[Congressional Record Volume 154, Number 154 (Friday, September 26, 2008)]
[Senate]
[Pages S9680-S9682]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CASEY:
  S. 3614. A bill to require semiannual indexing of mandatory Federal 
food assistance programs; to the Committee on Agriculture, Nutrition, 
and Forestry.
  Mr. CASEY. Mr. President, I rise today to talk about an issue that, 
in the midst of this devastating economic crisis, continues to plague 
more and more Americans every day--hunger. Although hunger in this 
country may not be as obvious as it is in other nations, it nonetheless 
exists and has devastating consequences for those it affects. It 
weakens the body, making it more susceptible to illness. It impedes 
child development and reduces a child's ability to learn. It saps 
valuable energy, resulting in lowered productivity and less earning 
potential. In short, hunger has a devastating effect on those it 
touches.
  In 2006 alone, the United States Department of Agriculture, USDA, 
reported that 35.5 million Americans did not have enough money or 
resources to get food for at least some period during the year. This 
figure was an increase of 400,000 over 2005 and an increase of 2.3 
million since 2000. And, with the fragile state of our economy, we can 
only assume that when the figures for 2007 and 2008 are released, the 
number of Americans living with hunger will be even greater.
  Unfortunately, for these millions of Americans facing hunger, the 
ability to afford the food they so desperately need has not become any 
easier over the past year. According to the Department of Labor, the 
cost of food at home rose 7.1 percent from July 2007 to July 2008. But, 
for the nearly 28 million Americans receiving food stamps, the effects 
of food price inflation during that time period were even more 
devastating. From July 2007 to July 2008, the cost of the ``Thrifty 
Food Plan''--the Government's estimate of what constitutes a 
nutritious, minimal cost meal plan--rose by 10 percent. As a result, 
the benefits currently provided to food stamp participants are not 
enough to even cover the cost of this minimally adequate diet.
  Each summer, the United States Department of Agriculture sets new 
food stamp benefit levels based on the average of the previous year's 
food price inflation. However, these new benefit levels are not 
implemented until the first day of October each year, by which time 
they already lag behind current prices. For instance, when updated food 
stamp benefit levels were provided to an average family of four in 
October 2007, they were already lagging $12.20 behind the monthly cost 
of the Thrifty Food Plan. By July of this year, that same family of 
four was receiving $56 per month less than they needed to afford the 
cost of this minimal diet. for such low-income families, already facing 
rising home energy and transportation costs, and having non-negotiable 
expenditures like rent or mortgage payments and child care expenses 
needing to be paid, food purchases are often the only area of the 
monthly budget where cuts can be made.
  But, food price inflation is not only affecting the price families 
are paying for food at home. It is also affecting the prices schools 
are paying for foods provided through child nutrition programs like 
school breakfasts, lunches, and after-school snack programs. While the 
Federal Government does reimburse schools for the costs of providing 
these programs to children from low-income families, with ever rising 
food prices, these reimbursements are not enough to cover the expenses 
of providing these meals.
  Like food stamps, school meal reimbursement rates are updated every

[[Page S9681]]

summer to account for inflation. But, by the time the school year 
begins, these reimbursements already lag behind the true cost of 
producing the meal. In fact, a recent survey by the School Nutrition 
Association found that 88 percent of responding school districts 
indicated that Federal reimbursement rates were not sufficient to cover 
the costs of producing a meal during the 2007/08 school year. As a 
result, 73 percent of these school districts said they plan to increase 
the price other students pay for food services in this coming school 
year to make up for the increased costs.
  Congress can and must do more to ensure that Federal nutrition 
assistance programs can adequately cover the costs of food for those 
most in need. That's why today I'm pleased to introduce the National 
Hunger Relief Act of 2008. This act will make critical changes needed 
to help low-income families and schools cover the costs of purchasing 
healthy, nutritious foods.
  Under this act, when setting benefit levels for food stamps, Congress 
would anticipate the food price inflation that will occur in the coming 
fiscal year, and would act to offset it by setting a higher benefit 
rate for October 1 than is currently provided. Beginning in fiscal year 
2010, recipients would receive 102 percent of the cost of the Thrifty 
Food Plan in the previous June. By fiscal year 2012, this benefit rate 
would be ramped up to 103 percent of the cost of the Thrifty Food Plan 
in the previous June. This change would be consistent with the way food 
stamp benefits were regularly adjusted for food price inflation for 
many years prior to 1996. By providing this higher benefit rate, food 
stamp benefits would be adequate to meet rising food prices over the 
course of the following year. As a result, low-income families 
participating in the food stamp program would have the necessary 
resources to purchase the foods their families need and be able to 
ensure that their families do not suffer from the adverse effects of 
hunger.
  To solve the problem of inadequate reimbursement rates for certain 
child nutrition programs, this bill would provide for semi-annual 
reimbursement rate adjustments. In addition to the current annual 
update in July to reimbursement rates for school meal programs, 
reimbursement rates would also be adjusted for inflation each January. 
As a result of this change, reimbursement rates for the National School 
Lunch and Breakfast Programs, the Special Milk Program, the Child and 
Adult Day Care Program, and the Summer Food Service Program would more 
accurately reflect the costs that schools or service providers incur to 
provide foods through these programs. This, in turn, would help to keep 
the prices charged for foods provided to other children at schools more 
in line with the costs of procuring and providing those foods.
  I am introducing this legislation today because it is critically 
important to begin the dialogue on finding ways to ensure that our 
nutrition assistance programs can continue to prevent hunger by 
providing necessary nourishment to Americans of all ages. However, I 
also recognize that we have a challenge to ensure that these nutrition 
assistance programs can operate in the most efficient and cost-
effective manner possible while adequately serving the more than 35.5 
million Americans who continue to be plagued by the threat of hunger. 
Over the coming months, as we continue to work on ways to eradicate 
hunger in this Nation and begin to consider the reauthorization of the 
Child Nutrition Act, I will continue seeking out ways to make reforms 
to this and other nutrition assistance legislation to ensure that--at 
the end of the day--these programs can continue to effectively reach 
those most in need.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3614

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Hunger Relief Act 
     of 2008''.

     SEC. 2. NUTRITION PROGRAMS.

       (a) Supplemental Nutrition Assistance Program.--Section 
     3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(u)) 
     is amended--
       (1) by striking ``(u) `Thrifty food plan' means'' and 
     inserting the following:
       ``(u) Thrifty Food Plan.--
       ``(1) In general.--The term `thrifty food plan' means'';
       (2) in the second sentence--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively, and indenting 
     appropriately;
       (B) by striking ``The cost of such diet'' and inserting the 
     following:
       ``(2) Adjustments.--The cost of the diet described in 
     paragraph (1)''; and
       (C) by striking subparagraph (D) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(D)(i) on October 1, 2009, adjust the cost of the diet to 
     reflect 102 percent of the cost of the diet in the preceding 
     June, and round the result to the nearest higher dollar 
     increment for each household size, except that the Secretary 
     may not reduce the cost of the diet below that in effect 
     during the immediately preceding fiscal year;
       ``(ii) on October 1, 2010, adjust the cost of the diet to 
     reflect 102.5 percent of the cost of the diet in the 
     preceding June, and round the result to the nearest higher 
     dollar increment for each household size, except that the 
     Secretary may not reduce the cost of the diet below that in 
     effect during the immediately preceding fiscal year; and
       ``(iii) on October 1, 2011, and each October 1 thereafter, 
     adjust the cost of the diet to reflect 103 percent of the 
     cost of the diet in the preceding June, and round the result 
     to the nearest higher dollar increment for each household 
     size, except that the Secretary may not reduce the cost of 
     the diet below that in effect during the immediately 
     preceding fiscal year.''.
       (b) Conforming Amendments.--
       (1) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
     of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
     ``3(u)(4)'' and inserting ``3(u)(2)''.
       (2) Section 27(a)(2)(C) of the Food and Nutrition Act of 
     2008 (7 U.S.C. 2036(a)(2)(C)) is amended by striking 
     ``3(u)(4)'' and inserting ``3(u)(2)''.

     SEC. 3. SCHOOL MEALS.

       (a) Commodities.--Section 6(c)(1) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1755(c)(1)) is amended--
       (1) in subparagraph (A), by striking ``on July 1, 1982, and 
     each July 1 thereafter'' and inserting ``in accordance with 
     subparagraph (B)''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Adjustment.--The Secretary shall--
       ``(i) on each January 1, increase the value of food 
     assistance for each meal by the annual percentage change in a 
     3-month average value of the Price Index for Foods Used in 
     Schools and Institutions for September, October, and November 
     each year;
       ``(ii) on each July 1, increase the value of food 
     assistance for each meal 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; 
     and
       ``(iii) round the result of each increase to the nearest 
     higher \1/4\ cent.''.
       (b) Overall Adjustment.--Section 11(a) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1759a(a)) is 
     amended--
       (1) in paragraph (2), by striking ``98.75 cents'' and 
     inserting ``the amount computed under paragraph (3)''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) in the matter before clause (i), by striking ``July 1, 
     1982, and on each subsequent July 1, an annual adjustment'' 
     and inserting ``each January 1 and July 1, a semiannual 
     increase''; and
       (ii) in clause (ii), by striking ``(as established under 
     paragraph (2) of this subsection)'';
       (B) in subparagraph (B)--
       (i) in clause (i), by striking ``annual adjustment'' and 
     inserting ``semiannual increase'';
       (ii) in clause (ii)--

       (I) by striking ``annual adjustment'' and inserting 
     ``semiannual increase''; and
       (II) by striking ``12-month period'' and inserting ``6-
     month period''; and

       (iii) by striking clause (iii) and inserting the following:
       ``(iii) Rounding.--On each January 1 and July 1, the 
     national average payment rates for meals and supplements 
     shall be--

       ``(I) increased to the nearest higher cent; and
       ``(II) based on the unrounded amount previously in 
     effect.''.

       (c) Payments to Service Institutions.--Section 13(b)(1) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1761(b)(1)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Adjustments.--The Secretary shall--
       ``(i) on each January 1, increase each amount specified in 
     subparagraph (A) as adjusted through the preceding July 1 to 
     reflect changes for the 6-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;
       ``(ii) on each July 1, increase each amount specified in 
     subparagraph (A) as adjusted through the preceding January 1 
     to reflect changes for the 6-month period ending the 
     preceding May 31 in the series for food away

[[Page S9682]]

     from home of the Consumer Price Index for All Urban Consumers 
     published by the Bureau of Labor Statistics of the Department 
     of Labor;
       ``(iii) base each increase on the unrounded amount 
     previously in effect; and
       ``(iv) round each increase described in clauses (i) and 
     (ii) to the nearest higher cent increment.''.
       (d) Reimbursement of Family or Group Day Care Home 
     Sponsoring Organizations.--
       (1) Tier i.--Section 17(f)(3)(A)(ii)(IV) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 
     1766(f)(3)(A)(ii)(IV)) is amended by striking subclause (IV) 
     and inserting the following:

       ``(IV) Adjustments.--On each July 1 and January 1, the 
     Secretary shall--

       ``(aa) increase each reimbursement factor under this 
     subparagraph to reflect the changes in the Consumer Price 
     Index for food at home for the most recent 6-month period for 
     which the data are available;
       ``(bb) base each increase on the unrounded amount 
     previously in effect; and
       ``(cc) round each increase described in item (aa) to the 
     nearest higher cent increment.''.
       (2) Tier ii.--Section 17(f)(3)(A)(iii)(I) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 
     1766(f)(3)(A)(iii)(I)) is amended by striking item (bb) and 
     inserting the following:
       ``(bb) Adjustments.--On each July 1 and January 1, the 
     Secretary shall increase the reimbursement factors to reflect 
     the changes in the Consumer Price Index for food at home for 
     the most recent 6-month period for which the data are 
     available, base the increases on the unrounded amount 
     previously in effect, and round the increases to the nearest 
     higher cent increment.''.
       (e) Special Milk Program.--Section 3(a) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1772(a)) is amended--
       (1) by striking paragraph (7) and inserting the following:
       ``(7) Minimum rate of reimbursement.--For each school year, 
     the minimum rate of reimbursement for a \1/2\ pint of milk 
     served in schools and other eligible institutions shall be 
     not less than minimum rate of reimbursement in effect on 
     September 30, 2008, as increased on a semiannual basis each 
     school year to reflect changes in the Producer Price Index 
     for Fresh Processed Milk published by the Bureau of Labor 
     Statistics of the Department of Labor.''; and
       (2) in paragraph (8), by inserting ``higher'' after 
     ``nearest''.

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this Act take effect on October 1, 
     2008.
                                 ______