) to ensure that the foods reflect the
most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7
U.S.C. 5341);
(ii) not later than 1 year after the date of enactment of this subparagraph—
(I) carry out a study to analyze the quantity
and quality of nutritional information available to
school food authorities about food service products
and commodities; and
(II) submit to Congress a report on the results
of the study that contains such legislative recommendations as the Secretary considers necessary to ensure that school food authorities have
access to the nutritional information needed for
menu planning and compliance assessments; and
(iii) to the maximum extent practicable, in purchasing and processing commodities for use in school
nutrition programs under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), purchase
the widest variety of healthful foods that reflect the
most recent Dietary Guidelines for Americans.
(5) WATER.—Schools participating in the school lunch program under this Act shall make available to children free of
charge, as nutritionally appropriate, potable water for consumption in the place where meals are served during meal
service.
(b)(1)(A) Not later than June 1 of each fiscal year, the Secretary shall prescribe income guidelines for determining eligibility
for free and reduced price lunches during the 12-month period beginning July 1 of such fiscal year and ending June 30 of the following fiscal year. The income guidelines for determining eligibility
for free lunches shall be 130 percent of the applicable family size
income levels contained in the nonfarm income poverty guidelines
prescribed by the Office of Management and Budget, as adjusted
annually in accordance with subparagraph (B). The income guidelines for determining eligibility for reduced price lunches for any
school year shall be 185 percent of the applicable family size income levels contained in the nonfarm income poverty guidelines
prescribed by the Office of Management and Budget, as adjusted
annually in accordance with subparagraph (B). The Office of Management and Budget guidelines shall be revised at annual intervals, or at any shorter interval deemed feasible and desirable.
(B) The revision required by subparagraph (A) of this paragraph shall be made by multiplying—
(i) the official poverty line (as defined by the Office of Management and Budget); by
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(ii) the percentage change in the Consumer Price Index
during the annual or other interval immediately preceding the
time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 30
days after the date on which the consumer price index data required to compute the adjustment becomes available.
(2)(A) Following the determination by the Secretary under
paragraph (1) of this subsection of the income eligibility guidelines
for each school year, each State educational agency shall announce
the income eligibility guidelines, by family size, to be used by
schools in the State in making determinations of eligibility for free
and reduced price lunches. Local school authorities shall, each
year, publicly announce the income eligibility guidelines for free
and reduced price lunches on or before the opening of school.
(B) APPLICATIONS AND DESCRIPTIVE MATERIAL.—
(i) IN GENERAL.—Applications for free and reduced
price lunches, in such form as the Secretary may prescribe or approve, and any descriptive material, shall
be distributed to the parents or guardians of children
in attendance at the school, and shall contain only the
family size income levels for reduced price meal eligibility with the explanation that households with incomes less than or equal to these values would be eligible for free or reduced price lunches.
(ii) INCOME ELIGIBILITY GUIDELINES.—Forms and
descriptive material distributed in accordance with
clause (i) may not contain the income eligibility guidelines for free lunches.
(iii) CONTENTS OF DESCRIPTIVE MATERIAL.—
(I) IN GENERAL.—Descriptive material distributed in accordance with clause (i) shall contain a
notification that—
(aa) participants in the programs listed in
subclause (II) may be eligible for free or reduced price meals; and
(bb) documentation may be requested for
verification of eligibility for free or reduced
price meals.
(II) PROGRAMS.—The programs referred to in
subclause (I)(aa) are—
(aa) the special supplemental nutrition
program for women, infants, and children established by section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786);
(bb) the supplemental nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(cc) the food distribution program on Indian reservations established under section
4(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)); and
(dd) a State program funded under the
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lished under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.).
(3) HOUSEHOLD APPLICATIONS.—
(A) DEFINITION OF HOUSEHOLD APPLICATION.—In this
paragraph, the term ‘‘household application’’ means an application for a child of a household to receive free or reduced price school lunches under this Act, or free or reduced price school breakfasts under the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), for which an eligibility determination is made other than under paragraph
(4) or (5).
(B) ELIGIBILITY DETERMINATION.—
(i) IN GENERAL.—An eligibility determination shall
be made on the basis of a complete household application executed by an adult member of the household or
in accordance with guidance issued by the Secretary.
(ii) ELECTRONIC SIGNATURES AND APPLICATIONS.—
A household application may be executed using an
electronic signature if—
(I) the application is submitted electronically;
and
(II) the electronic application filing system
meets confidentiality standards established by the
Secretary.
(C) CHILDREN IN HOUSEHOLD.—
(i) IN GENERAL.—The household application shall
identify the names of each child in the household for
whom meal benefits are requested.
(ii) SEPARATE APPLICATIONS.—A State educational
agency or local educational agency may not request a
separate application for each child in the household
that attends schools under the same local educational
agency.
(D) VERIFICATION OF SAMPLE.—
(i) DEFINITIONS.—In this subparagraph:
(I) ERROR PRONE APPLICATION.—The term
‘‘error prone application’’ means an approved
household application that—
(aa) indicates monthly income that is
within $100, or an annual income that is
within $1,200, of the income eligibility limitation for free or reduced price meals; or
(bb) in lieu of the criteria established
under item (aa), meets criteria established by
the Secretary.
(II) NON-RESPONSE RATE.—The term ‘‘non-response rate’’ means (in accordance with guidelines
established by the Secretary) the percentage of approved
household
applications
for
which
verification information has not been obtained by
a local educational agency after attempted
verification under subparagraphs (F) and (G).
(ii) VERIFICATION OF SAMPLE.—Each school year, a
local educational agency shall verify eligibility of the
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children in a sample of household applications approved for the school year by the local educational
agency, as determined by the Secretary in accordance
with this subsection.
(iii) SAMPLE SIZE.—Except as otherwise provided
in this paragraph, the sample for a local educational
agency for a school year shall equal the lesser of—
(I) 3 percent of all applications approved by
the local educational agency for the school year, as
of October 1 of the school year, selected from error
prone applications; or
(II) 3,000 error prone applications approved
by the local educational agency for the school
year, as of October 1 of the school year.
(iv) ALTERNATIVE SAMPLE SIZE.—
(I) IN GENERAL.—If the conditions described in
subclause (IV) are met, the verification sample
size for a local educational agency shall be the
sample size described in subclause (II) or (III), as
determined by the local educational agency.
(II) 3,000/3 PERCENT OPTION.—The sample
size described in this subclause shall be the lesser
of 3,000, or 3 percent of, applications selected at
random from applications approved by the local
educational agency for the school year, as of October 1 of the school year.
(III) 1,000/1 PERCENT PLUS OPTION.—
(aa) IN GENERAL.—The sample size described in this subclause shall be the sum of—
(AA) the lesser of 1,000, or 1 percent
of, all applications approved by the local
educational agency for the school year, as
of October 1 of the school year, selected
from error prone applications; and
(BB) the lesser of 500, or 1⁄2 of 1 percent of, applications approved by the local
educational agency for the school year, as
of October 1 of the school year, that provide a case number (in lieu of income information) showing participation in a program described in item (bb) selected from
those approved applications that provide
a case number (in lieu of income information) verifying the participation.
(bb) PROGRAMS.—The programs described
in this item are—
(AA) the supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
(BB) the food distribution program on
Indian reservations established under
section 4(b) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013(b)); and
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(CC) a State program funded under
the program of block grants to States for
temporary assistance for needy families
established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies
with standards established by the Secretary that ensure that the standards
under the State program are comparable
to or more restrictive than those in effect
on June 1, 1995.
(IV) CONDITIONS.—The conditions referred to
in subclause (I) shall be met for a local educational agency for a school year if—
(aa) the nonresponse rate for the local
educational agency for the preceding school
year is less than 20 percent; or
(bb) the local educational agency has
more than 20,000 children approved by application by the local educational agency as eligible for free or reduced price meals for the
school year, as of October 1 of the school year,
and—
(AA) the nonresponse rate for the
preceding school year is at least 10 percent below the nonresponse rate for the
second preceding school year; or
(BB) in the case of the school year beginning July 2005, the local educational
agency attempts to verify all approved
household
applications
selected
for
verification through use of public agency
records from at least 2 of the programs or
sources of information described in subparagraph (F)(i).
(v) ADDITIONAL SELECTED APPLICATIONS.—A sample for a local educational agency for a school year
under clauses (iii) and (iv)(III)(AA) shall include the
number of additional randomly selected approved
household applications that are required to comply
with the sample size requirements in those clauses.
(E) PRELIMINARY REVIEW.—
(i) REVIEW FOR ACCURACY.—
(I) IN GENERAL.—Prior to conducting any
other verification activity for approved household
applications selected for verification, the local educational agency shall ensure that the initial eligibility determination for each approved household
application is reviewed for accuracy by an individual other than the individual making the initial eligibility determination, unless otherwise determined by the Secretary.
(II) WAIVER.—The requirements of subclause
(I) shall be waived for a local educational agency
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if the local educational agency is using a technology-based solution that demonstrates a high
level of accuracy, to the satisfaction of the Secretary, in processing an initial eligibility determination in accordance with the income eligibility
guidelines of the school lunch program.
(ii) CORRECT ELIGIBILITY DETERMINATION.—If the
review indicates that the initial eligibility determination is correct, the local educational agency shall verify
the approved household application.
(iii) INCORRECT ELIGIBILITY DETERMINATION.—If
the review indicates that the initial eligibility determination is incorrect, the local educational agency
shall (as determined by the Secretary)—
(I) correct the eligibility status of the household;
(II) notify the household of the change;
(III) in any case in which the review indicates
that the household is not eligible for free or reduced-price meals, notify the household of the reason for the ineligibility and that the household
may reapply with income documentation for free
or reduced-price meals; and
(IV) in any case in which the review indicates
that the household is eligible for free or reducedprice meals, verify the approved household application.
(F) DIRECT VERIFICATION.—
(i) IN GENERAL.—Subject to clauses (ii) and (iii), to
verify eligibility for free or reduced price meals for approved household applications selected for verification,
the local educational agency may (in accordance with
criteria established by the Secretary) first obtain and
use income and program participation information
from a public agency administering—
(I) the supplemental nutrition assistance program established under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.);
(II) the food distribution program on Indian
reservations established under section 4(b) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));
(III) the temporary assistance for needy families program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(IV) the State medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.); or
(V) a similar income-tested program or other
source of information, as determined by the Secretary.
(ii) FREE MEALS.—Public agency records that may
be obtained and used under clause (i) to verify eligibility for free meals for approved household applications selected for verification shall include the most reDecember 20, 2019

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cent available information (other than information reflecting program participation or income before the
180-day period ending on the date of application for
free meals) that is relied on to administer—
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) in—
(aa) a State in which the income eligibility limit applied under section 1902(l)(2)(C)
of that Act (42 U.S.C. 1396a(l)(2)(C)) is not
more than 133 percent of the official poverty
line described in section 1902(l)(2)(A) of that
Act (42 U.S.C. 1396a(l)(2)(A)); or
(bb) a State that otherwise identifies
households that have income that is not more
than 133 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)).
(iii) REDUCED PRICE MEALS.—Public agency
records that may be obtained and used under clause
(i) to verify eligibility for reduced price meals for approved household applications selected for verification
shall include the most recent available information
(other than information reflecting program participation or income before the 180-day period ending on the
date of application for reduced price meals) that is relied on to administer—
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) in—
(aa) a State in which the income eligibility limit applied under section 1902(l)(2)(C)
of that Act (42 U.S.C. 1396a(l)(2)(C)) is not
more than 185 percent of the official poverty
line described in section 1902(l)(2)(A) of that
Act (42 U.S.C. 1396a(l)(2)(A)); or
(bb) a State that otherwise identifies
households that have income that is not more
than 185 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)).
(iv) EVALUATION.—Not later than 3 years after the
date of enactment of this subparagraph, the Secretary
shall complete an evaluation of—
(I) the effectiveness of direct verification carried out under this subparagraph in decreasing
the portion of the verification sample that must be
verified under subparagraph (G) while ensuring
that adequate verification information is obtained;
and
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(II) the feasibility of direct verification by
State agencies and local educational agencies.
(v) EXPANDED USE OF DIRECT VERIFICATION.—If
the Secretary determines that direct verification significantly decreases the portion of the verification
sample that must be verified under subparagraph (G),
while ensuring that adequate verification information
is obtained, and can be conducted by most State agencies and local educational agencies, the Secretary may
require a State agency or local educational agency to
implement direct verification through 1 or more of the
programs described in clause (i), as determined by the
Secretary, unless the State agency or local educational
agency demonstrates (under criteria established by the
Secretary) that the State agency or local educational
agency lacks the capacity to conduct, or is unable to
implement, direct verification.
(G) HOUSEHOLD VERIFICATION.—
(i) IN GENERAL.—If an approved household application is not verified through the use of public agency
records, a local educational agency shall provide to the
household written notice that—
(I) the approved household application has
been selected for verification; and
(II) the household is required to submit
verification information to confirm eligibility for
free or reduced price meals.
(ii) PHONE NUMBER.—The written notice in clause
(i) shall include a toll-free phone number that parents
and legal guardians in households selected for
verification can call for assistance with the verification
process.
(iii) FOLLOWUP ACTIVITIES.—If a household does
not respond to a verification request, a local educational agency shall make at least 1 attempt to obtain the necessary verification from the household in
accordance with guidelines and regulations promulgated by the Secretary.
(iv) CONTRACT AUTHORITY FOR SCHOOL FOOD AUTHORITIES.—A local educational agency may contract
(under standards established by the Secretary) with a
third party to assist the local educational agency in
carrying out clause (iii).
(H) VERIFICATION DEADLINE.—
(i) GENERAL DEADLINE.—
(I) IN GENERAL.—Subject to subclause (II), not
later than November 15 of each school year, a
local educational agency shall complete the
verification activities required for the school year
(including followup activities).
(II) EXTENSION.—Under criteria established
by the Secretary, a State may extend the deadline
established under subclause (I) for a school year
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for a local educational agency to December 15 of
the school year.
(ii)
ELIGIBILITY
CHANGES.—Based
on
the
verification activities, the local educational agency
shall make appropriate modifications to the eligibility
determinations made for household applications in accordance with criteria established by the Secretary.
(I) LOCAL CONDITIONS.—In the case of a natural disaster, civil disorder, strike, or other local condition (as determined by the Secretary), the Secretary may substitute
alternatives for—
(i) the sample size and sample selection criteria
established under subparagraph (D); and
(ii) the verification deadline established under
subparagraph (H).
(J) INDIVIDUAL REVIEW.—In accordance with criteria
established by the Secretary, the local educational agency
may, on individual review—
(i) decline to verify no more than 5 percent of approved household applications selected under subparagraph (D); and
(ii) replace the approved household applications
with other approved household applications to be
verified.
(K) FEASIBILITY STUDY.—
(i) IN GENERAL.—The Secretary shall conduct a
study of the feasibility of using computer technology
(including data mining) to reduce—
(I) overcertification errors in the school lunch
program under this Act;
(II) waste, fraud, and abuse in connection
with this paragraph; and
(III) errors, waste, fraud, and abuse in other
nutrition programs, as determined to be appropriate by the Secretary.
(ii) REPORT.—Not later than 180 days after the
date of enactment of this paragraph, the Secretary
shall submit to the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate a report describing—
(I) the results of the feasibility study conducted under this subsection;
(II) how a computer system using technology
described in clause (i) could be implemented;
(III) a plan for implementation; and
(IV) proposed legislation, if necessary, to implement the system.
(4) DIRECT CERTIFICATION FOR CHILDREN IN SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM HOUSEHOLDS.—
(A) IN GENERAL.—Subject to subparagraph (D), each
State agency shall enter into an agreement with the State
agency conducting eligibility determinations for the supDecember 20, 2019

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plemental nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
(B) PROCEDURES.—Subject to paragraph (6), the agreement shall establish procedures under which a child who
is a member of a household receiving assistance under the
supplemental nutrition assistance program shall be certified as eligible for free lunches under this Act and free
breakfasts under the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), without further application.
(C) CERTIFICATION.—Subject to paragraph (6), under
the agreement, the local educational agency conducting eligibility determinations for a school lunch program under
this Act and a school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall certify
a child who is a member of a household receiving assistance under the supplemental nutrition assistance program
as eligible for free lunches under this Act and free breakfasts under the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), without further application.
(D) APPLICABILITY.—This paragraph applies to—
(i) in the case of the school year beginning July
2006, a school district that had an enrollment of
25,000 students or more in the preceding school year;
(ii) in the case of the school year beginning July
2007, a school district that had an enrollment of
10,000 students or more in the preceding school year;
and
(iii) in the case of the school year beginning July
2008 and each subsequent school year, each local educational agency.
(E) PERFORMANCE AWARDS.—
(i) IN GENERAL.—Effective for each of the school
years beginning July 1, 2011, July 1, 2012, and July
1, 2013, the Secretary shall offer performance awards
to States to encourage the States to ensure that all
children eligible for direct certification under this
paragraph are certified in accordance with this paragraph.
(ii) REQUIREMENTS.—For each school year described in clause (i), the Secretary shall—
(I) consider State data from the prior school
year, including estimates contained in the report
required under section 4301 of the Food, Conservation, and Energy Act of 2008 (42 U.S.C.
1758a); and
(II) make performance awards to not more
than 15 States that demonstrate, as determined
by the Secretary—
(aa) outstanding performance; and
(bb) substantial improvement.
(iii) USE OF FUNDS.—A State agency that receives
a performance award under clause (i)—
(I) shall treat the funds as program income;
and
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(II) may transfer the funds to school food authorities for use in carrying out the program.
(iv) FUNDING.—
(I) IN GENERAL.—On October 1, 2011, and
each subsequent October 1 through October 1,
2013, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary—
(aa) $2,000,000 to carry out clause
(ii)(II)(aa); and
(bb) $2,000,000 to carry out clause
(ii)(II)(bb).
(II) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall
use to carry out this clause the funds transferred
under subclause (I), without further appropriation.
(v) PAYMENTS NOT SUBJECT TO JUDICIAL REVIEW.—
A determination by the Secretary whether, and in
what amount, to make a performance award under
this subparagraph shall not be subject to administrative or judicial review.
(F) CONTINUOUS IMPROVEMENT PLANS.—
(i) DEFINITION OF REQUIRED PERCENTAGE.—In this
subparagraph, the term ‘‘required percentage’’
means—
(I) for the school year beginning July 1, 2011,
80 percent;
(II) for the school year beginning July 1, 2012,
90 percent; and
(III) for the school year beginning July 1,
2013, and each school year thereafter, 95 percent.
(ii) REQUIREMENTS.—Each school year, the Secretary shall—
(I) identify, using data from the prior year, including estimates contained in the report required
under section 4301 of the Food, Conservation, and
Energy Act of 2008 (42 U.S.C. 1758a), States that
directly certify less than the required percentage
of the total number of children in the State who
are eligible for direct certification under this paragraph;
(II) require the States identified under subclause (I) to implement a continuous improvement
plan to fully meet the requirements of this paragraph, which shall include a plan to improve direct certification for the following school year; and
(III) assist the States identified under subclause (I) to develop and implement a continuous
improvement plan in accordance with subclause
(II).
(iii) FAILURE TO MEET PERFORMANCE STANDARD.—
(I) IN GENERAL.—A State that is required to
develop and implement a continuous improvement
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plan under clause (ii)(II) shall be required to submit the continuous improvement plan to the Secretary, for the approval of the Secretary.
(II) REQUIREMENTS.—At a minimum, a continuous improvement plan under subclause (I) shall
include—
(aa) specific measures that the State will
use to identify more children who are eligible
for direct certification, including improvements or modifications to technology, information systems, or databases;
(bb) a timeline for the State to implement
those measures; and
(cc) goals for the State to improve direct
certification results.
(G) WITHOUT FURTHER APPLICATION.—
(i) IN GENERAL.—In this paragraph, the term
‘‘without further application’’ means that no action is
required by the household of the child.
(ii) CLARIFICATION.—A requirement that a household return a letter notifying the household of eligibility for direct certification or eligibility for free school
meals does not meet the requirements of clause (i).
(5) 3 DISCRETIONARY CERTIFICATION.—Subject to paragraph
(6), any local educational agency may certify any child as eligible for free lunches or breakfasts, without further application,
by directly communicating with the appropriate State or local
agency to obtain documentation of the status of the child as—
(A) a member of a family that is receiving assistance
under the temporary assistance for needy families program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June
1, 1995;
(B) a homeless child or youth (defined as 1 of the individuals described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2)); 4
(C) served by the runaway and homeless youth grant
program established under the Runaway and Homeless
Youth Act (42 U.S.C. 5701 et seq.);
(D) a migratory child (as defined in section 1309 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6399)); or
(E)(i) a foster child whose care and placement is the
responsibility of an agency that administers a State plan
under part B or E of title IV of the Social Security Act (42
U.S.C. 621 et seq.); or
3 Effective July 1, 2005, paragraphs (5) through (8) added by section 104(b)(1) of P.L. 108–
265, 118 Stat. 734, June 30, 2004. End quotation marks and the following period at the end
of paragraph (5)(A) were struck to effectuate the probable intent of Congress.
4 So in original. Probably should be an additional closed parenthesis.

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(ii) a foster child who a court has placed with a caretaker household.
(6) USE OR DISCLOSURE OF INFORMATION.—
(A) IN GENERAL.—The use or disclosure of any information obtained from an application for free or reduced
price meals, or from a State or local agency referred to in
paragraph (3)(F), (4), or (5), shall be limited to—
(i) a person directly connected with the administration or enforcement of this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (including a
regulation promulgated under either Act);
(ii) a person directly connected with the administration or enforcement of—
(I) a Federal education program;
(II) a State health or education program administered by the State or local educational agency (other than a program carried out under title
XIX or XXI of the Social Security Act (42 U.S.C.
1396 et seq.; 42 U.S.C. 1397aa et seq.)); or
(III) a Federal, State, or local means-tested
nutrition program with eligibility standards comparable to the school lunch program under this
Act;
(iii)(I) the Comptroller General of the United
States for audit and examination authorized by any
other provision of law; and
(II) notwithstanding any other provision of law, a
Federal, State, or local law enforcement official for the
purpose of investigating an alleged violation of any
program covered by this paragraph or paragraph
(3)(F), (4), or (5);
(iv) a person directly connected with the administration of the State medicaid program under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.) or
the State children’s health insurance program under
title XXI of that Act (42 U.S.C. 1397aa et seq.) solely
for the purposes of—
(I) identifying children eligible for benefits
under, and enrolling children in, those programs,
except that this subclause shall apply only to the
extent that the State and the local educational
agency or school food authority so elect; and
(II) verifying the eligibility of children for programs under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.); and
(v) a third party contractor described in paragraph
(3)(G)(iv).
(B) LIMITATION ON INFORMATION PROVIDED.—Information provided under clause (ii) or (v) of subparagraph (A)
shall be limited to the income eligibility status of the child
for whom application for free or reduced price meal benefits is made or for whom eligibility information is provided
under paragraph (3)(F), (4), or (5), unless the consent of
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the parent or guardian of the child for whom application
for benefits was made is obtained.
(C) CRIMINAL PENALTY.—A person described in subparagraph (A) who publishes, divulges, discloses, or makes
known in any manner, or to any extent not authorized by
Federal law (including a regulation), any information obtained under this subsection shall be fined not more than
$1,000 or imprisoned not more than 1 year, or both.
(D) REQUIREMENTS FOR WAIVER OF CONFIDENTIALITY.—
A State that elects to exercise the option described in subparagraph (A)(iv)(I) shall ensure that any local educational
agency or school food authority acting in accordance with
that option—
(i) has a written agreement with 1 or more State
or local agencies administering health programs for
children under titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et seq.)
that requires the health agencies to use the information obtained under subparagraph (A) to seek to enroll
children in those health programs; and
(ii)(I) notifies each household, the information of
which shall be disclosed under subparagraph (A), that
the information disclosed will be used only to enroll
children in health programs referred to in subparagraph (A)(iv); and
(II) provides each parent or guardian of a child in
the household with an opportunity to elect not to have
the information disclosed.
(E) USE OF DISCLOSED INFORMATION.—A person to
which information is disclosed under subparagraph
(A)(iv)(I) shall use or disclose the information only as necessary for the purpose of enrolling children in health programs referred to in subparagraph (A)(iv).
(7) FREE AND REDUCED PRICE POLICY STATEMENT.—
(A) IN GENERAL.—After the initial submission, a local
educational agency shall not be required to submit a free
and reduced price policy statement to a State educational
agency under this Act unless there is a substantive change
in the free and reduced price policy of the local educational
agency.
(B) ROUTINE CHANGE.—A routine change in the policy
of a local educational agency (such as an annual adjustment of the income eligibility guidelines for free and reduced price meals) shall not be sufficient cause for requiring the local educational agency to submit a policy statement.
(8) COMMUNICATIONS.—
(A) IN GENERAL.—Any communication with a household under this subsection or subsection (d) shall be in an
understandable and uniform format and, to the maximum
extent practicable, in a language that parents and legal
guardians can understand.
(B) ELECTRONIC AVAILABILITY.—In addition to the distribution of applications and descriptive material in paper
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form as provided for in this paragraph, the applications
and material may be made available electronically via the
Internet.
(9) ELIGIBILITY FOR FREE AND REDUCED PRICE LUNCHES.—
(A) FREE LUNCHES.—Any child who is a member of a
household whose income, at the time the application is
submitted, is at an annual rate which does not exceed the
applicable family size income level of the income eligibility
guidelines for free lunches, as determined under paragraph (1), shall be served a free lunch.
(B) REDUCED PRICE LUNCHES.—
(i) IN GENERAL.—Any child who is a member of a
household whose income, at the time the application is
submitted, is at an annual rate greater than the applicable family size income level of the income eligibility
guidelines for free lunches, as determined under paragraph (1), but less than or equal to the applicable family size income level of the income eligibility guidelines
for reduced price lunches, as determined under paragraph (1), shall be served a reduced price lunch.
(ii) MAXIMUM PRICE.—The price charged for a reduced price lunch shall not exceed 40 cents.
(C) DURATION.—Except as otherwise specified in paragraph (3)(E), (3)(H)(ii), and section 11(a), eligibility for free
or reduced price meals for any school year shall remain in
effect—
(i) beginning on the date of eligibility approval for
the current school year; and
(ii) ending on a date during the subsequent school
year determined by the Secretary.
(10) No physical segregation of or other discrimination against
any child eligible for a free lunch or a reduced price lunch under
this subsection shall be made by the school nor shall there be any
overt identification of any child by special tokens or tickets, announced or published list of names, or by other means.
(11) Any child who has a parent or guardian who (A) is responsible for the principal support of such child and (B) is unemployed
shall be served a free or reduced price lunch, respectively, during
any period (i) in which such child’s parent or guardian continues
to be unemployed and (ii) the income of the child’s parents or
guardians during such period of unemployment falls within the income eligibility criteria for free lunches or reduced price lunches,
respectively, based on the current rate of income of such parents
or guardians. Local educational agencies shall publicly announce
that such children are eligible for free or reduced price lunch, and
shall make determinations with respect to the status of any parent
or guardian of any child under clauses (A) and (B) of the preceding
sentence on the basis of a statement executed in such form as the
Secretary may prescribe by such parent or guardian. No physical
segregation of, or other discrimination against, any child eligible
for a free or reduced price lunch under this paragraph shall be
made by the school nor shall there be any overt identification of
any such child by special tokens or tickets, announced or published
lists of names, or by any other means.
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(12)(A) A child shall be considered automatically eligible for a
free lunch and breakfast under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), respectively, without further
application or eligibility determination, if the child is—
(i) a member of a household receiving assistance under the
supplemental nutrition assistance program authorized under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(ii) a member of a family (under the State program funded
under part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)) that the Secretary determines complies with
standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995;
(iii) enrolled as a participant in a Head Start program authorized under the Head Start Act (42 U.S.C. 9831 et seq.), on
the basis of a determination that the child meets the eligibility
criteria prescribed under section 645(a)(1)(B) of the Head Start
Act (42 U.S.C. 9840(a)(1)(B));
(iv) a homeless child or youth (defined as 1 of the individuals described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2)));
(v) served by the runaway and homeless youth grant
program established under the Runaway and Homeless
Youth Act (42 U.S.C. 5701 et seq.);
(vi) a migratory child (as defined in section 1309 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6399)); or
(vii)(I) a foster child whose care and placement is
the responsibility of an agency that administers a
State plan under part B or E of title IV of the Social
Security Act (42 U.S.C. 621 et seq.); or
(II) a foster child who a court has placed with a
caretaker household.
(B) Proof of receipt of supplemental nutrition assistance program benefits or assistance under the State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in effect
on June 1, 1995, or of enrollment or participation in a Head Start
program on the basis described in subparagraph (A)(iii), shall be
sufficient to satisfy any verification requirement imposed under
this subsection.
(13) EXCLUSION OF CERTAIN MILITARY HOUSING ALLOWANCES.—The amount of a basic allowance provided under section 403 of title 37, United States Code, on behalf of a member
of a uniformed service for housing that is acquired or constructed under subchapter IV of chapter 169 of title 10, United
States Code, or any related provision of law, shall not be considered to be income for the purpose of determining the eligibility of a child who is a member of the household of the member of a uniformed service for free or reduced price lunches
under this Act.
(14) COMBAT PAY.—
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(A) DEFINITION OF COMBAT PAY.—In this paragraph,
the term ‘‘combat pay’’ means any additional payment
under chapter 5 of title 37, United States Code, or otherwise designated by the Secretary to be appropriate for exclusion under this paragraph, that is received by or from
a member of the United States Armed Forces deployed to
a designated combat zone, if the additional pay—
(i) is the result of deployment to or service in a
combat zone; and
(ii) was not received immediately prior to serving
in a combat zone.
(B) EXCLUSION.—Combat pay shall not be considered
to be income for the purpose of determining the eligibility
for free or reduced price meals of a child who is a member
of the household of a member of the United States Armed
Forces.
(15) DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID BENEFITS.—
(A) DEFINITIONS.—In this paragraph:
(i) ELIGIBLE CHILD.—The term ‘‘eligible child’’
means a child—
(I)(aa) who is eligible for and receiving medical assistance under the Medicaid program; and
(bb) who is a member of a family with an income as measured by the Medicaid program before
the application of any expense, block, or other income disregard, that does not exceed 133 percent
of the poverty line (as defined in section 673(2) of
the Community Services Block Grant Act (42
U.S.C. 9902(2), including any revision required by
such section)) applicable to a family of the size
used for purposes of determining eligibility for the
Medicaid program; or
(II) who is a member of a household (as that
term is defined in section 245.2 of title 7, Code of
Federal Regulations (or successor regulations)
with a child described in subclause (I).
(ii) MEDICAID PROGRAM.—The term ‘‘Medicaid program’’ means the program of medical assistance established under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(B) DEMONSTRATION PROJECT.—
(i) IN GENERAL.—The Secretary, acting through
the Administrator of the Food and Nutrition Service
and in cooperation with selected State agencies, shall
conduct a demonstration project in selected local educational agencies to determine whether direct certification of eligible children is an effective method of certifying children for free lunches and breakfasts under
section 9(b)(1)(A) of this Act and section 4(e)(1)(A) of
the Child Nutrition Act of 1966 (42 U.S.C.
1773(e)(1)(A)).
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(ii) SCOPE OF PROJECT.—The Secretary shall carry
out the demonstration project under this subparagraph—
(I) for the school year beginning July 1, 2012,
in selected local educational agencies that collectively serve 2.5 percent of students certified for
free and reduced price meals nationwide, based on
the most recent available data;
(II) for the school year beginning July 1, 2013,
in selected local educational agencies that collectively serve 5 percent of students certified for free
and reduced price meals nationwide, based on the
most recent available data; and
(III) for the school year beginning July 1,
2014, and each subsequent school year, in selected
local educational agencies that collectively serve
10 percent of students certified for free and reduced price meals nationwide, based on the most
recent available data.
(iii) PURPOSES OF THE PROJECT.—At a minimum,
the purposes of the demonstration project shall be—
(I) to determine the potential of direct certification with the Medicaid program to reach children who are eligible for free meals but not certified to receive the meals;
(II) to determine the potential of direct certification with the Medicaid program to directly certify children who are enrolled for free meals based
on a household application; and
(III) to provide an estimate of the effect on
Federal costs and on participation in the school
lunch program under this Act and the school
breakfast program established by section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773) of direct certification with the Medicaid program.
(iv) COST ESTIMATE.—For each of 2 school years of
the demonstration project, the Secretary shall estimate the cost of the direct certification of eligible children for free school meals through data derived from—
(I) the school meal programs authorized under
this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.);
(II) the Medicaid program; and
(III) interviews with a statistically representative sample of households.
(C) AGREEMENT.—
(i) IN GENERAL.—Not later than July 1 of the first
school year during which a State agency will participate in the demonstration project, the State agency
shall enter into an agreement with the 1 or more State
agencies conducting eligibility determinations for the
Medicaid program.
(ii) WITHOUT FURTHER APPLICATION.—Subject to
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graph (D) shall establish procedures under which an
eligible child shall be certified for free lunches under
this Act and free breakfasts under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773), without
further application (as defined in paragraph (4)(G)).
(D) CERTIFICATION.—For the school year beginning on
July 1, 2012, and each subsequent school year, subject to
paragraph (6), the local educational agencies participating
in the demonstration project shall certify an eligible child
as eligible for free lunches under this Act and free breakfasts under the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), without further application (as defined in
paragraph (4)(G)).
(E) SITE SELECTION.—
(i) IN GENERAL.—To be eligible to participate in
the demonstration project under this subsection, a
State agency shall submit to the Secretary an application at such time, in such manner, and containing
such information as the Secretary may require.
(ii) CONSIDERATIONS.—In selecting States and
local educational agencies for participation in the demonstration project, the Secretary may take into consideration such factors as the Secretary considers to be
appropriate, which may include—
(I) the rate of direct certification;
(II) the share of individuals who are eligible
for benefits under the supplemental nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) who
participate in the program, as determined by the
Secretary;
(III) the income eligibility limit for the Medicaid program;
(IV) the feasibility of matching data between
local educational agencies and the Medicaid program;
(V) the socioeconomic profile of the State or
local educational agencies; and
(VI) the willingness of the State and local
educational agencies to comply with the requirements of the demonstration project.
(F) ACCESS TO DATA.—For purposes of conducting the
demonstration project under this paragraph, the Secretary
shall have access to—
(i) educational and other records of State and local
educational and other agencies and institutions receiving funding or providing benefits for 1 or more programs authorized under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
(ii) income and program participation information
from public agencies administering the Medicaid program.
(G) REPORT TO CONGRESS.—
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(i) IN GENERAL.—Not later than October 1, 2014,
the Secretary shall submit to the Committee on Education and Labor of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry
of the Senate, an interim report that describes the results of the demonstration project required under this
paragraph.
(ii) FINAL REPORT.—Not later than October 1,
2015, the Secretary shall submit a final report to the
committees described in clause (i).
(H) FUNDING.—
(i) IN GENERAL.—On October 1, 2010, out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary to carry out subparagraph (G) $5,000,000, to remain available until expended.
(ii) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out subparagraph (G) the funds transferred
under clause (i), without further appropriation.
(c) School lunch programs under this Act shall be operated on
a nonprofit basis. Commodities purchased under the authority of
section 32 of the Act of August 24, 1935, ø(7 U.S.C. 612c)¿ may be
donated by the Secretary to schools, in accordance with the needs
as determined by local school authorities, for utilization in the
school lunch program under this Act as well as to other schools carrying out nonprofit school lunch programs and institutions authorized to receive such commodities. The requirements of this section
relating to the service of meals without cost or at a reduced cost
shall apply to the lunch program of any school utilizing commodities donated under any provision of law.
(d)(1) The Secretary shall require as a condition of eligibility
for receipt of free or reduced price lunches that the member of the
household who executes the application furnish the last 4 digits of
the social security account number of the parent or guardian who
is the primary wage earner responsible for the care of the child for
whom the application is made, or that of another appropriate adult
member of the child’s household, as determined by the Secretary.
(2) No member of a household may be provided a free or reduced price lunch under this Act unless—
(A) appropriate documentation relating to the income of
such household (as prescribed by the Secretary) has been provided to the appropriate local educational agency so that the
local educational agency may calculate the total income of such
household;
(B) documentation showing that the household is participating in the supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 ø(7 U.S.C. 2011 et seq.)¿
has been provided to the appropriate local educational agency;
(C) documentation has been provided to the appropriate
local educational agency showing that the family is receiving
assistance under the State program funded under part A of
title IV of the Social Security Act that the Secretary determines complies with standards established by the Secretary
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that ensure that the standards under the State program are
comparable to or more restrictive than those in effect on June
1, 1995;
(D) documentation has been provided to the appropriate
local educational agency showing that the child meets the criteria specified in clauses (iv) or (v) of subsection (b)(12)(A);
(E) documentation has been provided to the appropriate
local educational agency showing the status of the child as a
migratory child (as defined in section 1309 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6399));
(F)(i) documentation has been provided to the appropriate local educational agency showing the status of the
child as a foster child whose care and placement is the responsibility of an agency that administers a State plan
under part B or E of title IV of the Social Security Act (42
U.S.C. 621 et seq.); or
(ii) documentation has been provided to the appropriate local educational agency showing the status of the
child as a foster child who a court has placed with a caretaker household; or
(G) documentation has been provided to the appropriate local educational agency showing the status of the
child as an eligible child (as defined in subsection
(b)(15)(A)).
(e) A school or school food authority participating in a program
under this Act may not contract with a food service company to
provide a la carte food service unless the company agrees to offer
free, reduced price, and full-price reimbursable meals to all eligible
children.
(f) NUTRITIONAL REQUIREMENTS.—
(1) IN GENERAL.—Schools that are participating in the
school lunch program or school breakfast program shall serve
lunches and breakfasts that—
(A) are consistent with the goals of the most recent Dietary Guidelines for Americans published under section
301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341); and
(B) consider the nutrient needs of children who may be
at risk for inadequate food intake and food insecurity.
(2) To assist schools in meeting the requirements of this subsection, the Secretary—
(A) shall—
(i) develop, and provide to schools, standardized recipes, menu cycles, and food product specification and preparation techniques; and
(ii) provide to schools information regarding nutrient
standard menu planning, assisted nutrient standard menu
planning, and food-based menu systems; and
(B) may provide to schools information regarding other approaches, as determined by the Secretary.
(3) USE OF ANY REASONABLE APPROACH.—
(A) IN GENERAL.—A school food service authority may use
any reasonable approach, within guidelines established by the
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Secretary in a timely manner, to meet the requirements of this
subsection, including—
(i) using the school nutrition meal pattern in effect for
the 1994–1995 school year; and
(ii) using any of the approaches described in paragraph (3).
(B) NUTRIENT ANALYSIS.—The Secretary may not require a
school to conduct or use a nutrient analysis to meet the requirements of this subsection.
(4) WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR
NUTRIENT ANALYSIS.—During the period ending on September
30, 2010, the Secretary shall not require the use of weighted
averages for nutrient analysis of menu items and foods offered
or served as part of a meal offered or served under the school
lunch program under this Act or the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
(g) Not later than 1 year after the date of enactment of this
subsection, the Secretary shall provide a notification to Congress
that justifies the need for production records required under section
210.10(b) of title 7, Code of Federal Regulations, and describes how
the Secretary has reduced paperwork relating to the school lunch
and school breakfast programs.
(h) FOOD SAFETY.—
(1) IN GENERAL.—A school participating in the school lunch
program under this Act or the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
shall—
(A) at least twice during each school year, obtain a
food safety inspection conducted by a State or local governmental agency responsible for food safety inspections;
(B) post in a publicly visible location a report on the
most recent inspection conducted under subparagraph (A);
and
(C) on request, provide a copy of the report to a member of the public.
(2) STATE AND LOCAL GOVERNMENT INSPECTIONS.—Nothing
in paragraph (1) prevents any State or local government from
adopting or enforcing any requirement for more frequent food
safety inspections of schools.
(3) AUDITS AND REPORTS BY STATES.—For fiscal year
2020 5, each State shall annually—
(A) audit food safety inspections of schools conducted
under paragraphs (1) and (2); and
(B) submit to the Secretary a report of the results of
the audit.
5 The account in title IV of division A of Public Law 115-141, under the heading ‘‘Food and
Nutrition Service-child nutrition programs (including transfers of funds)’’ amends sections
9(h)(3) and 9(h)(4) in the first sentence by striking ‘‘for fiscal year 2017’’ and inserting ‘‘for fiscal
year 2018’’. The ‘‘f’’ in the word ‘‘for’’ from the stricken matter appeared capitalized in law, however, both amendments were carried out to reflect the probable intent of Congress, including
also uppercasing the letter ‘‘f’’ in the word ‘‘for’’ in the matter being inserted.

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(4) AUDIT BY THE SECRETARY.—For fiscal year 2020, the
Secretary shall annually audit State reports of food safety inspections of schools submitted under paragraph (3).
(5) SCHOOL FOOD SAFETY PROGRAM.—
(A) IN GENERAL.—Each school food authority shall implement a school food safety program, in the preparation
and service of each meal served to children, that complies
with any hazard analysis and critical control point system
established by the Secretary.
(B) APPLICABILITY.—Subparagraph (A) shall apply to
any facility or part of a facility in which food is stored, prepared, or served for the purposes of the school nutrition
programs under this Act or section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773).
(i) SINGLE PERMANENT AGREEMENT BETWEEN STATE AGENCY
AND SCHOOL FOOD AUTHORITY; COMMON CLAIMS FORM.—
(1) IN GENERAL.—If a single State agency administers any
combination of the school lunch program under this Act, the
school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), the summer food service program for children under section 13 of this Act, or the child and
adult care food program under section 17 of this Act, the agency shall—
(A) require each school food authority to submit to the
State agency a single agreement with respect to the operation by the authority of the programs administered by the
State agency; and
(B) use a common claims form with respect to meals
and supplements served under the programs administered
by the State agency.
(2) ADDITIONAL REQUIREMENT.—The agreement described
in paragraph (1)(A) shall be a permanent agreement that may
be amended as necessary.
(j) PURCHASES OF LOCALLY PRODUCED FOODS.—The Secretary
shall—
(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
to purchase unprocessed agricultural products, both locally
grown and locally raised, to the maximum extent practicable
and appropriate;
(2) advise institutions participating in a program described
in paragraph (1) of the policy described in that paragraph and
paragraph (3) and post information concerning the policy on
the website maintained by the Secretary; and
(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), including the Department of Defense Fresh Fruit and Vegetable
Program, to use a geographic preference for the procurement
of unprocessed agricultural products, both locally grown and locally raised.
(k) INFORMATION ON THE SCHOOL NUTRITION ENVIRONMENT.—
(1) IN GENERAL.—The Secretary shall—
(A) establish requirements for local educational agencies participating in the school lunch program under this
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Act and the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
to report information about the school nutrition environment, for all schools under the jurisdiction of the local educational agencies, to the Secretary and to the public in the
State on a periodic basis; and
(B) provide training and technical assistance to States
and local educational agencies on the assessment and reporting of the school nutrition environment, including the
use of any assessment materials developed by the Secretary.
(2) REQUIREMENTS.—In establishing the requirements for
reporting on the school nutrition environment under paragraph
(1), the Secretary shall—
(A) include information pertaining to food safety inspections, local wellness policies, meal program participation, the nutritional quality of program meals, and other
information as determined by the Secretary; and
(B) ensure that information is made available to the
public by local educational agencies in an accessible, easily
understood manner in accordance with guidelines established by the Secretary.
(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection such sums
as are necessary for each of fiscal years 2011 through 2015.
(l) FOOD DONATION PROGRAM.—
(1) IN GENERAL.—Each school and local educational agency
participating in the school lunch program under this Act may
donate any food not consumed under such program to eligible
local food banks or charitable organizations.
(2) GUIDANCE.—
(A) IN GENERAL.—Not later than 180 days after the
date of the enactment of this subsection, the Secretary
shall develop and publish guidance to schools and local
educational agencies participating in the school lunch program under this Act to assist such schools and local educational agencies in donating food under this subsection.
(B) UPDATES.—The Secretary shall update such guidance as necessary.
(3) LIABILITY.—Any school or local educational agency
making donations pursuant to this subsection shall be exempt
from civil and criminal liability to the extent provided under
the Bill Emerson Good Samaritan Food Donation Act (42
U.S.C. 1791).
(4) DEFINITION.—In this subsection, the term ‘‘eligible local
food banks or charitable organizations’’ means any food bank
or charitable organization which is exempt from tax under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C.
501(c)(3)).
SEC. 9A. ø42 U.S.C. 1758b¿ LOCAL SCHOOL WELLNESS POLICY.
(a) IN GENERAL.—Each local educational agency participating

in a program authorized by this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) shall establish a local school wellness
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policy for all schools under the jurisdiction of the local educational
agency.
(b) GUIDELINES.—The Secretary shall promulgate regulations
that provide the framework and guidelines for local educational
agencies to establish local school wellness policies, including, at a
minimum,—
(1) goals for nutrition promotion and education, physical
activity, and other school-based activities that promote student
wellness;
(2) for all foods available on each school campus under the
jurisdiction of the local educational agency during the school
day, nutrition guidelines that—
(A) are consistent with sections 9 and 17 of this Act,
and sections 4 and 10 of the Child Nutrition Act of 1966
(42 U.S.C. 1773, 1779); and
(B) promote student health and reduce childhood obesity;
(3) a requirement that the local educational agency permit
parents, students, representatives of the school food authority,
teachers of physical education, school health professionals, the
school board, school administrators, and the general public to
participate in the development, implementation, and periodic
review and update of the local school wellness policy;
(4) a requirement that the local educational agency inform
and update the public (including parents, students, and others
in the community) about the content and implementation of
the local school wellness policy; and
(5) a requirement that the local educational agency—
(A) periodically measure and make available to the
public an assessment on the implementation of the local
school wellness policy, including—
(i) the extent to which schools under the jurisdiction of the local educational agency are in compliance
with the local school wellness policy;
(ii) the extent to which the local school wellness
policy of the local educational agency compares to
model local school wellness policies; and
(iii) a description of the progress made in attaining the goals of the local school wellness policy; and
(B) designate 1 or more local educational agency officials or school officials, as appropriate, to ensure that each
school complies with the local school wellness policy.
(c) LOCAL DISCRETION.—The local educational agency shall use
the guidelines promulgated by the Secretary under subsection (b)
to determine specific policies appropriate for the schools under the
jurisdiction of the local educational agency.
(d) TECHNICAL ASSISTANCE AND BEST PRACTICES.—
(1) IN GENERAL.—The Secretary, in consultation with the
Secretary of Education and the Secretary of Health and
Human Services, acting through the Centers for Disease Control and Prevention, shall provide information and technical
assistance to local educational agencies, school food authorities,
and State educational agencies for use in establishing healthy
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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school environments that are intended to promote student
health and wellness.
(2) CONTENT.—The Secretary shall provide technical assistance that—
(A) includes resources and training on designing, implementing, promoting, disseminating, and evaluating
local school wellness policies and overcoming barriers to
the adoption of local school wellness policies;
(B) includes model local school wellness policies and
best practices recommended by Federal agencies, State
agencies, and nongovernmental organizations;
(C) includes such other technical assistance as is required to promote sound nutrition and establish healthy
school nutrition environments; and
(D) is consistent with the specific needs and requirements of local educational agencies.
(3) STUDY AND REPORT.—
(A) IN GENERAL.—Subject to the availability of appropriations, the Secretary, in conjunction with the Director
of the Centers for Disease Control and Prevention, shall
prepare a report on the implementation, strength, and effectiveness of the local school wellness policies carried out
in accordance with this section.
(B) STUDY OF LOCAL SCHOOL WELLNESS POLICIES.—The
study described in subparagraph (A) shall include——
(i) an analysis of the strength and weaknesses of
local school wellness policies and how the policies compare with model local wellness policies recommended
under paragraph (2)(B); and
(ii) an assessment of the impact of the local school
wellness policies in addressing the requirements of
subsection (b).
(C) REPORT.—Not later than January 1, 2014, the Secretary shall submit to the Committee on Education and
Labor of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study.
(D) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this paragraph
$3,000,000 for fiscal year 2011, to remain available until
expended.
DISBURSEMENT TO SCHOOLS BY THE SECRETARY

SEC. 10. ø42 U.S.C. 1759¿ (a) The Secretary shall withhold
funds payable to a State under this Act and disburse the funds directly to schools, institutions, or service institutions within the
State for the purposes authorized by this Act to the extent that the
Secretary has so withheld and disbursed such funds continuously
since October 1, 1980, but only to such extent (except as otherwise
required by subsection (b)). Any funds so withheld and disbursed
by the Secretary shall be used for the same purposes, and shall be
subject to the same conditions, as applicable to a State disbursing
funds made available under this Act. If the Secretary is administering (in whole or in part) any program authorized under this
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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Act, the State in which the Secretary is administering the program
may, upon request to the Secretary, assume administration of that
program.
(b) If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic
schools in the State, the Secretary shall disburse the funds directly
to such schools within the State for the same purposes and subject
to the same conditions as are authorized or required with respect
to the disbursements to public schools within the State by the
State educational agency.
SPECIAL ASSISTANCE

SEC. 11. ø42 U.S.C. 1759a¿ (a)(1)(A) Except as provided in section 10 of this Act, in each fiscal year each State educational agency shall receive special assistance payments in an amount equal to
the sum of the product obtained by multiplying the number of
lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary pursuant to subsection 9(a) of this Act) served free to children eligible
for such lunches in schools within that State during such fiscal
year by the special assistance factor for free lunches prescribed by
the Secretary for such fiscal year and the product obtained by multiplying the number of lunches served at a reduced price to children eligible for such reduced price lunches in schools within that
State during such fiscal year by the special assistance factor for reduced price lunches prescribed by the Secretary for such fiscal
year.
(B) Except as provided in subparagraph (C), (D), (E), or (F), in
the case of any school which determines that at least 80 percent
of the children in attendance during a school year (hereinafter in
this sentence referred to as the ‘‘first school year’’) are eligible for
free lunches or reduced price lunches, special assistance payments
shall be paid to the State educational agency with respect to that
school, if that school so requests for the school year following the
first school year, on the basis of the number of free lunches or reduced priced lunches, as the case may be, that are served by that
school during the school year for which the request is made, to
those children who were determined to be so eligible in the first
school year and the number of free lunches and reduced price
lunches served during that year to other children determined for
that year to be eligible for such lunches.
(C)(i) Except as provided in subparagraph (D), in the case of
any school or school district that—
(I) elects to serve all children in the school or school district free lunches under the school lunch program during any
period of 4 successive school years, or in the case of a school
or school district that serves both lunches and breakfasts,
elects to serve all children in the school or school district free
lunches and free breakfasts under the school lunch program
and the school breakfast program established under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) during any
period of 4 successive school years; and
(II) pays, from sources other than Federal funds, for the
costs of serving the lunches or breakfasts that are in excess of
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the value of assistance received under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) with respect to
the number of lunches or breakfasts served during the period;
special assistance payments shall be paid to the State educational
agency with respect to the school or school district during the period on the basis of the number of lunches or breakfasts determined under clause (ii) or (iii).
(ii) For purposes of making special assistance payments under
clause (i), except as provided in clause (iii), the number of lunches
or breakfasts served by a school or school district to children who
are eligible for free lunches or breakfasts or reduced price lunches
or breakfasts during each school year of the 4-school-year period
shall be considered to be equal to the number of lunches or breakfasts served by the school or school district to children eligible for
free lunches or breakfasts or reduced price lunches or breakfasts
during the first school year of the period.
(iii) For purposes of computing the amount of the payments, a
school or school district may elect to determine on a more frequent
basis the number of children who are eligible for free or reduced
price lunches or breakfasts who are served lunches or breakfasts
during the 4-school-year period.
(D)(i) In the case of any school or school district that is receiving special assistance payments under this paragraph for a 4school-year period described in subparagraph (C), the State may
grant, at the end of the 4-school-year period, an extension of the
period for an additional 4 school years, if the State determines,
through available socioeconomic data approved by the Secretary,
that the income level of the population of the school or school district has remained stable.
(ii) A school or school district described in clause (i) may reapply to the State at the end of the 4-school-year period, and at the
end of each 4-school-year period thereafter for which the school or
school district receives special assistance payments under this
paragraph, for the purpose of continuing to receive the payments
for a subsequent 4-school-year period.
(iii) If the Secretary determines after considering the best
available socioeconomic data that the income level of families of
children enrolled in a school or school district has not remained
stable, the Secretary may require the submission of applications for
free and reduced price lunches, or for free and reduced price
lunches and breakfasts, in the first school year of any 4-school-year
period for which the school or school district receives special assistance payments under this paragraph, for the purpose of calculating
the special assistance payments.
(iv) For the purpose of updating information and reimbursement levels, a school or school district described in clause (i) that
carries out a school lunch or school breakfast program may at any
time require submission of applications for free and reduced price
lunches or for free and reduced price lunches and breakfasts.
(E)(i) In the case of any school or school district that—
(I) elects to serve all children in the school or school district free lunches under the school lunch program during any
period of 4 successive school years, or in the case of a school
or school district that serves both lunches and breakfasts,
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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elects to serve all children in the school or school district free
lunches and free breakfasts under the school lunch program
and the school breakfast program during any period of 4 successive school years; and
(II) pays, from sources other than Federal funds, for the
costs of serving the lunches or breakfasts that are in excess of
the value of assistance received under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) with respect to
the number of lunches or breakfasts served during the period;
total Federal cash reimbursements and total commodity assistance
shall be provided to the State educational agency with respect to
the school or school district at a level that is equal to the total Federal cash reimbursements and total commodity assistance received
by the school or school district in the last school year for which the
school or school district accepted applications under the school
lunch or school breakfast program, adjusted annually for inflation
in accordance with paragraph (3)(B) and for changes in enrollment,
to carry out the school lunch or school breakfast program.
(ii) A school or school district described in clause (i) may reapply to the State at the end of the 4-school-year period described
in clause (i), and at the end of each 4-school-year period thereafter
for which the school or school district receives reimbursements and
assistance under this subparagraph, for the purpose of continuing
to receive the reimbursements and assistance for a subsequent 4school-year period. The State may approve an application under
this clause if the State determines, through available socioeconomic
data approved by the Secretary, that the income level of the population of the school or school district has remained consistent with
the income level of the population of the school or school district
in the last school year for which the school or school district accepted the applications described in clause (i).
(F) UNIVERSAL MEAL SERVICE IN HIGH POVERTY
AREAS.—
(i) DEFINITION OF IDENTIFIED STUDENTS.—The
term ‘‘identified students’’ means students certified
based on documentation of benefit receipt or categorical eligibility as described in section 245.6a(c)(2) of
title 7, Code of Federal Regulations (or successor regulations).
(ii) ELECTION OF SPECIAL ASSISTANCE PAYMENTS.—
(I) IN GENERAL.—A local educational agency
may, for all schools in the district or on behalf of
certain schools in the district, elect to receive special assistance payments under this subparagraph
in lieu of special assistance payments otherwise
made available under this paragraph based on applications for free and reduced price lunches if—
(aa) during a period of 4 successive school
years, the local educational agency elects to
serve all children in the applicable schools
free lunches and breakfasts under the school
lunch program under this Act and the school
breakfast program established under section 4
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of the Child Nutrition Act of 1966 (42 U.S.C.
1773);
(bb) the local educational agency pays,
from sources other than Federal funds, the
costs of serving the lunches or breakfasts that
are in excess of the value of assistance received under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.);
(cc) the local educational agency is not a
residential child care institution (as that term
is used in section 210.2 of title 7, Code of Federal Regulations (or successor regulations));
and
(dd) during the school year prior to the
first year of the period for which the local
educational agency elects to receive special assistance payments under this subparagraph,
the local educational agency or school had a
percentage of enrolled students who were
identified students that meets or exceeds the
threshold described in clause (viii).
(II) ELECTION TO STOP RECEIVING PAYMENTS.—A local educational agency may, for all
schools in the district or on behalf of certain
schools in the district, elect to stop receiving special assistance payments under this subparagraph
for the following school year by notifying the State
agency not later than June 30 of the current
school year of the intention to stop receiving special assistance payments under this subparagraph.
(iii) FIRST YEAR OF OPTION.—
(I) SPECIAL ASSISTANCE PAYMENT.—For each
month of the first school year of the 4-year period
during which a school or local educational agency
elects to receive payments under this subparagraph, special assistance payments at the rate for
free meals shall be made under this subparagraph
for a percentage of all reimbursable meals served
in an amount equal to the product obtained by
multiplying—
(aa) the multiplier described in clause
(vii); by
(bb) the percentage of identified students
at the school or local educational agency as of
April 1 of the prior school year, up to a maximum of 100 percent.
(II) PAYMENT FOR OTHER MEALS.—The percentage of meals served that is not described in
subclause (I) shall be reimbursed at the rate provided under section 4.
(iv) SECOND, THIRD, OR FOURTH YEAR OF OPTION.—
(I) SPECIAL ASSISTANCE PAYMENT.—For each
month of the second, third, or fourth school year
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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of the 4-year period during which a school or local
educational agency elects to receive payments
under this subparagraph, special assistance payments at the rate for free meals shall be made
under this subparagraph for a percentage of all
reimbursable meals served in an amount equal to
the product obtained by multiplying—
(aa) the multiplier described in clause
(vii); by
(bb) the higher of the percentage of identified students at the school or local educational agency as of April 1 of the prior
school year or the percentage of identified students at the school or local educational agency
as of April 1 of the school year prior to the
first year that the school or local educational
agency elected to receive special assistance
payments under this subparagraph, up to a
maximum of 100 percent.
(II) PAYMENT FOR OTHER MEALS.—The percentage of meals served that is not described in
subclause (I) shall be reimbursed at the rate provided under section 4.
(v) GRACE YEAR.—
(I) IN GENERAL.—If, not later than April 1 of
the fourth year of a 4-year period described in
clause (ii)(I), a school or local educational agency
has a percentage of enrolled students who are
identified students that meets or exceeds a percentage that is 10 percentage points lower than
the threshold described in clause (viii), the school
or local educational agency may elect to receive
special assistance payments under subclause (II)
for an additional grace year.
(II) SPECIAL ASSISTANCE PAYMENT.—For each
month of a grace year, special assistance payments at the rate for free meals shall be made
under this subparagraph for a percentage of all
reimbursable meals served in an amount equal to
the product obtained by multiplying—
(aa) the multiplier described in clause
(vii); by
(bb) the percentage of identified students
at the school or local educational agency as of
April 1 of the prior school year, up to a maximum of 100 percent.
(III) PAYMENT FOR OTHER MEALS.—The percentage of meals served that is not described in
subclause (II) shall be reimbursed at the rate provided under section 4.
(vi) APPLICATIONS.—A school or local educational
agency that receives special assistance payments
under this subparagraph may not be required to collect applications for free and reduced price lunches.
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(vii) MULTIPLIER.—
(I) PHASE-IN.—For each school year beginning
on or before July 1, 2013, the multiplier shall be
1.6.
(II) FULL IMPLEMENTATION.—For each school
year beginning on or after July 1, 2014, the Secretary may use, as determined by the Secretary—
(aa) a multiplier between 1.3 and 1.6; and
(bb) subject to item (aa), a different multiplier for different schools or local educational
agencies.
(viii) THRESHOLD.—
(I) PHASE-IN.—For each school year beginning
on or before July 1, 2013, the threshold shall be
40 percent.
(II) FULL IMPLEMENTATION.—For each school
year beginning on or after July 1, 2014, the Secretary may use a threshold that is less than 40
percent.
(ix) PHASE-IN.—
(I) IN GENERAL.—In selecting States for participation during the phase-in period, the Secretary shall select States with an adequate number and variety of schools and local educational
agencies that could benefit from the option under
this subparagraph, as determined by the Secretary.
(II) LIMITATION.—The Secretary may not approve additional schools and local educational
agencies to receive special assistance payments
under this subparagraph after the Secretary has
approved schools and local educational agencies
in—
(aa) for the school year beginning on July
1, 2011, 3 States; and
(bb) for each of the school years beginning
July 1, 2012 and July 1, 2013, an additional
4 States per school year.
(x) ELECTION OF OPTION.—
(I) IN GENERAL.—For each school year beginning on or after July 1, 2014, any local educational agency eligible to make the election described in clause (ii) for all schools in the district
or on behalf of certain schools in the district may
elect to receive special assistance payments under
clause (iii) for the next school year if, not later
than June 30 of the current school year, the local
educational agency submits to the State agency
the percentage of identified students at the school
or local educational agency.
(II) STATE AGENCY NOTIFICATION.—Not later
than May 1 of each school year beginning on or
after July 1, 2011, each State agency with schools
or local educational agencies that may be eligible
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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to elect to receive special assistance payments
under this subparagraph shall notify—
(aa) each local educational agency that
meets or exceeds the threshold described in
clause (viii) that the local educational agency
is eligible to elect to receive special assistance
payments under clause (iii) for the next 4
school years, of the blended reimbursement
rate the local educational agency would receive under clause (iii), and of the procedures
for the local educational agency to make the
election;
(bb) each local educational agency that receives special assistance payments under
clause (iii) of the blended reimbursement rate
the local educational agency would receive
under clause (iv);
(cc) each local educational agency in the
fourth year of electing to receive special assistance payments under this subparagraph
that meets or exceeds a percentage that is 10
percentage points lower than the threshold
described in clause (viii) and that receives
special assistance payments under clause (iv),
that the local educational agency may continue to receive such payments for the next
school year, of the blended reimbursement
rate the local educational agency would receive under clause (v), and of the procedures
for the local educational agency to make the
election; and
(dd) each local educational agency that
meets or exceeds a percentage that is 10 percentage points lower than the threshold described in clause (viii) that the local educational agency may be eligible to elect to receive special assistance payments under
clause (iii) if the threshold described in clause
(viii) is met by April 1 of the school year or
if the threshold is met for a subsequent school
year.
(III) PUBLIC NOTIFICATION OF LOCAL EDUCATIONAL AGENCIES.—Not later than May 1 of
each school year beginning on or after July 1,
2011, each State agency with 1 or more schools or
local educational agencies eligible to elect to receive special assistance payments under clause
(iii) shall submit to the Secretary, and the Secretary shall publish, lists of the local educational
agencies receiving notices under subclause (II).
(IV) PUBLIC NOTIFICATION OF SCHOOLS.—Not
later than May 1 of each school year beginning on
or after July 1, 2011, each local educational agency in a State with 1 or more schools eligible to
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elect to receive special assistance payments under
clause (iii) shall submit to the State agency, and
the State agency shall publish—
(aa) a list of the schools that meet or exceed the threshold described in clause (viii);
(bb) a list of the schools that meet or exceed a percentage that is 10 percentage points
lower than the threshold described in clause
(viii) and that are in the fourth year of receiving special assistance payments under clause
(iv); and
(cc) a list of the schools that meet or exceed a percentage that is 10 percentage points
lower than the threshold described in clause
(viii).
(xi) IMPLEMENTATION.—
(I) GUIDANCE.—Not later than 90 days after
the date of enactment of this subparagraph, the
Secretary shall issue guidance to implement this
subparagraph.
(II) REGULATIONS.—Not later than December
31, 2013, the Secretary shall promulgate regulations that establish procedures for State agencies,
local educational agencies, and schools to meet the
requirements of this subparagraph, including exercising the option described in this subparagraph.
(III) PUBLICATION.—If the Secretary uses the
authority provided in clause (vii)(II)(bb) to use a
different multiplier for different schools or local
educational agencies, for each school year beginning on or after July 1, 2014, not later than April
1, 2014, the Secretary shall publish on the website
of the Secretary a table that indicates—
(aa) each local educational agency that
may elect to receive special assistance payments under clause (ii);
(bb) the blended reimbursement rate that
each local educational agency would receive;
and
(cc) an explanation of the methodology
used to calculate the multiplier or threshold
for each school or local educational agency.
(xii) REPORT.—Not later than December 31, 2013,
the Secretary shall publish a report that describes—
(I) an estimate of the number of schools and
local educational agencies eligible to elect to receive special assistance payments under this subparagraph that do not elect to receive the payments;
(II) for schools and local educational agencies
described in subclause (I)—
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graph, as described by the nonparticipating
schools and local educational agencies; and
(bb) changes to the special assistance option under this subparagraph that would
make eligible schools and local educational
agencies more likely to elect to receive special
assistance payments;
(III) for schools and local educational agencies
that elect to receive special assistance payments
under this subparagraph—
(aa) the number of schools and local educational agencies;
(bb) an estimate of the percentage of
identified students and the percentage of enrolled students who were certified to receive
free or reduced price meals in the school year
prior to the election to receive special assistance payments under this subparagraph, and
a description of how the ratio between those
percentages compares to 1.6;
(cc) an estimate of the number and share
of schools and local educational agencies in
which more than 80 percent of students are
certified for free or reduced price meals that
elect to receive special assistance payments
under that clause; and
(dd) whether any of the schools or local
educational agencies stopped electing to receive special assistance payments under this
subparagraph;
(IV) the impact of electing to receive special
assistance payments under this subparagraph
on—
(aa) program integrity;
(bb) whether a breakfast program is offered;
(cc) the type of breakfast program offered;
(dd) the nutritional quality of school
meals; and
(ee) program participation; and
(V) the multiplier and threshold, as described
in clauses (vii) and (viii) respectively, that the Secretary will use for each school year beginning on
or after July 1, 2014 and the rationale for any
change in the multiplier or threshold.
(xiii) FUNDING.—
(I) IN GENERAL.—On October 1, 2010, out of
any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary to carry out clause (xii)
$5,000,000, to remain available until September
30, 2014.
(II) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall
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use to carry out clause (xii) the funds transferred
under subclause (I), without further appropriation.
(2) The special assistance factor prescribed by the Secretary for
free lunches shall be 98.75 cents and the special assistance factor
for reduced price lunches shall be 40 cents less than the special assistance factor for free lunches.
(3)(A) The Secretary shall prescribe on July 1, 1982, and on
each subsequent July 1, an annual adjustment in the following:
(i) The national average payment rates for lunches (as established under section 4 of this Act).
(ii) the special assistance factor for lunches (as established
under paragraph (2) of this subsection).
(iii) The national average payment rates for breakfasts (as
established under section 4(b) of the Child Nutrition Act of
1966 ø(42 U.S.C. 1773(b))¿).
(iv) The national average payment rates for supplements
(as established under section 17(c) of this Act).
(B) COMPUTATION OF ADJUSTMENT.—
(i) IN GENERAL.—The annual adjustment under
this paragraph shall reflect changes in the cost of operating meal programs under this Act and the Child
Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿, as indicated by the change in the series for food away from
home of the Consumer Price Index for all Urban Consumers, published by the Bureau of Labor Statistics of
the Department of Labor.
(ii) BASIS.—Each annual adjustment shall reflect
the changes in the series for food away from home for
the most recent 12-month period for which such data
are available.
(iii) ROUNDING.—On July 1, 1999, and on each
subsequent July 1, the national average payment
rates for meals and supplements shall be adjusted to
the nearest lower cent increment and shall be based
on the unrounded amounts for the preceding 12-month
period.
(b) Except as provided in section 10 of the Child Nutrition Act
of 1966 ø(42 U.S.C. 1779)¿, the special assistance payments made
to each State agency during each fiscal year under the provisions
of this section shall be used by such State agency to assist schools
of that State in providing free and reduced price lunches served to
children pursuant to subsection 9(b) of this Act. The amount of
such special assistance funds that a school shall from time to time
receive, within a maximum per lunch amount established by the
Secretary for all States, shall be based on the need of the school
for such special assistance. Such maximum per lunch amount established by the Secretary shall not be less than 60 cents.
(c) Special assistance payments to any State under this section
shall be made as provided in the last sentence of section 7 of this
Act.
(d)(1) The Secretary, when appropriate, may request each
school participating in the school lunch program under this Act to
report monthly to the State educational agency the average numDecember 20, 2019

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ber of children in the school who received free lunches and the average number of children who received reduced price lunches during the immediately preceding month.
(2) On request of the Secretary, the State educational agency
of each State shall report to the Secretary the average number of
children in the State who received free lunches and the average
number of children in the State who received reduced price lunches
during the immediately preceding month.
(e) Commodity only schools shall also be eligible for special assistance payments under this section. Such schools shall serve
meals free to children who meet the eligibility requirements for
free meals under section 9(b) of this Act, and shall serve meals at
a reduced price, not exceeding the price specified in section 9(b)(9)
of this Act, to children meeting the eligibility requirements for reduced price meals under such section. No physical segregation of,
or other discrimination against, any child eligible for a free or reduced priced lunch shall be made by the school, nor shall there by
any overt identification of any such child by any means.
ø(f) 6 ¿
(g) UNIVERSAL MEAL SERVICE THROUGH CENSUS DATA.—
(1) IN GENERAL.—To the maximum extent practicable, the
Secretary shall identify alternatives to—
(A) the daily counting by category of meals provided
by school lunch programs under this Act and the school
breakfast program established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773); and
(B) the use of annual applications as the basis for eligibility to receive free meals or reduced price meals under
this Act.
(2) RECOMMENDATIONS.—
(A) CONSIDERATIONS.—
(i) IN GENERAL.—In identifying alternatives under
paragraph (1), the Secretary shall consider the recommendations of the Committee on National Statistics
of the National Academy of Sciences relating to use of
the American Community Survey of the Bureau of the
Census and other data sources.
(ii) SOCIOECONOMIC SURVEY.—The Secretary shall
consider use of a periodic socioeconomic survey of
households of children attending school in the school
food authority in not more than 3 school food authorities participating in the school lunch program under
this Act.
(iii) SURVEY PARAMETERS.—The Secretary shall establish requirements for the use of a socioeconomic
survey under clause (ii), which shall—
(I) include criteria for survey design, sample
frame validity, minimum level of statistical precision, minimum survey response rates, frequency
of data collection, and other criteria as determined
by the Secretary;
6 Subsec.

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(II) be consistent with the Standards and
Guidelines for Statistical Surveys, as published by
the Office of Management and Budget;
(III) be consistent with standards and requirements that ensure proper use of Federal funds;
and
(IV) specify that the socioeconomic survey be
conducted at least once every 4 years.
(B) USE OF ALTERNATIVES.—Alternatives described in
subparagraph (A) that provide accurate and effective
means of providing meal reimbursement consistent with
the eligibility status of students may be—
(i) implemented for use in schools or by school
food authorities that agree—
(I) to serve all breakfasts and lunches to students at no cost in accordance with regulations
issued by the Secretary; and
(II) to pay, from sources other than Federal
funds, the costs of serving any lunches and breakfasts that are in excess of the value of assistance
received under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.) with respect to
the number of lunches and breakfasts served during the applicable period; or
(ii) further tested through demonstration projects
carried out by the Secretary in accordance with subparagraph (C).
(C) DEMONSTRATION PROJECTS.—
(i) IN GENERAL.—For the purpose of carrying out
demonstration projects described in subparagraph (B),
the Secretary may waive any requirement of this Act
relating to—
(I) counting of meals provided by school lunch
or breakfast programs;
(II) applications for eligibility for free or reduced priced meals; or
(III) required direct certification under section
9(b)(4).
(ii) NUMBER OF PROJECTS.—The Secretary shall
carry out demonstration projects under this paragraph
in not more than 5 local educational agencies for each
alternative model that is being tested.
(iii) LIMITATION.—A demonstration project carried
out under this paragraph shall have a duration of not
more than 3 years.
(iv) EVALUATION.—The Secretary shall evaluate
each demonstration project carried out under this
paragraph in accordance with procedures established
by the Secretary.
(v) REQUIREMENT.—In carrying out evaluations
under clause (iv), the Secretary shall evaluate, using
comparisons with local educational agencies with similar demographic characteristics—
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(I) the accuracy of the 1 or more methodologies adopted as compared to the daily counting by
category of meals provided by school meal programs under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.) and the use of annual applications as the basis for eligibility to receive free or reduced price meals under those Acts;
(II) the effect of the 1 or more methodologies
adopted on participation in programs under those
Acts;
(III) the effect of the 1 or more methodologies
adopted on administration of programs under
those Acts; and
(IV) such other matters as the Secretary determines to be appropriate.
MISCELLANEOUS PROVISIONS AND DEFINITIONS

SEC. 12. ø42 U.S.C. 1760¿ (a) States, State educational agencies, and schools participating in the school lunch program under
this Act shall keep such accounts and records as may be necessary
to enable the Secretary to determine whether the provisions of this
Act are being complied with. Such accounts and records shall be
available at any reasonable time for inspection and audit by representatives of the Secretary and shall be preserved for such period
of time, not in excess of five years, as the Secretary determines is
necessary.
(b) AGREEMENTS.—
(1) IN GENERAL.—The Secretary shall incorporate, in the
agreement of the Secretary with the State agencies administering programs authorized under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the express requirements with respect to the operation of the programs to
the extent applicable and such other provisions as in the opinion of the Secretary are reasonably necessary or appropriate to
effectuate the purposes of this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.).
(2) EXPECTATIONS FOR USE OF FUNDS.—Agreements described in paragraph (1) shall include a provision that—
(A) supports full use of Federal funds provided to
State agencies for the administration of programs authorized under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
(B) excludes the Federal funds from State budget restrictions or limitations including, at a minimum—
(i) hiring freezes;
(ii) work furloughs; and
(iii) travel restrictions.
(c) In carrying out the provisions of this Act, the Secretary
shall not impose any requirement with respect to teaching personnel, curriculum, instruction, methods of instruction, and materials of instruction in any school.
(d) For the purposes of this Act—
(1) CHILD.—
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(A) IN GENERAL.—The term ‘‘child’’ includes an individual, 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 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 disabilities.
(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.
(2) ‘‘Commodity only schools’’ means schools that do not
participate in the school lunch program under this Act, but
which receive commodities made available by the Secretary for
use by such schools in nonprofit lunch programs.
(3) 7 DISABILITY.—The term ‘‘disability’’ has the meaning
given the term in the Rehabilitation Act of 1973 for purposes
of title II of that Act (29 U.S.C 760 et seq.).
(4) LOCAL EDUCATIONAL AGENCY.—
(A) IN GENERAL.—The term ‘‘local educational agency’’
has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965.
(B) INCLUSION.—The term ‘‘local educational agency’’
includes, in the case of a private nonprofit school, an appropriate entity determined by the Secretary.
(5) ‘‘School’’ means (A) any public or nonprofit private
school of high school grade or under, and (B) any public or licensed nonprofit private residential child care institution (including, but not limited to, orphanages and homes for the mentally retarded, but excluding Job Corps Centers funded by the
Department of Labor). For purposes of this paragraph, the
term ‘‘nonprofit’’, when applied to any such private school or
institution, means any such school or institution which is exempt from tax under section 501(c)(3) of the Internal Revenue
Code of 1986.
(6) ‘‘School year’’ means the annual period from July 1
through June 30.
(7) ‘‘Secretary’’ means the Secretary of Agriculture.
(8) ‘‘State’’ means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands.
(9) ‘‘State educational agency’’ means, as the State legislature may determine, (A) the chief State school officer (such as
the State superintendent of public instruction, commissioner of
education, or similar officer), or (B) a board of education controlling the State department of education.
7 This definition added by section 107(j)(3)(A)(ii) of P.L. 105–336, 112 Stat. 3153, Oct. 31, 1998.
Omission of period after ‘‘U.S.C’’ is so in original.

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(e) The value of assistance to children under this Act shall not
be considered to be income or resources for any purposes under any
Federal or State laws, including laws relating to taxation and welfare and public assistance programs.
(f) In providing assistance for breakfasts, lunches, suppers, and
supplements served in Alaska, Hawaii, Guam, American Samoa,
Puerto Rico, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands, the Secretary may establish appropriate adjustments for each such State to the national
average payment rates prescribed under sections 4, 11, 13, and 17
of this Act and section 4 of the Child Nutrition Act of 1966 ø(42
U.S.C. 1773)¿, to reflect the differences between the costs of providing meals and supplements in those States and the costs of providing meals and supplements in all other States.
(g) Whoever embezzles, willfully misapplies, steals, or obtains
by fraud any funds, assets, or property that are the subject of a
grant or other form of assistance under this Act or the Child Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿, whether received directly or indirectly from the United States Department of Agriculture, or whoever receives, conceals, or retains such funds, assets,
or property to personal use or gain, knowing such funds, assets, or
property have been embezzled, willfully misapplied, stolen, or obtained by fraud shall, if such funds, assets, or property are of the
value of $100 or more, be fined not more than $25,000 or imprisoned not more than five years, or both, or, if such funds, assets,
or property are of a value of less than $100, shall be fined not more
than $1,000 or imprisoned for not more than one year, or both.
(h) No provision of this Act or of the Child Nutrition Act of
1966 ø(42 U.S.C. 1771 et seq.)¿ shall require any school receiving
funds under this Act and the Child Nutrition Act of 1966 to account separately for the cost incurred in the school lunch and
school breakfast programs.
(i) Facilities, equipment, and personnel provided to a school
food authority for a program authorized under this Act or the Child
Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿ may be used, as
determined by a local educational agency, to support a nonprofit
nutrition program for the elderly, including a program funded
under the Older Americans Act of 1965 ø(42 U.S.C. 3001 et seq.)¿.
(j)(1) Except as provided in paragraph (2), the Secretary may
provide reimbursements for final claims for service of meals, supplements, and milk submitted to State agencies by eligible schools,
summer camps, family day care homes, institutions, and service institutions only if—
(A) the claims have been submitted to the State agencies
not later than 60 days after the last day of the month for
which the reimbursement is claimed; and
(B) the final program operations report for the month is
submitted to the Secretary not later than 90 days after the last
day of the month.
(2) The Secretary may waive the requirements of paragraph (1)
at the discretion of the Secretary.
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ø(k) 8 ¿
(l)(1)(A) Except as provided in paragraph (4), the Secretary
may waive any requirement under this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), or any regulation issued under
either such Act, for a State or eligible service provider that requests a waiver if—
(i) the Secretary determines that the waiver of the requirement would facilitate the ability of the State or eligible service
provider to carry out the purpose of the program;
(ii) the State or eligible service provider has provided notice and information to the public regarding the proposed waiver; and
(iii) the State or eligible service provider demonstrates to
the satisfaction of the Secretary that the waiver will not increase the overall cost of the program to the Federal Government, and, if the waiver does increase the overall cost to the
Federal Government, the cost will be paid from non-Federal
funds.
(B) The notice and information referred to in subparagraph
(A)(ii) shall be provided in the same manner in which the State or
eligible service provider customarily provides similar notices and
information to the public.
(2)(A) To request a waiver under paragraph (1), a State or eligible service provider (through the appropriate administering State
agency) shall submit an application to the Secretary that—
(i) identifies the statutory or regulatory requirements that
are requested to be waived;
(ii) in the case of a State requesting a waiver, describes actions, if any, that the State has undertaken to remove State
statutory or regulatory barriers;
(iii) describes the goal of the waiver to improve services
under the program and the expected outcomes if the waiver is
granted; and
(iv) includes a description of the impediments to the efficient operation and administration of the program.
(B) An application described in subparagraph (A) shall be developed by the State or eligible service provider and shall be submitted to the Secretary by the State.
(3) The Secretary shall act promptly on a waiver request contained in an application submitted under paragraph (2) and shall
either grant or deny the request. The Secretary shall state in writing the reasons for granting or denying the request.
(4) The Secretary may not grant a waiver under this subsection that increases Federal costs or that relates to—
(A) the nutritional content of meals served;
(B) Federal reimbursement rates;
(C) the provision of free and reduced price meals;
(D) limits on the price charged for a reduced price meal;
(E) maintenance of effort;
(F) equitable participation of children in private schools;
(G) distribution of funds to State and local school food
service authorities and service institutions participating in a
8 Subsec.

December 20, 2019

(k) struck by sec. 441(a)(4) of P.L. 111–296, 124 Stat. 3261, Dec. 13, 2010.

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program under this Act and the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.);
(H) the disclosure of information relating to students receiving free or reduced price meals and other recipients of benefits;
(I) prohibiting the operation of a profit producing program;
(J) the sale of competitive foods;
(K) the commodity distribution program under section 14;
(L) the special supplemental nutrition program authorized
under section 17 of the Child Nutrition Act of 1966 (42 U.S.C.
1786); or
(M) enforcement of any constitutional or statutory right of
an individual, including any right under—
(i) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.);
(ii) section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794);
(iii) title IX of the Education Amendments of 1972 (20
U.S.C. 1681 et seq.);
(iv) the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.);
(v) the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.); and
(vi) the Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.).
(5) The Secretary shall periodically review the performance of
any State or eligible service provider for which the Secretary has
granted a waiver under this subsection and shall terminate the
waiver if the performance of the State or service provider has been
inadequate to justify a continuation of the waiver. The Secretary
shall terminate the waiver if, after periodic review, the Secretary
determines that the waiver has resulted in an increase in the overall cost of the program to the Federal Government and the increase
has not been paid for in accordance with paragraph (1)(A)(iii).
(6) The Secretary shall annually submit to the Committee on
Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report—
(A) summarizing the use of waivers by the State and eligible service providers;
(B) describing whether the waivers resulted in improved
services to children;
(C) describing the impact of the waivers on providing nutritional meals to participants; and
(D) describing how the waivers reduced the quantity of paperwork necessary to administer the program.
(7) As used in this subsection, the term ‘‘eligible service provider’’ means—
(A) a local school food service authority;
(B) a service institution or private nonprofit organization
described in section 13; or
(C) a family or group day care home sponsoring organization described in section 17.
(m) PROCUREMENT TRAINING.—
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(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (4), the Secretary shall provide
technical assistance and training to States, State agencies,
schools, and school food authorities in the procurement of
goods and services for programs under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 of that Act (42 U.S.C. 1786)).
(2) BUY AMERICAN TRAINING.—Activities carried out under
paragraph (1) shall include technical assistance and training to
ensure compliance with subsection (n).
(3) PROCURING SAFE FOODS.—Activities carried out under
paragraph (1) shall include technical assistance and training
on procuring safe foods, including the use of model specifications for procuring safe foods.
(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $1,000,000
for each of fiscal years 2010 through 2015, to remain available
until expended.
(n) BUY AMERICAN.—
(1) DEFINITION OF DOMESTIC COMMODITY OR PRODUCT.—In
this subsection, the term ‘‘domestic commodity or product’’
means—
(A) an agricultural commodity that is produced in the
United States; and
(B) a food product that is processed in the United
States substantially using agricultural commodities that
are produced in the United States.
(2) REQUIREMENT.—
(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall require that a school food authority purchase, to the maximum extent practicable, domestic commodities or products.
(B) LIMITATIONS.—Subparagraph (A) shall apply
only to—
(i) a school food authority located in the
contiguous United States; and
(ii) a purchase of a domestic commodity or product
for the school lunch program under this Act or the
school breakfast program under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).
(3) APPLICABILITY TO HAWAII.—Paragraph (2)(A) shall
apply to a school food authority in Hawaii with respect to domestic commodities or products that are produced in Hawaii in
sufficient quantities to meet the needs of meals provided under
the school lunch program under this Act or the school breakfast program under section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
(4) APPLICABILITY TO PUERTO RICO.—Paragraph (2)(A) shall
apply to a school food authority in the Commonwealth of Puerto Rico with respect to domestic commodities or products that
are produced in the Commonwealth of Puerto Rico in sufficient
quantities to meet the needs of meals provided under the
school lunch program under this Act or the school breakfast
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program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773).
(o) PROCUREMENT CONTRACTS.—In acquiring a good or service
for programs under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) (other than section 17 of that Act (42 U.S.C.
1786)), a State, State agency, school, or school food authority may
enter into a contract with a person that has provided specification
information to the State, State agency, school, or school food authority for use in developing contract specifications for acquiring
such good or service.
(p) PRICE FOR A PAID LUNCH.—
(1) DEFINITION OF PAID LUNCH.—In this subsection, the
term ‘‘paid lunch’’ means a reimbursable lunch served to students who are not certified to receive free or reduced price
meals.
(2) REQUIREMENT.—
(A) IN GENERAL.—For each school year beginning July
1, 2011, each school food authority shall establish a price
for paid lunches in accordance with this subsection.
(B) LOWER PRICE.—
(i) IN GENERAL.—In the case of a school food authority that established a price for a paid lunch in the
previous school year that was less than the difference
between the total Federal reimbursement for a free
lunch and the total Federal reimbursement for a paid
lunch, the school food authority shall establish an average price for a paid lunch that is not less than the
price charged in the previous school year, as adjusted
by a percentage equal to the sum obtained by adding—
(I) 2 percent; and
(II) the percentage change in the Consumer
Price Index for All Urban Consumers (food away
from home index) used to increase the Federal reimbursement rate under section 11 for the most
recent school year for which data are available, as
published in the Federal Register.
(ii) ROUNDING.—A school food authority may
round the adjusted price for a paid lunch under clause
(i) down to the nearest 5 cents.
(iii) MAXIMUM REQUIRED PRICE INCREASE.—
(I) IN GENERAL.—The maximum annual average price increase required to meet the requirements of this subparagraph shall not exceed 10
cents for any school food authority.
(II) DISCRETIONARY INCREASE.—A school food
authority may increase the average price for a
paid lunch for a school year by more than 10
cents.
(C) EQUAL OR GREATER PRICE.—
(i) IN GENERAL.—In the case of a school food authority that established an average price for a paid
lunch in the previous school year that was equal to or
greater than the difference between the total Federal
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reimbursement for a free lunch and the total Federal
reimbursement for a paid lunch, the school food authority shall establish an average price for a paid
lunch that is not less than the difference between the
total Federal reimbursement for a free lunch and the
total Federal reimbursement for a paid lunch.
(ii) ROUNDING.—A school food authority may
round the adjusted price for a paid lunch under clause
(i) down to the nearest 5 cents.
(3) EXCEPTIONS.—
(A) REDUCTION IN PRICE.—A school food authority may
reduce the average price of a paid lunch established under
this subsection if the State agency ensures that funding
from non-Federal sources (other than in-kind contributions) is added to the nonprofit school food service account
of the school food authority in an amount estimated to be
equal to at least the difference between—
(i) the average price required of the school food
authority for the paid lunches under paragraph (2);
and
(ii) the average price charged by the school food
authority for the paid lunches.
(B) NON-FEDERAL SOURCES.—For the purposes of subparagraph (A), non-Federal sources does not include revenue from the sale of foods sold in competition with meals
served under the school lunch program authorized under
this Act or the school breakfast program established by
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
(C) OTHER PROGRAMS.—This subsection shall not apply
to lunches provided under section 17 of this Act.
(4) REGULATIONS.—The Secretary shall establish procedures to carry out this subsection, including collecting and publishing the prices that school food authorities charge for paid
meals on an annual basis and procedures that allow school
food authorities to average the pricing of paid lunches at
schools throughout the jurisdiction of the school food authority.
(q) NONPROGRAM FOOD SALES.—
(1) DEFINITION OF NONPROGRAM FOOD.—In this subsection:
(A) IN GENERAL.—The term ‘‘nonprogram food’’ means
food that is—
(i) sold in a participating school other than a reimbursable meal provided under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
(ii) purchased using funds from the nonprofit
school food service account of the school food authority
of the school.
(B) INCLUSION.—The term ‘‘nonprogram food’’ includes
food that is sold in competition with a program established
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(2) REVENUES.—
(A) IN GENERAL.—The proportion of total school food
service revenue provided by the sale of nonprogram foods
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to the total revenue of the school food service account shall
be equal to or greater than the proportion of total food
costs associated with obtaining nonprogram foods to the
total costs associated with obtaining program and nonprogram foods from the account.
(B) ACCRUAL.—All revenue from the sale of nonprogram foods shall accrue to the nonprofit school food service
account of a participating school food authority.
(C) EFFECTIVE DATE.—This subsection shall be effective beginning on July 1, 2011.
(r) DISQUALIFIED SCHOOLS, INSTITUTIONS, AND INDIVIDUALS.—
Any school, institution, service institution, facility, or individual
that has been terminated from any program authorized under this
Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) and
is on a list of disqualified institutions and individuals under section
13 or section 17(d)(5)(E) of this Act may not be approved to participate in or administer any program authorized under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
SEC. 13. ø42 U.S.C. 1761¿ SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) IN GENERAL.—
(1) DEFINITIONS.—In this section:
(A) AREA IN WHICH POOR ECONOMIC CONDITIONS
EXIST.—
(i) IN GENERAL.—Subject to clause (ii), the term

‘‘area in which poor economic conditions exist’’, as the
term relates to an area in which a program food service site is located, means—
(I) the attendance area of a school in which at
least 50 percent of the enrolled children have been
determined eligible for free or reduced price school
meals under this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.);
(II) a geographic area, as defined by the Secretary based on the most recent census data available, in which at least 50 percent of the children
residing in that area are eligible for free or reduced price school meals under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.);
(III) an area—
(aa) for which the program food service
site documents the eligibility of enrolled children through the collection of income eligibility statements from the families of enrolled
children or other means; and
(bb) at least 50 percent of the children enrolled at the program food service site meet
the income standards for free or reduced price
school meals under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
(IV) a geographic area, as defined by the Secretary based on information provided from a department of welfare or zoning commission, in
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which at least 50 percent of the children residing
in that area are eligible for free or reduced price
school meals under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
(V) an area for which the program food service site demonstrates through other means approved by the Secretary that at least 50 percent
of the children enrolled at the program food service site are eligible for free or reduced price school
meals under this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.).
(ii) DURATION OF DETERMINATION.—A determination that an area is an ‘‘area in which poor economic
conditions exist’’ under clause (i) shall be in effect
for—
(I) in the case of an area described in clause
(i)(I), 5 years;
(II) in the case of an area described in clause
(i)(II), until more recent census data are available;
(III) in the case of an area described in clause
(i)(III), 1 year; and
(IV) in the case of an area described in subclause (IV) or (V) of clause (i), a period of time to
be determined by the Secretary, but not less than
1 year.
(B) CHILDREN.—The term ‘‘children’’ means—
(i) individuals who are 18 years of age and under;
and
(ii) individuals who are older than 18 years of age
who are—
(I) determined by a State educational agency
or a local public educational agency of a State, in
accordance with regulations promulgated by the
Secretary, to have a disability, and
(II) participating in a public or nonprofit private school program established for individuals
who have a disability.
(C) PROGRAM.—The term ‘‘program’’ means the summer food service program for children authorized by this
section.
(D) SERVICE INSTITUTION.—The term ‘‘service institution’’ means a public or private nonprofit school food authority, local, municipal, or county government, public or
private nonprofit higher education institution participating
in the National Youth Sports Program, or residential public or private nonprofit summer camp, that develops special summer or school vacation programs providing food
service similar to food service made available to children
during the school year under the school lunch program
under this Act or the school breakfast program under the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(E) STATE.—The term ‘‘State’’ means—
(i) each of the several States of the United States;
(ii) the District of Columbia;
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(iii) the Commonwealth of Puerto Rico;
(iv) Guam;
(v) American Samoa;
(vi) the Commonwealth of the Northern Mariana
Islands; and
(vii) the United States Virgin Islands.
(2) PROGRAM AUTHORIZATION.—
(A) IN GENERAL.—The Secretary may carry out a program to assist States, through grants-in-aid and other
means, to initiate and maintain nonprofit summer food
service programs for children in service institutions.
(B) PREPARATION OF FOOD.—
(i) IN GENERAL.—To the maximum extent feasible,
consistent with the purposes of this section, any food
service under the program shall use meals prepared at
the facilities of the service institution or at the food
service facilities of public and nonprofit private
schools.
(ii) INFORMATION AND TECHNICAL ASSISTANCE.—
The Secretary shall assist States in the development
of information and technical assistance to encourage
increased service of meals prepared at the facilities of
service institutions and at public and nonprofit private
schools.
(3) ELIGIBLE SERVICE INSTITUTIONS.—Eligible service institutions entitled to participate in the program shall be limited
to those that—
(A) demonstrate adequate administrative and financial
responsibility to manage an effective food service;
(B) have not been seriously deficient in operating
under the program;
(C)(i) conduct a regularly scheduled food service for
children from areas in which poor economic conditions
exist; or
(ii) qualify as camps; and
(D) provide an ongoing year-round service to the community to be served under the program (except that an
otherwise eligible service institution shall not be disqualified for failure to meet this requirement for ongoing yearround service if the State determines that its disqualification would result in an area in which poor economic conditions exist not being served or in a significant number of
needy children not having reasonable access to a summer
food service program).
(4) PRIORITY.—
(A) IN GENERAL.—The following order of priority shall
be used by the State in determining participation where
more than one eligible service institution proposes to serve
the same area:
(i) Local schools.
(ii) All other service institutions and private nonprofit organizations eligible under paragraph (7) that
have demonstrated successful program performance in
a prior year.
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(iii) New public institutions.
(iv) New private nonprofit organizations eligible
under paragraph (7).
(B) RURAL AREAS.—The Secretary and the States, in
carrying out their respective functions under this section,
shall actively seek eligible service institutions located in
rural areas, for the purpose of assisting such service institutions in applying to participate in the program.
(5) CAMPS.—Camps that satisfy all other eligibility requirements of this section shall receive reimbursement only for
meals served to children who meet the eligibility requirements
for free or reduced price meals, as determined under this Act
and the Child Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿.
(6) GOVERNMENT INSTITUTIONS.—Service institutions that
are local, municipal, or county governments shall be eligible for
reimbursement for meals served in programs under this section only if such programs are operated directly by such governments.
(7) PRIVATE NONPROFIT ORGANIZATIONS.—
(A) DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.—In this paragraph, the term ‘‘private nonprofit organization’’ means an organization that—
(i) exercises full control and authority over the operation of the program at all sites under the sponsorship of the organization;
(ii) provides ongoing year-round activities for children or families;
(iii) demonstrates that the organization has adequate management and the fiscal capacity to operate
a program under this section;
(iv) is an organization described in section 501(c)
of the Internal Revenue Code of 1986 and exempt from
taxation under 501(a) of that Code; and
(v) meets applicable State and local health, safety,
and sanitation standards.
(B) ELIGIBILITY.—Private nonprofit organizations
(other than organizations eligible under paragraph (1))
shall be eligible for the program under the same terms and
conditions as other service institutions.
(8) SEAMLESS SUMMER OPTION.—Except as otherwise determined by the Secretary, a service institution that is a public
or private nonprofit school food authority may provide summer
or school vacation food service in accordance with applicable
provisions of law governing the school lunch program established under this Act or the school breakfast program established under the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.).
(9) EXEMPTION.—
(A) IN GENERAL.—For each of calendar years 2005 and
2006 in rural areas of the State of Pennsylvania (as determined by the Secretary), the threshold for determining
‘‘areas in which poor economic conditions exist’’ under
paragraph (1)(C) shall be 40 percent.
(B) EVALUATION.—
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(i) IN GENERAL.—The Secretary, acting through
the Administrator of the Food and Nutrition Service,
shall evaluate the impact of the eligibility criteria described in subparagraph (A) as compared to the eligibility criteria described in paragraph (1)(C).
(ii) IMPACT.—The evaluation shall assess the impact of the threshold in subparagraph (A) on—
(I) the number of sponsors offering meals
through the summer food service program;
(II) the number of sites offering meals
through the summer food service program;
(III) the geographic location of the sites;
(IV) services provided to eligible children; and
(V) other factors determined by the Secretary.
(iii) REPORT.—Not later than January 1, 2008, the
Secretary shall submit to the Committee on Education
and the Workforce of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results of
the evaluation under this subparagraph.
(iv) FUNDING.—
(I) IN GENERAL.—On January 1, 2005, out of
any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out
this subparagraph $400,000, to remain available
until expended.
(II) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall
use to carry out this subparagraph the funds
transferred under subclause (I), without further
appropriation.
(10) SUMMER FOOD SERVICE RURAL TRANSPORTATION.—
(A) IN GENERAL.—The Secretary shall provide grants,
through not more than 5 eligible State agencies selected by
the Secretary, to not more than 60 eligible service institutions selected by the Secretary to increase participation at
congregate feeding sites in the summer food service program for children authorized by this section through innovative approaches to limited transportation in rural areas.
(B) ELIGIBILITY.—To be eligible to receive a grant
under this paragraph—
(i) a State agency shall submit an application to
the Secretary, in such manner as the Secretary shall
establish, and meet criteria established by the Secretary; and
(ii) a service institution shall agree to the terms
and conditions of the grant, as established by the Secretary.
(C) DURATION.—A service institution that receives a
grant under this paragraph may use the grant funds during the 3-fiscal year period beginning in fiscal year 2006.
(D) REPORTS.—The Secretary shall submit to the Committee on Education and the Workforce of the House of
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Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate—
(i) not later than January 1, 2008, an interim report that describes—
(I) the use of funds made available under this
paragraph; and
(II) any progress made by using funds from
each grant provided under this paragraph; and
(ii) not later than January 1, 2009, a final report
that describes—
(I) the use of funds made available under this
paragraph;
(II) any progress made by using funds from
each grant provided under this paragraph;
(III) the impact of this paragraph on participation in the summer food service program for
children authorized by this section; and
(IV) any recommendations by the Secretary
concerning the activities of the service institutions
receiving grants under this paragraph.
(E) FUNDING.—
(i) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture
to carry out this paragraph—
(I) on October 1, 2005, $2,000,000; and
(II) on October 1, 2006, and October 1, 2007,
$1,000,000.
(ii) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this paragraph the funds transferred
under clause (i), without further appropriation.
(iii) AVAILABILITY OF FUNDS.—Funds transferred
under clause (i) shall remain available until expended.
(iv) REALLOCATION.—The Secretary may reallocate
any amounts made available to carry out this paragraph that are not obligated or expended, as determined by the Secretary.
(11) OUTREACH TO ELIGIBLE FAMILIES.—
(A) IN GENERAL.—The Secretary shall require each
State agency that administers the national school lunch
program under this Act to ensure that, to the maximum
extent practicable, school food authorities participating in
the school lunch program under this Act cooperate with
participating service institutions to distribute materials to
inform families of—
(i) the availability and location of summer food
service program meals; and
(ii) the availability of reimbursable breakfasts
served under the school breakfast program established
by section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773).
(B) INCLUSIONS.—Informational activities carried out
under subparagraph (A) may include—
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(i) the development or dissemination of printed
materials, to be distributed to all school children or
the families of school children prior to the end of the
school year, that inform families of the availability
and location of summer food service program meals;
(ii) the development or dissemination of materials,
to be distributed using electronic means to all school
children or the families of school children prior to the
end of the school year, that inform families of the
availability and location of summer food service program meals; and
(iii) such other activities as are approved by the
applicable State agency to promote the availability
and location of summer food service program meals to
school children and the families of school children.
(C) MULTIPLE STATE AGENCIES.—If the State agency
administering the program under this section is not the
same State agency that administers the school lunch program under this Act, the 2 State agencies shall work cooperatively to implement this paragraph.
(12) SUMMER FOOD SERVICE SUPPORT GRANTS.—
(A) IN GENERAL.—The Secretary shall use funds made
available to carry out this paragraph to award grants on
a competitive basis to State agencies to provide to eligible
service institutions—
(i) technical assistance;
(ii) assistance with site improvement costs; or
(iii) other innovative activities that improve and
encourage sponsor retention.
(B) ELIGIBILITY.—To be eligible to receive a grant
under this paragraph, a State agency shall submit an application to the Secretary in such manner, at such time,
and containing such information as the Secretary may require.
(C) PRIORITY.—In making grants under this paragraph, the Secretary shall give priority to—
(i) applications from States with significant lowincome child populations; and
(ii) State plans that demonstrate innovative approaches to retain and support summer food service
programs after the expiration of the start-up funding
grants.
(D) USE OF FUNDS.—A State and eligible service institution may use funds made available under this paragraph
to pay for such costs as the Secretary determines are necessary to establish and maintain summer food service programs.
(E) REALLOCATION.—The Secretary may reallocate any
amounts made available to carry out this paragraph that
are not obligated or expended, as determined by the Secretary.
(F) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this paragraph
$20,000,000 for fiscal years 2011 through 2015.
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(b) SERVICE INSTITUTIONS.—
(1) PAYMENTS.—
(A) 9 IN GENERAL.—Subject to subparagraph (B) and in
addition to amounts made available under paragraph (3),
payments to service institutions shall be—
(i) $1.97 for each lunch and supper served;
(ii) $1.13 for each breakfast served; and
(iii) 46 cents for each meal supplement served.
(B) ADJUSTMENTS.—Amounts specified in subparagraph (A) shall be adjusted on January 1, 1997, and each
January 1 thereafter, to the nearest lower cent increment
to reflect changes for the 12-month period ending the preceding November 30 in the series for food away from home
of the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor. Each adjustment shall be based on the
unrounded adjustment for the prior 12-month period.
(C) SEAMLESS SUMMER REIMBURSEMENTS.—A service
institution described in subsection (a)(8) shall be reimbursed for meals and meal supplements in accordance with
the applicable provisions under this Act (other than subparagraphs (A) and (B) of this paragraph and paragraph
(4)) and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.), as determined by the Secretary.
(2) Any service institution may only serve lunch and either
breakfast or a meal supplement during each day of operation, except that any service institution that is a camp or that serves
meals primarily to migrant children may serve up to 3 meals, or
2 meals and 1 supplement, during each day of operation, if (A) the
service institution has the administrative capability and the food
preparation and food holding capabilities (where applicable) to
serve more than one meal per day, and (B) the service period of different meals does not coincide or overlap.
(3) PERMANENT OPERATING AGREEMENTS AND BUDGET FOR
ADMINISTRATIVE COSTS.—
(A) PERMANENT OPERATING AGREEMENTS.—
(i) IN GENERAL.—Subject to clauses (ii) and (iii), to
participate in the program, a service institution that
meets the conditions of eligibility described in this section and in regulations promulgated by the Secretary,
shall be required to enter into a permanent agreement
with the applicable State agency.
(ii) AMENDMENTS.—A permanent agreement described in clause (i) may be amended as necessary to
ensure that the service institution is in compliance
with all requirements established in this section or by
the Secretary.
(iii) TERMINATION.—A permanent agreement described in clause (i)—
9 Effective Jan. 1, 2008, sec. 738(a)(1)(C) of division A of P.L. 110-161, Dec. 26, 2007, amended
this subpara. by striking ‘‘(B)’’ and all that follows through ‘‘shall not exceed’’ and inserting ’’(A)’’
and all that follows through ‘‘shall be’’. Although this subpara. was already previously redesignated as subparagraph (A) by sec. 738(a)(1)(B) of division A of P.L. 110–161, the amendment
was executed to effectuate the probable intent of Congress.

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(I) may be terminated for convenience by the
service institution and State agency that is a
party to the permanent agreement; and
(II) shall be terminated—
(aa) for cause by the applicable State
agency in accordance with subsection (q) and
with regulations promulgated by the Secretary; or
(bb) on termination of participation of the
service institution in the program.
(B) BUDGET FOR ADMINISTRATIVE COSTS.—
(i) IN GENERAL.—When applying for participation
in the program, and not less frequently than annually
thereafter, each service institution shall submit a complete budget for administrative costs related to the
program, which shall be subject to approval by the
State.
(ii) AMOUNT.—Payment to service institutions for
administrative costs shall equal the levels determined
by the Secretary pursuant to the study required in
paragraph (4).
(4)(A) The Secretary shall conduct a study of the food service
operations carried out under the program. Such study shall include, but shall not be limited to—
(i) an evaluation of meal quality as related to costs; and
(ii) a determination whether adjustments in the maximum
reimbursement levels for food service operation costs prescribed in paragraph (1) of this subsection should be made, including whether different reimbursement levels should be established for self-prepared meals and vendored meals and
which site-related costs, if any, should be considered as part of
administrative costs.
(B) The Secretary shall also study the administrative costs of
service institutions participating in the program and shall thereafter prescribe maximum allowable levels for administrative payments that reflect the costs of such service institutions, taking into
account the number of sites and children served, and such other
factors as the Secretary determines appropriate to further the goals
of efficient and effective administration of the program.
(C) The Secretary shall report the results of such studies to
Congress not later than December 1, 1977.
(c)(1) Payments shall be made to service institutions only for
meals served during the months of May through September, except
in the case of service institutions that operate food service programs for children on school vacation at any time under a continuous school calendar or that provide meal service at non-school
sites to children who are not in school for a period during the
months of October through April due to a natural disaster, building
repair, court order, or similar cause.
(2) Children participating in National Youth Sports Programs
operated by higher education institutions shall be eligible to participate in the program under this paragraph on showing residence
in areas in which poor economic conditions exist or on the basis of
income eligibility statements for children enrolled in the program.
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(d) Not later than April 15, May 15, and July 1 of each year,
the Secretary shall forward to each State a letter of credit (advance
program payment) that shall be available to each State for the payment of meals to be served in the month for which the letter of
credit is issued. The amount of the advance program payment shall
be an amount which the State demonstrates, to the satisfaction of
the Secretary, to be necessary for advance program payments to
service institutions in accordance with subsection (e) of this section.
The Secretary shall also forward such advance program payments,
by the first day of the month prior to the month in which the program will be conducted, to States that operate the program in
months other than May through September. The Secretary shall
forward any remaining payments due pursuant to subsection (b) of
this section not later than sixty days following receipt of valid
claims therefor.
(e)(1) Not later than June 1, July 15, and August 15 of each
year, or, in the case of service institutions that operate under a
continuous school calendar, the first day of each month of operation, the State shall forward advance program payments to each
service institution. The State shall not release the second month’s
advance program payment to any service institution (excluding a
school) that has not certified that it has held training sessions for
its own personnel and the site personnel with regard to program
duties and responsibilities. No advance program payment may be
made for any month in which the service institution will operate
under the program for less than ten days.
(2) The amount of the advance program payment for any
month in the case of any service institution shall be an amount
equal to (A) the total program payment for meals served by such
service institution in the same calendar month of the preceding calendar year, (B) 50 percent of the amount established by the State
to be needed by such service institution for meals if such service
institution contracts with a food service management company, or
(C) 65 percent of the amount established by the State to be needed
by such service institution for meals if such service institution prepares its own meals, whichever amount is greatest: Provided, That
the advance program payment may not exceed the total amount estimated by the State to be needed by such service institution for
meals to be served in the month for which such advance program
payment is made or $40,000, whichever is less, except that a State
may make a larger advance program payment to such service institution where the State determines that such larger payment is necessary for the operation of the program by such service institution
and sufficient administrative and management capability to justify
a larger payment is demonstrated. The State shall forward any remaining payment due a service institution not later than seventyfive days following receipt of valid claims. If the State has reason
to believe that a service institution will not be able to submit a
valid claim for reimbursement covering the period for which an advance program payment has been made, the subsequent month’s
advance program payment shall be withheld until such time as the
State has received a valid claim. Program payments advanced to
service institutions that are not subsequently deducted from a valid
claim for reimbursement shall be repaid upon demand by the
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State. Any prior payment that is under dispute may be subtracted
from an advance program payment.
(f)(1) Service institutions receiving funds under this section
shall serve meals consisting of a combination of foods and meeting
minimum nutritional standards prescribed by the Secretary on the
basis of tested nutritional research.
(2) The Secretary shall provide technical assistance to service
institutions and private nonprofit organizations participating in the
program to assist the institutions and organizations in complying
with the nutritional requirements prescribed by the Secretary pursuant to this subsection.
(3) Meals described in paragraph (1) shall be served without
cost to children attending service institutions approved for operation under this section, except that, in the case of camps, charges
may be made for meals served to children other than those who
meet the eligibility requirements for free or reduced price meals in
accordance with subsection (a)(5) of this section.
(4) To assure meal quality, States shall, with the assistance of
the Secretary, prescribe model meal specifications and model food
quality standards, and ensure that all service institutions contracting for the preparation of meals with food service management
companies include in their contracts menu cycles, local food safety
standards, and food quality standards approved by the State.
(5) Such contracts shall require (A) periodic inspections, by an
independent agency or the local health department for the locality
in which the meals are served, of meals prepared in accordance
with the contract in order to determine bacteria levels present in
such meals, and (B) conformance with standards set by local health
authorities.
(6) Such inspections and any testing resulting therefrom shall
be in accordance with the practices employed by such local health
authority.
(7) OFFER VERSUS SERVE.—A school food authority participating as a service institution may permit a child to refuse one
or more items of a meal that the child does not intend to consume, under rules that the school uses for school meals programs. A refusal of an offered food item shall not affect the
amount of payments made under this section to a school for
the meal.
(g) The Secretary shall publish proposed regulations relating to
the implementation of the program by November 1 of each fiscal
year, final regulations by January 1 of each fiscal year, and guidelines, applications and handbooks by February 1 of each fiscal year.
In order to improve program planning, the Secretary may provide
that service institutions be paid as startup costs not to exceed 20
percent of the administrative funds provided for in the administrative budget approved by the State under subsection (b)(3) of this
section. Any payments made for startup costs shall be subtracted
from amounts otherwise payable for administrative costs subsequently made to service institutions under subsection (b)(3) of this
section.
(h) Each service institution shall, insofar as practicable, use in
its food service under the program foods designated from time to
time by the Secretary as being in abundance. The Secretary is auDecember 20, 2019

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thorized to donate to States, for distribution to service institutions,
food available under section 416 of the Agricultural Act of 1949 ø(7
U.S.C. 1431)¿, or purchased under section 32 of the Act of August
24, 1935 ø(7 U.S.C. 612c)¿ or section 709 of the Food and Agriculture Act of 1965 ø(7 U.S.C. 1446a–1)¿. Donated foods may be
distributed only to service institutions that can use commodities efficiently and effectively, as determined by the Secretary.
ø(i) Repealed 10¿
(j) Expenditures of funds from State and local sources for the
maintenance of food programs for children shall not be diminished
as a result of funds received under this section.
(k)(1) The Secretary shall pay to each State for its administrative costs incurred under this section in any fiscal year an amount
equal to (A) 20 percent of the first $50,000 in funds distributed to
that State for the program in the preceding fiscal year; (B) 10 percent of the next $100,000 distributed to that State for the program
in the preceding fiscal year; (C) 5 percent of the next $250,000 in
funds distributed to that State for the program in the preceding fiscal year, and (D) 21⁄2 percent of any remaining funds distributed
to that State for the program in the preceding fiscal year: Provided,
That such amounts may be adjusted by the Secretary to reflect
changes in the size of that State’s program since the preceding fiscal year.
(2) The Secretary shall establish standards and effective dates
for the proper, efficient, and effective administration of the program by the State. If the Secretary finds that the State has failed
without good cause to meet any of the Secretary’s standards or has
failed without good cause to carry out the approved State management and administration plan under subsection (n) of this section,
the Secretary may withhold from the State such funds authorized
under this subsection as the Secretary determines to be appropriate.
(3) To provide for adequate nutritional and food quality monitoring, and to further the implementation of the program, an additional amount, not to exceed the lesser of actual costs or 1 percent
of program funds, shall be made available by the Secretary to
States to pay for State or local health department inspections, and
to reinspect facilities and deliveries to test meal quality.
(l)(1) Service institutions may contract on a competitive basis
with food service management companies for the furnishing of
meals or management of the entire food service under the program,
except that a food service management company entering into a
contract with a service institution under this section may not subcontract with a single company for the total meal, with or without
milk, or for the assembly of the meal. The Secretary shall prescribe
additional conditions and limitations governing assignment of all or
any part of a contract entered into by a food service management
company under this section. Any food service management company shall, in its bid, provide the service institution information as
to its meal capacity.
10 Section 817(b) of P.L. 97–35, 95 Stat. 532, Aug. 13, 1981, eliminated subsection (i) concerning the Secretary’s authority to directly administer the program.

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(2) Each State may provide for the registration of food service
management companies.
(3) In accordance with regulations issued by the Secretary,
positive efforts shall be made by service institutions to use small
businesses and minority-owned businesses as sources of supplies
and services. Such efforts shall afford those sources the maximum
feasible opportunity to compete for contracts using program funds.
(4) Each State, with the assistance of the Secretary, shall establish a standard form of contract for use by service institutions
and food service management companies. The Secretary shall prescribe requirements governing bid and contract procedures for acquisition of the services of food service management companies, including, but not limited to, bonding requirements (which may provide exemptions applicable to contracts of $100,000 or less), procedures for review of contracts by States, and safeguards to prevent
collusive bidding activities between service institutions and food
service management companies.
(m) States and service institutions participating in programs
under this section shall keep such accounts and records as may be
necessary to enable the Secretary to determine whether there has
been compliance with this section and the regulations issued hereunder. Such accounts and records shall be available at any reasonable time for inspection and audit by representatives of the Secretary and shall be preserved for such period of time, not in excess
of five years, as the Secretary determines necessary.
(n) Each State desiring to participate in the program shall notify the Secretary by January 1 of each year of its intent to administer the program and shall submit for approval by February 15 a
management and administration plan for the program for the fiscal
year, which shall include, but not be limited to, (1) the State’s administrative budget for the fiscal year, and the State’s plans to
comply with any standards prescribed by the Secretary under subsection (k) of this section; (2) the State’s plans for use of program
funds and funds from within the State to the maximum extent
practicable to reach needy children; (3) the State’s plans for providing technical assistance and training eligible service institutions; (4) the State’s plans for monitoring and inspecting service institutions, feeding sites, and food service management companies
and for ensuring that such companies do not enter into contracts
for more meals than they can provide effectively and efficiently; (5)
the State’s plan for timely and effective action against program violators; and (6) the State’s plan for ensuring fiscal integrity by auditing service institutions not subject to auditing requirements prescribed by the Secretary.
(o)(1) Whoever, in connection with any application, procurement, recordkeeping entry, claim for reimbursement, or other document or statement made in connection with the program, knowingly and willfully falsifies, conceals, or covers up by any trick,
scheme, or device a material fact, or makes any false, fictitious, or
fraudulent statements or representations, or makes or uses any
false writing or document knowing the same to contain any false,
fictitious, or fraudulent statement or entry, or whoever, in connection with the program, knowingly makes an opportunity for any
person to defraud the United States, or does or omits to do any act
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with intent to enable any person to defraud the United States,
shall be fined not more than $10,000 or imprisoned not more than
five years, or both.
(2) Whoever being a partner, officer, director, or managing
agent connected in any capacity with any partnership, association,
corporation, business, or organization, either public or private, that
receives benefits under the program, knowingly or willfully embezzles, misapplies, steals, or obtains by fraud, false statement, or forgery, any benefits provided by this section or any money, funds, assets, or property derived from benefits provided by this section,
shall be fined not more than $10,000 or imprisoned for not more
than five years, or both (but, if the benefits, money, funds, assets,
or property involved is not over $200, then the penalty shall be a
fine or not more than $1,000 or imprisonment for not more than
one year, or both).
(3) If two or more persons conspire or collude to accomplish
any act made unlawful under this subsection, and one or more of
such persons to any act to effect the object of the conspiracy or collusion, each shall be fined not more than $10,000 or imprisoned for
not more than five years, or both.
(p)(1) In addition to the normal monitoring of organizations receiving assistance under this section, the Secretary shall establish
a system under which the Secretary and the States shall monitor
the compliance of private nonprofit organizations with the requirements of this section and with regulations issued to implement this
section.
(2) In the fiscal year 1990 and each succeeding fiscal year, the
Secretary may reserve for purposes of carrying out paragraph (1)
not more than 1⁄2 of 1 percent of amounts appropriated for purposes
of carrying out this section.
(q) TERMINATION AND DISQUALIFICATION OF PARTICIPATING ORGANIZATIONS.—
(1) IN GENERAL.—Each State agency shall follow the procedures established by the Secretary for the termination of participation of institutions under the program.
(2) FAIR HEARING.—The procedures described in paragraph
(1) shall include provision for a fair hearing and prompt determination for any service institution aggrieved by any action of
the State agency that affects—
(A) the participation of the service institution in the
program; or
(B) the claim of the service institution for reimbursement under this section.
(3) LIST OF DISQUALIFIED INSTITUTIONS AND INDIVIDUALS.—
(A) IN GENERAL.—The Secretary shall maintain a list
of service institutions and individuals that have been terminated or otherwise disqualified from participation in the
program under the procedures established pursuant to
paragraph (1).
(B) AVAILABILITY.—The Secretary shall make the list
available to States for use in approving or renewing applications by service institutions for participation in the program.
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(r) For the period beginning October 1, 1977, and ending September 30, 2015, there are hereby authorized to be appropriated
such sums as are necessary to carry out the purposes of this section.
ø

TEMPORARY EMERGENCY ASSISTANCE TO PROVIDE NUTRITIOUS
MEALS TO NEEDY CHILDREN IN SCHOOLS ¿

øSEC. 13A. 11 ø42 U.S.C. 1762¿¿
COMMODITY DISTRIBUTION PROGRAM

SEC. 14. ø42 U.S.C. 1762a¿ (a) Notwithstanding any other provision of law, the Secretary shall—
(1) use funds available to carry out the provisions of section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) which are
not expended or needed to carry out such provisions, to purchase (without regard to the provisions of existing law governing the expenditure of public funds) agricultural commodities and their products of the types customarily purchased
under such section (which may include domestic seafood commodities and their products), for donation to maintain the annually programmed level of assistance for programs carried on
under this Act, the Child Nutrition Act of 1966 ø(42 U.S.C.
1771 et seq.)¿, and title III of the Older Americans Act of 1965
ø(42 U.S.C. 3021 et seq.)¿; and
(2) if stocks of the Commodity Credit Corporation are not
available, use the funds of such Corporation to purchase agricultural commodities and their products of the types customarily available under section 416 of the Agricultural Act of
1949 (7 U.S.C. 1431), for such donation.
(b)(1) The Secretary shall maintain and continue to improve
the overall nutritional quality of entitlement commodities provided
to schools to assist the schools in improving the nutritional content
of meals.
(2) The Secretary shall—
(A) require that nutritional content information labels be
placed on packages or shipments of entitlement commodities
provided to the schools; or
(B) otherwise provide nutritional content information regarding the commodities provided to the schools.
(c) The Secretary may use funds appropriated from the general
fund of the Treasury to purchase agricultural commodities and
their products of the types customarily purchased for donation
under section 311(a)(4) of the Older Americans Act of 1965 (42
U.S.C. 3030(a)(4)) or for cash payments in lieu of such donations
under section 311(b)(1) of such Act (42 U.S.C. 3030(b)(1)). 12 There
are hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this subsection.
(d) In providing assistance under this Act and the Child Nutrition Act of 1966 ø(42 U.S.C. 1771 et seq.)¿ for school lunch and
breakfast programs, the Secretary shall establish procedures which
will—
11 This

section repealed by section 308 of P.L. 101–147, 103 Stat. 915, Nov. 10, 1989.
to 42 U.S.C. 3030(b)(1) probably should be to 42 U.S.C. 3030a(b)(1).

12 Citation

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(1) ensure that the views of local school districts and private nonprofit schools with respect to the type of commodity
assistance needed in schools are fully and accurately reflected
in reports to the Secretary by the State with respect to State
commodity preferences and that such views are considered by
the Secretary in the purchase and distribution of commodities
and by the States in the allocation of such commodities among
schools within the States;
(2) solicit the views of States with respect to the acceptability of commodities;
(3) ensure that the timing of commodity deliveries to
States is consistent with State school year calendars and that
such deliveries occur with sufficient advance notice;
(4) provide for systematic review of the costs and benefits
of providing commodities of the kind and quantity that are
suitable to the needs of local school districts and private nonprofit schools; and
(5) make available technical assistance on the use of commodities available under this Act and the Child Nutrition Act
of 1966.
(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with representatives of schools in the State that participate in the school lunch
program with respect to the needs of such schools relating to the
manner of selection and distribution of commodity assistance for
such program.
(f) Commodity only schools shall be eligible to receive donated
commodities equal in value to the sum of the national average
value of donated foods established under section 6(c) of this Act
and the national average payment established under section 4 of
this Act. Such schools shall be eligible to receive up to 5 cents per
meal of such value in cash for processing and handling expenses
related to the use of such commodities. Lunches served in such
schools shall consist of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under
section 9(a) of this Act, and shall represent the four basic food
groups, including a serving of fluid milk.
(g)(1) As used in this subsection, the term ‘‘eligible school district’’ has the same meaning given such term in section 1581(a) of
the Food Security Act of 1985.
(2) In accordance with the terms and conditions of section 1581
of such Act, the Secretary shall permit an eligible school district to
continue to receive assistance in the form of cash or commodity letters of credit assistance, in lieu of commodities, to carry out the
school lunch program operated in the district.
(h) NOTICE OF IRRADIATED FOOD PRODUCTS.—
(1) IN GENERAL.—The Secretary shall develop a policy and
establish procedures for the purchase and distribution of irradiated food products in school meals programs under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(2) MINIMUM REQUIREMENTS.—The policy and procedures
shall ensure, at a minimum, that—
(A) irradiated food products are made available only at
the request of States and school food authorities;
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(B) reimbursements to schools for irradiated food products are equal to reimbursements to schools for food products that are not irradiated;
(C) States and school food authorities are provided factual information on the science and evidence regarding irradiation technology, including—
(i) notice that irradiation is not a substitute for
safe food handling techniques; and
(ii) any other similar information determined by
the Secretary to be necessary to promote food safety in
school meals programs;
(D) States and school food authorities are provided
model procedures for providing to school food authorities,
parents, and students—
(i) factual information on the science and evidence
regarding irradiation technology; and
(ii) any other similar information determined by
the Secretary to be necessary to promote food safety in
school meals;
(E) irradiated food products distributed to the Federal
school meals program under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) are labeled with
a symbol or other printed notice that—
(i) indicates that the product was irradiated; and
(ii) is prominently displayed in a clear and understandable format on the container;
(F) irradiated food products are not commingled in
containers with food products that are not irradiated; and
(G) schools that offer irradiated food products are encouraged to offer alternatives to irradiated food products
as part of the meal plan used by the schools.
ø

NATIONAL ADVISORY COUNCIL

¿

øSEC. 15. 13 ø42 U.S.C. 1763¿ Repealed.¿
ELECTION TO RECEIVE CASH PAYMENTS

SEC. 16. ø42 U.S.C. 1765¿ (a) Notwithstanding any other provision of law, where a State phased out its commodity distribution
facilities prior to June 30, 1974, such State may, for purposes of
the programs authorized by this Act and the Child Nutrition Act
of 1966 ø(42 U.S.C. 1771 et seq.)¿, elect to receive cash payments
in lieu of donated foods. Where such an election is made, the Secretary shall make cash payments to such State in an amount
equivalent in value to the donated foods that the State would otherwise have received if it had retained its commodity distribution
facilities. The amount of cash payments in the case of lunches shall
be governed by section 6(c) of this Act.
(b) When such payments are made, the State educational agency shall promptly and equitably disburse any cash it receives in
lieu of commodities to eligible schools and institutions, and such
disbursements shall be used by such schools and institutions to
13 Section 15, which established a National Advisory Council, repealed by section 104 of P.L.
101–147, 103 Stat. 883, Nov. 10, 1989.

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purchase United States agricultural commodities and other foods
for their food service programs.
SEC. 17. ø42 U.S.C. 1766¿ CHILD AND ADULT CARE FOOD PROGRAM.
(a) PROGRAM PURPOSE, GRANT AUTHORITY AND INSTITUTION
ELIGIBILITY.—
(1) IN GENERAL.—
(A) PROGRAM PURPOSE.—
(i) FINDINGS.—Congress finds that—

(I) eating habits and other wellness-related
behavior habits are established early in life; and
(II) good nutrition and wellness are important
contributors to the overall health of young children and essential to cognitive development.
(ii) PURPOSE.—The purpose of the program authorized by this section is to provide aid to child and
adult care institutions and family or group day care
homes for the provision of nutritious foods that contribute to the wellness, healthy growth, and development of young children, and the health and wellness
of older adults and chronically impaired disabled persons.
(B) GRANT AUTHORITY.—The Secretary may carry out
a program to assist States through grants-in-aid and other
means to initiate and maintain nonprofit food service programs for children in institutions providing child care.
(2) DEFINITION OF INSTITUTION.—In this section, the term
‘‘institution’’ means—
(A) any public or private nonprofit organization providing nonresidential child care or day care outside school
hours for school children, including any child care center,
settlement house, recreational center, Head Start center,
and institution providing child care facilities for children
with disabilities;
(B) any other private organization providing nonresidential child care or day care outside school hours for
school children, if—
(i) at least 25 percent of the children served by the
organization meet the income eligibility criteria established under section 9(b) for free or reduced price
meals; or
(ii) the organization receives compensation from
amounts granted to the States under title XX of the
Social Security Act (42 U.S.C. 1397 et seq.) (but only
if the organization receives compensation under that
title for at least 25 percent of its enrolled children or
25 percent of its licensed capacity, whichever is less);
(C) any public or private nonprofit organization acting
as a sponsoring organization for one or more of the organizations described in subparagraph (A) or (B) or for an
adult day care center (as defined in subsection (o)(2));
(D) any other private organization acting as a sponsoring organization for, and that is part of the same legal
entity as, one or more organizations that are—
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(i) described in subparagraph (B); or
(ii) proprietary title XIX or title XX centers (as defined in subsection (o)(2));
(E) any public or private nonprofit organization acting
as a sponsoring organization for one or more family or
group day care homes; and
(F) any emergency shelter (as defined in subsection
(t)).
(3) AGE LIMIT.—Except as provided in subsection (r), reimbursement may be provided under this section only for meals
or supplements served to children not over 12 years of age (except that such age limitation shall not be applicable for children of migrant workers if 15 years of age or less or for children with disabilities).
(4) ADDITIONAL GUIDELINES.—The Secretary may establish
separate guidelines for institutions that provide care to school
children outside of school hours.
(5) LICENSING.—In order to be eligible, an institution (except a school or family or group day care home sponsoring organization) or family or group day care home shall—
(A)(i) be licensed, or otherwise have approval, by the
appropriate Federal, State, or local licensing authority; or
(ii) be in compliance with appropriate procedures for
renewing participation in the program, as prescribed by
the Secretary, and not be the subject of information possessed by the State indicating that the license of the institution or home will not be renewed;
(B) if Federal, State, or local licensing or approval is
not available—
(i) meet any alternate approval standards established by the appropriate State or local governmental
agency; or
(ii) meet any alternate approval standards established by the Secretary after consultation with the
Secretary of Health and Human Services; or
(C) if the institution provides care to school children
outside of school hours and Federal, State, or local licensing or approval is not required for the institution, meet
State or local health and safety standards.
(6) ELIGIBILITY CRITERIA.—No institution shall be eligible
to participate in the program unless it satisfies the following
criteria:
(A) accepts final administrative and financial responsibility for management of an effective food service;
(B) has not been seriously deficient in its operation of
the child and adult care food program, or any other program under this Act or the Child Nutrition Act of 1966
ø(42 U.S.C. 1771 et seq.)¿, or has not been determined to
be ineligible to participate in any other publicly funded
program by reason of violation of the requirements of the
program, for a period of time specified by the Secretary;
(C)(i) will provide adequate supervisory and operational personnel for overall monitoring and management
of the child care food program; and
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(ii) in the case of a sponsoring organization, the organization shall employ an appropriate number of monitoring personnel based on the number and characteristics
of child care centers and family or group day care homes
sponsored by the organization, as approved by the State
(in accordance with regulations promulgated by the Secretary), to ensure effective oversight of the operations of
the child care centers and family or group day care homes;
(D) in the case of a family or group day care home
sponsoring organization that employs more than one employee, the organization does not base payments to an employee of the organization on the number of family or
group day care homes recruited;
(E) in the case of a sponsoring organization, the organization has in effect a policy that restricts other employment by employees that interferes with the responsibilities
and duties of the employees of the organization with respect to the program; and
(F) in the case of a sponsoring organization that applies for initial participation in the program on or after the
date of the enactment of this subparagraph and that operates in a State that requires such institutions to be bonded
under State law, regulation, or policy, the institution is
bonded in accordance with such law, regulation, or policy.
(b) For the fiscal year ending September 30, 1979, and for each
subsequent fiscal year, the Secretary shall provide cash assistance
to States for meals as provided in subsection (f) of this section, except that, in any fiscal year, the aggregate amount of assistance
provided to a State by the Secretary under this section shall not
exceed the sum of (1) the Federal funds provided by the State to
participating institutions within the State for that fiscal year and
(2) any funds used by the State under section 10 of the Child Nutrition Act of 1966 ø(42 U.S.C. 1779)¿.
(c)(1) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free lunches
and suppers, the national average payment rate for reduced price
lunches and suppers, and the national average payment rate for
paid lunches and suppers shall be the same as the national average
payment rates for free lunches, reduced price lunches, and paid
lunches, respectively, under sections 4 and 11 of this Act as appropriate (as adjusted pursuant to section 11(a) of this Act).
(2) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free breakfasts,
the national average payment rate for reduced price breakfasts,
and the national average payment rate for paid breakfasts shall be
the same as the national average payment rates for free breakfasts,
reduced price breakfasts, and paid breakfasts, respectively, under
section 4(b) of the Child Nutrition Act of 1966 ø(42 U.S.C.
1773(b))¿ (as adjusted pursuant to section 11(a) of this Act).
(3) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free supplements shall be 30 cents, the national average payment rate for reduced price supplements shall be one-half the rate for free supplements, and the national average payment rate for paid suppleDecember 20, 2019

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ments shall be 2.75 cents (as adjusted pursuant to section 11(a) of
this Act).
(4) Determinations with regard to eligibility for free and reduced price meals and supplements shall be made in accordance
with the income eligibility guidelines for free lunches and reduced
price lunches, respectively, under section 9 of this Act.
(5) 14 A child shall be considered automatically eligible for benefits under this section without further application or eligibility determination, if the child is enrolled as a participant in a Head Start
program authorized under the Head Start Act (42 U.S.C. 9831 et
seq.), on the basis of a determination that the child meets the eligibility criteria prescribed under section 645(a)(1)(B) of the Head
Start Act (42 U.S.C. 9840(a)(1)(B)).
(6) A child who has not yet entered kindergarten shall be considered automatically eligible for benefits under this section without further application or eligibility determination if the child is
enrolled as a participant in the Even Start program under part B
of chapter 1 of title I of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 2741 et seq.).
(d) INSTITUTION APPROVAL AND APPLICATIONS.—
(1) INSTITUTION APPROVAL.—
(A) ADMINISTRATIVE CAPABILITY.—Subject to subparagraph (B) and except as provided in subparagraph (C), the
State agency shall approve an institution that meets the
requirements of this section for participation in the child
and adult care food program if the State agency determines that the institution—
(i) is financially viable;
(ii) is administratively capable of operating the
program (including whether the sponsoring organization has business experience and management plans
appropriate to operate the program) described in the
application of the institution; and
(iii) has internal controls in effect to ensure program accountability.
(B) APPROVAL OF PRIVATE INSTITUTIONS.—
(i) IN GENERAL.—In addition to the requirements
established by subparagraph (A) and subject to clause
(ii), the State agency shall approve a private institution that meets the requirements of this section for
participation in the child and adult care food program
only if—
(I) the State agency conducts a satisfactory
visit to the institution before approving the participation of the institution in the program; and
(II) the institution—
(aa) has tax exempt status under the Internal Revenue Code of 1986;
14 Effective September 25, 1995, this paragraph added by section 109(b) of P.L. 103–448, 108
Stat. 4705, Nov. 2, 1994. Although such section 109 amended this subsection ‘‘by adding at the
end’’ paragraph (5) and delayed the amendment until after paragraph (6) was added, paragraph
(5) was inserted before paragraph (6) to effectuate the probable intent of Congress.

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(bb) is operating a Federal program requiring nonprofit status to participate in the
program; or
(cc) is described in subsection (a)(2)(B).
(ii) EXCEPTION FOR FAMILY OR GROUP DAY CARE
HOMES.—Clause (i) shall not apply to a family or
group day care home.
(C) EXCEPTION FOR CERTAIN SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—The State agency may approve
an eligible institution acting as a sponsoring organization for one or more family or group day care homes
or centers that, at the time of application, is not participating in the child and adult care food program
only if the State agency determines that—
(I) the institution meets the requirements established by subparagraphs (A) and (B); and
(II) the participation of the institution will
help to ensure the delivery of benefits to otherwise
unserved family or group day care homes or centers or to unserved children in an area.
(ii) CRITERIA FOR SELECTION.—The State agency
shall establish criteria for approving an eligible institution acting as a sponsoring organization for one or
more family or group day care homes or centers that,
at the time of application, is not participating in the
child and adult care food program for the purpose of
determining if the participation of the institution will
help ensure the delivery of benefits to otherwise
unserved family or group day care homes or centers or
to unserved children in an area.
(D) NOTIFICATION TO APPLICANTS.—Not later than 30
days after the date on which an applicant institution files
a completed application with the State agency, the State
agency shall notify the applicant institution whether the
institution has been approved or disapproved to participate
in the child and adult care food program.
(E) PERMANENT OPERATING AGREEMENTS.—
(i) IN GENERAL.—Subject to clauses (ii) and (iii), to
participate in the child and adult care food program,
an institution that meets the conditions of eligibility
described in this subsection shall be required to enter
into a permanent agreement with the applicable State
agency.
(ii) AMENDMENTS.—A permanent agreement described in clause (i) may be amended as necessary to
ensure that the institution is in compliance with all
requirements established in this section or by the Secretary.
(iii) TERMINATION.—A permanent agreement described in clause (i)—
(I) may be terminated for convenience by the
institution or State agency that is a party to the
permanent agreement; and
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(II) shall be terminated—
(aa) for cause by the applicable State
agency in accordance with paragraph (5); or
(bb) on termination of participation of the
institution in the child and adult care food
program.
(2) PROGRAM APPLICATIONS.—
(A) IN GENERAL.—The Secretary shall develop a policy
under which each institution providing child care that participates in the program under this section shall—
(i) submit to the State agency an initial application to participate in the program that meets all requirements established by the Secretary by regulation;
(ii) annually confirm to the State agency that the
institution, and any facilities of the institution in
which the program is operated by a sponsoring organization, is in compliance with subsection (a)(5); and
(iii) annually submit to the State agency any additional information necessary to confirm that the institution is in compliance with all other requirements to
participate in the program, as established in this Act
and by the Secretary by regulation.
(B) REQUIRED REVIEWS OF SPONSORED FACILITIES.—
(i) IN GENERAL.—The Secretary shall develop a
policy under which each sponsoring organization participating in the program under this section shall conduct—
(I) periodic unannounced site visits at not less
than 3-year intervals to sponsored child and adult
care centers and family or group day care homes
to identify and prevent management deficiencies
and fraud and abuse under the program; and
(II) at least 1 scheduled site visit each year to
sponsored child and adult care centers and family
or group day care homes to identify and prevent
management deficiencies and fraud and abuse
under the program and to improve program operations.
(ii) VARIED TIMING.—Sponsoring organizations
shall vary the timing of unannounced reviews under
clause (i)(I) in a manner that makes the reviews unpredictable to sponsored facilities.
(C) REQUIRED REVIEWS OF INSTITUTIONS.—The Secretary shall develop a policy under which each State agency shall conduct—
(i) at least 1 scheduled site visit at not less than
3-year intervals to each institution under the State
agency participating in the program under this section—
(I) to identify and prevent management deficiencies and fraud and abuse under the program;
and
(II) to improve program operations; and
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(ii) more frequent reviews of any institution
that—
(I) sponsors a significant share of the facilities
participating in the program;
(II) conducts activities other than the program
authorized under this section;
(III) has serious management problems, as
identified in a prior review, or is at risk of having
serious management problems; or
(IV) meets such other criteria as are defined
by the Secretary.
(D) DETECTION AND DETERRENCE OF ERRONEOUS PAYMENTS AND FALSE CLAIMS.—
(i) IN GENERAL.—The Secretary may develop a policy to detect and deter, and recover erroneous payments to, and false claims submitted by, institutions,
sponsored child and adult care centers, and family or
group day care homes participating in the program
under this section.
(ii) BLOCK CLAIMS.—
(I) DEFINITION OF BLOCK CLAIM.—In this
clause, the term ‘‘block claim’’ has the meaning
given the term in section 226.2 of title 7, Code of
Federal Regulations (or successor regulations).
(II) PROGRAM EDIT CHECKS.—The Secretary
may not require any State agency, sponsoring organization, or other institution to perform edit
checks or on-site reviews relating to the detection
of block claims by any child care facility.
(III) ALLOWANCE.—Notwithstanding subclause
(II), the Secretary may require any State agency,
sponsoring organization, or other institution to
collect, store, and transmit to the appropriate entity information necessary to develop any other
policy developed under clause (i).
(3) PROGRAM INFORMATION.—
(A) IN GENERAL.—On enrollment of a child in a sponsored child care center or family or group day care home
participating in the program, the center or home (or its
sponsoring organization) shall provide to the child’s parents or guardians—
(i) information that describes the program and its
benefits; and
(ii) the name and telephone number of the sponsoring organization of the center or home and the
State agency involved in the operation of the program.
(B) FORM.—The information described in subparagraph (A) shall be in a form and, to the maximum extent
practicable, language easily understandable by the child’s
parents or guardians.
(4) ALLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING
ORGANIZATIONS.—In consultation with State agencies and sponsoring organizations, the Secretary shall develop, and provide
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zations of, a list of allowable reimbursable administrative expenses for sponsoring organizations under the program.
(5) TERMINATION OR SUSPENSION OF PARTICIPATING ORGANIZATIONS.—
(A) IN GENERAL.—The Secretary shall establish procedures for the termination of participation by institutions
and family or group day care homes under the program.
(B) STANDARDS.—Procedures established pursuant to
subparagraph (A) shall include standards for terminating
the participation of an institution or family or group day
care home that—
(i) engages in unlawful practices, falsifies information provided to the State agency, or conceals a criminal background; or
(ii) substantially fails to fulfill the terms of its
agreement with the State agency.
(C) CORRECTIVE ACTION.—Procedures established pursuant to subparagraph (A)—
(i) shall require an entity described in subparagraph (B) to undertake corrective action; and
(ii) may require the immediate suspension of operation of the program by an entity described in subparagraph (B), without the opportunity for corrective
action, if the State agency determines that there is imminent threat to the health or safety of a participant
at the entity or the entity engages in any activity that
poses a threat to public health or safety.
(D) HEARING.—
(i) IN GENERAL.—Except as provided in clause (ii),
an institution or family or group day care home shall
be provided a fair hearing in accordance with subsection (e)(1) prior to any determination to terminate
participation by the institution or family or group day
care home under the program.
(ii) EXCEPTION FOR FALSE OR FRAUDULENT
CLAIMS.—
(I) IN GENERAL.—If a State agency determines
that an institution has knowingly submitted a
false or fraudulent claim for reimbursement, the
State agency may suspend the participation of the
institution in the program in accordance with this
clause.
(II) REQUIREMENT FOR REVIEW.—Prior to any
determination to suspend participation of an institution under subclause (I), the State agency shall
provide for an independent review of the proposed
suspension in accordance with subclause (III).
(III) REVIEW PROCEDURE.—The review shall—
(aa) be conducted by an independent and
impartial official other than, and not accountable to, any person involved in the determination to suspend the institution;
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mentation relating to the suspension, including State agency documentation of the alleged
false or fraudulent claim for reimbursement
and the response of the institution to the documentation;
(cc) require the reviewing official to determine, based on the review, whether the State
agency has established, based on a preponderance of the evidence, that the institution has
knowingly submitted a false or fraudulent
claim for reimbursement;
(dd) require the suspension to be in effect
for not more than 120 calendar days after the
institution has received notification of a determination of suspension in accordance with
this clause; and
(ee) require the State agency during the
suspension to ensure that payments continue
to be made to sponsored centers and family
and group day care homes meeting the requirements of the program.
(IV) HEARING.—A State agency shall provide
an institution that has been suspended from participation in the program under this clause an opportunity for a fair hearing on the suspension conducted in accordance with subsection (e)(1).
(E) LIST OF DISQUALIFIED INSTITUTIONS AND INDIVIDUALS.—
(i) IN GENERAL.—The Secretary shall maintain a
list of institutions, sponsored family or group day care
homes, and individuals that have been terminated or
otherwise disqualified from participation in the program.
(ii) AVAILABILITY.—The Secretary shall make the
list available to State agencies for use in approving or
renewing applications by institutions, sponsored family or group day care homes, and individuals for participation in the program.
(e) HEARINGS.—
(1) IN GENERAL.—Except as provided in paragraph (4),
each State agency shall provide, in accordance with regulations
promulgated by the Secretary, an opportunity for a fair hearing and a prompt determination to any institution aggrieved by
any action of the State agency that affects—
(A) the participation of the institution in the program
authorized by this section; or
(B) the claim of the institution for reimbursement
under this section.
(2) REIMBURSEMENT.—In accordance with paragraph (3), a
State agency that fails to meet timeframes for providing an opportunity for a fair hearing and a prompt determination to any
institution under paragraph (1) in accordance with regulations
promulgated by the Secretary, shall pay, from non-Federal
sources, all valid claims for reimbursement to the institution
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and the facilities of the institution during the period beginning
on the day after the end of any regulatory deadline for providing the opportunity and making the determination and ending on the date on which a hearing determination is made.
(3) NOTICE TO STATE AGENCY.—The Secretary shall provide
written notice to a State agency at least 30 days prior to imposing any liability for reimbursement under paragraph (2).
(4) FEDERAL AUDIT DETERMINATION.—A State is not required to provide a hearing to an institution concerning a State
action taken on the basis of a Federal audit determination.
(5) SECRETARIAL HEARING.—If a State does not provide a
hearing to an institution concerning a State action taken on
the basis of a Federal audit determination, the Secretary, on
request, shall afford a hearing to the institution concerning the
action.
(f) STATE DISBURSEMENTS TO INSTITUTIONS.—
(1) IN GENERAL.—
(A) REQUIREMENT.—Funds paid to any State under
this section shall be disbursed to eligible institutions by
the State under agreements approved by the Secretary.
Disbursements to any institution shall be made only for
the purpose of assisting in providing meals to children attending institutions, or in family or group day care homes.
Disbursement to any institution shall not be dependent
upon the collection of moneys from participating children.
All valid claims from such institutions shall be paid within
forty-five days of receipt by the State. The State shall notify the institution within fifteen days of receipt of a claim
if the claim as submitted is not valid because it is incomplete or incorrect.
(B) FRAUD OR ABUSE.—
(i) IN GENERAL.—The State may recover funds disbursed under subparagraph (A) to an institution if the
State determines that the institution has engaged in
fraud or abuse with respect to the program or has submitted an invalid claim for reimbursement.
(ii) PAYMENT.—Amounts recovered under clause
(i)—
(I) may be paid by the institution to the State
over a period of one or more years; and
(II) shall not be paid from funds used to provide meals and supplements.
(iii) HEARING.—An institution shall be provided a
fair hearing in accordance with subsection (e)(1) prior
to any determination to recover funds under this subparagraph.
(2)(A) Subject to subparagraph (B) of this paragraph, the disbursement for any fiscal year to any State for disbursement to institutions, other than family or group day care home sponsoring organizations, for meals provided under this section shall be equal to
the sum of the products obtained by multiplying the total number
of each type of meal (breakfast, lunch, or supper, or supplement)
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tional average payment rate for each such type of meal, as determined under subsection (c).
(B) No reimbursement may be made to any institution under
this paragraph, or to family or group day care home sponsoring organizations under paragraph (3) of this subsection, for more than
two meals and one supplement per day per child, or in the case of
an institution (but not in the case of a family or group day care
home sponsoring organization), 2 meals and 1 supplement per day
per child, for children that are maintained in a child care setting
for eight or more hours per day.
(C) LIMITATION ON ADMINISTRATIVE EXPENSES FOR CERTAIN SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—Except as provided in clause (ii),
a sponsoring organization of a day care center may reserve not more than 15 percent of the funds provided
under paragraph (1) for the administrative expenses of
the organization.
(ii) WAIVER.—A State may waive the requirement
in clause (i) with respect to a sponsoring organization
if the organization provides justification to the State
that the organization requires funds in excess of 15
percent of the funds provided under paragraph (1) to
pay the administrative expenses of the organization.
(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS.—
(A) REIMBURSEMENT FACTOR.—
(i) IN GENERAL.—An institution that participates
in the program under this section as a family or group
day care home sponsoring organization shall be provided, for payment to a home sponsored by the organization, reimbursement factors in accordance with this
subparagraph for the cost of obtaining and preparing
food and prescribed labor costs involved in providing
meals under this section.
(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.—
(I) DEFINITION OF TIER I FAMILY OR GROUP DAY
CARE HOME.—In this paragraph, the term ‘‘tier I
family or group day care home’’ means—
(aa) a family or group day care home that
is located in a geographic area, as defined by
the Secretary based on census data, in which
at least 50 percent of the children residing in
the area are members of households whose incomes meet the income eligibility guidelines
for free or reduced price meals under section
9;
(bb) a family or group day care home that
is located in an area served by a school enrolling students in which at least 50 percent of
the total number of children enrolled are certified eligible to receive free or reduced price
school meals under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
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(cc) a family or group day care home that
is operated by a provider whose household
meets the income eligibility guidelines for free
or reduced price meals under section 9 and
whose income is verified by the sponsoring organization of the home under regulations established by the Secretary.
(II) REIMBURSEMENT.—Except as provided in
subclause (III), a tier I family or group day care
home shall be provided reimbursement factors
under this clause without a requirement for documentation of the costs described in clause (i), except that reimbursement shall not be provided
under this subclause for meals or supplements
served to the children of a person acting as a family or group day care home provider unless the
children meet the income eligibility guidelines for
free or reduced price meals under section 9.
(III) FACTORS.—Except as provided in subclause (IV), the reimbursement factors applied to
a home referred to in subclause (II) shall be the
factors in effect on July 1, 1996.
(IV) ADJUSTMENTS.—The reimbursement factors under this subparagraph shall be adjusted on
July 1, 1997, and each July 1 thereafter, to reflect
changes in the Consumer Price Index for food at
home for the most recent 12-month period for
which the data are available. The reimbursement
factors under this subparagraph shall be rounded
to the nearest lower cent increment and based on
the unrounded adjustment in effect on June 30 of
the preceding school year.
(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.—
(I) IN GENERAL.—
(aa) FACTORS.—Except as provided in
subclause (II), with respect to meals or supplements served under this clause by a family
or group day care home that does not meet
the criteria set forth in clause (ii)(I), the reimbursement factors shall be 95 cents for
lunches and suppers, 27 cents for breakfasts,
and 13 cents for supplements.
(bb) ADJUSTMENTS.—The factors shall be
adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer
Price Index for food at home for the most recent 12-month period for which the data are
available. The reimbursement factors under
this item shall be rounded down to the nearest lower cent increment and based on the
unrounded adjustment for the preceding 12month period.
(cc) REIMBURSEMENT.—A family or group
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ment factors under this subclause without a
requirement for documentation of the costs
described in clause (i), except that reimbursement shall not be provided under this subclause for meals or supplements served to the
children of a person acting as a family or
group day care home provider unless
the children meet the income eligibility guidelines for free or reduced price meals under
section 9.
(II) OTHER FACTORS.—A family or group day
care home that does not meet the criteria set forth
in clause (ii)(I) may elect to be provided reimbursement factors determined in accordance with
the following requirements:
(aa) CHILDREN ELIGIBLE FOR FREE OR REDUCED PRICE MEALS.—In the case of meals or
supplements served under this subsection to
children who are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9, the family or group day care
home shall be provided reimbursement factors
set by the Secretary in accordance with clause
(ii)(III).
(bb) INELIGIBLE CHILDREN.—In the case of
meals or supplements served under this subsection to children who are members of households whose incomes do not meet the income
eligibility guidelines, the family or group day
care home shall be provided reimbursement
factors in accordance with subclause (I).
(III) INFORMATION AND DETERMINATIONS.—
(aa) IN GENERAL.—If a family or group
day care home elects to claim the factors described in subclause (II), the family or group
day care home sponsoring organization serving the home shall collect the necessary income information, as determined by the Secretary, from any parent or other caretaker to
make the determinations specified in subclause (II) and shall make the determinations
in accordance with rules prescribed by the
Secretary.
(bb) CATEGORICAL ELIGIBILITY.—In making a determination under item (aa), a family
or group day care home sponsoring organization may consider a child participating in or
subsidized under, or a child with a parent
participating in or subsidized under, a federally or State supported child care or other
benefit program with an income eligibility
limit that does not exceed the eligibility
standard for free or reduced price meals
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under section 9 to be a child who is a member
of a household whose income meets the income eligibility guidelines under section 9.
(cc) FACTORS FOR CHILDREN ONLY.—A
family or group day care home may elect to
receive the reimbursement factors prescribed
under clause (ii)(III) solely for the children
participating in a program referred to in item
(bb) if the home elects not to have income
statements collected from parents or other
caretakers.
(dd) TRANSMISSION OF INCOME INFORMATION BY SPONSORED FAMILY OR GROUP DAY
CARE HOMES.—If a family or group day care

home elects to be provided reimbursement
factors described in subclause (II), the family
or group day care home may assist in the
transmission of necessary household income
information to the family or group day care
home sponsoring organization in accordance
with the policy described in item (ee).
(ee) POLICY.—The Secretary shall develop
a policy under which a sponsored family or
group day care home described in item (dd)
may, under terms and conditions specified by
the Secretary and with the written consent of
the parents or guardians of a child in a family
or group day care home participating in the
program, assist in the transmission of the income information of the family to the family
or group day care home sponsoring organization.
(IV) SIMPLIFIED MEAL COUNTING AND REPORTING PROCEDURES.—The Secretary shall prescribe
simplified meal counting and reporting procedures
for use by a family or group day care home that
elects to claim the factors under subclause (II) and
by a family or group day care home sponsoring organization that sponsors the home. The procedures the Secretary prescribes may include 1 or
more of the following:
(aa) Setting an annual percentage for
each home of the number of meals served that
are to be reimbursed in accordance with the
reimbursement factors prescribed under
clause (ii)(III) and an annual percentage of
the number of meals served that are to be reimbursed in accordance with the reimbursement factors prescribed under subclause (I),
based on the family income of children enrolled in the home in a specified month or
other period.
(bb) Placing a home into 1 of 2 or more
reimbursement categories annually based on
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the percentage of children in the home whose
households have incomes that meet the income eligibility guidelines under section 9,
with each such reimbursement category carrying a set of reimbursement factors such as
the factors prescribed under clause (ii)(III) or
subclause (I) or factors established within the
range of factors prescribed under clause
(ii)(III) and subclause (I).
(cc) Such other simplified procedures as
the Secretary may prescribe.
(V) MINIMUM VERIFICATION REQUIREMENTS.—
The Secretary may establish any minimum
verification requirements that are necessary to
carry out this clause.
(B) ADMINISTRATIVE FUNDS.—
(i) IN GENERAL.—In addition to reimbursement
factors described in subparagraph (A), a family or
group day care home sponsoring organization shall receive reimbursement for the administrative expenses
of the sponsoring organization in an amount that is
not less than the product obtained each month by multiplying—
(I) the number of family and group day care
homes of the sponsoring organization submitting a
claim for reimbursement during the month; by
(II) the appropriate administrative rate determined by the Secretary.
(ii) ANNUAL ADJUSTMENT.—The administrative reimbursement levels specified in clause (i) shall be adjusted July 1 of each year to reflect changes in the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor for the most recent 12-month period for
which such data are available.
(iii) CARRYOVER FUNDS.—The Secretary shall develop procedures under which not more than 10 percent of the amount made available to sponsoring organizations under this section for administrative expenses for a fiscal year may remain available for obligation or expenditure in the succeeding fiscal year.
(C)(i) Reimbursement for administrative expenses shall also include start-up funds to finance the administrative expenses for
such institutions to initiate successful operation under the program
and expansion funds to finance the administrative expenses for
such institutions to expand into low-income or rural areas. Institutions that have received start-up funds may also apply at a later
date for expansion funds. Such start-up funds and expansion funds
shall be in addition to other reimbursement to such institutions for
administrative expenses. Start-up funds and expansion funds shall
be payable to enable institutions satisfying the criteria of subsection (d) of this section, and any other standards prescribed by
the Secretary, to develop an application for participation in the program as a family or group day care home sponsoring organization
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or to implement the program upon approval of the application.
Such start-up funds and expansion funds shall be payable in accordance with the procedures prescribed by the Secretary. The
amount of start-up funds and expansion funds payable to an institution shall be not less than the institution’s anticipated reimbursement for administrative expenses under the program for one
month and not more than the institution’s anticipated reimbursement for administrative expenses under the program for two
months.
(ii) Funds for administrative expenses may be used by family
or group day care home sponsoring organizations assist unlicensed
family or group day care homes in becoming licensed.
(D) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY
CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—Subject to clause (ii), a State
agency shall limit the ability of a family or group day
care home to transfer from a sponsoring organization
to another sponsoring organization more frequently
than once a year.
(ii) GOOD CAUSE.—The State agency may permit
or require a family or group day care home to transfer
from a sponsoring organization to another sponsoring
organization more frequently than once a year for good
cause (as determined by the State agency), including
circumstances in which the sponsoring organization of
the family or group day care home ceases to participate in the child and adult care food program.
(E) PROVISION OF DATA TO FAMILY OR GROUP DAY CARE
HOME SPONSORING ORGANIZATIONS.—
(i) CENSUS DATA.—The Secretary shall provide to
each State agency administering a child and adult
care food program under this section data from the
most recent decennial census survey or other appropriate census survey for which the data are available
showing which areas in the State meet the requirements of subparagraph (A)(ii)(I)(aa). The State agency
shall provide the data to family or group day care
home sponsoring organizations located in the State.
(ii) SCHOOL DATA.—
(I) IN GENERAL.—A State agency administering the school lunch program under this Act
or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall provide to approved family or group day care
home sponsoring organizations a list of schools
serving elementary school children in the State in
which not less than 1⁄2 of the children enrolled are
certified to receive free or reduced price meals.
The State agency shall collect the data necessary
to create the list annually and provide the list on
a timely basis to any approved family or group
day care home sponsoring organization that requests the list.
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(II) USE OF DATA FROM PRECEDING SCHOOL
determining for a fiscal year or other
annual period whether a home qualifies as a tier
I family or group day care home under subparagraph (A)(ii)(I), the State agency administering
the program under this section, and a family or
group day care home sponsoring organization,
shall use the most current available data at the
time of the determination.
(iii) DURATION OF DETERMINATION.—For purposes
of this section, a determination that a family or group
day care home is located in an area that qualifies the
home as a tier I family or group day care home (as the
term is defined in subparagraph (A)(ii)(I)), shall be in
effect for 5 years (unless the determination is made on
the basis of census data, in which case the determination shall remain in effect until more recent census
data are available) unless the State agency determines
that the area in which the home is located no longer
qualifies the home as a tier I family or group day care
home.
(4) By the first day of each month of operation, the State may
provide advance payments for the month to each approved institution in an amount that reflects the full level of valid claims customarily received from such institution for one month’s operation. In
the case of a newly participating institution, the amount of the advance shall reflect the State’s best estimate of the level of valid
claims such institutions will submit. If the State has reason to believe that an institution will not be able to submit a valid claim
covering the period for which such an advance has been made, the
subsequent month’s advance payment shall be withheld until the
State receives a valid claim. Payments advanced to institutions
that are not subsequently deducted from a valid claim for reimbursement shall be repaid upon demand by the State. Any prior
payment that is under dispute may be subtracted from an advance
payment.
(g) NUTRITIONAL REQUIREMENTS FOR MEALS AND SNACKS
SERVED IN INSTITUTIONS AND FAMILY OR GROUP DAY CARE
HOMES.—
(1) DEFINITION OF DIETARY GUIDELINES.—In this subsection, the term ‘‘Dietary Guidelines’’ means the Dietary
Guidelines for Americans published under section 301 of the
National Nutrition Monitoring and Related Research Act of
1990 (7 U.S.C. 5341).
(2) NUTRITIONAL REQUIREMENTS.—
(A) IN GENERAL.—Except as provided in subparagraph
(C), reimbursable meals and snacks served by institutions,
family or group day care homes, and sponsored centers
participating in the program under this section shall consist of a combination of foods that meet minimum nutritional requirements prescribed by the Secretary on the
basis of tested nutritional research.
(B) CONFORMITY WITH THE DIETARY GUIDELINES AND
AUTHORITATIVE SCIENCE.—
YEAR.—In

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(i) IN GENERAL.—Not less frequently than once
every 10 years, the Secretary shall review and, as appropriate, update requirements for meals served under
the program under this section to ensure that the
meals—
(I) are consistent with the goals of the most
recent Dietary Guidelines; and
(II) promote the health of the population
served by the program authorized under this section, as indicated by the most recent relevant nutrition science and appropriate authoritative scientific agency and organization recommendations.
(ii) COST REVIEW.—The review required under
clause (i) shall include a review of the cost to child
care centers and group or family day care homes resulting from updated requirements for meals and
snacks served under the program under this section.
(iii) REGULATIONS.—Not later than 18 months
after the completion of the review of the meal pattern
under clause (i), the Secretary shall promulgate proposed regulations to update the meal patterns for
meals and snacks served under the program under
this section.
(C) EXCEPTIONS.—
(i) SPECIAL DIETARY NEEDS.—The minimum nutritional requirements prescribed under subparagraph
(A) shall not prohibit institutions, family or group day
care homes, and sponsored centers from substituting
foods to accommodate the medical or other special dietary needs of individual participants.
(ii) EXEMPT INSTITUTIONS.—The Secretary may
elect to waive all or part of the requirements of this
subsection for emergency shelters participating in the
program under this section.
(3) MEAL SERVICE.—Institutions, family or group day care
homes, and sponsored centers shall ensure that reimbursable
meal service contributes to the development and socialization
of enrolled children by providing that food is not used as a
punishment or reward.
(4) FLUID MILK.—
(A) IN GENERAL.—If an institution, family or group day
care home, or sponsored center provides fluid milk as part
of a reimbursable meal or supplement, the institution,
family or group day care home, or sponsored center shall
provide the milk in accordance with the most recent
version of the Dietary Guidelines.
(B) MILK SUBSTITUTES.—In the case of children who
cannot consume fluid milk due to medical or other special
dietary needs other than a disability, an institution, family
or group day care home, or sponsored center may substitute for the fluid milk required in meals served, a
nondairy beverage that—
(i) is nutritionally equivalent to fluid milk; and
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(ii) meets nutritional standards established by the
Secretary, including, among other requirements established by the Secretary, fortification of calcium, protein, vitamin A, and vitamin D to levels found in cow’s
milk.
(C) APPROVAL.—
(i) IN GENERAL.—A substitution authorized under
subparagraph (B) may be made—
(I) at the discretion of and on approval by the
participating day care institution; and
(II) if the substitution is requested by written
statement of a medical authority, or by the parent
or legal guardian of the child, that identifies the
medical or other special dietary need that restricts
the diet of the child.
(ii) EXCEPTION.—An institution, family or group
day care home, or sponsored center that elects to make
a substitution authorized under this paragraph shall
not be required to provide beverages other than beverages the State has identified as acceptable substitutes.
(D) EXCESS EXPENSES BORNE BY INSTITUTION.—A participating institution, family or group day care home, or
sponsored center shall be responsible for any expenses
that—
(i) are incurred by the institution, family or group
day care home, or sponsored center to provide substitutions under this paragraph; and
(ii) are in excess of expenses covered under reimbursements under this Act.
(5) NONDISCRIMINATION POLICY.—No physical segregation
or other discrimination against any person shall be made because of the inability of the person to pay, nor shall there be
any overt identification of any such person by special tokens or
tickets, different meals or meal service, announced or published lists of names, or other means.
(6) USE OF ABUNDANT AND DONATED FOODS.—To the maximum extent practicable, each institution shall use in its food
service foods that are—
(A) designated from time to time by the Secretary as
being in abundance, either nationally or in the food service
area; or
(B) donated by the Secretary.
(h)(1)(A) The Secretary shall donate agricultural commodities
produced in the United States for use in institutions participating
in the child care food program under this section.
(B) The value of the commodities donated under subparagraph
(A) (or cash in lieu of commodities) to each State for each school
year shall be, at a minimum, the amount obtained by multiplying
the number of lunches and suppers served in participating institutions in that State during the preceding school year by the rate for
commodities or cash in lieu of commodities established under section 6(c) for the school year concerned.
(C) After the end of each school year, the Secretary shall—
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(i) reconcile the number of lunches and suppers served in
participating institutions in each State during such school year
with the number of lunches and suppers served by participating institutions in each State during the preceding school
year; and
(ii) based on such reconciliation, increase or reduce subsequent commodity assistance or cash in lieu of commodities provided to each State.
(D) Any State receiving assistance under this section for institutions participating in the child care food program may, upon application to the Secretary, receive cash in lieu of some or all of the
commodities to which it would otherwise be entitled under this
subsection. In determining whether to request cash in lieu of commodities, the State shall base its decision on the preferences of individual participating institutions within the State, unless this
proves impracticable due to the small number of institutions preferring donated commodities.
(2) The Secretary is authorized to provide agricultural commodities obtained by the Secretary under the provisions of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) and donated under
the provisions of section 416 of such Act, to the Department of Defense for use by its institutions providing child care services, when
such commodities are in excess of the quantities needed to meet
the needs of all other child nutrition programs, domestic and foreign food assistance and export enhancement programs. The Secretary shall require reimbursement from the Department of Defense for the costs, or some portion thereof, of delivering such commodities to overseas locations, unless the Secretary determines
that it is in the best interest of the program that the Department
of Agriculture shall assume such costs.
(i) AUDITS.—
(1) DISREGARDS.—
(A) IN GENERAL.—Subject to subparagraph (B), in conducting management evaluations, reviews, or audits under
this section, the Secretary or a State agency may disregard
any overpayment to an institution for a fiscal year if the
total overpayment to the institution for the fiscal year does
not exceed an amount that is consistent with the disregards allowed in other programs under this Act and recognizes the cost of collecting small claims, as determined
by the Secretary.
(B) CRIMINAL OR FRAUD VIOLATIONS.—In carrying out
this paragraph, the Secretary and a State agency shall not
disregard any overpayment for which there is evidence of
a violation of a criminal law or civil fraud law.
(2) FUNDING.—
(A) IN GENERAL.—The Secretary shall make available
for each fiscal year to each State agency administering the
child and adult care food program, for the purpose of conducting audits of participating institutions, an amount of
up to 1.5 percent of the funds used by each State in the
program under this section, during the second preceding
fiscal year.
(B) ADDITIONAL FUNDING.—
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(i) IN GENERAL.—Subject to clause (ii), for fiscal
year 2016 and each fiscal year thereafter, the Secretary may increase the amount of funds made available to any State agency under subparagraph (A), if
the State agency demonstrates that the State agency
can effectively use the funds to improve program management under criteria established by the Secretary.
(ii) LIMITATION.—The total amount of funds made
available to any State agency under this paragraph
shall not exceed 2 percent of the funds used by each
State agency in the program under this section, during
the second preceding fiscal year.
(j) AGREEMENTS.—
(1) IN GENERAL.—The Secretary shall issue regulations directing States to develop and provide for the use of a standard
form of agreement between each sponsoring organization and
the family or group day care homes or sponsored day care centers participating in the program under such organization, for
the purpose of specifying the rights and responsibilities of each
party.
(2) DURATION.—An agreement under paragraph (1) shall
remain in effect until terminated by either party to the agreement.
(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participating in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this subsection.
(l) Expenditures of funds from State and local sources for the
maintenance of food programs for children shall not be diminished
as a result of funds received under this section.
(m) States and institutions participating in the program under
this section shall keep such accounts and records as may be necessary to enable the Secretary to determine whether there has
been compliance with the requirements of this section. Such accounts and records shall be available at any reasonable time for inspection and audit by representatives of the Secretary, the Comptroller General of the United States, and appropriate State representatives and shall be preserved for such period of time, not in
excess of five years, as the Secretary determines necessary.
(n) There are hereby authorized to be appropriated for each fiscal year such funds as are necessary to carry out the purposes of
this section.
(o)(1) For purposes of this section, adult day care centers shall
be considered eligible institutions for reimbursement for meals or
supplements served to persons 60 years of age or older or to chronically impaired disabled persons, including victims of Alzheimer’s
disease and related disorders with neurological and organic brain
dysfunction. Reimbursement provided to such institutions for such
purposes shall improve the quality of meals or level of services provided or increase participation in the program. Lunches served by
each such institution for which reimbursement is claimed under
this section shall provide, on the average, approximately 1⁄3 of the
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daily recommended dietary allowance established by the Food and
Nutrition Board of the National Research Council of the National
Academy of Sciences. Such institutions shall make reasonable efforts to serve meals that meet the special dietary requirements of
participants, including efforts to serve foods in forms palatable to
participants.
(2) For purposes of this subsection—
(A) the term ‘‘adult day care center’’ means any public
agency or private nonprofit organization, or any proprietary
title XIX or title XX center, which—
(i) is licensed or approved by Federal, State, or local
authorities to provide adult day care services to chronically
impaired disabled adults or persons 60 years of age or
older in a group setting outside their homes, or a group
living arrangement, on a less than 24-hour basis; and
(ii) provides for such care and services directly or
under arrangements made by the agency or organization
whereby the agency or organization maintains professional
management responsibility for all such services; and
(B) the term ‘‘proprietary title XIX or title XX center’’
means any private, for-profit center providing adult day care
services for which it receives compensation from amounts
granted to the States under title XIX or XX of the Social Security Act ø(42 U.S.C. 1396 et seq.)¿ and which title XIX or title
XX beneficiaries were not less than 25 percent of enrolled eligible participants in a calendar month preceding initial application or annual reapplication for program participation.
(3)(A) The Secretary, in consulation with the Assistant Secretary for Aging, shall establish, within 6 months of enactment
øenacted on October 1, 1988¿, separate guidelines for reimbursement of institutions described in this subsection. Such reimbursement shall take into account the nutritional requirements of eligible persons, as determined by the Secretary on the basis of tested
nutritional research, except that such reimbursement shall not be
less than would otherwise be required under this section.
(B) The guidelines shall contain provisions designed to assure
that reimbursement under this subsection shall not duplicate reimbursement under part C of title III of the Older Americans Act of
1965 ø(42 U.S.C. 3030e et seq.)¿, for the same meal served.
(4) For the purpose of establishing eligibility for free or reduced price meals or supplements under this subsection, income
shall include only the income of an eligible person and, if any, the
spouse and dependents with whom the eligible person resides.
(5) A person described in paragraph (1) shall be considered
automatically eligible for free meals or supplements under this subsection, without further application or eligibility determination, if
the person is—
(A) a member of a household receiving assistance under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); or
(B) a recipient of assistance under title XVI or XIX of the
Social Security Act (42 U.S.C. 1381 et seq.).
(6) The Governor of any State may designate to administer the
program under this subsection a State agency other than the agency that administers the child care food program under this section.
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ø(p) 15 ¿
(q) MANAGEMENT SUPPORT.—
(1) TECHNICAL AND TRAINING ASSISTANCE.—In addition to
the training and technical assistance that is provided to State
agencies under other provisions of this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the Secretary shall
provide training and technical assistance in order to assist the
State agencies in improving their program management and
oversight under this section.
(2) TECHNICAL AND TRAINING ASSISTANCE FOR IDENTIFICATION AND PREVENTION OF FRAUD AND ABUSE.—As part of training and technical assistance provided under paragraph (1), the
Secretary shall provide training on a continuous basis to State
agencies, and shall ensure that such training is provided to
sponsoring organizations, for the identification and prevention
of fraud and abuse under the program and to improve management of the program.
(r) PROGRAM FOR AT-RISK SCHOOL CHILDREN.—
(1) DEFINITION OF AT-RISK SCHOOL CHILD.—In this subsection, the term ‘‘at-risk school child’’ means a school child
who—
(A) is not more than 18 years of age, except that the
age limitation provided by this subparagraph shall not
apply to a child described in section 12(d)(1)(A); and
(B) participates in a program authorized under this
section operated at a site located in a geographical area
served by a school in which at least 50 percent of the children enrolled are certified as eligible to receive free or reduced price school meals under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(2) PARTICIPATION IN CHILD AND ADULT CARE FOOD PROGRAM.—An institution may participate in the program authorized under this section only if the institution provides meals or
supplements under a program—
(A) organized primarily to provide care to at-risk
school children during after-school hours, weekends, or
holidays during the regular school year; and
(B) with an educational or enrichment purpose.
(3) ADMINISTRATION.—Except as otherwise provided in this
subsection, the other provisions of this section apply to an institution described in paragraph (2).
(4) MEAL AND SUPPLEMENT REIMBURSEMENT.—
(A) LIMITATIONS.—An institution may claim reimbursement under this subsection only for one meal per
child per day and one supplement per child per day served
under a program organized primarily to provide care to atrisk school children during after-school hours, weekends,
or holidays during the regular school year.
(B) RATES.—
(i) MEALS.—A meal shall be reimbursed under
this subsection at the rate established for free meals
under subsection (c).
15 Subsec.

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(ii) SUPPLEMENTS.—A supplement shall be reimbursed under this subsection at the rate established
for a free supplement under subsection (c)(3).
(C) NO CHARGE.—A meal or supplement claimed for
reimbursement under this subsection shall be served without charge.
(5) LIMITATION.—An institution participating in the program under this subsection may not claim reimbursement for
meals and snacks that are served under section 18(h) on the
same day.
(6) HANDBOOK.—
(A) IN GENERAL.—Not later than 180 days after the
date of enactment of the Healthy, Hunger-Free Kids Act of
2010, the Secretary shall—
(i) issue guidelines for afterschool meals for atrisk school children; and
(ii) publish a handbook reflecting those guidelines.
(B) REVIEW.—Each year after the issuance of guidelines under subparagraph (A), the Secretary shall—
(i) review the guidelines; and
(ii) issue a revised handbook reflecting changes
made to the guidelines.
(s) INFORMATION CONCERNING THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.—
(1) IN GENERAL.—The Secretary shall provide each State
agency administering a child and adult care food program
under this section with information concerning the special supplemental nutrition program for women, infants, and children
authorized under section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786).
(2) REQUIREMENTS FOR STATE AGENCIES.—Each State agency shall ensure that each participating family and group day
care home and child care center (other than an institution providing care to school children outside school hours)—
(A) receives materials that include—
(i) a basic explanation of the importance and benefits of the special supplemental nutrition program for
women, infants, and children;
(ii) the maximum State income eligibility standards, according to family size, for the program; and
(iii) information concerning how benefits under
the program may be obtained;
(B) receives periodic updates of the information described in subparagraph (A); and
(C) provides the information described in subparagraph (A) to parents of enrolled children at enrollment.
(t) PARTICIPATION BY EMERGENCY SHELTERS.—
(1) DEFINITION OF EMERGENCY SHELTER.—In this subsection, the term ‘‘emergency shelter’’ means—

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(A) an emergency shelter (as defined in section 321 of
the Stewart B. McKinney Homeless Assistance Act 16 (42
U.S.C. 11351)); or
(B) a site operated by the shelter.
(2) ADMINISTRATION.—Except as otherwise provided in this
subsection, an emergency shelter shall be eligible to participate
in the program authorized under this section in accordance
with the terms and conditions applicable to eligible institutions
described in subsection (a).
(3) LICENSING REQUIREMENTS.—The licensing requirements
contained in subsection (a)(5) shall not apply to an emergency
shelter.
(4) HEALTH AND SAFETY STANDARDS.—To be eligible to participate in the program authorized under this section, an emergency shelter shall comply with applicable State or local health
and safety standards.
(5) MEAL OR SUPPLEMENT REIMBURSEMENT.—
(A) LIMITATIONS.—An emergency shelter may claim reimbursement under this subsection—
(i) only for a meal or supplement served to children residing at an emergency shelter, if the children
are—
(I) not more than 18 years of age; or
(II) children with disabilities; and
(ii) for not more than 3 meals, or 2 meals and a
supplement, per child per day.
(B) RATE.—A meal or supplement eligible for reimbursement shall be reimbursed at the rate at which free
meals and supplements are reimbursed under subsection
(c).
(C) NO CHARGE.—A meal or supplement claimed for
reimbursement shall be served without charge.
(u) PROMOTING HEALTH AND WELLNESS IN CHILD CARE.—
(1) PHYSICAL ACTIVITY AND ELECTRONIC MEDIA USE.—The
Secretary shall encourage participating child care centers and
family or group day care homes—
(A) to provide to all children under the supervision of
the participating child care centers and family or group
day care homes daily opportunities for structured and
unstructured age-appropriate physical activity; and
(B) to limit among children under the supervision of
the participating child care centers and family or group
day care homes the use of electronic media to an appropriate level.
(2) WATER CONSUMPTION.—Participating child care centers
and family or group day care homes shall make available to
children, as nutritionally appropriate, potable water as an acceptable fluid for consumption throughout the day, including at
meal times.
(3) TECHNICAL ASSISTANCE AND GUIDANCE.—
16 Sec. 2 of P.L. 106–400, 114 Stat. 1675, Oct. 30, 2000, provides that any reference in any
law, regulation, document, paper, or other record of the United States to the Stewart B. McKinney Homeless Assistance Act shall be deemed to be a reference to the ‘‘McKinney-Vento Homeless Assistance Act’’.

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(A) IN GENERAL.—The Secretary shall provide technical assistance to institutions participating in the program under this section to assist participating child care
centers and family or group day care homes in complying
with the nutritional requirements and wellness recommendations prescribed by the Secretary in accordance
with this subsection and subsection (g).
(B) GUIDANCE.—Not later than January 1, 2012, the
Secretary shall issue guidance to States and institutions to
encourage participating child care centers and family or
group day care homes serving meals and snacks under this
section to—
(i) include foods that are recommended for increased serving consumption in amounts recommended by the most recent Dietary Guidelines for
Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of
1990 (7 U.S.C. 5341), including fresh, canned, dried, or
frozen fruits and vegetables, whole grain products,
lean meat products, and low-fat and non-fat dairy
products; and
(ii) reduce sedentary activities and provide opportunities for regular physical activity in quantities recommended by the most recent Dietary Guidelines for
Americans described in clause (i).
(C) NUTRITION.—Technical assistance relating to the
nutritional requirements of this subsection and subsection
(g) shall include—
(i) nutrition education, including education that
emphasizes the relationship between nutrition, physical activity, and health;
(ii) menu planning;
(iii) interpretation of nutrition labels; and
(iv) food preparation and purchasing guidance to
produce meals and snacks that are—
(I) consistent with the goals of the most recent Dietary Guidelines; and
(II) promote the health of the population
served by the program under this section, as recommended by authoritative scientific organizations.
(D) PHYSICAL ACTIVITY.—Technical assistance relating
to the physical activity requirements of this subsection
shall include—
(i) education on the importance of regular physical
activity to overall health and well being; and
(ii) sharing of best practices for physical activity
plans in child care centers and homes as recommended
by authoritative scientific organizations.
(E) ELECTRONIC MEDIA USE.—Technical assistance relating to the electronic media use requirements of this subsection shall include—
(i) education on the benefits of limiting exposure
to electronic media by children; and
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(ii) sharing of best practices for the development
of daily activity plans that limit use of electronic
media.
(F) MINIMUM ASSISTANCE.—At a minimum, the technical assistance required under this paragraph shall include a handbook, developed by the Secretary in coordination with the Secretary for Health and Human Services,
that includes recommendations, guidelines, and best practices for participating institutions and family or group day
care homes that are consistent with the nutrition, physical
activity, and wellness requirements and recommendations
of this subsection.
(G) ADDITIONAL ASSISTANCE.—In addition to the requirements of this paragraph, the Secretary shall develop
and provide such appropriate training and education materials, guidance, and technical assistance as the Secretary
considers to be necessary to comply with the nutritional
and wellness requirements of this subsection and subsection (g).
(H) FUNDING.—
(i) IN GENERAL.—On October 1, 2010, out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary to provide technical assistance under this subsection $10,000,000, to remain available until expended.
(ii) RECEIPT AND ACCEPTANCE.—The Secretary
shall be entitled to receive, shall accept, and shall use
to carry out this subsection the funds transferred
under clause (i), without further appropriation.
SEC. 17A. ø42 U.S.C. 1766a¿ MEAL SUPPLEMENTS FOR CHILDREN IN
AFTERSCHOOL CARE.
(a) GENERAL AUTHORITY.—
(1) GRANTS TO STATES.—The Secretary shall carry out a

program to assist States through grants-in-aid and other
means to provide meal supplements under a program organized primarily to provide care for children in afterschool care
in eligible elementary and secondary schools.
(2) ELIGIBLE SCHOOLS.—For the purposes of this section,
the term ‘‘eligible elementary and secondary schools’’ means
schools that—
(A) operate school lunch programs under this Act;
(B) sponsor afterschool care programs; and
(C) operate afterschool programs with an educational
or enrichment purpose.
(b) ELIGIBLE CHILDREN.—Reimbursement may be provided
under this section only for supplements served to school children
who are not more than 18 years of age, except that the age limitation provided by this subsection shall not apply to a child described
in section 12(d)(1)(A).
(c) REIMBURSEMENT.—
(1) AT-RISK SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section operated at a site located in a geographical area served
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by a school in which at least 50 percent of the children enrolled
are certified as eligible to receive free or reduced price school
meals under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), a supplement provided under this section
to the child shall be—
(A) reimbursed at the rate at which free supplements
are reimbursed under section 17(c)(3); and
(B) served without charge.
(2) OTHER SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section at a site that is not described in paragraph (1), for the
purposes of this section, the national average payment rate for
supplements shall be equal to those established under section
17(c)(3) (as adjusted pursuant to section 11(a)(3)).
(d) CONTENTS OF SUPPLEMENTS.—The requirements that apply
to the content of meal supplements served under child care food
programs operated with assistance under this Act shall apply to
the content of meal supplements served under programs operated
with assistance under this section.
øSEC. 17B. 17 ø42 U.S.C. 1766b¿ HOMELESS CHILDREN NUTRITION PROGRAM.¿
PILOT PROJECTS

SEC. 18. ø42 U.S.C. 1769¿ø(a)¿ 18¿
(b)(1) Upon request to the Secretary, any school district that on
January 1, 1987, was receiving all cash payments or all commodity
letters of credit in lieu of entitlement commodities for its school
lunch program shall receive all cash payments or all commodity
letters of credit in lieu of entitlement commodities for its school
lunch program beginning July 1, 1987. The Secretary, directly or
through contract, shall administer the project under this subsection.
(2) Any school district that elects under paragraph (1) to receive all cash payments or all commodity letters of credit in lieu
of entitlement commodities for its school lunch program shall receive bonus commodities in the same manner as if such school district was receiving all entitlement commodities for its school lunch
program.
(c)(1) The Secretary may conduct pilot projects to test alternative counting and claiming procedures.
(2) Each pilot program carried out under this subsection shall
be evaluated by the Secretary after it has been in operation for 3
years.
ø(d) 19 ¿
ø(e) 20 ¿
ø(f) 21 ¿
(g) ACCESS TO LOCAL FOODS: FARM TO SCHOOL PROGRAM.—
17 Effective July 1, 1999, section 107(j)(2)(C)(i) of P.L. 105–336, 112 Stat. 3153, Oct. 31, 1998,
repealed section 17B.
18 Subsec. (a) struck by sec. 441(a)(9) of P.L. 111–296, 124 Stat. 3264, Dec. 13, 2010.
19 Subsec. (d) struck by sec. 441(a)(11) of P.L. 111–296, 124 Stat. 3264, Dec. 13, 2010.
20 Subsec. (e) struck by sec. 441(a)(12) of P.L. 111–296, 124 Stat. XXX, Dec. 13, 2010.
21 Subsec. (f) struck by sec. 441(a)(13) of P.L. 111–296, 124 Stat. 3264, Dec. 13, 2010.

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(1) DEFINITION OF ELIGIBLE SCHOOL.—In this subsection,
the term ‘‘eligible school’’ means a school or institution that
participates in a program under this Act or the school breakfast program established under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773).
(2) PROGRAM.—The Secretary shall carry out a program to
assist eligible schools, State and local agencies, Indian tribal
organizations, agricultural producers or groups of agricultural
producers, and nonprofit entities through grants and technical
assistance to implement farm to school programs that improve
access to local foods in eligible schools.
(3) GRANTS.—
(A) IN GENERAL.—The Secretary shall award competitive grants under this subsection to be used for—
(i) training;
(ii) supporting operations;
(iii) planning;
(iv) purchasing equipment;
(v) developing school gardens;
(vi) developing partnerships; and
(vii) implementing farm to school programs.
(B) REGIONAL BALANCE.—In making awards under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure—
(i) geographical diversity; and
(ii) equitable treatment of urban, rural, and tribal
communities.
(C) MAXIMUM AMOUNT.—The total amount provided to
a grant recipient under this subsection shall not exceed
$100,000.
(4) FEDERAL SHARE.—
(A) IN GENERAL.—The Federal share of costs for a
project funded through a grant awarded under this subsection shall not exceed 75 percent of the total cost of the
project.
(B) FEDERAL MATCHING.—As a condition of receiving a
grant under this subsection, a grant recipient shall provide
matching support in the form of cash or in-kind contributions, including facilities, equipment, or services provided
by State and local governments, nonprofit organizations,
and private sources.
(5) CRITERIA FOR SELECTION.—To the maximum extent
practicable, in providing assistance under this subsection, the
Secretary shall give the highest priority to funding projects
that, as determined by the Secretary—
(A) make local food products available on the menu of
the eligible school;
(B) serve a high proportion of children who are eligible
for free or reduced price lunches;
(C) incorporate experiential nutrition education activities in curriculum planning that encourage the participation of school children in farm and garden-based agricultural education activities;
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(D) demonstrate collaboration between eligible schools,
nongovernmental and community-based organizations, agricultural producer groups, and other community partners;
(E) include adequate and participatory evaluation
plans;
(F) demonstrate the potential for long-term program
sustainability; and
(G) meet any other criteria that the Secretary determines appropriate.
(6) EVALUATION.—As a condition of receiving a grant under
this subsection, each grant recipient shall agree to cooperate in
an evaluation by the Secretary of the program carried out
using grant funds.
(7) TECHNICAL ASSISTANCE.—The Secretary shall provide
technical assistance and information to assist eligible schools,
State and local agencies, Indian tribal organizations, and nonprofit entities—
(A) to facilitate the coordination and sharing of information and resources in the Department that may be applicable to the farm to school program;
(B) to collect and share information on best practices;
and
(C) to disseminate research and data on existing farm
to school programs and the potential for programs in underserved areas.
(8) FUNDING.—
(A) IN GENERAL.—On October 1, 2012, and each October 1 thereafter, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this subsection
$5,000,000, to remain available until expended.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph
(A), without further appropriation.
(9) AUTHORIZATION OF APPROPRIATIONS.—In addition to the
amounts made available under paragraph (8), there are authorized to be appropriated to carry out this subsection such
sums as are necessary for each of fiscal years 2011 through
2015.
(h) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS.—
(1) IN GENERAL.—
(A) DEFINITIONS.—In this paragraph:
(i) ELIGIBLE PROGRAM.—The term ‘‘eligible program’’ means—
(I) a school-based program with hands-on vegetable gardening and nutrition education that is
incorporated into the curriculum for 1 or more
grades at 2 or more eligible schools; or
(II) a community-based summer program with
hands-on vegetable gardening and nutrition education that is part of, or coordinated with, a summer enrichment program at 2 or more eligible
schools.
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(ii) ELIGIBLE SCHOOL.—The term ‘‘eligible school’’
means a public school, at least 50 percent of the students of which are eligible for free or reduced price
meals under this Act.
(B) ESTABLISHMENT.—The Secretary shall carry out a
pilot program under which the Secretary shall provide to
nonprofit organizations or public entities in not more than
5 States grants to develop and run, through eligible programs, community gardens at eligible schools in the States
that would—
(i) be planted, cared for, and harvested by students at the eligible schools; and
(ii) teach the students participating in the community gardens about agriculture production practices
and diet.
(C) PRIORITY STATES.—Of the States in which grantees
under this paragraph are located—
(i) at least 1 State shall be among the 15 largest
States, as determined by the Secretary;
(ii) at least 1 State shall be among the 16th to
30th largest States, as determined by the Secretary;
and
(iii) at least 1 State shall be a State that is not described in clause (i) or (ii).
(D) USE OF PRODUCE.—Produce from a community garden provided a grant under this paragraph may be—
(i) used to supplement food provided at the eligible school;
(ii) distributed to students to bring home to the
families of the students; or
(iii) donated to a local food bank or senior center
nutrition program.
(E) NO COST-SHARING REQUIREMENT.—A nonprofit organization or public entity that receives a grant under this
paragraph shall not be required to share the cost of carrying out the activities assisted under this paragraph.
(F) EVALUATION.—A nonprofit organization or public
entity that receives a grant under this paragraph shall be
required to cooperate in an evaluation carried out by the
Secretary.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry
out this subsection for each of fiscal years 2004 through 2015.
(i) YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.—
(1) IN GENERAL.—A service institution that is described in
section 13(a)(6) (excluding a public school), or a private nonprofit organization described in section 13(a)(7), and that is located in the State of California may be reimbursed—
(A) for up to 2 meals during each day of operation
served—
(i) during the months of May through September;
(ii) in the case of a service institution that operates a food service program for children on school vaDecember 20, 2019

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cation, at anytime under a continuous school calendar;
and
(iii) in the case of a service institution that provides meal service at a nonschool site to children who
are not in school for a period during the school year
due to a natural disaster, building repair, court order,
or similar case, at anytime during such a period; and
(B) for a snack served during each day of operation
after school hours, weekends, and school holidays during
the regular school calendar.
(2) PAYMENTS.—The service institution shall be reimbursed consistent with section 13(b)(1).
(3) ADMINISTRATION.—To receive reimbursement under
this subsection, a service institution shall comply with section
13, other than subsections (b)(2) and (c)(1) of that section.
(4) EVALUATION.—Not later than September 30, 2007, the
State agency shall submit to the Secretary a report on the effect of this subsection on participation in the summer food
service program for children established under section 13.
(5) FUNDING.—The Secretary shall provide to the State of
California such sums as are necessary to carry out this subsection for each of fiscal years 2011 through 2015.
(j) FREE LUNCH AND BREAKFAST ELIGIBILITY.—
(1) IN GENERAL.—Subject to the availability of funds under
paragraph (4), the Secretary shall expand the service of free
lunches and breakfasts provided at schools participating in the
school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) in all or part of 5 States selected by the Secretary
(of which at least 1 shall be a largely rural State with a significant Native American population).
(2) INCOME ELIGIBILITY.—The income guidelines for determining eligibility for free lunches or breakfasts under this subsection shall be 185 percent of the applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as
adjusted annually in accordance with section 9(b)(1)(B).
(3) EVALUATION.—
(A) IN GENERAL.—Not later than 3 years after the implementation of this subsection, the Secretary shall conduct an evaluation to assess the impact of the changed income eligibility guidelines by comparing the school food
authorities operating under this subsection to school food
authorities not operating under this subsection.
(B) IMPACT ASSESSMENT.—
(i) CHILDREN.—The evaluation shall assess the impact of this subsection separately on—
(I) children in households with incomes less
than 130 percent of the applicable family income
levels contained in the nonfarm poverty income
guidelines prescribed by the Office of Management
and Budget, as adjusted annually in accordance
with section 9(b)(1)(B); and
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(II) children in households with incomes
greater than 130 percent and not greater than 185
percent of the applicable family income levels contained in the nonfarm poverty income guidelines
prescribed by the Office of Management and
Budget, as adjusted annually in accordance with
section 9(b)(1)(B).
(ii) FACTORS.—The evaluation shall assess the impact of this subsection on—
(I) certification and participation rates in the
school lunch and breakfast programs;
(II) rates of lunch- and breakfast-skipping;
(III) academic achievement;
(IV) the allocation of funds authorized in title
I of the Elementary and Secondary Education Act
(20 U.S.C. 6301) to local educational agencies and
public schools; and
(V) other factors determined by the Secretary.
(C) COST ASSESSMENT.—The evaluation shall assess
the increased costs associated with providing additional
free, reduced price, or paid meals in the school food authorities operating under this subsection.
(D) REPORT.—On completion of the evaluation, the
Secretary shall submit to the Committee on Education and
the Workforce of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the results of the evaluation
under this paragraph.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry
out this subsection, to remain available until expended.
(k) ORGANIC FOOD PILOT PROGRAM.—
(1) ESTABLISHMENT.—The Secretary shall establish an organic food pilot program (referred to in this subsection as the
‘‘pilot program’’) under which the Secretary shall provide
grants on a competitive basis to school food authorities selected
under paragraph (3).
(2) USE OF FUNDS.—
(A) IN GENERAL.—The Secretary shall use funds provided under this section—
(i) to enter into competitively awarded contracts
or cooperative agreements with school food authorities
selected under paragraph (3); or
(ii) to make grants to school food authority applicants selected under paragraph (3).
(B) SCHOOL FOOD AUTHORITY USES OF FUNDS.—A
school food authority that receives a grant under this section shall use the grant funds to establish a pilot program
that increases the quantity of organic foods provided to
schoolchildren under the school lunch program established
under this Act.
(3) APPLICATION.—
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section shall submit to the Secretary an application in
such form, containing such information, and at such time
as the Secretary shall prescribe.
(B) CRITERIA.—In selecting contract, grant, or cooperative agreement recipients, the Secretary shall consider—
(i) the poverty line (as defined in section 673(2) of
the Community Services Block Grant Act (42 U.S.C.
9902(2), including any revision required by that section)) applicable to a family of the size involved of the
households in the district served by the school food authority, giving preference to school food authority applicants in which not less than 50 percent of the
households in the district are at or below the Federal
poverty line;
(ii) the commitment of each school food authority
applicant—
(I) to improve the nutritional value of school
meals;
(II) to carry out innovative programs that improve the health and wellness of schoolchildren;
and
(III) to evaluate the outcome of the pilot program; and
(iii) any other criteria the Secretary determines to
be appropriate.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection $10,000,000
for fiscal years 2011 through 2015.
SEC. 19. ø42 U.S.C. 1769a¿ FRESH FRUIT AND VEGETABLE PROGRAM. 22
(a) IN GENERAL.—For the school year beginning July 2008 and

each subsequent school year, the Secretary shall provide grants to
States to carry out a program to make free fresh fruits and vegetables available in elementary schools (referred to in this section as
the ‘‘program’’).
(b) PROGRAM.—A school participating in the program shall
make free fresh fruits and vegetables available to students
throughout the school day (or at such other times as are considered
appropriate by the Secretary) in 1 or more areas designated by the
school.
(c) FUNDING TO STATES.—
(1) MINIMUM GRANT.—Except as provided in subsection
(i)(2), the Secretary shall provide to each of the 50 States and
the District of Columbia an annual grant in an amount equal
22 Sec. 4304(a)(2)(B) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122
Stat. 1892) provided that: ‘‘To facilitate transition from the program authorized under section
18(f) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f)) (as in effect on
the day before the date of enactment of this Act) to the program established under section 19
of that Act (as amended by paragraph (1))—
(i) for the school year beginning July 1, 2008, the Secretary may permit any school selected
for participation under section 18(f) of that Act (42 U.S.C. 1769(f)) for that school year to continue to participate under section 19 of that Act until the end of that school year; and
(ii) funds made available under that Act for fiscal year 2009 may be used to support the participation of any schools selected to participate in the program authorized under section 18(f)
of that Act (42 U.S.C. 1769(f)) (as in effect on the day before the date of enactment of this Act).’’.

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to 1 percent of the funds made available for a year to carry out
the program.
(2) ADDITIONAL FUNDING.—Of the funds remaining after
grants are made under paragraph (1), the Secretary shall allocate additional funds to each State that is operating a school
lunch program under section 4 based on the proportion that—
(A) the population of the State; bears to
(B) the population of the United States.
(d) SELECTION OF SCHOOLS.—
(1) IN GENERAL.—Except as provided in paragraph (2) of
this subsection and section 4304(a)(2) of the Food, Conservation, and Energy Act of 2008, each year, in selecting schools to
participate in the program, each State shall—
(A) ensure that each school chosen to participate in
the program is a school—
(i) in which not less than 50 percent of the students are eligible for free or reduced price meals under
this Act; and
(ii) that submits an application in accordance with
subparagraph (D);
(B) to the maximum extent practicable, give the highest priority to schools with the highest proportion of children who are eligible for free or reduced price meals under
this Act;
(C) 23 ensure that each school selected is an elementary school (as defined in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801));
(D) solicit applications from interested schools that include—
(i) information pertaining to the percentage of students enrolled in the school submitting the application
who are eligible for free or reduced price school
lunches under this Act;
(ii) a certification of support for participation in
the program signed by the school food manager, the
school principal, and the district superintendent (or
equivalent positions, as determined by the school);
(iii) a plan for implementation of the program, including efforts to integrate activities carried out under
this section with other efforts to promote sound health
and nutrition, reduce overweight and obesity, or promote physical activity; and
(iv) such other information as may be requested
by the Secretary; and
(E) encourage applicants to submit a plan for implementation of the program that includes a partnership with
1 or more entities that will provide non-Federal resources
(including entities representing the fruit and vegetable industry).
23 Sec. 4304(a)(2)(A) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246; 122
Stat. 1892) provided that: ‘‘Section 19(d)(1)(C) of the Richard B. Russell National School Lunch
Act (as amended by paragraph (1)) may be waived by a State until July 1, 2010, for each secondary school in the State that has been awarded funding under section 18(f) of that Act (42
U.S.C. 1769(f)) for the school year beginning July 1, 2008.’’.

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(2) EXCEPTION.—Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements of
that clause have been selected and the State does not have a
sufficient number of additional schools that meet the requirement of that clause.
(3) OUTREACH TO LOW-INCOME SCHOOLS.—
(A) IN GENERAL.—Prior to making decisions regarding
school participation in the program, a State agency shall
inform the schools within the State with the highest proportion of free and reduced price meal eligibility, including
Native American schools, of the eligibility of the schools for
the program with respect to priority granted to schools
with the highest proportion of free and reduced price eligibility under paragraph (1)(B).
(B) REQUIREMENT.—In providing information to
schools in accordance with subparagraph (A), a State agency shall inform the schools that would likely be chosen to
participate in the program under paragraph (1)(B).
(e) NOTICE OF AVAILABILITY.—If selected to participate in the
program, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program.
(f) PER-STUDENT GRANT.—The per-student grant provided to a
school under this section shall be—
(1) determined by a State agency; and
(2) not less than $50, nor more than $75.
(g) LIMITATION.—To the maximum extent practicable, each
State agency shall ensure that in making the fruits and vegetables
provided under this section available to students, schools offer the
fruits and vegetables separately from meals otherwise provided at
the school under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(h) EVALUATION AND REPORTS.—
(1) IN GENERAL.—The Secretary shall conduct an evaluation of the program, including a determination as to whether
children experienced, as a result of participating in the program—
(A) increased consumption of fruits and vegetables;
(B) other dietary changes, such as decreased consumption of less nutritious foods; and
(C) such other outcomes as are considered appropriate
by the Secretary.
(2) REPORT.—Not later than September 30, 2011, the Secretary shall submit to the Committee on Education and Labor
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the evaluation under paragraph (1).
(i) FUNDING.—
(1) IN GENERAL.—Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,
and Energy Act of 2008, the Secretary shall use the following
amounts to carry out this section:
(A) On October 1, 2008, $40,000,000.
(B) On July 1, 2009, $65,000,000.
(C) On July 1, 2010, $101,000,000.
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(D) On July 1, 2011, $150,000,000.
(E) On July 1, 2012, and each July 1 thereafter, the
amount made available for the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending
the preceding April 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than
food.
(2) MAINTENANCE OF EXISTING FUNDING.—In allocating
funding made available under paragraph (1) among the States
in accordance with subsection (c), the Secretary shall ensure
that each State that received funding under section 18(f) on
the day before the date of enactment of the Food, Conservation, and Energy Act of 2008 shall continue to receive sufficient
funding under this section to maintain the caseload level of the
State under that section as in effect on that date.
(3) EVALUATION FUNDING.—On October 1, 2008, out of any
funds made available under subsection (b)(2)(A) of section
14222 of the Food, Conservation, and Energy Act of 2008, the
Secretary shall use to carry out the evaluation required under
subsection (h), $3,000,000, to remain available for obligation
until September 30, 2010.
(4) RECEIPT AND ACCEPTANCE.—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this
section any funds transferred for that purpose, without further
appropriation.
(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to
any other amounts made available to carry out this section,
there are authorized to be appropriated such sums as are necessary to expand the program established under this section.
(6) ADMINISTRATIVE COSTS.—
(A) IN GENERAL.—Of funds made available to carry out
this section for a fiscal year, the Secretary may use not
more than $500,000 for the administrative costs of carrying out the program.
(B) RESERVATION OF FUNDS.—The Secretary shall
allow each State to reserve such funding as the Secretary
determines to be necessary to administer the program in
the State (with adjustments for the size of the State and
the grant amount), but not to exceed the amount required
to pay the costs of 1 full-time coordinator for the program
in the State.
(7) REALLOCATION.—
(A) AMONG STATES.—The Secretary may reallocate any
amounts made available to carry out this section that are
not obligated or expended by a date determined by the
Secretary.
(B) WITHIN STATES.—A State that receives a grant
under this section may reallocate any amounts made available under the grant that are not obligated or expended by
a date determined by the Secretary.
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DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS

SEC. 20. ø42 U.S.C. 1769b¿ (a) For the purpose of obtaining
Federal payments and commodities in conjunction with the provision of lunches to students attending Department of Defense dependents’ schools which are located outside the United States, its
territories or possessions, the Secretary of Agriculture shall make
available to the Department of Defense, from funds appropriated
for such purpose, the same payments and commodities as are provided to States for schools participating in the National School
Lunch Program in the United States.
(b) The Secretary of Defense shall administer lunch programs
authorized by this section and shall determine eligibility for free
and reduced price lunches under the criteria published by the Secretary of Agriculture, except that the Secretary of Defense shall
prescribe regulations governing computation of income eligibility
standards for families of students participating in the National
School Lunch Program under this section.
(c) The Secretary of Defense shall be required to offer meals
meeting nutritional standards prescribed by the Secretary of Agriculture; however, the Secretary of Defense may authorize deviations from Department of Agriculture prescribed meal patterns
and fluid milk requirements when local conditions preclude strict
compliance or when such compliance is impracticable.
(d) Funds are hereby authorized to be appropriated for any fiscal year in such amounts as may be necessary for the administrative expenses of the Department of Defense under this section.
(e) The Secretary of Agriculture shall provide the Secretary of
Defense with the technical assistance in the administration of the
school lunch programs authorized by this section.
SEC. 21. ø42 U.S.C. 1769b–1¿ TRAINING, TECHNICAL ASSISTANCE, AND
FOOD SERVICE MANAGEMENT INSTITUTE.
(a) GENERAL AUTHORITY.—The Secretary—

(1) subject to the availability of, and from, amounts appropriated pursuant to subsection (e)(1), shall conduct training activities and provide—
(A) training and technical assistance to improve the
skills of individuals employed in—
(i) food service programs carried out with assistance under this Act and, to the maximum extent practicable, using individuals who administer exemplary
local food service programs in the State;
(ii) school breakfast programs carried out with assistance under section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773); and
(iii) as appropriate, other federally assisted feeding programs; and
(B) assistance, on a competitive basis, to State agencies for the purpose of aiding schools and school food authorities with at least 50 percent of enrolled children certified to receive free or reduced price meals (and, if there
are any remaining funds, other schools and school food authorities) in meeting the cost of acquiring or upgrading
technology and information management systems for use
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in food service programs carried out under this Act and
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), if the school or school food authority submits to the
State agency an infrastructure development plan that—
(i) addresses the cost savings and improvements
in program integrity and operations that would result
from the use of new or upgraded technology;
(ii) ensures that there is not any overt identification of any child by special tokens or tickets, announced or published list of names, or by any other
means;
(iii) provides for processing and verifying applications for free and reduced price school meals;
(iv) integrates menu planning, production, and
serving data to monitor compliance with section
9(f)(1); and
(v) establishes compatibility with statewide reporting systems;
(C) assistance, on a competitive basis, to State agencies with low proportions of schools or students that—
(i) participate in the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773); and
(ii) demonstrate the greatest need, for the purpose
of aiding schools in meeting costs associated with initiating or expanding a school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), including outreach and informational activities;
and
(2) from amounts appropriated pursuant to subsection
(e)(2), is authorized to provide financial and other assistance to
the University of Mississippi, in cooperation with the University of Southern Mississippi, to establish and maintain a food
service management institute.
(b) MINIMUM REQUIREMENTS.—The activities conducted and assistance provided as required by subsection (a)(1) shall at least include activities and assistance with respect to—
(1) menu planning;
(2) implementation of regulations and appropriate guidelines; and
(3) compliance with program requirements and accountability for program operations.
(c) DUTIES OF FOOD SERVICE MANAGEMENT INSTITUTE.—
(1) IN GENERAL.—Any food service management institute
established as authorized by subsection (a)(2) shall carry out
activities to improve the general operation and quality of—
(A) food service programs assisted under this Act;
(B) school breakfast programs assisted under section 4
of the Child Nutrition Act of 1966; and
(C) as appropriate, other federally assisted feeding
programs.
(2) REQUIRED ACTIVITIES.—Activities carried out under
paragraph (1) shall include—
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(A) conducting research necessary to assist schools and
other organizations that participate in such programs in
providing high quality, nutritious, cost-effective meal service to the children served;
(B) providing training and technical assistance with
respect to—
(i) efficient use of physical resources;
(ii) financial management;
(iii) efficient use of computers;
(iv) procurement;
(v) sanitation;
(vi) safety, including food handling, hazard analysis and critical control point plan implementation,
emergency readiness, responding to a food recall, and
food biosecurity training;
(vii) meal planning and related nutrition activities;
(viii) culinary skills; and
(ix) other appropriate activities;
(C) establishing a national network of trained professionals to present training programs and workshops for
food service personnel;
(D) developing training materials for use in the programs and workshops described in subparagraph (C);
(E) acting as a clearinghouse for research, studies, and
findings concerning all aspects of the operation of food
service programs;
(F) training food service personnel to comply with the
nutrition guidance and objectives established by the Secretary through a national network of instructors or other
means;
(G) preparing informational materials, such as video
instruction tapes and menu planners, to promote healthier
food preparation; and
(H) assisting State educational agencies in providing
additional nutrition and health instructions and instructors, including training personnel to comply with the nutrition guidance and objectives established by the Secretary.
(d) COORDINATION.—
(1) IN GENERAL.—The Secretary shall coordinate activities
carried out and assistance provided as required by subsection
(b) with activities carried out by any food service management
institute established as authorized by subsection (a)(2).
(2) USE OF INSTITUTE FOR DIETARY AND NUTRITION ACTIVITIES.—The Secretary shall use any food service management
institute established under subsection (a)(2) to assist in carrying out dietary and nutrition activities of the Secretary.
(e) FOOD SERVICE MANAGEMENT INSTITUTE.—
(1) FUNDING.—
(A) IN GENERAL.—In addition to any amounts otherwise made available for fiscal year 2011, on October 1,
2010, and each October 1 thereafter, out of any funds in
the Treasury not otherwise appropriated, the Secretary of
the Treasury shall transfer to the Secretary to carry out
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subsection (a)(2) $5,000,000, to remain available until expended.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
subsection (a)(2) the funds transferred under subparagraph (A), without further appropriation.
(2) ADDITIONAL FUNDING.—In addition to amounts made
available under paragraph (1), there are authorized to be appropriated to carry out subsection (a)(2) such sums as are necessary for fiscal year 1995 and each subsequent fiscal year.
The Secretary shall carry out activities under subsection (a)(2),
in addition to the activities funded under paragraph (1), to the
extent provided for, and in such amounts as are provided for,
in advance in appropriations Acts.
(3) FUNDING FOR EDUCATION, TRAINING, OR APPLIED RESEARCH OR STUDIES.—In addition to amounts made available
under paragraphs (1) and (2), from amounts otherwise appropriated to the Secretary in discretionary appropriations, the
Secretary may provide funds to any food service management
institute established under subsection (a)(2) for projects specified by the Secretary that will contribute to implementing dietary or nutrition initiatives. Any additional funding under this
subparagraph shall be provided noncompetitively in a separate
cooperative agreement.
(f) ADMINISTRATIVE TRAINING AND TECHNICAL ASSISTANCE MATERIAL.—In collaboration with State educational agencies, local
educational agencies, and school food authorities of varying sizes,
the Secretary shall develop and distribute training and technical
assistance material relating to the administration of school meals
programs that are representative of the best management and administrative practices.
(g) FEDERAL ADMINISTRATIVE SUPPORT.—
(1) FUNDING.—
(A) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of Agriculture to carry out
this subsection—
(i) on October 1, 2004, and October 1, 2005,
$3,000,000;
(ii) on October 1, 2006, October 1, 2007, October
1, 2008, and October 1, 2009, $2,000,000; and
(iii) on October 1, 2010, and every October 1
thereafter, $4,000,000.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph
(A), without further appropriation.
(C) AVAILABILITY OF FUNDS.—Funds transferred under
subparagraph (A) shall remain available until expended.
(2) USE OF FUNDS.—The Secretary may use funds provided
under this subsection—
(A) to provide training and technical assistance and
material related to improving program integrity and administrative accuracy in school meals programs; and
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(B) to assist State educational agencies in reviewing
the administrative practices of local educational agencies,
to the extent determined by the Secretary.
SEC. 22. ø42 U.S.C. 1769c¿ COMPLIANCE AND ACCOUNTABILITY.
(a) UNIFIED ACCOUNTABILITY SYSTEM.—
(1) IN GENERAL.—There shall be a unified system

prescribed and administered by the Secretary to ensure that local
food service authorities participating in the school lunch program established under this Act and the school breakfast program established by section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) comply with those Acts, including compliance with—
(A) the nutritional requirements of section 9(f) of this
Act for school lunches; and
(B) as applicable, the nutritional requirements for
school breakfasts under section 4(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)).
(b) FUNCTIONS OF SYSTEM.—
(1) IN GENERAL.—Under the system described in subsection (a), each State educational agency shall—
(A) require that local food service authorities comply
with the nutritional requirements described in subparagraphs (A) and (B) of paragraph (1);
(B) to the maximum extent practicable, ensure compliance through reasonable audits and supervisory assistance
reviews;
(C) in conducting audits and reviews for the purpose
of determining compliance with this Act, including the nutritional requirements of section 9(f)—
(i) conduct audits and reviews during a 3-year
cycle or other period prescribed by the Secretary;
(ii) select schools for review in each local educational agency using criteria established by the Secretary;
(iii) report the final results of the reviews to the
public in the State in an accessible, easily understood
manner in accordance with guidelines promulgated by
the Secretary; and
(iv) submit to the Secretary each year a report
containing the results of the reviews in accordance
with procedures developed by the Secretary; and
(D) when any local food service authority is reviewed
under this section, ensure that the final results of the review by the State educational agency are posted and otherwise made available to the public on request in an accessible, easily understood manner in accordance with guidelines promulgated by the Secretary.
(2) MINIMIZATION OF ADDITIONAL DUTIES.—Each State educational agency shall coordinate the compliance and accountability activities described in paragraph (1) in a manner that
minimizes the imposition of additional duties on local food
service authorities.

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(3) ADDITIONAL REVIEW REQUIREMENT FOR SELECTED LOCAL
EDUCATIONAL AGENCIES.—
(A) DEFINITION OF SELECTED LOCAL EDUCATIONAL
AGENCIES.—In this paragraph, the term ‘‘selected local
educational agency’’ means a local educational agency that
has a demonstrated high level of, or a high risk for, administrative error, as determined by the Secretary.
(B) ADDITIONAL ADMINISTRATIVE REVIEW.—In addition
to any review required by subsection (a) or paragraph (1),
each State educational agency shall conduct an administrative review of each selected local educational agency
during the review cycle established under subsection (a).
(C) SCOPE OF REVIEW.—In carrying out a review under
subparagraph (B), a State educational agency shall only
review the administrative processes of a selected local educational agency, including application, certification,
verification, meal counting, and meal claiming procedures.
(D) RESULTS OF REVIEW.—If the State educational
agency determines (on the basis of a review conducted
under subparagraph (B)) that a selected local educational
agency fails to meet performance criteria established by
the Secretary, the State educational agency shall—
(i) require the selected local educational agency to
develop and carry out an approved plan of corrective
action;
(ii) except to the extent technical assistance is provided directly by the Secretary, provide technical assistance to assist the selected local educational agency
in carrying out the corrective action plan; and
(iii) conduct a followup review of the selected local
educational agency under standards established by the
Secretary.
(4) RETAINING FUNDS AFTER ADMINISTRATIVE REVIEWS.—
(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), if the local educational agency fails to meet administrative performance criteria established by the Secretary
in both an initial review and a followup review under
paragraph (1) or (3) or subsection (a), the Secretary may
require the State educational agency to retain funds that
would otherwise be paid to the local educational agency for
school meals programs under procedures prescribed by the
Secretary.
(B) AMOUNT.—The amount of funds retained under
subparagraph (A) shall equal the value of any overpayment made to the local educational agency or school food
authority as a result of an erroneous claim during the time
period described in subparagraph (C).
(C) TIME PERIOD.—The period for determining the
value of any overpayment under subparagraph (B) shall be
the period—
(i) beginning on the date the erroneous claim was
made; and
(ii) ending on the earlier of the date the erroneous
claim is corrected or—
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(I) in the case of the first followup review conducted by the State educational agency of the
local educational agency under this section after
July 1, 2005, the date that is 60 days after the beginning of the period under clause (i); or
(II) in the case of any subsequent followup review conducted by the State educational agency of
the local educational agency under this section,
the date that is 90 days after the beginning of the
period under clause (i).
(5) USE OF RETAINED FUNDS.—
(A) IN GENERAL.—Subject to subparagraph (B), funds
retained under paragraph (4) shall—
(i) be returned to the Secretary, and may be
used—
(I) to provide training and technical assistance related to administrative practices designed
to improve program integrity and administrative
accuracy in school meals programs to State educational agencies and, to the extent determined by
the Secretary, to local educational agencies and
school food authorities;
(II) to assist State educational agencies in reviewing the administrative practices of local educational agencies in carrying out school meals programs; and
(III) to carry out section 21(f); or
(ii) be credited to the child nutrition programs appropriation account.
(B) STATE SHARE.—A State educational agency may retain not more than 25 percent of an amount recovered
under paragraph (4), to carry out school meals program integrity initiatives to assist local educational agencies and
school food authorities that have repeatedly failed, as determined by the Secretary, to meet administrative performance criteria.
(C) REQUIREMENT.—To be eligible to retain funds
under subparagraph (B), a State educational agency
shall—
(i) submit to the Secretary a plan describing how
the State educational agency will use the funds to improve school meals program integrity, including measures to give priority to local educational agencies from
which funds were retained under paragraph (4);
(ii) consider using individuals who administer exemplary local food service programs in the provision of
training and technical assistance; and
(iii) obtain the approval of the Secretary for the
plan.
(6) ELIGIBILITY DETERMINATION REVIEW FOR SELECTED
LOCAL EDUCATIONAL AGENCIES.—
(A) IN GENERAL.—A local educational agency that has
demonstrated a high level of, or a high risk for, administrative error associated with certification, verification, and
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other administrative processes, as determined by the Secretary, shall ensure that the initial eligibility determination for each application is reviewed for accuracy prior to
notifying a household of the eligibility or ineligibility of the
household for free or reduced price meals.
(B) TIMELINESS.—The review of initial eligibility determinations—
(i) shall be completed in a timely manner; and
(ii) shall not result in the delay of an eligibility determination for more than 10 operating days after the
date on which the application is submitted.
(C) ACCEPTABLE TYPES OF REVIEW.—Subject to standards established by the Secretary, the system used to review eligibility determinations for accuracy shall be conducted by an individual or entity that did not make the
initial eligibility determination.
(D) NOTIFICATION OF HOUSEHOLD.—Once the review of
an eligibility determination has been completed under this
paragraph, the household shall be notified immediately of
the determination of eligibility or ineligibility for free or
reduced price meals.
(E) REPORTING.—
(i) LOCAL EDUCATIONAL AGENCIES.—In accordance
with procedures established by the Secretary, each
local educational agency required to review initial eligibility determinations shall submit to the relevant
State agency a report describing the results of the reviews, including—
(I) the number and percentage of reviewed applications for which the eligibility determination
was changed and the type of change made; and
(II) such other information as the Secretary
determines to be necessary.
(ii) STATE AGENCIES.—In accordance with procedures established by the Secretary, each State agency
shall submit to the Secretary a report describing the
results of the reviews of initial eligibility determinations, including—
(I) the number and percentage of reviewed applications for which the eligibility determination
was changed and the type of change made; and
(II) such other information as the Secretary
determines to be necessary.
(iii) TRANSPARENCY.—The Secretary shall publish
annually the results of the reviews of initial eligibility
determinations by State, number, percentage, and
type of error.
(c) ROLE OF SECRETARY.—In carrying out this section, the Secretary shall—
(1) assist the State educational agency in the monitoring
of programs conducted by local food service authorities; and
(2) through management evaluations, review the compliance of the State educational agency and the local school food
service authorities with regulations issued under this Act.
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(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated for purposes of carrying out the compliance and
accountability activities referred to in subsection (c) $10,000,000 for
each of fiscal years 2011 through 2015.
(e) FINES FOR VIOLATING PROGRAM REQUIREMENTS.—
(1) SCHOOL FOOD AUTHORITIES AND SCHOOLS.—
(A) IN GENERAL.—The Secretary shall establish criteria by which the Secretary or a State agency may impose
a fine against any school food authority or school administering a program authorized under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) if the Secretary or the State agency determines that the school food
authority or school has—
(i) failed to correct severe mismanagement of the
program;
(ii) disregarded a program requirement of which
the school food authority or school had been informed;
or
(iii) failed to correct repeated violations of program requirements.
(B) LIMITS.—
(i) IN GENERAL.—In calculating the fine for a
school food authority or school, the Secretary shall
base the amount of the fine on the reimbursement
earned by school food authority or school for the program in which the violation occurred.
(ii) AMOUNT.—The amount under clause (i) shall
not exceed—
(I) 1 percent of the amount of meal reimbursements earned for the fiscal year for the first finding of 1 or more program violations under subparagraph (A);
(II) 5 percent of the amount of meal reimbursements earned for the fiscal year for the second finding of 1 or more program violations under
subparagraph (A); and
(III) 10 percent of the amount of meal reimbursements earned for the fiscal year for the third
or subsequent finding of 1 or more program violations under subparagraph (A).
(2) STATE AGENCIES.—
(A) IN GENERAL.—The Secretary shall establish criteria by which the Secretary may impose a fine against
any State agency administering a program authorized
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) if the Secretary determines that the
State agency has—
(i) failed to correct severe mismanagement of the
program;
(ii) disregarded a program requirement of which
the State had been informed; or
(iii) failed to correct repeated violations of program requirements.
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(B) LIMITS.—In the case of a State agency, the amount
of a fine under subparagraph (A) shall not exceed—
(i) 1 percent of funds made available under section
7(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative expenses during a
fiscal year for the first finding of 1 or more program
violations under subparagraph (A);
(ii) 5 percent of funds made available under section 7(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative expenses during a
fiscal year for the second finding of 1 or more program
violations under subparagraph (A); and
(iii) 10 percent of funds made available under section 7(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative expenses during a
fiscal year for the third or subsequent finding of 1 or
more program violations under subparagraph (A).
(3) SOURCE OF FUNDING.—Funds to pay a fine imposed
under paragraph (1) or (2) shall be derived from non-Federal
sources.
SEC. 23. ø42 U.S.C. 1769d¿ CHILDHOOD HUNGER RESEARCH.
(a) RESEARCH ON CAUSES AND CONSEQUENCES OF CHILDHOOD
HUNGER.—
(1) IN GENERAL.—The Secretary shall conduct research

on—
(A) the causes of childhood hunger and food insecurity;
(B) the characteristics of households with childhood
hunger and food insecurity; and
(C) the consequences of childhood hunger and food insecurity.
(2) AUTHORITY.—In carrying out research under paragraph
(1), the Secretary may—
(A) enter into competitively awarded contracts or cooperative agreements; or
(B) provide grants to States or public or private agencies or organizations, as determined by the Secretary.
(3) APPLICATION.—To be eligible to enter into a contract or
cooperative agreement or receive a grant under this subsection,
a State or public or private agency or organization shall submit
to the Secretary an application at such time, in such manner,
and containing such information as the Secretary shall require.
(4) AREAS OF INQUIRY.—The Secretary shall design the research program to advance knowledge and understanding of
information on the issues described in paragraph (1), such as—
(A) economic, health, social, cultural, demographic,
and other factors that contribute to childhood hunger or
food insecurity;
(B) the geographic distribution of childhood hunger
and food insecurity;
(C) the extent to which—
(i) existing Federal assistance programs, including
the Internal Revenue Code of 1986, reduce childhood
hunger and food insecurity; and
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(ii) childhood hunger and food insecurity persist
due to—
(I) gaps in program coverage;
(II) the inability of potential participants to
access programs; or
(III) the insufficiency of program benefits or
services;
(D) the public health and medical costs of childhood
hunger and food insecurity;
(E) an estimate of the degree to which the Census Bureau measure of food insecurity underestimates childhood
hunger and food insecurity because the Census Bureau excludes certain households, such as homeless, or other factors;
(F) the effects of childhood hunger on child development, well-being, and educational attainment; and
(G) such other critical outcomes as are determined by
the Secretary.
(5) FUNDING.—
(A) IN GENERAL.—On October 1, 2012, out of any funds
in the Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary to carry out
this subsection $10,000,000, to remain available until expended.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph
(A), without further appropriation.
(b) DEMONSTRATION PROJECTS TO END CHILDHOOD HUNGER.—
(1) DEFINITIONS.—In this subsection:
(A) CHILD.—The term ‘‘child’’ means a person under
the age of 18.
(B) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
The term ‘‘supplemental nutrition assistance program’’
means the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
(2) PURPOSE.—Under such terms and conditions as are established by the Secretary, the Secretary shall carry out demonstration projects that test innovative strategies to end childhood hunger, including alternative models for service delivery
and benefit levels that promote the reduction or elimination of
childhood hunger and food insecurity.
(3) PROJECTS.—Demonstration projects carried out under
this subsection may include projects that—
(A) enhance benefits provided under the supplemental
nutrition assistance program for eligible households with
children;
(B) enhance benefits or provide for innovative program
delivery models in the school meals, afterschool snack, and
child and adult care food programs under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
(C) target Federal, State, or local assistance, including
emergency housing or family preservation services, at
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households with children who are experiencing hunger or
food insecurity, to the extent permitted by the legal authority establishing those assistance programs and services.
(4) GRANTS.—
(A) DEMONSTRATION PROJECTS.—
(i) IN GENERAL.—In carrying out this subsection,
the Secretary may enter into competitively awarded
contracts or cooperative agreements with, or provide
grants to, public or private organizations or agencies
(as determined by the Secretary), for use in accordance
with demonstration projects that meet the purposes of
this subsection.
(ii) REQUIREMENT.—At least 1 demonstration
project funded under this subsection shall be carried
out on an Indian reservation in a rural area with a
service population with a prevalence of diabetes that
exceeds 15 percent, as determined by the Director of
the Indian Health Service.
(B) APPLICATION.—To be eligible to receive a contract,
cooperative agreement, or grant under this subsection, an
organization or agency shall submit to the Secretary an
application at such time, in such manner, and containing
such information as the Secretary may require.
(C) SELECTION CRITERIA.—Demonstration projects
shall be selected based on publicly disseminated criteria
that may include—
(i) an identification of a low-income target group
that reflects individuals experiencing hunger or food
insecurity;
(ii) a commitment to a demonstration project that
allows for a rigorous outcome evaluation as described
in paragraph (6);
(iii) a focus on innovative strategies to reduce the
risk of childhood hunger or provide a significant improvement to the food security status of households
with children; and
(iv) such other criteria as are determined by the
Secretary.
(5) CONSULTATION.—In determining the range of projects
and defining selection criteria under this subsection, the Secretary shall consult with—
(A) the Secretary of Health and Human Services;
(B) the Secretary of Labor; and
(C) the Secretary of Housing and Urban Development.
(6) EVALUATION AND REPORTING.—
(A) INDEPENDENT EVALUATION.—The Secretary shall
provide for an independent evaluation of each demonstration project carried out under this subsection that—
(i) measures the impact of each demonstration
project on appropriate participation, food security, nutrition, and associated behavioral outcomes among
participating households; and
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(ii) uses rigorous experimental designs and methodologies, particularly random assignment or other
methods that are capable of producing scientifically
valid information regarding which activities are effective in reducing the prevalence or preventing the incidence of food insecurity and hunger in the community,
especially among children.
(B) REPORTING.—Not later than December 31, 2013
and each December 31 thereafter until the date on which
the last evaluation under subparagraph (A) is completed,
the Secretary shall—
(i) submit to the Committee on Agriculture and
the Committee on Education and Labor of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that includes a description of—
(I) the status of each demonstration project;
and
(II) the results of any evaluations of the demonstration projects completed during the previous
fiscal year; and
(ii) ensure that the evaluation results are shared
broadly to inform policy makers, service providers,
other partners, and the public in order to promote the
wide use of successful strategies.
(7) FUNDING.—
(A) IN GENERAL.—On October 1, 2012, out of any funds
in the Treasury not otherwise appropriated, the Secretary
of the Treasury shall transfer to the Secretary to carry out
this subsection $40,000,000, to remain available until September 30, 2017.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph
(A), without further appropriation.
(C) USE OF FUNDS.—
(i) IN GENERAL.—Funds made available under subparagraph (A) may be used to carry out this subsection, including to pay Federal costs associated with
developing, soliciting, awarding, monitoring, evaluating, and disseminating the results of each demonstration project under this subsection.
(ii) INDIAN RESERVATIONS.—Of amounts made
available under subparagraph (A), the Secretary shall
use a portion of the amounts to carry out research relating to hunger, obesity and type 2 diabetes on Indian
reservations, including research to determine the manner in which Federal nutrition programs can help to
overcome those problems.
(iii) REPORT.—Not later than 1 year after the date
of enactment of this section, the Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that—
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(I) describes the manner in which Federal nutrition programs can help to overcome child hunger nutrition problems on Indian reservations;
and
(II) contains proposed administrative and legislative recommendations to strengthen and
streamline all relevant Department of Agriculture
nutrition programs to reduce childhood hunger,
obesity, and type 2 diabetes on Indian reservations.
(D) LIMITATIONS.—
(i) DURATION.—No project may be funded under
this subsection for more than 5 years.
(ii) PROJECT REQUIREMENTS.—No project that
makes use of, alters, or coordinates with the supplemental nutrition assistance program may be funded
under this subsection unless the project is fully consistent with the project requirements described in section 17(b)(1)(B) of the Food and Nutrition Act of 2008
(7 U.S.C. 2026(b)(1)(B)).
(iii) HUNGER-FREE COMMUNITIES.—No project may
be funded under this subsection that receives funding
under section 4405 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517).
(iv) OTHER BENEFITS.—Funds made available
under this subsection may not be used for any project
in a manner that is inconsistent with—
(I) this Act;
(II) the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
(III) the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.); or
(IV) the Emergency Food Assistance Act of
1983 (7 U.S.C. 7501 et seq.).
SEC. 24. ø42 U.S.C. 1769e¿ STATE CHILDHOOD HUNGER CHALLENGE
GRANTS.
(a) DEFINITIONS.—In this section:
(1) CHILD.—The term ‘‘child’’ means a person under the

age of 18.
(2) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—The
term ‘‘supplemental nutrition assistance program’’ means the
supplemental nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
(b) PURPOSE.—Under such terms and conditions as are established by the Secretary, funds made available under this section
may be used to competitively award grants to or enter into cooperative agreements with Governors to carry out comprehensive and innovative strategies to end childhood hunger, including alternative
models for service delivery and benefit levels that promote the reduction or elimination of childhood hunger by 2015.
(c) PROJECTS.—State demonstration projects carried out under
this section may include projects that—
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(1) enhance benefits provided under the supplemental nutrition assistance program for eligible households with children;
(2) enhance benefits or provide for innovative program delivery models in the school meals, afterschool snack, and child
and adult care food programs under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
(3) target Federal, State, or local assistance, including
emergency housing, family preservation services, child care, or
temporary assistance at households with children who are experiencing hunger or food insecurity, to the extent permitted
by the legal authority establishing those assistance programs
and services;
(4) enhance outreach to increase access and participation
in Federal nutrition assistance programs; and
(5) improve the coordination of Federal, State, and community resources and services aimed at preventing food insecurity
and hunger, including through the establishment and expansion of State food policy councils.
(d) GRANTS.—
(1) IN GENERAL.—In carrying out this section, the Secretary may competitively award grants or enter into competitively awarded cooperative agreements with Governors for use
in accordance with demonstration projects that meet the purposes of this section.
(2) APPLICATION.—To be eligible to receive a grant or cooperative agreement under this section, a Governor shall submit
to the Secretary an application at such time, in such manner,
and containing such information as the Secretary may require.
(3) SELECTION CRITERIA.—The Secretary shall evaluate
proposals based on publicly disseminated criteria that may include—
(A) an identification of a low-income target group that
reflects individuals experiencing hunger or food insecurity;
(B) a commitment to approaches that allow for a rigorous outcome evaluation as described in subsection (f);
(C) a comprehensive and innovative strategy to reduce
the risk of childhood hunger or provide a significant improvement to the food security status of households with
children; and
(D) such other criteria as are determined by the Secretary.
(4) REQUIREMENTS.—Any project funded under this section
shall provide for—
(A) a baseline assessment, and subsequent annual assessments, of the prevalence and severity of very low food
security among children in the State, based on a methodology prescribed by the Secretary;
(B) a collaborative planning process including key
stakeholders in the State that results in a comprehensive
agenda to eliminate childhood hunger that is—
(i) described in a detailed project plan; and
(ii) provided to the Secretary for approval;
(C) an annual budget;
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(D) specific performance goals, including the goal to
sharply reduce or eliminate food insecurity among children
in the State by 2015, as determined through a methodology prescribed by the Secretary and carried out by the
Governor; and
(E) an independent outcome evaluation of not less
than 1 major strategy of the project that measures—
(i) the specific impact of the strategy on food insecurity among children in the State; and
(ii) if applicable, the nutrition assistance participation rate among children in the State.
(e) CONSULTATION.—In determining the range of projects and
defining selection criteria under this section, the Secretary shall
consult with—
(1) the Secretary of Health and Human Services;
(2) the Secretary of Labor;
(3) the Secretary of Education; and
(4) the Secretary of Housing and Urban Development.
(f) EVALUATION AND REPORTING.—
(1) GENERAL PERFORMANCE ASSESSMENT.—Each project authorized under this section shall require an independent assessment that—
(A) measures the impact of any activities carried out
under the project on the level of food insecurity in the
State that—
(i) focuses particularly on the level of food insecurity among children in the State; and
(ii) includes a preimplementation baseline and annual measurements taken during the project of the
level of food insecurity in the State; and
(B) is carried out using a methodology prescribed by
the Secretary.
(2) INDEPENDENT EVALUATION.—Each project authorized
under this section shall provide for an independent evaluation
of not less than 1 major strategy that—
(A) measures the impact of the strategy on appropriate participation, food security, nutrition, and associated behavioral outcomes among participating households;
and
(B) uses rigorous experimental designs and methodologies, particularly random assignment or other methods
that are capable of producing scientifically valid information regarding which activities are effective in reducing the
prevalence or preventing the incidence of food insecurity
and hunger in the community, especially among children.
(3) REPORTING.—Not later than December 31, 2011 and
each December 31 thereafter until the date on which the last
evaluation under paragraph (1) is completed, the Secretary
shall—
(A) submit to the Committee on Agriculture and the
Committee on Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that includes a description of—
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(i) the status of each State demonstration project;
and
(ii) the results of any evaluations of the demonstration projects completed during the previous fiscal year; and
(B) ensure that the evaluation results are shared
broadly to inform policy makers, service providers, other
partners, and the public in order to promote the wide use
of successful strategies.
(g) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be appropriated
to carry out this section such sums as are necessary for each
of fiscal years 2011 through 2014, to remain available until expended.
(2) USE OF FUNDS.—Funds made available under paragraph (1) may be used to carry out this section, including to
pay Federal costs associated with developing, soliciting, awarding, monitoring, evaluating, and disseminating the results of
each demonstration project under this section.
(3) LIMITATIONS.—
(A) DURATION.—No project may be funded under this
section for more than 5 years.
(B) PERFORMANCE BASIS.—Funds provided under this
section shall be made available to each Governor on an annual basis, with the amount of funds provided for each
year contingent on the satisfactory implementation of the
project plan and progress towards the performance goals
defined in the project year plan.
(C) ALTERING NUTRITION ASSISTANCE PROGRAM REQUIREMENTS.—No project that makes use of, alters, or coordinates with the supplemental nutrition assistance program may be funded under this section unless the project
is fully consistent with the project requirements described
in section 17(b)(1)(B) of the Food and Nutrition Act of 2008
(7 U.S.C. 2026(b)(1)(B)).
(D) OTHER BENEFITS.—Funds made available under
this section may not be used for any project in a manner
that is inconsistent with—
(i) this Act;
(ii) the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
(iii) the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.); or
(iv) the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501 et seq.).
SEC. 25. ø42 U.S.C. 1769f¿ DUTIES OF THE SECRETARY RELATING TO
NONPROCUREMENT DEBARMENT.
(a) PURPOSES.—The purposes of this section are to promote the

prevention and deterrence of instances of fraud, bid rigging, and
other anticompetitive activities encountered in the procurement of
products for child nutrition programs by—
(1) establishing guidelines and a timetable for the Secretary to initiate debarment proceedings, as well as establishing mandatory debarment periods; and
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(2) providing training, technical advice, and guidance in
identifying and preventing the activities.
(b) DEFINITIONS.—As used in this section:
(1) CHILD NUTRITION PROGRAM.—The term ‘‘child nutrition
program’’ means—
(A) the school lunch program established under this
Act;
(B) the summer food service program for children established under section 13;
(C) the child and adult care food program established
under section 17;
(D) the special milk program established under section
3 of the Child Nutrition Act of 1966 (42 U.S.C. 1772);
(E) the school breakfast program established under
section 4 of such Act (42 U.S.C. 1773); and
(F) the special supplemental nutrition program for
women, infants, and children authorized under section 17
of such Act (42 U.S.C. 1786).
(2) CONTRACTOR.—The term ‘‘contractor’’ means a person
that contracts with a State, an agency of a State, or a local
agency to provide goods or services in relation to the participation of a local agency in a child nutrition program.
(3) LOCAL AGENCY.—The term ‘‘local agency’’ means a
school, school food authority, child care center, sponsoring organization, or other entity authorized to operate a child nutrition program at the local level.
(4) NONPROCUREMENT DEBARMENT.—The term ‘‘nonprocurement debarment’’ means an action to bar a person from
programs and activities involving Federal financial and nonfinancial assistance, but not including Federal procurement
programs and activities.
(5) PERSON.—The term ‘‘person’’ means any individual, corporation, partnership, association, cooperative, or other legal
entity, however organized.
(c) ASSISTANCE TO IDENTIFY AND PREVENT FRAUD AND ANTICOMPETITIVE ACTIVITIES.—The Secretary shall—
(1) in cooperation with any other appropriate individual,
organization, or agency, provide advice, training, technical assistance, and guidance (which may include awareness training,
training films, and troubleshooting advice) to representatives
of States and local agencies regarding means of identifying and
preventing fraud and anticompetitive activities relating to the
provision of goods or services in conjunction with the participation of a local agency in a child nutrition program; and
(2) provide information to, and fully cooperate with, the
Attorney General and State attorneys general regarding investigations of fraud and anticompetitive activities relating to the
provision of goods or services in conjunction with the participation of a local agency in a child nutrition program.
(d) NONPROCUREMENT DEBARMENT.—
(1) IN GENERAL.—Except as provided in paragraph (3) and
subsection (e), not later than 180 days after notification of the
occurrence of a cause for debarment described in paragraph
(2), the Secretary shall initiate nonprocurement debarment
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proceedings against the contractor who has committed the
cause for debarment.
(2) CAUSES FOR DEBARMENT.—Actions requiring initiation
of nonprocurement debarment pursuant to paragraph (1) shall
include a situation in which a contractor is found guilty in any
criminal proceeding, or found liable in any civil or administrative proceeding, in connection with the supplying, providing, or
selling of goods or services to any local agency in connection
with a child nutrition program, of—
(A) an anticompetitive activity, including bid-rigging,
price-fixing, the allocation of customers between competitors, or other violation of Federal or State antitrust laws;
(B) fraud, bribery, theft, forgery, or embezzlement;
(C) knowingly receiving stolen property;
(D) making a false claim or statement; or
(E) any other obstruction of justice.
(3) EXCEPTION.—If the Secretary determines that a decision on initiating nonprocurement debarment proceedings cannot be made within 180 days after notification of the occurrence of a cause for debarment described in paragraph (2) because of the need to further investigate matters relating to the
possible debarment, the Secretary may have such additional
time as the Secretary considers necessary to make a decision,
but not to exceed an additional 180 days.
(4) MANDATORY CHILD NUTRITION PROGRAM DEBARMENT PERIODS.—
(A) IN GENERAL.—Subject to the other provisions of
this paragraph and notwithstanding any other provision of
law except subsection (e), if, after deciding to initiate nonprocurement debarment proceedings pursuant to paragraph (1), the Secretary decides to debar a contractor, the
debarment shall be for a period of not less than 3 years.
(B) PREVIOUS DEBARMENT.—If the contractor has been
previously debarred pursuant to nonprocurement debarment proceedings initiated pursuant to paragraph (1), and
the cause for debarment is described in paragraph (2)
based on activities that occurred subsequent to the initial
debarment, the debarment shall be for a period of not less
than 5 years.
(C) SCOPE.—At a minimum, a debarment under this
subsection shall serve to bar the contractor for the specified period from contracting to provide goods or services in
conjunction with the participation of a local agency in a
child nutrition program.
(D) REVERSAL, REDUCTION, OR EXCEPTION.—Nothing in
this section shall restrict the ability of the Secretary to—
(i) reverse a debarment decision;
(ii) reduce the period or scope of a debarment;
(iii) grant an exception permitting a debarred contractor to participate in a particular contract to provide goods or services; or
(iv) otherwise settle a debarment action at any
time;
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Sec. 25

RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

132

in conjunction with the participation of a local agency in
a child nutrition program, if the Secretary determines
there is good cause for the action, after taking into account
factors set forth in paragraphs (1) through (6) of subsection
(e).
(5) INFORMATION.—On request, the Secretary shall present
to the Committee on Education and Labor, and the Committee
on Agriculture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate information regarding the decisions required by this subsection.
(6) RELATIONSHIP TO OTHER AUTHORITIES.—A debarment
imposed under this section shall not reduce or diminish the authority of a Federal, State, or local government agency or court
to penalize, imprison, fine, suspend, debar, or take other adverse action against a person in a civil, criminal, or administrative proceeding.
(7) REGULATIONS.—The Secretary shall issue such regulations as are necessary to carry out this subsection.
(e) MANDATORY DEBARMENT.—Notwithstanding any other provision of this section, the Secretary shall initiate nonprocurement
debarment proceedings against the contractor (including any cooperative) who has committed the cause for debarment (as determined under subsection (d)(2)), unless the action—
(1) is likely to have a significant adverse effect on competition or prices in the relevant market or nationally;
(2) will interfere with the ability of a local agency to procure a needed product for a child nutrition program;
(3) is unfair to a person, subsidiary corporation, affiliate,
parent company, or local division of a corporation that is not
involved in the improper activity that would otherwise result
in the debarment;
(4) is likely to have significant adverse economic impacts
on the local economy in a manner that is unfair to innocent
parties;
(5) is not justified in light of the penalties already imposed
on the contractor for violations relevant to the proposed debarment, including any suspension or debarment arising out of
the same matter that is imposed by any Federal or State agency; or
(6) is not in the public interest, or otherwise is not in the
interests of justice, as determined by the Secretary.
(f) EXHAUSTION OF ADMINISTRATIVE REMEDIES.—Prior to seeking judicial review in a court of competent jurisdiction, a contractor
against whom a nonprocurement debarment proceeding has been
initiated shall—
(1) exhaust all administrative procedures prescribed by the
Secretary; and
(2) receive notice of the final determination of the Secretary.
(g) INFORMATION RELATING TO PREVENTION AND CONTROL OF
ANTICOMPETITIVE ACTIVITIES.—On request, the Secretary shall
present to the Committee on Education and Labor, and the Committee on Agriculture, of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
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information regarding the activities of the Secretary relating to
anticompetitive activities, fraud, nonprocurement debarment, and
any waiver granted by the Secretary under this section.
SEC. 26. ø42 U.S.C. 1769g¿ INFORMATION CLEARINGHOUSE.
(a) IN GENERAL.—The Secretary shall enter into

a contract
with a nongovernmental organization described in subsection (b) to
establish and maintain a clearinghouse to provide information to
nongovernmental groups located throughout the United States that
assist low-income individuals or communities regarding food assistance, self-help activities to aid individuals in becoming self-reliant,
and other activities that empower low-income individuals or communities to improve the lives of low-income individuals and reduce
reliance on Federal, State, or local governmental agencies for food
or other assistance.
(b) NONGOVERNMENTAL ORGANIZATION.—The nongovernmental
organization referred to in subsection (a) shall be selected on a
competitive basis and shall—
(1) be experienced in the gathering of first-hand information in all the States through onsite visits to grassroots organizations in each State that fight hunger and poverty or that assist individuals in becoming self-reliant;
(2) be experienced in the establishment of a clearinghouse
similar to the clearinghouse described in subsection (a);
(3) agree to contribute in-kind resources towards the establishment and maintenance of the clearinghouse and agree to
provide clearinghouse information, free of charge, to the Secretary, States, counties, cities, antihunger groups, and grassroots organizations that assist individuals in becoming self-sufficient and self-reliant;
(4) be sponsored by an organization, or be an organization,
that—
(A) has helped combat hunger for at least 10 years;
(B) is committed to reinvesting in the United States;
and
(C) is knowledgeable regarding Federal nutrition programs;
(5) be experienced in communicating the purpose of the
clearinghouse through the media, including the radio and print
media, and be able to provide access to the clearinghouse information through computer or telecommunications technology, as
well as through the mails; and
(6) be able to provide examples, advice, and guidance to
States, counties, cities, communities, antihunger groups, and
local organizations regarding means of assisting individuals
and communities to reduce reliance on government programs,
reduce hunger, improve nutrition, and otherwise assist low-income individuals and communities become more self-sufficient.
(c) AUDITS.—The Secretary shall establish fair and reasonable
auditing procedures regarding the expenditures of funds to carry
out this section.
(d) FUNDING.—Out of any moneys in the Treasury not otherwise appropriated, the Secretary of the Treasury shall pay to the
Secretary to provide to the organization selected under this section,
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Sec. 27

RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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to establish and maintain the information clearinghouse, $200,000
for each of fiscal years 1995 and 1996, $150,000 for fiscal year
1997, $100,000 for fiscal year 1998, $166,000 for each of fiscal
years 1999 through 2004, and $250,000 for each of fiscal years
2010 through 2021. The Secretary shall be entitled to receive the
funds and shall accept the funds, without further appropriation.
øSEC. 27. 24 ø42 U.S.C. 1769h¿ ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH DISABILITIES.¿
SEC. 28. ø42 U.S.C. 1769i¿ PROGRAM EVALUATION.
(a) PERFORMANCE ASSESSMENTS.—
(1) IN GENERAL.—Subject to the availability

of funds made
available under paragraph (3), the Secretary, acting through
the Administrator of the Food and Nutrition Service, may conduct annual national performance assessments of the meal programs under this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(2) COMPONENTS.—In conducting an assessment, the Secretary may assess—
(A) the cost of producing meals and meal supplements
under the programs described in paragraph (1); and
(B) the nutrient profile of meals, and status of menu
planning practices, under the programs.
(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $5,000,000
for fiscal year 2004 and each subsequent fiscal year.
(b) CERTIFICATION IMPROVEMENTS.—
(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (5), the Secretary, acting through
the Administrator of the Food and Nutrition Service, shall conduct a study of the feasibility of improving the certification
process used for the school lunch program established under
this Act.
(2) PILOT PROJECTS.—In carrying out this subsection, the
Secretary may conduct pilot projects to improve the certification process used for the school lunch program.
(3) COMPONENTS.—In carrying out this subsection, the Secretary shall examine the use of—
(A) other income reporting systems;
(B) an integrated benefit eligibility determination
process managed by a single agency;
(C) income or program participation data gathered by
State or local agencies; and
(D) other options determined by the Secretary.
(4) WAIVERS.—
(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary may waive such provisions of this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are
necessary to carry out this subsection.
(B) PROVISIONS.—The protections of section 9(b)(6)
shall apply to any study or pilot project carried out under
this subsection.

24 Sec.

December 20, 2019

27 repealed by sec. 441(a)(14) of P.L. 111–296, 124 Stat. 3264, Dec. 13, 2010.

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(5) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection such sums
as are necessary.
(c) COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.—States, State educational agencies, local educational agencies, schools, institutions, facilities, and contractors participating in
programs authorized under this Act and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) shall cooperate with officials and contractors acting on behalf of the Secretary, in the conduct of evaluations and studies under those Acts.
SEC. 29. ø42 U.S.C. 1769j¿ ENSURING SAFETY OF SCHOOL MEALS.
(a) FOOD AND NUTRITION SERVICE.—Not later than 1 year

after
the date of enactment of the Healthy, Hunger-Free Kids Act of
2010, the Secretary, acting through the Administrator of the Food
and Nutrition Service, shall—
(1) in consultation with the Administrator of the Agricultural Marketing Service and the Administrator of the Farm
Service Agency, develop guidelines to determine the circumstances under which it is appropriate for the Secretary to
institute an administrative hold on suspect foods purchased by
the Secretary that are being used in school meal programs
under this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
(2) work with States to explore ways for the States to increase the timeliness of notification of food recalls to schools
and school food authorities;
(3) improve the timeliness and completeness of direct communication between the Food and Nutrition Service and States
about holds and recalls, such as through the commodity alert
system of the Food and Nutrition Service; and
(4) establish a timeframe to improve the commodity hold
and recall procedures of the Department of Agriculture to address the role of processors and determine the involvement of
distributors with processed products that may contain recalled
ingredients, to facilitate the provision of more timely and complete information to schools.
(b) FOOD SAFETY AND INSPECTION SERVICE.—Not later than 1
year after the date of enactment of the Healthy, Hunger-Free Kids
Act of 2010, the Secretary, acting through the Administrator of the
Food Safety and Inspection Service, shall revise the procedures of
the Food Safety and Inspection Service to ensure that schools are
included in effectiveness checks.

December 20, 2019