[House Report 117-548]
[From the U.S. Government Publishing Office]


117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 117-548

======================================================================
 
                   HEALTHY MEALS, HEALTHY KIDS ACT

                               ----------                              

                              R E P O R T

                                 OF THE

                    COMMITTEE ON EDUCATION AND LABOR

                              TO ACCOMPANY

                               H.R. 8450

                             together with

                             MINORITY VIEWS

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


November 7, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
              
              
              
                     HEALTHY MEALS, HEALTHY KIDS ACT              
              
              
              
              
              
117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 117-548

======================================================================

                  HEALTHY MEALS, HEALTHY KIDS ACT

                               __________

                              R E P O R T

                                 of the

                    COMMITTEE ON EDUCATION AND LABOR

                              to accompany

                               H.R. 8450

                             together with

                             MINORITY VIEWS




November 7, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
              
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
49-434                     WASHINGTON : 2022                     
          
-----------------------------------------------------------------------------------              
              
              
117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 117-548

======================================================================
                    
                    HEALTHY MEALS, HEALTHY KIDS ACT

                                _______
                                

November 7, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Scott of Virginia, from the Committee on Education and Labor, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 8450]

    The Committee on Education and Labor, to whom was referred 
the bill (H.R. 8450) to reauthorize child nutrition programs, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    51
Committee Action.................................................    51
Committee Views..................................................    55
Section-by-Section Analysis......................................    79
Explanation of Amendments........................................    89
Application of Law to the Legislative Branch.....................    89
Unfunded Mandate Statement.......................................    90
Earmark Statement................................................    90
Roll Call Votes..................................................    90
Statement of Performance Goals and Objectives....................    95
Duplication of Federal Programs..................................    95
Hearings.........................................................    95
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    96
New Budget Authority and CBO Cost Estimate.......................    96
Committee Cost Estimate..........................................    96
Changes in Existing Law Made by the Bill, as Reported............    96
Minority Views...................................................   386

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Healthy Meals, 
Healthy Kids Act''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

               TITLE I--EXPANDING ACCESS TO SCHOOL MEALS

Sec. 101. Emergency waivers or modifications.
Sec. 102. Direct certification for children receiving Medicaid 
benefits.
Sec. 103. Expanding community eligibility.

   TITLE II--ENSURING THE LONG-TERM VIABILITY OF SCHOOL MEAL PROGRAMS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act

Sec. 201. Increasing reimbursement rate of school meals.
Sec. 202. Statewide technology solutions included as State 
administrative costs.
Sec. 203. Annual reimbursement rate and commodity improvements.
Sec. 204. Food service management.
Sec. 205. Kitchen improvement and personnel training.
Sec. 206. Statewide online household applications.

       Subtitle B--Programs Under the Child Nutrition Act of 1966

Sec. 211. Professional development and training.
Sec. 212. Technology and infrastructure improvement.
Sec. 213. State administrative expenses.

 TITLE III--MODERNIZING THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 
                   WOMEN, INFANTS, AND CHILDREN (WIC)

Sec. 301. Adjunctive eligibility.
Sec. 302. WIC eligibility and certification periods.
Sec. 303. Certification and recertification determinations and 
nutritional risk evaluations.
Sec. 304. Paperwork reduction.
Sec. 305. Nutrition education materials related to food allergies.
Sec. 306. Breastfeeding supply coverage.
Sec. 307. Water benefits during disasters.
Sec. 308. Infant formula procurement online source of information.
Sec. 309. Breastfeeding peer counselor program.
Sec. 310. Product pricing.
Sec. 311. WIC A50 stores.
Sec. 312. WIC EBT Modernization.
Sec. 313. Spend forward authorities.
Sec. 314. Administrative simplification.
Sec. 315. Authorization of appropriations.
Sec. 316. WIC farmers' market nutrition program.
Sec. 317. Supporting Healthy Mothers and Infants.

      TITLE IV--MODERNIZING THE CHILD AND ADULT CARE FOOD PROGRAM

Sec. 401. Eligibility certification criteria for proprietary child care 
centers.
Sec. 402. Automatic eligibility for children in supplemental nutrition 
assistance households.
Sec. 403. Review of serious deficiency process.
Sec. 404. Authorization of reimbursements for additional meal or snack.
Sec. 405. Adjustments.
Sec. 406. Age limits in homeless shelters and emergency shelters.
Sec. 407. Advisory committee on paperwork reduction.

      TITLE V--ADDRESSING CHILD FOOD INSECURITY DURING THE SUMMER

Sec. 501. Summer food service program for children.
Sec. 502. Summer electronic benefits transfer for children program.

       TITLE VI--IMPROVING CAPACITY AND PROMOTING SUSTAINABILITY

Sec. 601. Values-aligned procurement.
Sec. 602. Procurement training.
Sec. 603. Buy American.
Sec. 604. Plant-based foods in schools.
Sec. 605. Food waste and nutrition education.
Sec. 606. Farm to school grant program.

       TITLE VII--SUPPORTING TRIBES AND FREELY ASSOCIATED STATES

Sec. 701. Tribally operated meal and snack pilot project.
Sec. 702. Island areas eligibility feasibility study under the Richard 
B. Russell National School Lunch Act.

       TITLE VIII--ADDRESSING LUNCH SHAMING AND UNPAID MEAL DEBT

Sec. 801. Unpaid meal debt.
Sec. 802. National advisory council on unpaid meal debt in child 
nutrition programs.

       TITLE IX--STRENGTHENING EVIDENCE-BASED NUTRITION STANDARDS

Sec. 901. Updating nutrition standards for meal patterns.
Sec. 902. Non-nutritive sweeteners, synthetic dyes, and other 
potentially harmful substances in school meals.

                         TITLE X--OTHER MATTERS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act

Sec. 1001. Accommodating dietary requirements.
Sec. 1002. Data protections for household applications.
Sec. 1003. Eating disorder prevention.
Sec. 1004. Compliance and accountability.
Sec. 1005. National hunger hotline and clearinghouse.
Sec. 1006. Ensuring adequate meal time.

       Subtitle B--Programs Under the Child Nutrition Act of 1966

Sec. 1011. Enhancing nutrition education.

                  Subtitle C--Improving Food Donations

Sec. 1021. Food donation in schools.
Sec. 1022. Bill Emerson Good Samaritan Food Donation Act.
Sec. 1023. Regulations.

                       Subtitle D--Miscellaneous

Sec. 1031. Technical Amendments.

SEC. 2. DEFINITION OF SECRETARY.

  In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

               TITLE I--EXPANDING ACCESS TO SCHOOL MEALS

SEC. 101. EMERGENCY WAIVERS OR MODIFICATIONS.

  Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended--
          (1) by inserting the following after subsection (j):
  ``(k) Emergency Waivers or Modifications.--
          ``(1) In general.--Except as provided in paragraph (4), 
        during an emergency period, the Secretary may waive (including 
        by modifying) 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 States or eligible 
        service providers on a multi-State, State, or eligible service 
        provider basis if--
                  ``(A) the requirement cannot reasonably be 
                implemented under the conditions which prompted the 
                emergency period in the affected area;
                  ``(B) a State or eligible service provider requests a 
                waiver in a format prescribed by the Secretary;
                  ``(C) in the case of a request by an eligible service 
                provider under subparagraph (B), the State in which 
                such eligible service provider is located includes a 
                statement of support or opposition with respect to the 
                request; and
                  ``(D) the Secretary determines that the waiver 
                would--
                          ``(i) facilitate the ability of such States 
                        or eligible service providers to carry out the 
                        purpose of such Acts; and
                          ``(ii) not decrease access to, or eligibility 
                        for, any program under such Acts.
          ``(2) Nationwide, regional, and state-wide basis.--Except as 
        provided in paragraph (3), during an emergency period, the 
        Secretary may waive (including by modifying) 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, 
        on a nationwide, regional, or State-wide basis if the Secretary 
        determines that the waiver would facilitate the ability of 
        States or eligible service providers to carry out the purpose 
        of such Acts.
          ``(3) Duration.--A waiver established under this subsection 
        may be available for a period of not greater than the emergency 
        period and the 90 days after the end of the emergency period.
          ``(4) Limitations.--A waiver under this subsection is subject 
        to the limitations in subsection (l)(4).
          ``(5) Definitions.--In this subsection:
                  ``(A) Eligible service provider.--The term `eligible 
                service provider' has the meaning given the term in 
                subsection (l).
                  ``(B) Emergency period.--The term `emergency period' 
                means a period during which there exists--
                          ``(i) a major disaster declared by the 
                        President under section 401 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5170);
                          ``(ii) an emergency declared by the President 
                        under section 501 of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C. 5191);
                          ``(iii) a public health emergency declared by 
                        the Secretary of Health and Human Services 
                        under section 319 of the Public Health Service 
                        Act (42 U.S.C. 247d); or
                          ``(iv) any renewal of such a public health 
                        emergency pursuant to such section 319.''; and
          (2) in subsection (l)--
                  (A) in paragraph (1)(A)--
                          (i) by striking ``Except as'' and all that 
                        follows through ``requests a waiver'' and 
                        inserting ``Except as provided in paragraph 
                        (4), the Secretary may waive (including by 
                        modifying) 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, on a nationwide, State, multi-State, 
                        or eligible service provider basis'';
                          (ii) by redesignating clauses (i) through 
                        (iii) as clauses (ii) through (iv), 
                        respectively; and
                          (iii) by inserting before clause (ii), as so 
                        redesignated, the following new clause (i):
          ``(i) a State or eligible service provider requests the 
        waiver;'';
                  (B) by striking paragraph (2)(B) and inserting the 
                following:
  ``(B) An application described in subparagraph (A) shall--
          ``(i) be submitted in a format prescribed by the Secretary;
          ``(ii) be completed by the State or eligible service 
        provider;
          ``(iii) be submitted to the Secretary by--
                  ``(I) the State; or
                  ``(II) an eligible service provider through the 
                State; and
          ``(iv) if submitted as described in clause (iii)(II), include 
        a statement of support or opposition from the State.'';
                  (C) in paragraph (4)(A), by striking ``content of 
                meals served'' and inserting ``standards''; and
                  (D) in paragraph (7), by striking subparagraphs (A) 
                through (C) and inserting the following:
          ``(A) a local school food service authority, local 
        educational agency, or school;
          ``(B) a service institution or private nonprofit organization 
        described in section 13; or
          ``(C) institutions described in section 17.''.

SEC. 102. DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID 
                    BENEFITS.

  Section 9 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(b)) is amended--
          (1) in subsection (b)--
                  (A) by amending paragraph (5) to read as follows:
          ``(5) Discretionary certification.--
                  ``(A) Free lunches or breakfasts.--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--
                          ``(i) 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.);
                          ``(ii) 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));
                          ``(iii) served by the runaway and homeless 
                        youth grant program established under the 
                        Runaway and Homeless Youth Act (42 U.S.C. 5701 
                        et seq.);
                          ``(iv) a migratory child (as defined in 
                        section 1309 of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6399));
                          ``(v) an eligible child (as defined in 
                        paragraph (15)(A)); or
                          ``(vi)(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) Reduced price lunches or breakfasts.--Subject 
                to paragraph (6), any local educational agency may 
                certify any child who is not eligible for free lunches 
                or breakfasts as eligible for reduced price 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 child eligible for reduced price meals (as 
                defined in paragraph (15)(A)).'';
                  (B) in paragraph (6)(A), by striking ``or (5)'' both 
                places it appears and inserting ``(5), or (15)''; and
                  (C) in paragraph (15)--
                          (i) in subparagraph (A)--
                                  (I) by amending clause (i) to read as 
                                follows:
                          ``(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 that does not exceed 
                                133 percent of the poverty line (as 
                                determined under the poverty guidelines 
                                updated periodically in the Federal 
                                Register by the Department of Health 
                                and Human Services under the authority 
                                of 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;
                                  ``(II) who is eligible for the 
                                Medicaid program because such child 
                                receives supplemental security income 
                                benefits under title XVI of the Social 
                                Security Act (42 U.S.C. 1381-1385) or 
                                State supplementary benefits of the 
                                type referred to in section 1616(a) of 
                                such Act (or payments of the type 
                                described in section 212(a) of Public 
                                Law 93-66);
                                  ``(III) who is eligible for the 
                                Medicaid program because such child 
                                receives an adoption assistance payment 
                                made under section 473(a) of the Social 
                                Security Act (42 U.S.C. 673(a)) or 
                                under a similar State-funded or State-
                                operated program, as determined by the 
                                Secretary;
                                  ``(IV) who is eligible for the 
                                Medicaid program because such child 
                                receives a kinship guardianship 
                                assistance payment made under section 
                                473(d) of the Social Security Act (42 
                                U.S.C. 673(d)) or under a similar 
                                State-funded or State-operated program, 
                                as determined by the Secretary, without 
                                regard to whether such child was 
                                previously in foster care; or
                                  ``(V) 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), (III), or (IV).''; and
                                  (II) by adding at the end the 
                                following:
                          ``(iii) Child eligible for reduced price 
                        meals.--The term `child eligible for reduced 
                        price meals' 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 that is greater than 
                                133 percent but does not exceed 185 
                                percent of the poverty line (as 
                                determined under the poverty guidelines 
                                updated periodically in the Federal 
                                Register by the Department of Health 
                                and Human Services under the authority 
                                of 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) by striking subparagraphs (B), (C), (D), 
                        (E), (G), and (H);
                          (iii) in subparagraph (F)--
                                  (I) in the enumerator, by striking 
                                ``(F)'' and inserting ``(D)''; and
                                  (II) by striking ``conducting the 
                                demonstration project under this 
                                paragraph'' and inserting ``carrying 
                                out this paragraph''; and
                          (iv) by inserting after subparagraph (A) the 
                        following:
                  ``(B) Agreements to carry out certification.--To 
                certify a child under subparagraph (A)(v) or (B) of 
                paragraph (5), a State agency shall enter into an 
                agreement with 1 or more State agencies conducting 
                eligibility determinations for the Medicaid program.
                  ``(C) Procedures.--Subject to paragraph (6), an 
                agreement under subparagraph (B) shall establish 
                procedures under which--
                          ``(i) an eligible child may 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)); 
                        and
                          ``(ii) a child eligible for reduced price 
                        meals may be certified for reduced price 
                        lunches under this Act and reduced price 
                        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)).'';
          (2) by amending subparagraph (E) of subsection (b)(4) to read 
        as follows:
                  ``(E) Performance improvement grants.--
                          ``(i) In general.--For each school year 
                        beginning after July 1, 2023, the Secretary 
                        shall offer performance improvement grants and 
                        technical assistance to State agencies or 
                        Tribal organizations (as defined in section 4 
                        of the Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 5304)) to increase 
                        the percentage of children eligible for direct 
                        certification under this paragraph or paragraph 
                        (5) who are certified in accordance with this 
                        paragraph or paragraph (5).
                          ``(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);
                                  ``(II) make performance improvement 
                                grants to States and Tribal 
                                organizations to increase the 
                                percentage of children eligible for 
                                direct certification under this 
                                paragraph or paragraph (5) who are 
                                certified in accordance with this 
                                paragraph or paragraph (5); and
                                  ``(III) provide technical assistance 
                                to the recipients of grants under this 
                                subparagraph, and other eligible 
                                entities, as appropriate, in improving 
                                the rates of direct certification.
                          ``(iii) Use of funds.--An eligible entity 
                        that receives a grant under clause (i) shall 
                        use the grant funds to pay costs relating to 
                        improving the rate of direct certification in 
                        the State or Indian Tribe, as applicable, 
                        including the cost of--
                                  ``(I) improving technology relating 
                                to direct certification;
                                  ``(II) providing technical assistance 
                                to local educational agencies;
                                  ``(III) implementing or improving a 
                                direct certification system or process 
                                in the State (including at local 
                                educational agencies in the State) or 
                                Indian Tribe, including the cost of 
                                equipment;
                                  ``(IV) establishing or improving the 
                                rate of direct certification of 
                                children that are members of households 
                                receiving assistance under the food 
                                distribution program on Indian 
                                reservations under section 4(b) of the 
                                Food and Nutrition Act of 2008 (7 
                                U.S.C. 2013(b)); and
                                  ``(V) coordinating with multiple 
                                public benefits programs to increase 
                                the rate of direct certification, 
                                including by conducting feasibility 
                                studies and demonstration projects 
                                under section 18(c) of this Act.
                          ``(iv) Funding.--On October 1, 2022, and each 
                        subsequent October 1, out of any funds in the 
                        Treasury not otherwise appropriated, the 
                        Secretary of the Treasury shall transfer to the 
                        Secretary--
                                  ``(I) $15,000,000 to carry out clause 
                                (ii)(II); and
                                  ``(II) $500,000 to carry out clause 
                                (ii)(III).''; and
          (3) in subsection (d)(2)(G), by inserting ``or child eligible 
        for reduced price meals'' after ``eligible child''.

SEC. 103. EXPANDING COMMUNITY ELIGIBILITY.

  (a) Multiplier and Threshold Adjusted.--
          (1) Multiplier.--Clause (vii) of section 11(a)(1)(F) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1759a(a)(1)(F)) is amended to read as follows:
                          ``(vii) Multiplier.--For each school year 
                        beginning on or after July 1, 2023, the 
                        Secretary shall use a multiplier of 2.5.''.
          (2) Threshold.--Clause (viii) of section 11(a)(1)(F) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1759a(a)(1)(F)) is amended to read as follows:
                          ``(viii) Threshold.--For each school year 
                        beginning on or after July 1, 2023, the 
                        threshold shall be not more than 25 percent.''.
          (3) Applicability.--The amendments made by this subsection 
        shall apply to a local educational agency with respect to a 
        school year beginning on or after July 1, 2023, for which such 
        local educational agency elects to receive special assistance 
        payments under subparagraph (F) of section 11(a)(1) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1759a(a)(1)).
  (b) Statewide Community Eligibility.--Section 11(a)(1)(F) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(F)) 
is amended by adding at the end the following:
                          ``(xiv) Statewide community eligibility.--For 
                        each school year beginning on or after July 1, 
                        2023, the Secretary shall establish an option 
                        for States to utilize a statewide community 
                        eligibility program under which, in the case of 
                        a State agency that agrees to provide funding 
                        from sources other than Federal funds to ensure 
                        that local educational agencies in the State 
                        receive the free reimbursement rate for 100 
                        percent of the meals served at applicable 
                        schools--
                                  ``(I) the multiplier described in 
                                clause (vii) shall apply;
                                  ``(II) the threshold described in 
                                clause (viii) shall be applied by 
                                substituting `zero' for `25'; and
                                  ``(III) the percentage of enrolled 
                                students who were identified students 
                                shall be calculated across all 
                                applicable schools in the State 
                                regardless of local educational 
                                agency.''.

   TITLE II--ENSURING THE LONG-TERM VIABILITY OF SCHOOL MEAL PROGRAMS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act

SEC. 201. INCREASING REIMBURSEMENT RATE OF SCHOOL MEALS.

  Section 4(b)(2) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1753(b)(2)) is amended by striking ``10.5 cents'' and 
inserting ``20.5 cents''.

SEC. 202. STATEWIDE TECHNOLOGY SOLUTIONS INCLUDED AS STATE 
                    ADMINISTRATIVE COSTS.

  Section 4(b)(3)(F)(i) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1753(b)(3)(F)(i)) is amended by inserting ``statewide 
technology solutions,'' after ``certification,''.

SEC. 203. ANNUAL REIMBURSEMENT RATE AND COMMODITY IMPROVEMENTS.

  (a) Direct Federal Expenditures.--Section 6 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1755(c)(1)) is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) The Secretary shall deliver, to each State participating in the 
school lunch program under this Act and the school breakfast program 
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), 
commodities valued at the total level of assistance authorized under 
subsections (c) and (d) for each school year for the school lunch and 
school breakfast programs in the State, not later than September 30 of 
the following school year.'';
          (2) in subsection (c), by striking ``(c)'' and all that 
        follows through the end of paragraph (1) and inserting the 
        following:
  ``(c) National School Lunch Commodity Assistance.--
          ``(1)(A) Not later than January 15 of each year after the 
        date of the enactment of the Healthy Meals, Healthy Kids Act, 
        the Secretary shall--
          ``(i) calculate the national average value of donated foods 
        for school lunch, or cash payments in lieu thereof, in 
        accordance with subparagraph (B); and
          ``(ii) adjust the amount calculated under clause (i) by the 
        annual percentage change in the 3-month average value of the 
        Producer Price Index for Foods Used in Schools and 
        Institutions--
                  ``(I) for the preceding August, September, and 
                October, computed to the nearest \1/4\ cent;
                  ``(II) using 5 major food components in the Producer 
                Price Index of the Bureau of Labor Statistics, which 
                are--
                          ``(aa) cereal and bakery products;
                          ``(bb) meats, poultry, and fish;
                          ``(cc) dairy products;
                          ``(dd) processed fruits and vegetables; and
                          ``(ee) fats and oils; and
                  ``(III) weighing each such component using the same 
                relative weight as determined by the Bureau of Labor 
                Statistics.
          ``(B) The national average value of donated foods, or cash 
        payments in lieu thereof, shall be equal to 12 percent of the 
        quotient obtained by dividing--
                          ``(i) the total assistance provided in the 
                        preceding school year under section 4, this 
                        section, and section 11; by
                          ``(ii) the number of lunches served in the 
                        preceding school year.
          ``(C) Not later than January 15 of each year after the date 
        of the enactment of the Healthy Meals, Healthy Kids Act, the 
        Secretary shall calculate the total commodity assistance or 
        cash payments in lieu thereof available to a State for the 
        upcoming school year by multiplying the number of lunches 
        served in the most recent school year for which data are 
        available by the rate established in subparagraph (A). The 
        Secretary shall also annually reconcile the amount of commodity 
        assistance or cash payments in lieu thereof made available 
        under this subparagraph with the amount of assistance used by 
        each State and increase or reduce subsequent commodity 
        assistance or cash payments in lieu thereof based on such 
        reconciliation.
          ``(D) Among those commodities delivered under this section, 
        the Secretary shall give special emphasis to high protein 
        foods, meat, 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.''.
  (b) Special Assistance.--Section 11(a)(3)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is 
amended--
          (1) in clause (ii)--
                  (A) by striking ``most recent''; and
                  (B) by inserting ``ending on the preceding April 30'' 
                after ``12-month period''; and
          (2) in clause (iii), by inserting ``ending on April 30'' 
        after ``12-month period''.

SEC. 204. FOOD SERVICE MANAGEMENT.

  (a) Request for Information.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary shall issue a request for 
information and data collection from State agencies and school food 
authorities regarding the role of food service management companies in 
carrying out the programs under the Richard B. National School Lunch 
Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.), including information on--
          (1) participation of small, women- and minority-owned 
        businesses as food service management companies;
          (2) food service management contract practices;
          (3) trends in compensation and benefits of school food 
        personnel and impact of food service management contracts on 
        such compensation and benefits; and
          (4) use of funds by food service management companies to 
        assist, promote, or deter organizing by a labor organization, 
        including any action to enter into contracts in order to avoid, 
        undermine, or violate any collective bargaining or a 
        requirement to meet and confer.
  (b) Rulemaking.--Not later than 1 year after the date of issuance of 
the request for information described in subsection (a), the Secretary 
shall issue a rule regarding the role of food service management 
companies in carrying out the programs under the Richard B. National 
School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act 
of 1966 (42 U.S.C. 1771 et seq.).

SEC. 205. KITCHEN IMPROVEMENT AND PERSONNEL TRAINING.

  (a) Scratch Cooking Defined.--Section 12(d) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760(d)) is amended by--
          (1) redesignating paragraphs (7) through (9) as paragraphs 
        (8) through (10), respectively; and
          (2) by adding after paragraph (6) the following:
          ``(7) Scratch cooking.--The term `scratch cooking' means the 
        preparation of food using ingredients that are unprocessed or 
        minimally processed.''.
  (b) Training and Technical Assistance for School Food Service 
Personnel.--The Richard B. Russell National School Lunch Act is amended 
by inserting after section 21 (42 U.S.C. 1769b-1) the following:

``SEC. 21A. GRANTS TO SUPPORT SCRATCH COOKING.

  ``(a) Establishment.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall establish a program to 
award grants, on a competitive basis, to school food authorities to 
promote scratch cooking.
  ``(b) Application.--To be eligible for a grant under this section, a 
school food authority shall submit to the Secretary an application at 
such time, in such manner, and containing such information as the 
Secretary may require.
  ``(c) Grant Amounts and Duration.--
          ``(1) Grant amount.--The Secretary shall award a grant of not 
        more than $100,000 to each school food authority with an 
        application selected under this subsection.
          ``(2) Grant period.--A grant awarded under this section shall 
        be for a period of not more than 2 years.
  ``(d) Grant Uses.--A school food authority that receives a grant 
under this section shall use such grant funds to promote scratch 
cooking, including by--
          ``(1) offering professional development and training related 
        to preparing, procuring, advertising, serving, and creating 
        menus of meals made with scratch cooking;
          ``(2) investing in software and technology systems for 
        procurement to support scratch cooking;
          ``(3) compensating employees for additional food preparation 
        required for scratch cooking;
          ``(4) providing technical assistance, student engagement, and 
        education with respect to scratch cooking, including taste 
        tests, recipe development, and culinary education; or
          ``(5) carrying out any additional activities to promote 
        scratch cooking that will help school food authorities meet or 
        exceed the 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).
  ``(e) Priority.--In awarding grants under this section, the Secretary 
shall give priority to school food authorities--
          ``(1) that serve the greatest proportion of students eligible 
        for free or reduced price lunch under this Act; and
          ``(2) that--
                  ``(A) are self-operated; or
                  ``(B) provide an assurance to the Secretary that the 
                school food authority will be self-operated on or 
                before the date that is 1 year before the last day of 
                the grant period.
  ``(f) Technical Assistance Center.--
          ``(1) In general.--The Secretary shall enter into an 
        agreement with one or more eligible third-party institutions to 
        establish and carry out a single technical assistance and 
        resource center to provide technical assistance for school food 
        service personnel.
          ``(2) Collaboration requirement.--As soon as practicable 
        after receiving a grant under this section, a school food 
        authority shall collaborate with the technical assistance and 
        resource center established under paragraph (1) to--
                  ``(A) conduct a scratch cooking needs assessment to 
                evaluate, with respect to such school food authority--
                          ``(i) equipment needs;
                          ``(ii) equipment utilization;
                          ``(iii) procurement processes; and
                          ``(iv) workforce capabilities; and
                  ``(B) establish a strategic plan based on such needs 
                assessment to carry out the activities under subsection 
                (d).
          ``(3) Eligible third-party institutions.--
                  ``(A) Eligible third-party institution defined.--For 
                purposes of this subsection, the term `eligible third-
                party institution' means--
                          ``(i) a nonprofit organization with 
                        demonstrated experience in food or nutrition 
                        services training and technical assistance;
                          ``(ii) an institution of higher education as 
                        defined in section 101 or 102(a)(1)(B) of the 
                        Higher Education Act of 1965 (20 U.S.C. 1001; 
                        1002(a)(1)(B));
                          ``(iii) an area career and technical 
                        education school as defined in section 3 of the 
                        Carl D. Perkins Career and Technical Education 
                        Act of 2006 (20 U.S.C. 2302); or
                          ``(iv) a consortium of entities described in 
                        subclauses (I) through (III).
                  ``(B) Criteria for eligible third-party 
                institutions.--The Secretary shall establish specific 
                criteria that eligible third-party training 
                institutions must meet to qualify to enter into an 
                agreement under paragraph (1), which shall include--
                          ``(i) prior successful experience in 
                        providing or engaging in training and technical 
                        assistance programming or applied research 
                        activities involving eligible entities, school 
                        food service administrators, or school food 
                        service directors;
                          ``(ii) prior successful experience in 
                        developing relevant educational training tools 
                        or course materials or curricula on topics 
                        addressing child and school nutrition or the 
                        updated nutrition standards under section 
                        4(b)(3); and
                          ``(iii) the ability to deliver effective and 
                        cost-efficient training and technical 
                        assistance programming to school food service 
                        personnel--
                                  ``(I) at training sites that are 
                                located within a proximate geographic 
                                distance to schools, central kitchens, 
                                or other worksites; or
                                  ``(II) through an online training and 
                                assistance program on topics that do 
                                not require in-person attendance.
          ``(4) Funding.--Of the amounts made available under 
        subsection (h) to carry out this section, not more than 10 
        percent may be used to carry out this subsection.
  ``(g) Report.--Not later than 180 days after the conclusion of the 
grant period described in subsection (c)(2), each school food authority 
that receives a grant under this section shall submit to the Secretary 
a report that includes, with respect to such school food authority, the 
change at the end of the grant period, as compared with the school year 
immediately preceding the beginning of the grant period, in--
          ``(1) the percentage of whole ingredients, raw ingredients, 
        or both, used in school meals; and
          ``(2) the percentage of menu items prepared with scratch 
        cooking.
  ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated $20,000,000 to carry out this section for each of fiscal 
years 2024 through 2028.''.
  (c) Grants to Finance Certain Improvements to School Lunch 
Facilities.--The Richard B. Russell National School Lunch Act is 
amended by inserting after section 26 (42 U.S.C. 1769g) the following:

``SEC. 27. GRANTS TO FINANCE CERTAIN IMPROVEMENTS TO SCHOOL LUNCH 
                    FACILITIES.

  ``(a) In General.--Beginning fiscal year 2024, the Secretary shall 
award grants to State agencies to carry out the activities described in 
subsection (b).
  ``(b) Subgrants.--
          ``(1) In general.--A State agency receiving a grant under 
        this section shall use such grant funds to award subgrants, on 
        a competitive basis, to school food authorities.
          ``(2) Application.--A school food authority seeking a 
        subgrant under this subsection shall submit to the State agency 
        an application at such time, in such manner, and containing 
        such information as the State agency may require.
          ``(3) Priority.--In awarding a subgrant under this 
        subsection, the State agency shall give priority to a school 
        food authority that serves, as determined by the State agency, 
        schools with substantial or disproportionate--
                  ``(A) need for infrastructure improvement; or
                  ``(B) durable equipment need or impairment.
          ``(4) Subgrant uses.--A school food authority receiving a 
        subgrant under this subsection shall use such subgrant funds to 
        support the establishment, maintenance, and expansion of 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) at schools served by the school food 
        authority, including by--
                  ``(A) purchasing equipment, including software and 
                technology systems, needed to serve healthy meals, 
                improve food safety, promote scratch cooking, 
                facilitate the use of salad bars; or
                  ``(B) improving or adapting equipment needed to serve 
                healthy meals, including by retrofitting such 
                equipment.
  ``(c) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated 
        $35,000,000 for each of fiscal years 2024 through 2028 to carry 
        out this section.
          ``(2) Technical assistance.--The Secretary may use not more 
        than 5 percent of the amounts made available to carry out this 
        section for each fiscal year to provide technical assistance to 
        applicants and prospective applicants in preparing 
        applications.''.

SEC. 206. STATEWIDE ONLINE HOUSEHOLD APPLICATIONS.

  (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end 
the following:
          ``(16) Statewide online household applications.--
                  ``(A) In general.--Subject to subparagraphs (B) and 
                (C), beginning in the first school year that begins 
                after the date of the enactment of this paragraph, a 
                State agency may elect to establish a Statewide online 
                application to determine the eligibility of children in 
                households in that State to receive free or reduced 
                price meals.
                  ``(B) State agency requirements.--
                          ``(i) Household application.--A Statewide 
                        online school meal application under this 
                        paragraph shall comply with the requirements 
                        of--
                                  ``(I) this subsection; and
                                  ``(II) paragraphs (1) through (5) of 
                                section 245.6(a)(1) of title 7, Code of 
                                Federal Regulations (or a successor 
                                regulation).
                          ``(ii) Processing timeline.--A State agency 
                        electing the option under this paragraph 
                        shall--
                                  ``(I) determine the eligibility of a 
                                household applying for free or reduced 
                                price meals; and
                                  ``(II) communicate that determination 
                                to the local educational agency and the 
                                household, within 10 operating days of 
                                the date on which the household 
                                submitted the application to the State 
                                agency.
                          ``(iii) Verification.--A State agency 
                        electing the option under this paragraph 
                        shall--
                                  ``(I) select at random for 
                                verification 3 percent of all household 
                                applications approved by the State 
                                agency for the school year, as of 
                                October 1 of the school year;
                                  ``(II) directly verify the selected 
                                household applications under subclause 
                                (I) in a manner consistent with 
                                paragraph (3)(F); and
                                  ``(III) prior to October 10 of the 
                                school year, communicate to the local 
                                educational agency which household 
                                applications have been selected for 
                                verification and the outcome of the 
                                direct verification conducted under 
                                paragraph (3)(F).
                  ``(C) Local educational agency requirements.--
                          ``(i) Eligibility determination.--A local 
                        educational agency in a State with a Statewide 
                        online household application established under 
                        this paragraph shall accept the eligibility 
                        determination made by the State agency for a 
                        household and provide an eligible child with 
                        free or reduced price meals beginning on the 
                        first day of the current school year.
                          ``(ii) Transferring students.--When a student 
                        transfers to a new local educational agency, 
                        the new local educational agency shall obtain 
                        and accept the eligibility determination made 
                        by the State agency.
                          ``(iii) Use of state school meal 
                        application.--A local educational agency in a 
                        State with a Statewide online household 
                        application established under this paragraph 
                        shall not use an alternative online household 
                        application unless the State agency has 
                        approved its use.
                          ``(iv) Paper application.--A local 
                        educational agency in a State with a Statewide 
                        online household application established under 
                        this paragraph shall--
                                  ``(I) provide households with the 
                                option to submit a paper application to 
                                the local educational agency;
                                  ``(II) communicate to households the 
                                availability of this option and the 
                                Statewide online household application; 
                                and
                                  ``(III) make an eligibility 
                                determination for any paper application 
                                submitted.
                          ``(v) Verification.--A local educational 
                        agency shall verify the household applications 
                        selected by the State agency under subparagraph 
                        (B)(iii) that were not directly verified by the 
                        State agency under paragraph (3)(F) in a manner 
                        consistent with subparagraphs (G) through (J) 
                        of paragraph (3).''.
  (b) Transferring Eligibility Status.--Section 9(b)(3)(B) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)) is 
amended by adding at the end:
                          ``(iv) Transferring eligibility status.--
                                  ``(I) Transfers to a new local 
                                educational agency.--When a child 
                                transfers to a new local educational 
                                agency, the new local educational 
                                agency shall obtain and accept the 
                                eligibility determination from the 
                                State or the child's former local 
                                educational agency.
                                  ``(II) Transfers out of a local 
                                educational agency.--When a child 
                                transfers out of a local educational 
                                agency, the local educational agency 
                                shall provide the child's eligibility 
                                determination to the new local 
                                educational agency.
                                  ``(III) Cost of meals.--When the 
                                former local educational agency is 
                                claiming meals under a special 
                                provision described in section 11, and 
                                the child does not have an individual 
                                eligibility determination, the new 
                                local educational agency shall serve 
                                the child meals at no cost and claim 
                                the child's meals at the free rate for 
                                up to 30 operating days, or until a new 
                                eligibility determination is made, 
                                whichever comes first.''.
  (c) Conforming Amendment.--Section 9(b)(3)(J) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(3)(J)) is amended 
by inserting ``or paragraph (16)(B)(iii)'' after ``subparagraph (D)''.

       Subtitle B--Programs Under the Child Nutrition Act of 1966

SEC. 211. PROFESSIONAL DEVELOPMENT AND TRAINING.

  Section 7(g)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(g)(2)(B)) is amended by adding at the end the following:
                          ``(iv) Availability and appropriateness of 
                        training.--Training carried out under this 
                        subparagraph shall be--
                                  ``(I) scheduled primarily during 
                                regular, paid working hours;
                                  ``(II) if such training is scheduled 
                                outside of such regular, paid working 
                                hours--
                                          ``(aa) efforts shall be made 
                                        to inform food service 
                                        personnel of the reasons 
                                        requiring the training to be 
                                        scheduled outside of such 
                                        hours;
                                          ``(bb) time spent 
                                        participating in such training 
                                        shall be considered compensable 
                                        time and each individual who 
                                        participates shall be paid no 
                                        less than the individual's 
                                        regular rate of pay; and
                                          ``(cc) food service personnel 
                                        shall not be discharged or in 
                                        any other manner discriminated 
                                        against for not being able to 
                                        attend such training; and
                                  ``(III) offered in-person and 
                                incorporate hands-on training 
                                techniques, when appropriate.
                          ``(v) Relationship to other laws.--Nothing in 
                        this subparagraph may be construed to supersede 
                        or otherwise modify any Federal, State, or 
                        local law or legal obligation governing the 
                        relationship between an employee and 
                        employer.''.

SEC. 212. TECHNOLOGY AND INFRASTRUCTURE IMPROVEMENT.

  Section 7(i)(4) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(i)(4)) is amended by striking ``2010 through 2015'' and inserting 
``2023 through 2028''.

SEC. 213. STATE ADMINISTRATIVE EXPENSES.

  Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is 
amended--
          (1) in subsection (a)(5)(A), by striking ``or expenditure'';
          (2) in subsection (d), by striking ``and expenditure''; and
          (3) in subsection (j), by striking ``October 1, 2015'' and 
        inserting ``October 1, 2028''.

 TITLE III--MODERNIZING THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 
                   WOMEN, INFANTS, AND CHILDREN (WIC)

SEC. 301. ADJUNCTIVE ELIGIBILITY.

  (a) In General.--Section 17(d)(2)(A) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(d)(2)(A)) is amended--
          (1) in clause (ii)--
                  (A) in subclause (I), by inserting ``resides in a 
                household (as such term is defined in section 3 of the 
                Food and Nutrition Act of 2008 (7 U.S.C. 2012)) that 
                includes an individual who'' before ``receives''; and
                  (B) in subclause (II), by striking ``; or'' and 
                inserting a semicolon;
          (2) by amending clause (iii) to read as follows:
          ``(iii)(I) receives medical assistance under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.) or child health 
        assistance under title XXI of such Act (42 U.S.C.1397aa et 
        seq.); or
          ``(II) is a member of a family in which a pregnant woman, 
        postpartum woman, infant, or child receives assistance or is 
        enrolled as described in subclause (I);''; and
          (3) by adding at the end the following:
          ``(iv) is enrolled as a participant in a Head Start program 
        authorized under the Head Start Act (42 U.S.C. 9831 et seq.) or 
        resides in a household in which one or more children is 
        enrolled as a participant in such a Head Start program;
          ``(v) resides in a household that includes an individual who 
        receives assistance under 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)); or
          ``(vi) resides in a household that includes an individual who 
        receives assistance from a nutrition assistance program funded 
        by the consolidated block grants for Puerto Rico and the 
        American Samoa under section 19 of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2028) or funded by a block grant for the 
        Commonwealth of the Northern Mariana Islands pursuant to 
        section 601 of Public Law 96-597 (48 U.S.C. 1469d(c)).''.
  (b) Adjunct Documentation.--Section 17(d)(3)(E) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(E)) is amended to read as 
follows:
                  ``(E) Adjunct documentation.--In order to participate 
                in the program under this section pursuant to clause 
                (ii) through (vi) of paragraph (2)(A), not earlier than 
                90 days prior to the date on which the certification or 
                recertification for participation in the program is 
                made--
                          ``(i) an individual shall provide 
                        documentation of receipt of assistance 
                        described in such clause; or
                          ``(ii) a State agency shall use available 
                        documentation to show receipt of such 
                        assistance.''.

SEC. 302. WIC ELIGIBILITY AND CERTIFICATION PERIODS.

  (a) Procedures.--
          (1) Age of eligibility for children under the special 
        supplemental nutrition program.--
                  (A) Definition of child.--Section 17 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786) is amended--
                          (i) in subsection (b), by amending paragraph 
                        (2) to read as follows:
          ``(2) Child.--The term `child' means--
                  ``(A) before October 1, 2026, an individual who--
                          ``(i) has attained a first birthday but has 
                        not yet attained a fifth birthday; or
                          ``(ii)(I) has attained a fifth birthday but 
                        has not yet attained a sixth birthday;
                                  ``(II) does not attend full-day 
                                kindergarten; and
                                  ``(III) is certified before such date 
                                by a State agency under subsection 
                                (d)(3)(A)(iii)(II); and
                  ``(B) on and after October 1, 2026, an individual 
                who--
                          ``(i) has attained a first birthday but has 
                        not yet attained a sixth birthday; and
                          ``(ii) does not attend full day 
                        kindergarten.'';
                          (ii) in subsection (e)(4)(A), by striking 
                        ``up to age 5''; and
                          (iii) in subsection (f)(7)(D)(i), by striking 
                        ``under the age of 5''.
                  (B) Certification.--Section 17(d)(3)(A)(iii) of the 
                Child Nutrition Act of 1966 (42 U.S.C. 
                1786(d)(3)(A)(iii)) is amended to read as follows:
                          ``(iii) Children.--
                                  ``(I) Children under 5.--With respect 
                                to a participant child who has not had 
                                a fifth birthday--
                                          ``(aa) before October 1, 
                                        2026, a State may elect to 
                                        certify a participant child for 
                                        a period of 2 years, if the 
                                        State electing the option 
                                        provided under this clause 
                                        ensures that a participant 
                                        child receives the required 
                                        health and nutrition 
                                        assessments; and
                                          ``(bb) on and after October 
                                        1, 2026 a State shall--
                                                  ``(AA) certify a 
                                                participant child for a 
                                                period of 2 years; and
                                                  ``(BB) ensure that a 
                                                participant child 
                                                receives the required 
                                                health and nutrition 
                                                assessments, as 
                                                determined by the 
                                                Secretary under clause 
                                                (ix).
                                  ``(II) 5-year-old children.--
                                          ``(aa) In general.--Beginning 
                                        not later than October 1, 2026, 
                                        a State shall certify a 
                                        participant child who has had a 
                                        fifth birthday but has not yet 
                                        attained a sixth birthday, for 
                                        the period that ends on the 
                                        earlier of--
                                                  ``(AA) the sixth 
                                                birthday of the 
                                                participant child; and
                                                  ``(BB) the first date 
                                                on which the 
                                                participant child 
                                                attends full-day 
                                                kindergarten.
                                          ``(bb) Requirements.--Each 
                                        State that certifies a 
                                        participant child under item 
                                        (aa) shall--
                                                  ``(AA) ensure that 
                                                such participant child 
                                                receives required 
                                                health and nutrition 
                                                assessments, as 
                                                determined by the 
                                                Secretary under clause 
                                                (ix); and
                                                  ``(BB) establish a 
                                                method to determine the 
                                                first date on which 
                                                such participant child 
                                                attends full-day 
                                                kindergarten.''.
                  (C) Conforming amendment.--Section 1902(a)(53)(A) of 
                the Social Security Act (42 U.S.C. 1396a(a)(53)(A)) is 
                amended by striking ``below the age of 5'' and 
                inserting ``(as defined in such section)''.
          (2) Certification of infants.--Section 17(d)(3)(A) of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(A)) is 
        amended by adding at the end the following:
                          ``(iv) Infants.--
                                  ``(I) In general.--With respect to an 
                                infant, a State--
                                          ``(aa) before October 1, 
                                        2026, may elect to certify an 
                                        infant for participation in the 
                                        program for a period of 2 
                                        years; and
                                          ``(bb) on and after October 
                                        1, 2026, shall certify an 
                                        infant for participation in the 
                                        program for a period of 2 
                                        years.
                                  ``(II) Assessments.--In certifying an 
                                infant under subclause (I), a State 
                                shall ensure that the infant receives 
                                required health and nutrition 
                                assessments, as determined by the 
                                Secretary under clause (ix).
                                  ``(III) Infants born to participant 
                                mothers.--For purposes of subclause 
                                (I), an infant born to a pregnant woman 
                                who is participating in the program 
                                shall be certified for participation 
                                without further application.
                                  ``(IV) Clarification relating to 
                                age.--An infant may be certified for 
                                participation in the program for a 
                                period of 2 years, regardless of 
                                whether such infant will become a child 
                                during such period.''.
          (3) Extension of postpartum period.--
                  (A) Breastfeeding women.--
                          (i) Definition of breastfeeding woman.--
                        Paragraph (1) of section 17(b) of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786(b)) is 
                        amended to read as follows:
          ``(1) Breastfeeding woman.--The term `breastfeeding woman' 
        means--
                  ``(A) before October 1, 2026, an individual up to one 
                year postpartum who is breastfeeding the infant of the 
                individual; and
                  ``(B) on and after October 1, 2026, an individual who 
                is not more than 2 years postpartum and is 
                breastfeeding the infant of the individual.''.
                          (ii) Certification.--Section 17(d)(3)(A)(ii) 
                        of the Child Nutrition Act of 1966 (42 U.S.C. 
                        1786(d)(3)(A)(ii)) is amended to read as 
                        follows:
                          ``(ii) Breastfeeding women.--With respect to 
                        a breastfeeding woman, a State--
                                                  ``(I) before October 
                                                1, 2026, may elect to 
                                                certify such 
                                                breastfeeding woman for 
                                                a period of 2 years 
                                                postpartum; and
                                                  ``(II) on and after 
                                                October 1, 2026, a 
                                                State shall certify a 
                                                postpartum woman for a 
                                                period of 2 years 
                                                postpartum.''.
                  (B) Postpartum women.--
                          (i) Definition of postpartum woman.--
                        Paragraph (10) of section 17(b) of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786(b)) is 
                        amended to read as follows:
          ``(10) Postpartum woman.--The term `postpartum woman' means--
                  ``(A) before October 1, 2026, an individual up to six 
                months after termination of pregnancy; and
                  ``(B) on and after October 1, 2026, an individual up 
                to 2 years after termination of pregnancy.''.
                          (ii) Certification.--Section 17(d)(3)(A) of 
                        the Child Nutrition Act of 1966 (42 U.S.C. 
                        1786)(d)(3)(A)) is further amended by adding at 
                        the end the following:
                          ``(v) Postpartum women.--With respect to a 
                        postpartum woman, a State--
                                                  ``(I) before October 
                                                1, 2026, may elect to 
                                                certify such postpartum 
                                                woman for a period of 2 
                                                years after the 
                                                termination of the 
                                                pregnancy of the 
                                                postpartum woman; and
                                                  ``(II) on and after 
                                                October 1, 2026, a 
                                                State shall certify a 
                                                postpartum woman for a 
                                                period of 2 years after 
                                                the termination of 
                                                pregnancy of the 
                                                postpartum woman.''.
          (4) Pregnant women.--
                  (A) Definition.--Section 17(b)(11) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786(b)(11)) is 
                amended to read as follows:
          ``(11) Pregnant woman.--The term `pregnant woman' means an 
        individual determined to have one or more fetuses in utero.''.
                  (B) Certification.--Section 17(d)(3)(A) of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786)(d)(3)(A)) is 
                further amended by adding at the end the following:
                          ``(vi) Pregnant women.--With respect to a 
                        pregnant woman, a State--
                                  ``(I) before October 1, 2026, may 
                                elect to certify a pregnant woman for 
                                the duration of the pregnancy and for 
                                the 90 days after the termination of 
                                pregnancy; and
                                  ``(II) on and after October 1, 2026, 
                                shall certify a pregnant woman for the 
                                duration of the pregnancy and for the 
                                90 days after the termination of 
                                pregnancy.''.
          (5) Certification within one household family.--Section 
        17(d)(3)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
        1786(d)(3)(A)) is further amended--
                  (A) in clause (i)--
                          (i) by striking ``clause (ii)'' and inserting 
                        ``clauses (ii) through (viii)''; and
                          (ii) by inserting ``or recertified'' after 
                        ``certified'';
                  (B) by adding at the end the following:
                          ``(vii) Certification within one household 
                        family.--In order to align certification 
                        periods or recertification appointments, when a 
                        State or local agency certifies an individual 
                        based on income documentation under 
                        subparagraph (D) or adjunct documentation under 
                        subparagraph (E), a new certification period 
                        that otherwise meets the requirements of the 
                        program may be initiated for eligible family 
                        members of such individual.''.
          (6) Recertification.--Section 17(d)(3)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786)(d)(3)(A)) is further 
        amended by adding at the end the following:
                          ``(viii) Recertification.--Before requesting 
                        new income documentation for purposes of 
                        recertifying an individual under the program, a 
                        State shall--
                                  ``(I) determine whether such 
                                individual is eligible for 
                                recertification under subparagraph (E); 
                                and
                                  ``(II) if such individual is so 
                                eligible--
                                          ``(aa) recertify such 
                                        individual; and
                                          ``(bb) notify such individual 
                                        of such recertification.''.
          (7) Nutrition risk.--Section 17(d)(3)(A) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786)(d)(3)(A)) is further 
        amended by adding at the end the following:
                          ``(ix) Nutrition risk.--
                                  ``(I) In general.--The Secretary may 
                                require nutrition risk evaluations 
                                within a single certification period 
                                for the purposes of identifying 
                                specific risk factors.
                                  ``(II) Information provided by a 
                                health care provider.--Information 
                                provided by a health care provider 
                                shall be sufficient to establish 
                                nutrition risk for the purposes of 
                                program eligibility under this section.
                                  ``(III) Determination.--If it is 
                                determined that the individual does not 
                                meet any nutritional risk criteria, the 
                                certification of the individual shall 
                                terminate on the date of 
                                determination.''.
  (b) Interim Eligibility.--Section 17(d)(3)(B) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786)(d)(3)(B)) is amended to read as follows:
                  ``(B) Interim eligibility.--
                          ``(i) Temporary certification.--
                                  ``(I) In general.--In the case of a 
                                pregnant woman, breastfeeding woman, 
                                postpartum woman, infant, or child who 
                                is not otherwise determined eligible 
                                under this section to participate in 
                                the program due to lack of 
                                documentation at the time of 
                                application, a State agency shall 
                                consider such a pregnant woman, 
                                breastfeeding woman, postpartum woman, 
                                infant, or child to be temporarily 
                                eligible to participate in the program 
                                based on a signed statement by the 
                                applicant.
                                  ``(II) 30-day period.--With respect 
                                to an individual that is temporarily 
                                eligible under subclause (I), the State 
                                agency shall--
                                          ``(aa) provide food 
                                        instruments for a single 30-day 
                                        period; and
                                          ``(bb) require that 
                                        documentation for purposes of 
                                        certifying such individual in 
                                        accordance with this paragraph 
                                        be provided not later than 30 
                                        days after the first day such 
                                        individual is deemed 
                                        temporarily eligible under 
                                        subclause (I).
                                  ``(III) Documentation demonstrating 
                                eligibility.--If an individual provides 
                                documentation in accordance with 
                                subclause (II) that demonstrates 
                                eligibility for the program, the 
                                individual shall be certified in 
                                accordance with this paragraph 
                                beginning on the first day the 
                                individual was deemed temporarily 
                                eligible under subclause (I).
                                  ``(IV) Documentation failing to 
                                demonstrate eligibility.--If an 
                                individual does not provide 
                                documentation in accordance with 
                                subclause (II), or provides 
                                documentation that does not demonstrate 
                                eligibility for the program--
                                          ``(aa) the individual shall 
                                        be determined ineligible to 
                                        participate in the program; and
                                          ``(bb) the temporary 
                                        eligibility with respect to 
                                        such individual shall terminate 
                                        at the end of the single 30-day 
                                        period described in subclause 
                                        (II)(aa).
                          ``(ii) Nutritional risk.--A State may 
                        consider a pregnant woman, breastfeeding woman, 
                        postpartum woman, infant, or child applicant 
                        who meets the income eligibility standards to 
                        be temporarily eligible on an interim basis to 
                        participate in the program and may certify any 
                        such individual for participation immediately, 
                        without delaying certification until an 
                        evaluation is made concerning nutritional risk. 
                        A nutritional risk evaluation of such an 
                        individual shall be completed not later than 90 
                        days after the individual is certified for 
                        participation. If it is subsequently determined 
                        that the individual does not meet nutritional 
                        risk criteria, the certification of the 
                        individual shall terminate on the date of the 
                        determination.''.
  (c) Eligibility for Children in Kinship Families.--Section 
17(f)(1)(C)(ix) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)(1)(C)(ix)) is amended by inserting ``a kinship family,'' after 
``under the care of''.

SEC. 303. CERTIFICATION AND RECERTIFICATION DETERMINATIONS AND 
                    NUTRITIONAL RISK EVALUATIONS.

  (a) In General.--
          (1) Presence with respect to certain determinations and 
        evaluations.--Section 17(d)(3)(C) of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786(d)(3)(C)) is amended to read as follows:
                  ``(C) Presence with respect to certain determinations 
                and evaluations.--
                          ``(i) In general.--Each individual seeking 
                        certification, recertification, or a 
                        nutritional risk evaluation for participation 
                        in the program shall be offered an 
                        appointment--
                                  ``(I) in-person, through video 
                                technology permitting 2-way, real-time 
                                interactive communications, by 
                                telephone, and in such other format as 
                                the Secretary determines appropriate in 
                                order to determine eligibility under 
                                the program, provided that such format 
                                permits 2-way, real-time interactive 
                                communications; and
                                  ``(II) that occurs in a format, 
                                setting, or platform that is accessible 
                                to the individual in accordance with 
                                the Americans with Disabilities Act of 
                                1990 (42 U.S.C. 12101 et seq.) and 
                                section 504 of the Rehabilitation Act 
                                of 1973 (29 U.S.C. 794).
                          ``(ii) Anthropometric data for remote 
                        certification.--If an individual meets the 
                        certification presence requirement through 
                        technology permitting 2-way, real-time 
                        interactive communications or other methods 
                        described in clause (i)(I), the anthropometric 
                        data with respect to such individual shall be 
                        obtained within 90 days.''.
          (2) Technical amendment.--Section 17(d)(3) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by 
        conforming the margin of subparagraph (B) to the margin of 
        subparagraph (C).
  (b) Remote Benefit Issuance.--Section 17(f)(6)(B) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(f)(6)(B)) is amended--
          (1) in the second sentence--
                  (A) by striking ``vouchers by mail in its plan'' and 
                inserting ``food instruments by mail, remote issuance, 
                or other means in the State plan''; and
                  (B) by striking ``The State'' and inserting the 
                following:
                          ``(ii) State plan.--The State'';
          (2) in the third sentence--
                  (A) by striking ``vouchers by mail'' and inserting 
                ``food instruments by mail, remote issuance, or other 
                means''; and
                  (B) by striking ``The Secretary'' and inserting the 
                following:
                          ``(iii) Disapproval of state plan.--The 
                        Secretary''; and
          (3) by striking ``(B) State agencies'' and all that follows 
        through ``to obtain vouchers.'' and inserting the following:
                  ``(B) Delivery of food instruments.--
                          ``(i) In general.--State agencies may provide 
                        for the delivery of food instruments, including 
                        electronic benefit transfer cards, to any 
                        participant through means that do not require 
                        the participant to travel to the local agency 
                        to obtain food instruments, such as through 
                        mailing or remote issuance.''.
  (c) Annual Investment in WIC Technologies.--Section 17(h) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended--
          (1) in paragraph (2)(B)--
                  (A) by striking clause (ii); and
                  (B) by striking ``(i) Except as provided in clause 
                (ii) and'' and inserting ``Except as provided in'';
          (2) in paragraph (10)--
                  (A) in subparagraph (A), by striking ``2010 through 
                2015'' and inserting ``2023 through 2028'';
                  (B) in subparagraph (B), by striking clause (ii) and 
                inserting the following:
                          ``(ii)(I) $90,000,000 shall be used to--
                                  ``(aa) establish, develop, improve, 
                                replace, or administer technology 
                                platforms, including management 
                                information systems, that enhance the 
                                services of, access to, or redemption 
                                of benefits under the program;
                                  ``(bb) establish, develop, improve, 
                                replace, or administer a system that 
                                allows for secure communication of 
                                information between health care 
                                providers and program clinics in order 
                                to facilitate sharing of information 
                                necessary for certification, 
                                establishing nutrition risk, or for the 
                                provision of health care services; and
                                  ``(cc) carry out paragraph (15); and
                          ``(II) of which up to $8,000,000 may be used 
                        for Federal administrative costs; and''; and
          (3) by adding at the end the following:
          ``(15) State efforts to enhance cross-enrollment with 
        medicaid and the supplemental nutrition assistance program.--
                  ``(A) Participation data.--The Secretary shall 
                annually collect data from State agencies and make 
                publicly available on the website of the Department 
                State-level estimates of the percentage of pregnant 
                women, postpartum women, infants, and children under 
                age five--
                          ``(i) who are enrolled in the program under 
                        this section and the supplemental nutrition 
                        assistance program under the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.); and
                          ``(ii) who are--
                                  ``(I) enrolled in the program under 
                                this section and the Medicaid program 
                                established under title XIX of the 
                                Social Security Act (42 U.S.C. 1396 et 
                                seq.); and
                                  ``(II) a member of a family described 
                                in subsection (d)(2)(A)(i).
                  ``(B) Best practices.--The Secretary shall--
                          ``(i) in addition to the information made 
                        available under subparagraph (A), also publish 
                        on the website of the Department best practices 
                        for increasing the percentages described in 
                        such subparagraph; and
                          ``(ii) evaluate the number and types of 
                        referrals to the program under this section 
                        made by--
                                  ``(I) administrators of the 
                                supplemental nutrition assistance 
                                program under the Food and Nutrition 
                                Act of 2008 (7 U.S.C. 2011 et seq.); 
                                and
                                  ``(II) administrators of the Medicaid 
                                program established under title XIX of 
                                the Social Security Act (42 U.S.C. 1396 
                                et seq.).
                  ``(C) Cross-enrollment plan.--Not later than 1 year 
                after the date of the enactment of this paragraph and 
                annually thereafter, each State shall--
                          ``(i) submit to the Secretary an annual 
                        cross-enrollment plan that--
                                  ``(I) is developed across the 
                                programs described in subparagraph (A) 
                                that includes goals, specific measures, 
                                and a timeline for increasing the 
                                percentages described in such 
                                subparagraph; and
                                  ``(II) includes policies to refer to 
                                the program under this section 
                                participants in the programs described 
                                in such subparagraph who are not 
                                certified for the program under this 
                                section; and
                          ``(ii) if such plan is approved by the 
                        Secretary, implement such plan.
                  ``(D) Grant program.--The Secretary shall provide 
                technical assistance and award competitive grants to 
                State agencies to--
                          ``(i) increase the percentages described in 
                        subparagraph (A); and
                          ``(ii) implement measures pursuant to an 
                        annual cross-enrollment plan under subparagraph 
                        (C), including--
                                  ``(I) improving technology;
                                  ``(II) establishing more robust 
                                referral systems;
                                  ``(III) conducting targeted outreach 
                                to potential participants in the 
                                program under this section;
                                  ``(IV) enhancing State capacity to 
                                share and analyze data across the 
                                programs described in subparagraph (A); 
                                and
                                  ``(V) providing training or technical 
                                assistance to local agencies.
                  ``(E) Limitation on data.--Any data collected under 
                this paragraph shall be--
                          ``(i) used only for the purposes of 
                        certifying eligible persons for the program 
                        under this section; and
                          ``(ii) subject to the confidentiality 
                        provisions described in section 246.26(d) of 
                        title 7, Code of Federal Regulations (or 
                        successor regulations).''.
  (d) Report to Congress.--
          (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit to the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        and the Committee on Education and Labor of the House of 
        Representatives a report on the use of remote technologies 
        under 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) (referred to in this 
        section as the ``program'').
          (2) Content of report.--The report submitted under paragraph 
        (1) shall include a description of--
                  (A) the use of remote technologies and other digital 
                tools, including video, telephone, and online 
                platforms--
                          (i) to certify and recertify eligible 
                        individuals for program services; and
                          (ii) to provide nutrition education and 
                        breastfeeding support to program participants;
                  (B) the impact of remote technologies, including 
                video, telephone, and online platforms, on 
                certifications, recertifications, appointments, and 
                participant satisfaction under the program; and
                  (C) best practices to--
                          (i) certify and recertify program 
                        participants for program services using remote 
                        technologies;
                          (ii) incorporate the use of digital tools 
                        into the program certification process;
                          (iii) integrate nutrition education and 
                        breastfeeding support services for program 
                        participants into remote technologies and 
                        platforms; and
                          (iv) securely manage program participant 
                        data.

SEC. 304. PAPERWORK REDUCTION.

  Section 17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(3)) is amended by adding at the end the following:
                  ``(G) Paperwork reduction.--
                          ``(i) In general.--A State agency shall 
                        accept a single document that provides all of 
                        the information required under this paragraph 
                        unless the State agency determines there is a 
                        sufficient reason to doubt the authenticity of 
                        such document.
                          ``(ii) Electronic form.--A State agency shall 
                        accept documentation under this paragraph in 
                        support of a household's application in 
                        electronic form or provided electronically 
                        unless the State agency determines there is a 
                        sufficient reason to doubt the authenticity of 
                        such electronically provided document.''.

SEC. 305. NUTRITION EDUCATION MATERIALS RELATED TO FOOD ALLERGIES.

  Section 17(e)(3) of the Child Nutrition Act of 1966 (42 USC 
1786(e)(3)) is amended by adding at the end the following:
                  ``(C) Nutrition education materials related to food 
                allergies.--The nutrition education materials issued 
                under subparagraph (A) shall include nutrition 
                education materials with respect to--
                          ``(i) individuals with food allergies during 
                        pregnancy and in the postpartum period;
                          ``(ii) infants impacted by prenatal food 
                        allergy exposure;
                          ``(iii) introducing potential food allergens 
                        to infants; and
                          ``(iv) children with food allergies.''.

SEC. 306. BREASTFEEDING SUPPLY COVERAGE.

  Section 17(h)(1)(C)(ii) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(1)(C)(ii)) is amended--
          (1) in the heading, by inserting ``and breastfeeding 
        supplies'' after ``Breast pumps''; and
          (2) by inserting ``and additional breastfeeding supplies'' 
        before the period at the end.

SEC. 307. WATER BENEFITS DURING DISASTERS.

  Section 17(h)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(1)(C)) is amended by adding at the end the following:
                          ``(iii) Water benefits during disasters.--
                                  ``(I) In general.--During an 
                                emergency period for which the 
                                Secretary determines that, with respect 
                                to a State, access to safe drinking 
                                water is impacted and provision of safe 
                                drinking water is reasonably necessary 
                                to ensure safe preparation of infant 
                                formula, a State or local agency may 
                                use amounts made available under clause 
                                (i) to purchase and distribute safe 
                                drinking water to program participants.
                                  ``(II) Emergency period defined.--In 
                                this clause, the term `emergency 
                                period' means a period during which 
                                there exists--
                                          ``(aa) a major disaster 
                                        declared by the President under 
                                        section 401 of the Robert T. 
                                        Stafford Disaster Relief and 
                                        Emergency Assistance Act (42 
                                        U.S.C. 5170);
                                          ``(bb) an emergency declared 
                                        by the President under section 
                                        501 of the Robert T. Stafford 
                                        Disaster Relief and Emergency 
                                        Assistance Act (42 U.S.C. 
                                        5191);
                                          ``(cc) a public health 
                                        emergency declared by the 
                                        Secretary of Health and Human 
                                        Services pursuant to section 
                                        319 of the Public Health 
                                        Service Act (42 U.S.C. 247d); 
                                        or
                                          ``(dd) any renewal of such a 
                                        public health emergency 
                                        pursuant to such section 
                                        319.''.

SEC. 308. INFANT FORMULA PROCUREMENT ONLINE SOURCE OF INFORMATION.

  Section 17(h)(8)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(8)(A)) is amended by adding at the end the following:
                          ``(xi) Infant formula procurement online 
                        source of information.--
                                  ``(I) In general.--Not later than 180 
                                days after the date of enactment of 
                                this clause, the Secretary shall make 
                                available to the public on a website of 
                                the Department of Agriculture the 
                                information described in items (aa) 
                                through (dd) of subclause (II) relating 
                                to bid solicitations of State agencies 
                                for infant formula under the program.
                                  ``(II) State agencies.--In soliciting 
                                bids for infant formula under the 
                                program, a State agency shall submit to 
                                the Secretary, not later than 5 
                                business days after the date of the bid 
                                solicitation, a description of the bid 
                                solicitation, including--
                                          ``(aa) the title of the bid 
                                        solicitation and the State 
                                        agency administering the bid 
                                        solicitation;
                                          ``(bb) the website hyperlink 
                                        and other information needed 
                                        for the purpose of submitting a 
                                        bid in response to the bid 
                                        solicitation;
                                          ``(cc) the contact 
                                        information and website 
                                        hyperlink for the State agency 
                                        administering the bid 
                                        solicitation, for the purpose 
                                        of gathering additional 
                                        information relating to the bid 
                                        solicitation; and
                                          ``(dd) the period during 
                                        which bids are accepted or the 
                                        due date for bids, as 
                                        applicable, under the bid 
                                        solicitation.
                                  ``(III) Publication.--Not later than 
                                5 business days after receiving a 
                                description of a bid solicitation under 
                                subclause (II), the Secretary shall 
                                publish the information described in 
                                subclause (I).''.

SEC. 309. BREASTFEEDING PEER COUNSELOR PROGRAM.

  (a) Definition of Breastfeeding Peer Counselor.--Section 17(b) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(b)) is amended by adding at 
the end the following:
          ``(25) Breastfeeding peer counselor.--The term `breastfeeding 
        peer counselor' means an individual who is recruited and hired 
        from the adult population described in subsection (d)(1) who 
        has--
                  ``(A) previous experience with breastfeeding, 
                including experience having breastfed at least one 
                infant; and
                  ``(B) provides mother-to-mother support to prenatal 
                and postpartum women under the program.''.
  (b) Special Nutrition Education.--Section 17(h)(10) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(10)) is amended--
          (1) in subparagraph (A), by striking ``$139,000,000'' and 
        inserting ``$324,000,000''; and
          (2) by amending subparagraph (B)(iii) to read as follows:
                          ``(iii) $180,000,000 shall be used to--
                                  ``(I) establish State agency 
                                Breastfeeding Peer Counseling programs, 
                                which shall be administered as 
                                determined by the Secretary;
                                  ``(II) provide performance bonus 
                                payments under paragraph (4)(C); and
                                  ``(III) establish State and local 
                                partnerships to provide such education 
                                at locations--
                                          ``(aa) outside of the clinic, 
                                        such as hospitals or 
                                        physicians' offices; or
                                          ``(bb) in partnership with 
                                        eligible entities that deliver 
                                        services under early childhood 
                                        home visitation programs 
                                        pursuant to a grant under 
                                        section 511 of the Social 
                                        Security Act (42 U.S.C. 
                                        711).''.

SEC. 310. PRODUCT PRICING.

  Section 17(h)(11)(B)(i)(II)(aa) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(h)(11)(B)(i)(II)(aa)) is amended by striking ``the 
shelf prices of the vendor for all buyers'' and inserting ``the prices 
the vendor charges other customers''.

SEC. 311. WIC A50 STORES.

  Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) 
is amended--
          (1) in paragraph (11)(E), by inserting ``more than 5 
        percent'' before ``higher than average''; and
          (2) in paragraph (14), by striking ``food or merchandise'' 
        and inserting ``food, merchandise, or food delivery''.

SEC. 312. WIC EBT MODERNIZATION.

  (a) Online Payment and Mobile Payment Options.--
          (1) Date of completion.--Section 17(h)(12) of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786(h)(12)) is amended--
                  (A) in subparagraph (A)(i), by striking ``food 
                delivery system that provides benefits using a card or 
                other access device'' and inserting ``benefit delivery 
                method'';
                  (B) in subparagraph (B)--
                          (i) in clause (i), by striking ``subparagraph 
                        (C)'' and inserting ``subparagraph (C)(i)''; 
                        and
                          (ii) by adding at the end the following:
                          ``(iii) Vendor requirements.--Except in the 
                        case of an exemption granted with respect to a 
                        State agency under subparagraph (C)(iii), not 
                        later than October 1, 2025, each State agency 
                        shall authorize at least three vendors to 
                        process online payments under the electronic 
                        benefit systems in the State.''; and
                  (C) in subparagraph (C), by adding at the end the 
                following:
                          ``(iii) Vendor requirements exemption.--To be 
                        eligible for an exemption from the vendor 
                        requirements of subparagraph (B)(iii), a State 
                        agency shall demonstrate to the satisfaction of 
                        the Secretary that the State agency is facing 
                        unusual barriers to implementing additional 
                        changes to the electronic benefit transfer 
                        system.''.
          (2) Report to congress.--Not later than January 1, 2026, the 
        Secretary shall submit a report to the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives that--
                  (A) details the steps taken to establish and 
                implement online payment models through authorized 
                vendors participating in the special supplemental 
                nutrition program for women, infants, and children 
                under section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786);
                  (B) identifies measures to ensure that additional 
                authorized vendors may establish and implement such 
                online payment models;
                  (C) outlines steps to implement additional modern 
                transaction models, including mobile payments, through 
                such authorized vendors;
                  (D) provides an explanation for each exemption 
                provided to a State agency under clause (iii) of 
                section 17(h)(12)(C) of the Child Nutrition Act of 1966 
                (42 U.S.C. 1786(h)(12)(C));
                  (E) includes a description of State and local agency 
                efforts to enhance collaboration with such vendors, 
                including the use of shopper helpers or vendor liaison 
                programs; and
                  (F) includes an analysis of measures that could be 
                taken at the Federal and State levels to streamline the 
                authorization process of such vendors under such 
                program and coordinate vendor authorizations with the 
                supplemental nutrition assistance program.
  (b) Smaller Vendors.--Section 17(h)(10)(B) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(h)(10)(B)) is amended by adding at the end the 
following:
                          ``(iv) $40,000,000 shall be used by State or 
                        local agencies to enhance vendor partnerships 
                        and streamline the shopping experience of 
                        participants, including by establishing and 
                        administering vendor liaison programs to 
                        support participants and vendor staff at retail 
                        grocery locations.''.
  (c) Equitable Access for WIC Shoppers.--Section 17(h)(12) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(12)) is further amended 
by adding at the end the following:
                  ``(H) Equitable access for wic shoppers.--To 
                facilitate the use of online payments under an 
                electronic benefit transfer system, a State agency 
                shall--
                          ``(i) with respect to such electronic benefit 
                        transfer system, allow--
                                  ``(I) transactions to be conducted 
                                without the presence of a cashier;
                                  ``(II) additional methods of 
                                authentication other than signature or 
                                entry of a personal identification 
                                number to be used; and
                                  ``(III) participants to receive 
                                supplemental foods after an electronic 
                                benefit transfer transaction has been 
                                processed;
                          ``(ii) ensure that no interchange or related 
                        transaction fees are collected from vendors;
                          ``(iii) issue program benefits remotely 
                        without receiving a participant signature;
                          ``(iv) authorize vendors that do not have a 
                        single, fixed location; and
                          ``(v) authorize vendors for a period not to 
                        exceed 5 years.''.
  (d) Repeal.--Paragraph (13) of section 17(h) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)) is repealed.

SEC. 313. SPEND FORWARD AUTHORITIES.

  Section 17(i)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(i)(3)) is amended--
          (1) in subparagraph (A)--
                  (A) in clause (i)--
                          (i) in subclause (I), by striking ``1 percent 
                        (except as provided in subparagraph (C))'' and 
                        inserting ``10 percent''; and
                          (ii) in subclause (II), by striking ``1 
                        percent'' and inserting ``10 percent''; and
                  (B) in clause (ii)--
                          (i) in subclause (I)--
                                  (I) by striking ``3 percent'' and 
                                inserting ``10 percent''; and
                                  (II) by inserting ``for nutrition 
                                services and administration'' before 
                                ``under this section''; and
                          (ii) in subclause (II)--
                                  (I) by striking ``for nutrition 
                                services and administration'' and 
                                inserting ``to carry out this 
                                section'';
                                  (II) by striking ``not more than \1/
                                2\ of 1 percent'' and inserting ``not 
                                more than 3 percent''; and
                                  (III) by striking ``the development 
                                of a management information system, 
                                including an electronic benefit 
                                transfer system'' and inserting 
                                ``purposes related to food delivery, 
                                including breastfeeding services and 
                                supplies, electronic benefit transfer 
                                systems, and other technologies''; and
          (2) by repealing subparagraph (C).

SEC. 314. ADMINISTRATIVE SIMPLIFICATION.

  Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is 
amended--
          (1) in subsection (f)(1), by amending subparagraph (A) to 
        read as follows: (A) Each State agency shall submit to the 
        Secretary a plan of operation and administration. A State shall 
        be required to submit to the Secretary for approval any 
        substantive change in the plan and annual requirements as 
        specified by the Secretary.''; and
          (2) by repealing subsection (k).

SEC. 315. AUTHORIZATION OF APPROPRIATIONS.

  Section 17(g)(1)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(g)(1)(A)) is amended by striking ``2010 through 2015'' and 
inserting ``2023 through 2028''; and

SEC. 316. WIC FARMERS' MARKET NUTRITION PROGRAM.

  Section 17(m) of the Child Nutrition Act of 1966 (7 U.S.C. 1431) is 
amended--
          (1) in paragraph (1), by inserting ``and community supported 
        agriculture programs'' after ``roadside stands'';
          (2) by striking paragraph (3) and redesignating paragraphs 
        (4) through (10) as paragraphs (3) through (9), respectively;
          (3) in paragraph (3), as so redesignated, by striking 
        ``paragraph (6)'' both places it appears and inserting 
        ``paragraph (5)'';
          (4) in paragraph (4), as so redesignated--
                  (A) in subparagraph (B), by striking ``using funds'' 
                and all the follows through ``paragraph (3).'' and 
                inserting ``using funds provided under the grant.'';
                  (B) in subparagraph (C), by striking ``may not be'' 
                and all that follows through ``per year.'' and 
                inserting ``may not be less than $20 per year or more 
                than $100 per year.'';
                  (C) by amending subparagraph (E) to read as follows:
          ``(E) The coupon redemption process under the program shall 
        be designed to ensure that the coupon may be redeemed--
                  ``(i) either--
                          ``(I) by producers authorized by the State to 
                        participate in the program; or
                          ``(II) through a central point of sale at a 
                        farmers' market authorized by the State to 
                        participate in the program; and
                  ``(ii) only to purchase fresh nutritious unprepared 
                food for human consumption.'';
                  (D) in subparagraph (F)--
                          (i) in clause (i), by striking ``clauses (ii) 
                        and (iii)'' and inserting ``clause (ii)'';
                          (ii) in clause (ii)--
                                  (I) by striking ``2 percent'' and 
                                inserting ``3 percent''; and
                                  (II) by inserting ``such market 
                                development or technical assistance 
                                will advance State efforts to develop 
                                efficient and appropriate electronic 
                                benefits systems or'' before ``the 
                                State intends''; and
                          (iii) by striking clause (iii);
          (5) in paragraph (5), as so redesignated--
                  (A) in subparagraph (A), by striking ``subparagraph 
                (G)'' and inserting ``paragraph (8)'';
                  (B) in subparagraph (B)--
                          (i) in clause (i), by striking ``if a State 
                        provides the amount of matching funds required 
                        under paragraph (3),'';
                          (ii) in clause (ii)--
                                  (I) by striking ``paragraph (10)'' 
                                and inserting ``paragraph (8)''; and
                                  (II) by striking ``paragraph (6)'' 
                                and inserting ``paragraph (5)'';
                  (C) in subparagraph (C), by striking ``subparagraph 
                (G)(i)'' both places it appears and inserting 
                ``paragraph (8)'';
                  (D) in subparagraph (D)(ii)(II), by striking 
                ``paragraph (5)'' and inserting ``paragraph (4)''; and
                  (E) in subparagraph (F)(iii), by striking ``paragraph 
                (10)(B)(ii)'' and inserting ``paragraph (8)(B)(ii)'';
          (6) in paragraph (7), as so redesignated--
                  (A) by striking subparagraph (D); and
                  (B) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (D) and (E), respectively;
          (7) in paragraph (8), as so redesignated--
                  (A) in subparagraph (A), by striking ``2010 through 
                2015'' and inserting ``2023 through 2028''; and
                  (B) in subparagraph (B)(i)(II), by striking ``5 
                percent'' and inserting ``10 percent'';
          (8) in paragraph (9)(A), as so redesignated, by striking ``or 
        other negotiable financial instrument'' and inserting ``token, 
        electronic benefit transfer card, mobile benefit delivery 
        system, or other forms or technologies as determined by the 
        Secretary''.

SEC. 317. SUPPORTING HEALTHY MOTHERS AND INFANTS.

  Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is 
amended--
          (1) in subsection (a), by striking ``drug abuse'' and 
        inserting ``substance use disorder'';
          (2) in subsection (b)--
                  (A) in paragraph (8), by striking ``drug abuse'' and 
                inserting ``substance use disorder''; and
                  (B) in paragraph (16)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``Drug abuse education'' and 
                        inserting ``Substance use disorder education'';
                          (ii) in subparagraph (A), by striking 
                        ``dangers of drug abuse'' and inserting ``harm 
                        of substance use on pregnancy and lactation''; 
                        and
                          (iii) in subparagraph (B)--
                                  (I) by striking ``are suspected drug 
                                abusers'' and inserting ``may have a 
                                substance use disorder'';
                                  (II) by striking ``drug abuse 
                                clinics,''; and
                                  (III) by striking ``drug abuse 
                                professionals'' and inserting 
                                ``resources'';
          (3) in subsection (e)--
                  (A) in paragraph (1)--
                          (i) by striking ``drug abuse'' each place it 
                        appears and inserting ``substance use 
                        disorder''; and
                          (ii) by striking ``effects of drug and 
                        alcohol use by'' and inserting ``effects of a 
                        substance use disorder of''; and
                  (B) in paragraph (5), by striking ``substance abuse'' 
                and inserting ``substance use disorder'';
          (4) in subsection (f)--
                  (A) in paragraph (1)(C)(ix), by striking ``drugs'' 
                and inserting ``illicit or other harmful substances''; 
                and
                  (B) in paragraph (13), by striking ``drug abuse 
                education'' and inserting ``substance use disorder 
                education''; and
          (5) by adding at the end the following:
  ``(t) Activities to Support WIC-Eligible Individuals Impacted by 
Substance Use Disorder.--
          ``(1) In general.--The Secretary shall--
                  ``(A) develop and disseminate nutrition education 
                materials for individuals eligible for the program; and
                  ``(B) conduct outreach to individuals who are 
                potentially eligible for the program and who are 
                impacted by a substance use disorder.
          ``(2) Purpose.--The purpose of this subsection is to ensure 
        that individuals participating in the program who are impacted 
        by a substance use disorder receive accurate nutrition 
        education from trained staff in an effective and unbiased 
        manner.
          ``(3) Nutrition education materials.--The Secretary shall 
        collaborate with the Secretary of Health and Human Services to 
        develop appropriate evidence-based nutrition education 
        materials for individuals impacted by a substance use disorder, 
        including--
                  ``(A) nutrition education materials for individuals 
                with substance use disorder during pregnancy and in the 
                postpartum period; and
                  ``(B) nutrition education materials for infants 
                impacted by prenatal substance exposure and neonatal 
                abstinence syndrome.
          ``(4) Nutrition education clearinghouse.--The Secretary shall 
        make available to all State agencies through an online 
        clearinghouse any nutrition education and training materials 
        related to nutrition for individuals impacted by a substance 
        use disorder or neonatal abstinence syndrome that have been 
        produced by the Secretary or the Secretary of Health and Human 
        Services (or produced by a State agency and approved by the 
        Secretary), including educational materials developed under 
        paragraph (15) of section 515(b) of the Public Health Service 
        Act (42 U.S.C. 290bb-21(b)) and guidance issued under section 
        1005 of the SUPPORT for Patients and Communities Act (42 U.S.C. 
        1396a note).
          ``(5) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        fiscal year 2024, to remain available until expended.''.

      TITLE IV--MODERNIZING THE CHILD AND ADULT CARE FOOD PROGRAM

SEC. 401. ELIGIBILITY CERTIFICATION CRITERIA FOR PROPRIETARY CHILD CARE 
                    CENTERS.

   Section 17(a)(6) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(a)(6)) is amended--
          (1) in the matter preceding subparagraph (A), by striking 
        ``criteria:'' and inserting ``criteria--'';
          (2) in subparagraph (E), by striking ``and'' at the end;
          (3) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
          (4) by adding at the end the following:
                  ``(G) in the case of an institution described in 
                paragraph (2)(B), the eligibility of such institution 
                shall be determined on an annual basis in accordance 
                with this section.''.

SEC. 402. AUTOMATIC ELIGIBILITY FOR CHILDREN IN SUPPLEMENTAL NUTRITION 
                    ASSISTANCE HOUSEHOLDS.

  Section 17(c) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766(c)) is amended by adding at the end the following:
          ``(7) Automatic eligibility for children in supplemental 
        nutrition assistance households.--A child shall be considered 
        automatically eligible for benefits under this section without 
        further application or eligibility determination if the child 
        is a member of a household receiving assistance under the 
        supplemental nutrition assistance program established under the 
        Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).''.

SEC. 403. REVIEW OF SERIOUS DEFICIENCY PROCESS.

  Section 17(d)(5) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(d)(5)) is amended by adding at the end the following:
                  ``(F) Serious deficiency process.--
                          ``(i) In general.--Not later than 1 year 
                        after the date of the enactment of this 
                        subparagraph, the Secretary shall review and 
                        issue guidance and, as appropriate, regulations 
                        regarding the serious deficiency process for 
                        the program under this section.
                          ``(ii) Review.--In carrying out clause (i), 
                        the Secretary shall review, at a minimum, the 
                        processes involved in--
                                  ``(I) determining when there is a 
                                serious deficiency with respect to an 
                                institution, facility, or a family or 
                                group day care home by a State agency, 
                                including--
                                          ``(aa) what measures 
                                        automatically result in a 
                                        finding of serious deficiency; 
                                        and
                                          ``(bb) how to differentiate 
                                        between--
                                                  ``(AA) a reasonable 
                                                margin of human error 
                                                and systematic or 
                                                intentional 
                                                noncompliance; and
                                                  ``(BB) State-specific 
                                                requirements and 
                                                Federal regulations;
                                  ``(II) appealing and mediating a 
                                finding of serious deficiency with 
                                respect to an institution or a family 
                                or group day care home, including--
                                          ``(aa) findings related to 
                                        requirements and Federal 
                                        regulations; and
                                          ``(bb) processes for ensuring 
                                        officials involved in appeals 
                                        and mediation are fair and 
                                        impartial;
                                  ``(III) determining the circumstances 
                                under which a corrective action plan is 
                                acceptable;
                                  ``(IV) termination and 
                                disqualification, including maintenance 
                                of the list under subparagraph (E); and
                                  ``(V) determining opportunities for 
                                strengthening the processes intended to 
                                reduce additional State agency program 
                                requirements on institutions or family 
                                or group day care homes that are in 
                                addition to those required under 
                                Federal law, including--
                                          ``(aa) State evaluation of 
                                        practices used at the time of 
                                        review;
                                          ``(bb) regional approval of 
                                        such additional State agency 
                                        requirements; and
                                          ``(cc) oversight through the 
                                        management evaluation process.
                          ``(iii) Guidance and regulations.--
                                  ``(I) In general.--Not later than 1 
                                year after conducting the review under 
                                clause (ii), the Secretary shall make 
                                findings from the information collected 
                                and issue guidance and, as appropriate, 
                                regulations from such findings that 
                                will--
                                          ``(aa) streamline and 
                                        modernize the program; and
                                          ``(bb) assist sponsoring 
                                        organizations, State agencies, 
                                        and the Food and Nutrition 
                                        Service in ensuring a fair, 
                                        uniform, and effective 
                                        administration of the serious 
                                        deficiency process, while 
                                        retaining program integrity.
                                  ``(II) Scope.--The guidance or, as 
                                appropriate, regulations made or issued 
                                under subclause (I) shall include--
                                          ``(aa) clarity on the 
                                        required measures for 
                                        noncompliance, including--
                                                  ``(AA) an allowance 
                                                for a reasonable margin 
                                                of human error; and
                                                  ``(BB) a distinction 
                                                between a reasonable 
                                                margin of human error 
                                                and systematic or 
                                                intentional 
                                                noncompliance;
                                          ``(bb) a formal appeals and 
                                        mediation process that--
                                                  ``(AA) is conducted 
                                                by a trained official 
                                                who is independent from 
                                                and not affiliated with 
                                                any person or agency 
                                                involved in the 
                                                determination being 
                                                appealed or mediated;
                                                  ``(BB) provides an 
                                                opportunity for a fair 
                                                hearing for any 
                                                institution or family 
                                                or group day care home 
                                                determined to have a 
                                                serious deficiency 
                                                finding or inadequate 
                                                corrective action plan; 
                                                and
                                                  ``(CC) provides for 
                                                the evaluation and 
                                                resolution of disputes 
                                                over State agency 
                                                program requirements on 
                                                institutions or family 
                                                or group day care homes 
                                                that are in addition to 
                                                those required under 
                                                Federal law;
                                          ``(cc) timeframes for 
                                        acceptable corrective action 
                                        plans for group or family day 
                                        care homes that are consistent 
                                        with corrective action 
                                        timeframes for child care 
                                        centers; and
                                          ``(dd) a process to dismiss a 
                                        serious deficiency upon 
                                        correction of such 
                                        deficiency.''.

SEC. 404. AUTHORIZATION OF REIMBURSEMENTS FOR ADDITIONAL MEAL OR SNACK.

  Section 17(f)(2) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(f)(2)) is amended--
          (1) by striking ``(2)(A) Subject to subparagraph (B) of this 
        paragraph'' and inserting the following:
          ``(2) Disbursements.--
                  ``(A) In general.--Subject to subparagraph (B)''; and
          (2) by amending subparagraph (B) to read as follows:
                  ``(B) Limitation.--No reimbursement may be made to 
                any institution under this paragraph, or to family or 
                group day care home sponsoring organizations under 
                paragraph (3), for more than--
                          ``(i) 2 meals and 1 supplement or 1 meal and 
                        2 supplements per day per child; or
                          ``(ii) 3 meals and 1 supplement or 2 meals 
                        and 2 supplements per day per child, in the 
                        case of child care during which there are 8 or 
                        more hours between the beginning of the first 
                        meal service period and the beginning of the 
                        fourth meal service period.''.

SEC. 405. ADJUSTMENTS.

  Section 17(f)(3) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(f)(3)) is amended--
          (1) in subparagraph (A)--
                  (A) by amending clause (ii)(IV) to read as follows:
                                  ``(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 away from home for the 
                                12-month period ending on the preceding 
                                April 30. The reimbursement factors 
                                under this subparagraph shall be 
                                rounded to the nearest lower cent 
                                increment and based on the unrounded 
                                adjustment in effect on April 30 of the 
                                preceding school year.''; and
                  (B) by amending clause (iii)(I)(bb) to read as 
                follows:
                                          ``(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 away from home for the 12-
                                        month period ending on the 
                                        preceding April 30. The 
                                        reimbursement factors under 
                                        this item shall be rounded down 
                                        to the nearest lower cent 
                                        increment and based on the 
                                        unrounded adjustment in effect 
                                        on April 30 of the preceding 
                                        12- month period.''; and
          (2) by amending subparagraph (B)(ii) to read as follows:
                          ``(ii) Annual adjustment.--The administrative 
                        reimbursement levels specified in clause (i) 
                        shall be adjusted July 1 of each year to 
                        reflect changes in the 12-month period ending 
                        on 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.''.

SEC. 406. AGE LIMITS IN HOMELESS SHELTERS AND EMERGENCY SHELTERS.

  Section 17(t)(5)(A)(i) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(t)(5)(A)(i)) is amended--
          (1) in the matter before subclause (I), by inserting ``or 
        individuals'' after ``children'' both places it appears; and
          (2) in subclause (I), by striking ``18 years of age'' and 
        inserting ``25 years of age''.

SEC. 407. ADVISORY COMMITTEE ON PAPERWORK REDUCTION.

  Section 17 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766) is amended by adding at the end the following:
  ``(v) Advisory Committee on Paperwork Reduction.--
          ``(1) Establishment.--Not later than 180 days after the date 
        of the enactment of this subsection, the Secretary shall 
        establish an advisory committee (referred to in this subsection 
        as the `Advisory Committee') to carry out the duties described 
        in paragraph (2).
          ``(2) Duties.--The duties of the Advisory Committee shall be 
        to--
                  ``(A) examine the feasibility of reducing unnecessary 
                or duplicative paperwork resulting from regulations and 
                recordkeeping requirements, including paperwork 
                resulting from additional State requirements, for those 
                participating or seeking to participate in the program 
                under this section, including State agencies, family 
                child care homes, child care centers, and sponsoring 
                organizations; and
                  ``(B) provide recommendations to the Secretary to 
                reduce such paperwork for participants in the program 
                under this section while ensuring that proper 
                accountability and program integrity are maintained and 
                make such recommendations publicly available.
          ``(3) Membership.--The Advisory Committee shall be composed 
        of not fewer than 14 members, of whom:
                  ``(A) 1 shall be a representative of a public 
                nonprofit center.
                  ``(B) 1 shall be a representative of a private 
                nonprofit center.
                  ``(C) 1 shall be a representative of a family or 
                group day care home.
                  ``(D) 1 shall be a representative of a Head Start 
                center.
                  ``(E) 1 shall be a representative of a for-profit 
                center.
                  ``(F) 1 shall be a representative of an emergency 
                shelter.
                  ``(G) 1 shall be a representative of an adult day 
                care center.
                  ``(H) 1 shall be a representative of a State agency.
                  ``(I) 1 shall be a representative of a sponsoring 
                organization for the entities referred to in 
                subparagraphs (A), (B), (D), (E), (F), and (G).
                  ``(J) 1 shall be a representative of a sponsoring 
                organization of family or group day care homes.
                  ``(K) 1 shall be a representative of an anti-hunger 
                advocacy organization.
                  ``(L) 1 shall be a representative of an at-risk, 
                after school program.
                  ``(M) 1 shall be a representative of a child care 
                advocacy organization.
                  ``(N) 1 shall be a representative of an advocacy 
                organization representing parents with young children.
          ``(4) Considerations.--In developing the recommendations 
        described in paragraph (2)(B), the Advisory Committee shall 
        consider--
                  ``(A) information, recommendations, and reports from 
                the Paperwork Reduction Work Group established by the 
                Food and Nutrition Service pursuant to section 119(i) 
                of the Child Nutrition and WIC Reauthorization Act of 
                2004 (42 U.S.C. 1766);
                  ``(B) the use of electronic systems and recordkeeping 
                technologies to reduce paperwork for program 
                participants and program operators; and
                  ``(C) duplicative requirements across multiple 
                Federal programs.
          ``(5) Guidance and regulations.--Not later than 3 years after 
        the date of the enactment of this subsection, the Secretary 
        shall issue guidance and, as appropriate, regulations based on 
        the recommendations described in paragraph (2)(B) for 
        streamlined and consolidated paperwork and recordkeeping 
        requirements for the program, including actions taken to reduce 
        paperwork for parents and program operators by--
                  ``(A) streamlining and modernizing applications; and
                  ``(B) streamlining and modernizing the monitoring and 
                auditing of programmatic documentation and 
                recordkeeping, including--
                          ``(i) eliminating the use of the enrollment 
                        form for the purpose of claiming meals;
                          ``(ii) allowing the use of direct 
                        certification in all States;
                          ``(iii) requiring States to accept as 
                        documentation digital forms, digitized and 
                        electronic signatures, and electronic records;
                          ``(iv) allowing the use of electronic data 
                        collection systems containing all required 
                        Federal child and adult care food program 
                        standards;
                          ``(v) addressing non-mandated State-specific 
                        requirements; and
                          ``(vi) requiring the adoption of generally 
                        accepted technologies for client-facing 
                        technology, virtual visits, and technology used 
                        for administrative functions by the child and 
                        adult care food program to reduce the burden on 
                        participants and program operators and 
                        administrators.
          ``(6) Report.--
                  ``(A) In general.--Not later than 180 days after 
                issuing the guidance and, as appropriate, regulations 
                described in paragraph (5), the Secretary shall submit 
                a report to the Committee on Agriculture, Nutrition, 
                and Forestry of the Senate and the Committee on 
                Education and Labor of the House of Representatives 
                containing the information described in subparagraph 
                (B).
                  ``(B) Contents.--The report under subparagraph (A) 
                shall contain the following:
                          ``(i) With respect to each instance in which 
                        the Secretary did not implement a 
                        recommendation of the Advisory Committee, an 
                        explanation with respect to why such 
                        recommendation was not implemented.
                          ``(ii) Additional recommendations with 
                        respect to legislative action that may further 
                        strengthen and streamline the program 
                        application and monitoring process and reduce 
                        administrative burdens on grantees, program 
                        participants, and local, State, and Federal 
                        governments.''.

      TITLE V--ADDRESSING CHILD FOOD INSECURITY DURING THE SUMMER

SEC. 501. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

  (a) Better Integrate Summer Education and Summer Meals Program.--
Section 13(a)(1)(A)(i) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1761(a)(1)(A)(i)) is amended by striking ``50 percent'' 
each place it appears and inserting ``40 percent''.
  (b) Public-Private Partnerships.--Section 13(a) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(a)) is amended by 
striking paragraph (8) and inserting the following:
          ``(8) Year-round meal service.--
                  ``(A) Seamless summer option for schools.--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.).
                  ``(B) Year-round meal service for other service 
                institutions.--Each service institution (other than a 
                service institution described in subparagraph (A)), in 
                addition to being eligible for reimbursement for meals 
                described in subsection (b)(2) served during each day 
                of operation during the periods described in subsection 
                (c)(1), may be reimbursed for up to 1 meal and 1 snack 
                per child served at sites that provide educational or 
                enrichment activities during the regular school year 
                during--
                          ``(i) afterschool hours;
                          ``(ii) weekends; and
                          ``(iii) school holidays.''.
  (c) Improve Nutrition in Underserved, Hard-to-reach Areas.--Section 
13(a) of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1761(a)) is amended--
          (1) by striking paragraphs (9) and (10);
          (2) by inserting after paragraph (8) the following:
          ``(9) Improve nutrition in underserved, hard-to-reach 
        areas.--
                  ``(A) In general.--Subject to the availability of 
                appropriations specifically for the purpose of carrying 
                out this paragraph, the Secretary may award competitive 
                grants to States to award subgrants to service 
                institutions in accordance with subparagraph (B).
                  ``(B) Subgrants.--
                          ``(i) In general.--A State that receives a 
                        grant under subparagraph (A) shall use such 
                        grant funds to award competitive subgrants to 
                        service institutions selected by the State to 
                        increase participation in the program--
                                  ``(I) at congregate feeding sites; 
                                and
                                  ``(II) through--
                                          ``(aa) innovative approaches 
                                        to addressing barriers in 
                                        transportation to such sites; 
                                        and
                                          ``(bb) mobile meal delivery.
                          ``(ii) Eligibility.--To be selected to 
                        receive a subgrant under this subparagraph, a 
                        service institution shall--
                                  ``(I) be located in the State;
                                  ``(II) submit to the State an 
                                application at such time, in such 
                                manner, and containing such information 
                                as the State may require;
                                  ``(III) meet criteria established by 
                                the State; and
                                  ``(IV) agree to the terms and 
                                conditions of the subgrant, as 
                                established by the State.
                          ``(iii) Priority.--In awarding subgrants 
                        under this subparagraph, the State shall give 
                        priority to service institutions that--
                                  ``(I) serve both breakfast and lunch; 
                                or
                                  ``(II) offer educational or 
                                enrichment programs.
                          ``(iv) Travel reimbursement.--A service 
                        institution that receives a subgrant under this 
                        subparagraph may use subgrant funds to provide 
                        reimbursement for travel to satellite 
                        congregate feeding sites.
                  ``(C) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary to make 
                competitive grants under this paragraph, $10,000,000 
                for each fiscal year.''; and
          (3) by redesignating paragraphs (11) and (12) as paragraphs 
        (10) and (11), respectively.
  (d) Culturally and Linguistically Appropriate Outreach Regarding 
Summer Food Service Program.--Paragraph (10)(B) of section 13(a) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(a)), as 
redesignated by subsection (c)(3), is amended by inserting ``culturally 
and linguistically appropriate'' after ``dissemination of'' both places 
it appears.
  (e) Timing of Adjustments.--Section 13(b)(1)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(b)(1)(B)) is amended 
by striking ``ending the preceding November'' and inserting ``ending on 
the preceding October''.
  (f) Third Meal.--Section 13(b)(2) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1761(b)(2)) is amended by striking ``only 
serve lunch'' and all that follows through ``migrant children may''.
  (g) Meal Service During Unanticipated School Closures.--Section 
13(c)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1761(c)(1)) is amended by striking ``at non-school sites''.
  (h) Non-school Sponsors.--Section 13(f)(7) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(f)(7)) is amended--
          (1) by striking ``school food authority participating as a'';
          (2) by striking ``, under rules that the school uses for 
        school meals programs''; and
          (3) by striking ``to a school'' and inserting ``to a service 
        institution''.
  (i) Summer Nutrition Standards.--Section 13(f) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(f)) is amended by 
adding at the end the following:
  ``(8) Not later than 2 years after the date of the enactment of this 
paragraph and in accordance with paragraph (1), the Secretary shall 
promulgate proposed regulations to update the nutrition standards for 
the summer food service program authorized under this Act to be guided 
by 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), taking into account the 
structure of the Program.''.
  (j) Authorization of Appropriations.--Section 13(r) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(r)) is amended by 
striking ``2015'' and inserting ``2028''.

SEC. 502. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.

  The Richard B. Russell National School Lunch Act is amended by 
inserting after section 13 (42 U.S.C. 1761) the following:

``SEC. 13A. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.

  ``(a) Program Established.--The Secretary shall establish a program 
under which States and covered Indian Tribal organizations 
participating in such program shall, beginning with summer 2024 and 
annually for each summer thereafter, issue to eligible households 
summer EBT benefits--
          ``(1) in accordance with this section; and
          ``(2) for the purpose of providing nutrition assistance 
        through electronic benefits transfer during the summer months 
        for eligible children, to ensure continued access to food when 
        school is not in session for the summer.
  ``(b) Summer EBT Benefits Requirements.--
          ``(1) Purchase options.--
                  ``(A) Benefits issued by states.--
                          ``(i) WIC participation states.--In the case 
                        of a State that participated in a demonstration 
                        program under section 749(g) of the 
                        Agriculture, Rural Development, Food and Drug 
                        Administration, and Related Agencies 
                        Appropriations Act, 2010 (Public Law 111-80; 
                        123 Stat. 2132) during calendar year 2018 using 
                        a WIC model, summer EBT benefits issued 
                        pursuant to subsection (a) by such a State may 
                        only be used by the eligible household that 
                        receives such summer EBT benefits to purchase--
                                  ``(I) supplemental foods from 
                                retailers that have been approved for 
                                participation in--
                                          ``(aa) the special 
                                        supplemental nutrition program 
                                        for women, infants, and 
                                        children under section 17 of 
                                        the Child Nutrition Act of 1966 
                                        (42 U.S.C. 1786); or
                                          ``(bb) the program under this 
                                        section; or
                                  ``(II) food (as defined in section 
                                3(k) of the Food and Nutrition Act of 
                                2008 (7 U.S.C. 2011(k))) from retail 
                                food stores that have been approved for 
                                participation in the supplemental 
                                nutrition assistance program 
                                established under such Act, in 
                                accordance with section 7(b) of such 
                                Act (7 U.S.C. 2016(b)).
                          ``(ii) Other states.--Summer EBT benefits 
                        issued pursuant to subsection (a) by a State 
                        not described in clause (i) may only be used by 
                        the eligible household that receives such 
                        summer EBT benefits to purchase food (as 
                        defined in section 3(k) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011(k))) from 
                        retail food stores that have been approved for 
                        participation in the supplemental nutrition 
                        assistance program established under such Act, 
                        in accordance with section 7(b) of such Act (7 
                        U.S.C. 2016(b)).
                  ``(B) Benefits issued by covered indian tribal 
                organizations.--Summer EBT benefits issued pursuant to 
                subsection (a) by a covered Indian Tribal organization 
                may only be used by the eligible household that 
                receives such summer EBT benefits to purchase 
                supplemental foods from retailers that have been 
                approved for participation in--
                          ``(i) the special supplemental nutrition 
                        program for women, infants, and children under 
                        section 17 of the Child Nutrition Act of 1966 
                        (42 U.S.C. 1786); or
                          ``(ii) the program under this section.
          ``(2) Amount.--Summer EBT benefits issued pursuant to 
        subsection (a)--
                  ``(A) shall be--
                          ``(i) for calendar year 2024, in an amount 
                        equal to $75 for each child in the eligible 
                        household per month during the summer; and
                          ``(ii) for calendar year 2025 and each year 
                        thereafter, in an amount equal to the amount 
                        described in clause (i), adjusted to the 
                        nearest lower dollar increment to reflect 
                        changes to the cost of the thrifty food plan 
                        (as defined in section 3(u) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2012(u)) for 
                        the 12-month period ending on November 30 of 
                        the preceding calendar year; and
                  ``(B) may be issued--
                          ``(i) in the form of an EBT card; or
                          ``(ii) through electronic delivery.
  ``(c) Enrollment in Program.--
          ``(1) State requirements.--States participating in the 
        program under this section--
                  ``(A) shall, with respect to summer, automatically 
                enroll eligible children who, in the school year 
                immediately preceding the summer, are directly 
                certified, are identified students (as defined in 
                section 11(a)(1)(F)(i)), or are otherwise determined by 
                a local educational agency to be eligible to receive 
                free or reduce price meals in the program under this 
                section, without further application from households;
                  ``(B) may provide an application for children who do 
                not meet the criteria specified in subparagraph (A) and 
                make eligibility determinations using the same 
                eligibility criteria for free or reduced price lunches 
                under this Act;
                  ``(C) shall establish procedures to carry out the 
                enrollment described in subparagraph (A); and
                  ``(D) shall require local educational agencies to 
                allow eligible households to opt out of participation 
                in the program under this section and establish 
                procedures for opting out of such participation.
          ``(2) Covered indian tribal organization requirements.--
        Covered Indian Tribal organizations participating in the 
        program under this section shall, to the maximum extent 
        practicable, meet the requirements under subparagraphs (A) 
        through (C) of paragraph (1).
  ``(d) Implementation Grants.--Not later than October 1, 2022, the 
Secretary shall carry out a program to make grants to States and 
covered Indian Tribal organizations to build capacity for implementing 
the program under this section.
  ``(e) Alternate Plans in the Case of Continuous School Calendar.--The 
Secretary shall establish alternative plans for when summer EBT 
benefits may be issued pursuant to subsection (a) in the case of 
children who are under a continuous school calendar.
  ``(f) Definitions.--In this section:
          ``(1) Covered indian tribal organization.--The term `covered 
        Indian Tribal organization' means an Indian Tribal organization 
        that participates in the special supplemental nutrition program 
        for women, infants, and children under section 17 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1786).
          ``(2) Eligible child.--The term `eligible child' means, with 
        respect to a summer, a child who--
                  ``(A) was, during the school year immediately 
                preceding such summer--
                          ``(i) certified to receive free or reduced 
                        price lunch under the school lunch program 
                        under this Act;
                          ``(ii) certified to receive free or reduced 
                        price breakfast under the school breakfast 
                        program under section 4 of the Child Nutrition 
                        Act of 1966 (42 U.S.C. 1773); or
                          ``(iii) certified by the State through the 
                        process described in subsection (c)(1)(B); or
                  ``(B)(i) was, during the school year immediately 
                preceding such summer, enrolled in a school described 
                in subparagraph (B), (C), (D), (E), or (F) of section 
                11(a)(1); and
                  ``(ii) either--
                          ``(I) is an identified student (as defined in 
                        section 11(a)(1)(F)(i)); or
                          ``(II) otherwise meets the requirements to 
                        receive free or reduced price lunch as 
                        determined by a local educational agency 
                        through an application process using the same 
                        eligibility criteria for free or reduced price 
                        lunches under this Act.
          ``(3) Eligible household.--The term `eligible household' 
        means a household that includes at least 1 eligible child.
          ``(4) Supplemental foods.--The term `supplemental foods'--
                  ``(A) means foods--
                          ``(i) containing nutrients determined by 
                        nutritional research to be lacking in the diets 
                        of children; and
                          ``(ii) that promote the health of the 
                        population served by the program under this 
                        section, as indicated by relevant nutrition 
                        science, public health concerns, and cultural 
                        eating patterns, as determined by the 
                        Secretary; and
                  ``(B) includes foods not described in subparagraph 
                (A) substituted by State agencies, with the approval of 
                the Secretary, that--
                          ``(i) provide the nutritional equivalent of 
                        foods described in such subparagraph; and
                          ``(ii) allow for different cultural eating 
                        patterns than foods described in such 
                        subparagraph.''.

       TITLE VI--IMPROVING CAPACITY AND PROMOTING SUSTAINABILITY

SEC. 601. VALUES-ALIGNED PROCUREMENT.

  Section 9(j) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(j)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``to purchase unprocessed 
                agricultural products, both locally grown and locally 
                raised''; and
                  (B) by striking the semicolon at the end and 
                inserting the following: ``, to purchase unprocessed 
                agricultural products that were--
                  ``(A) locally grown and locally raised;
                  ``(B) produced in an environmentally sustainable 
                manner;
                  ``(C) produced by a certified organic farm or ranch;
                  ``(D) produced by an underserved or limited resource 
                producer;
                  ``(E) produced by a small or mid-sized farm that is 
                structured as a family farm;
                  ``(F) produced by a farm with employees who, as 
                permitted by law, are represented by a collective 
                bargaining agreement or memorandum of understanding;
                  ``(G) produced by a farm participating in a worker 
                justice certification program; or
                  ``(H) produced by a farm participating in an 
                independent animal welfare certification program;'';
          (2) by amending paragraph (3) to read as follows:
          ``(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--
                  ``(A)(i) use a geographic preference for the 
                procurement of unprocessed agricultural products, both 
                locally grown and locally raised; or
                          ``(ii) use locally grown, locally raised, or 
                        locally caught as a product specification; and
                  ``(B) procure unprocessed agricultural products that 
                are produced--
                          ``(i) in an environmentally sustainable 
                        manner;
                          ``(ii) by a certified organic farm or ranch;
                          ``(iii) by an underserved or limited resource 
                        producer;
                          ``(iv) by a small or mid-sized farm that is 
                        structured as a family farm;
                          ``(v) by a farm with employees who, as 
                        permitted by law, are represented by a 
                        collective bargaining agreement or memorandum 
                        of understanding;
                          ``(vi) by a farm participating in a worker 
                        justice certification program; or
                          ``(vii) by a farm participating in an 
                        independent animal welfare certification 
                        program.''; and
          (3) by adding at the end the following:
          ``(4) Definitions.--In this subsection:
                  ``(A) Beginning farmer or rancher.--The term 
                `beginning farmer or rancher' has the meaning given 
                such term in section 343(a) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1991(a)).
                  ``(B) Family farm.--The term `family farm' has the 
                meaning given such term in section 4284.902 of title 7, 
                Code of Federal Regulations (as in effect on the date 
                of the enactment of this paragraph).
                  ``(C) Underserved producer.--The term `underserved 
                producer' means an individual (including a member of an 
                Indian Tribe) that is--
                          ``(i) a beginning farmer or rancher;
                          ``(ii) a veteran farmer or rancher; or
                          ``(iii) a socially disadvantaged farmer or 
                        rancher.
                  ``(D) Veteran farmer or rancher.--The term `veteran 
                farmer or rancher' has the meaning given such term in 
                section 2501(a) of the Food, Agriculture, Conservation, 
                and Trade Act of 1990 (7 U.S.C. 2279(a)).''.

SEC. 602. PROCUREMENT TRAINING.

  Section 12(m)(4) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(m)(4)) is amended by striking ``fiscal years 2010 
through 2015'' and inserting ``fiscal years 2023 through 2028''.

SEC. 603. BUY AMERICAN.

  Section 12(n) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760(n)) is amended by adding at the end the following:
          ``(5) Administrative reviews.--
                  ``(A) In general.--In conducting the reviews required 
                under section 22(b)(1)(C)(i) of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 
                1769c(b)(1)(C)(i)), a State agency located in Puerto 
                Rico, Hawaii, or the contiguous United States shall 
                include the information described in subparagraph (B) 
                regarding compliance with the requirements under this 
                subsection.
                  ``(B) Information required.--The information required 
                under subparagraph (A) shall include, with respect to a 
                school food authority served by the State agency--
                          ``(i) the 10 commodities or food products 
                        purchased by such school food authority that--
                                  ``(I) are not domestic commodities or 
                                food products; and
                                  ``(II) make up the largest share of 
                                the school food authority's spending 
                                with respect to commodities or food 
                                products; and
                          ``(ii) whether each such commodity or food 
                        product--
                                  ``(I) is not produced domestically in 
                                sufficient quantities of satisfactory 
                                quality 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); 
                                and
                                  ``(II) would be significantly higher 
                                in price if purchased domestically; and
                          ``(iii) whether the school food authority 
                        experienced suspected, alleged, or confirmed 
                        noncompliance on the part of a distributor in 
                        the last 12 months.
          ``(6) Annual nationally representative evaluation.--
                  ``(A) In general.--The Secretary shall--
                          ``(i) annually evaluate in a nationally 
                        representative study the extent to which school 
                        food authorities are in compliance with the 
                        requirements of this subsection; and
                          ``(ii) publish the findings of such 
                        evaluation on the publicly available website of 
                        the Department.
                  ``(B) Requirements.--The Secretary shall require each 
                school food authority that participates in the 
                evaluation under subparagraph (A) to disclose, as part 
                of such evaluation--
                          ``(i) the 10 commodities or food products 
                        purchased by such school food authority that--
                                  ``(I) are not domestic commodities or 
                                food products; and
                                  ``(II) make up the largest share of 
                                the school food authority's spending 
                                with respect to commodities or food 
                                products;
                          ``(ii) whether each such commodity or food 
                        product--
                                  ``(I) is not produced domestically in 
                                sufficient quantities of satisfactory 
                                quality 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); 
                                and
                                  ``(II) would be significantly higher 
                                in price if purchased domestically; and
                          ``(iii) whether the school food authority 
                        experienced suspected, alleged, or confirmed 
                        noncompliance on the part of a distributor in 
                        the last 12 months.
          ``(7) Study and report.--The Secretary, in consultation with 
        the Secretary of Labor and the heads of other Federal agencies 
        determined by the Secretary to be necessary, shall conduct a 
        study that examines whether the requirement under this 
        subsection has an impact on the supply of commodities or food 
        products in schools, including with respect to--
                  ``(A) the availability of domestic commodities or 
                food products;
                  ``(B) the wages, occupational safety and health, and 
                access to and quality of benefits of agricultural 
                workers;
                  ``(C) the price of locally grown and locally raised 
                domestic commodities or food products as compared to 
                commodities or food products that are not domestic 
                commodities or food products;
                  ``(D) the prevalence of seasonal foods in schools; 
                and
                  ``(E) the extent to which schools rely on processed 
                commodities and food products.''.

SEC. 604. PLANT-BASED FOODS IN SCHOOLS.

  Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by adding after subsection (c) the following:
  ``(d) Pilot Grant Program for 100 Percent Plant-based Food Options.--
          ``(1) Program authorized.--The Secretary shall establish and 
        carry out a pilot grant program to award grants to eligible 
        school food authorities to carry out the activities described 
        in paragraph (4).
          ``(2) In general.--
                  ``(A) Term.--The term of a grant awarded under this 
                subsection shall be 3 years.
                  ``(B) Grant amount.--In awarding grants under this 
                subsection, the Secretary shall, to the extent 
                practicable, award grants of diverse amounts.
          ``(3) Application.--
                  ``(A) In general.--To be eligible to receive a grant 
                under this subsection, an eligible school food 
                authority shall submit to the Secretary an application 
                at such time, in such manner, and containing such 
                information as the Secretary may require, including--
                          ``(i) a participatory evaluation plan; and
                          ``(ii) a plan for providing culturally 
                        appropriate meals.
                  ``(B) Priority.--To the maximum extent practicable, 
                in awarding grants under this subsection, the Secretary 
                shall give priority to an eligible school food 
                authority that--
                          ``(i) will use the grant funds to--
                                  ``(I) serve a high proportion of 
                                children who are eligible for free or 
                                reduced price meals;
                                  ``(II) demonstrate collaboration with 
                                nongovernmental and community-based 
                                organizations, agricultural producers, 
                                and other community partners on the 
                                activities described in paragraph (4); 
                                and
                                  ``(III) incorporate experiential and 
                                culturally appropriate food, nutrition, 
                                or agricultural education activities 
                                related to 100 percent plant-based food 
                                options in the classroom; and
                          ``(ii) meets any other criteria that the 
                        Secretary determines appropriate.
          ``(4) Use of funds.--A grant awarded under this subsection 
        may be used for any of the following activities:
                  ``(A) To contract with qualified third parties for 
                professional development training for food service 
                personnel on serving (including preparing, procuring, 
                marketing, and creating menus) 100 percent plant-based 
                food options.
                  ``(B) To provide compensation, for each employee who 
                participates in the professional development training 
                described in subparagraph (A), at the regular rate of 
                pay of each such employee.
                  ``(C) To provide technical assistance and student 
                engagement and education on 100 percent plant-based 
                food options, including providing taste tests, recipe 
                development, and culinary education.
                  ``(D) To provide compensation for additional work 
                relating to serving meals that include a 100 percent 
                plant-based food option.
                  ``(E) To conduct outreach to, and cover costs of 
                procurement of foods from, agricultural producers of 
                100 percent plant-based food options, including--
                          ``(i) underserved or limited resource 
                        producers; and
                          ``(ii) local farmers.
          ``(5) Reports.--
                  ``(A) Recordkeeping required.--Each eligible school 
                food authority awarded a grant under this subsection 
                shall keep records of the 100 percent plant-based food 
                options served pursuant to this subsection as the 
                Secretary determines appropriate.
                  ``(B) Report required by school food authorities.--
                Not later than 1 year after receiving a grant under 
                this subsection, and annually for the duration of the 
                pilot grant program thereafter, a school food authority 
                shall submit to the Secretary a report on the pilot 
                grant program, including information on--
                          ``(i) the number of 100 percent plant-based 
                        food options that the school food authority 
                        served during the grant period compared with 
                        the preceding school year;
                          ``(ii) the number of schools served by the 
                        school food authority pursuant to the grant;
                          ``(iii) the number of students served by the 
                        school food authority pursuant to the grant; 
                        and
                          ``(iv) how the school food authority used the 
                        grant funds.
                  ``(C) Report by secretary.--Not later than 1 year 
                after the end of a school year during which the 
                Secretary receives reports required under subparagraph 
                (B), the Secretary shall submit to Congress a report 
                that includes a summary of such reports received and 
                such information with respect to the pilot program as 
                the Secretary determines to be relevant.
          ``(6) Technical assistance.--The Secretary shall provide 
        technical assistance and information to assist school food 
        authorities--
                  ``(A) to facilitate the coordination and sharing of 
                information and resources that may be applicable to the 
                activities described in paragraph (4); and
                  ``(B) to collect and share information on best 
                practices.
          ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        fiscal year 2024, to remain available through fiscal year 2028.
          ``(8) Definitions.--In this subsection:
                  ``(A) 100 percent plant-based food option.--The term 
                `100 percent plant-based food option' means a breakfast 
                or lunch meal option or component that--
                          ``(i) includes a meat alternate as described 
                        in--
                                  ``(I) section 210.10 of title 7, Code 
                                of Federal Regulations (or successor 
                                regulations); or
                                  ``(II) appendix A to part 210 of 7, 
                                Code of Federal Regulations (or 
                                successor regulations); and
                          ``(ii) does not contain any animal products 
                        or byproducts, such as meat, poultry, honey, 
                        fish, dairy, or eggs.
                  ``(B) Beginning farmer or rancher.--The term 
                `beginning farmer or rancher' has the meaning given 
                such term in section 343(a) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1991(a)).
                  ``(C) Eligible school food authority.--The term 
                `eligible school food authority' means a school food 
                authority for which 50 percent or more of the students 
                served by such school food authority are eligible for 
                free or reduced price lunch under this Act or free or 
                reduced price breakfast under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773).
                  ``(D) Underserved producer.--The term `underserved 
                producer' means an individual (including a member of an 
                Indian Tribe) that is--
                          ``(i) a beginning farmer or rancher;
                          ``(ii) a veteran farmer or rancher; or
                          ``(iii) a socially disadvantaged farmer or 
                        rancher.
                  ``(E) Veteran farmer or rancher.--The term `veteran 
                farmer or rancher' has the meaning given such term in 
                section 2501(a) of the Food, Agriculture, Conservation, 
                and Trade Act of 1990 (7 U.S.C. 2279(a)).''.

SEC. 605. FOOD WASTE AND NUTRITION EDUCATION.

  Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769(e)) is amended by adding after subsection (d), as added by 
section 604 of this Act, the following:
  ``(e) School Food Waste Reduction Grant Program.--
          ``(1) Grant program established.--
                  ``(A) In general.--The Secretary shall carry out a 
                program to award grants, on a competitive basis, to 
                school food authorities to carry out food waste 
                measurement and reporting, prevention, education, and 
                reduction projects.
                  ``(B) Regional balance.--In awarding grants under 
                this subsection, the Secretary shall, to the maximum 
                extent practicable, ensure that--
                          ``(i) a grant is awarded to a school food 
                        authority in each region served by the 
                        Administrator of the Food and Nutrition 
                        Service; and
                          ``(ii) there is equitable treatment of rural, 
                        urban, and tribal communities.
          ``(2) Application.--To be eligible to receive a grant under 
        this subsection, a school food authority shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
          ``(3) Priority.--In awarding grants under this subsection, 
        the Secretary shall give priority to a school food authority 
        that demonstrates in the application under paragraph (2) that 
        such school food authority will use the grant to--
                  ``(A) carry out experiential education activities 
                that encourage children served by such school food 
                authority to participate in food waste measurement and 
                reporting, prevention, education, and reduction 
                projects;
                  ``(B) prioritize the best use of food in accordance 
                with the Food Recovery Hierarchy published by the 
                Administrator of the Environmental Protection Agency;
                  ``(C) with respect to food waste measurement and 
                reporting, prevention, education, and reduction 
                projects, collaborate with other school food 
                authorities, tribes, nongovernmental and community-
                based organizations, and other community partners;
                  ``(D) make evaluation plans and evaluate the 
                activities carried out using grant funds; and
                  ``(E) establish a food waste measurement and 
                reporting, prevention, education, and reduction project 
                with the goal of long-term project sustainability.
          ``(4) Use of funds.--A school food authority that receives a 
        grant under this section shall use funds under such grant to 
        carry out at least one of the following:
                  ``(A) Planning and carrying out a food waste 
                measurement and reporting, prevention, education, and 
                reduction project.
                  ``(B) Providing training to support such a project.
                  ``(C) Purchasing equipment to support such a project.
                  ``(D) Offering food waste education to students 
                served by such school food authority.
          ``(5) Requirement.--A food waste measurement and reporting, 
        prevention, education, and reduction project funded by a grant 
        under this subsection shall comply with the 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), as applicable.
          ``(6) Reports.--
                  ``(A) School food authority report.--Not later than 1 
                year after receiving a grant under this subsection, and 
                on an annual basis thereafter, a school food authority 
                shall submit to the Secretary a report that includes an 
                evaluation of the outcomes of the projects carried out 
                pursuant to such grant.
                  ``(B) Secretary report.--Not later than 1 year after 
                the end of a school year during which the Secretary 
                receives reports required under subparagraph (B), the 
                Secretary shall submit to Congress a report that 
                includes a summary of the reports received under 
                subparagraph (B) and such information with respect to 
                the program as the Secretary determines to be relevant.
          ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        fiscal year 2024, to remain available through fiscal year 
        2028.''.

SEC. 606. FARM TO SCHOOL GRANT PROGRAM.

  Section 18(g) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769(g)) is amended--
          (1) by amending paragraph (1) to read as follows:
          ``(1) Definitions.--In this subsection:
                  ``(A) Agricultural producer.--The term `agricultural 
                producer' means a farmer, rancher, or fisher (including 
                of farm-raised fish).
                  ``(B) Beginning farmer or rancher.--The term 
                `beginning farmer or rancher' has the meaning given 
                such term in section 343(a) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1991(a)).
                  ``(C) Eligible institution.--The term `eligible 
                institution' 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).
                  ``(D) Farm to school program.--The term `farm to 
                school program' means a program that--
                          ``(i) benefits an eligible institution, as 
                        determined by the Secretary; and
                          ``(ii) carries out--
                                  ``(I) planting and maintenance of 
                                farms or gardens;
                                  ``(II) procurement from local 
                                agricultural producers; or
                                  ``(III) educational activities 
                                relating to agriculture, nutrition, or 
                                food.
                  ``(E) Underserved producer.--The term `underserved 
                producer' means an individual (including a member of an 
                Indian Tribe) that is--
                          ``(i) a beginning farmer or rancher;
                          ``(ii) a veteran farmer or rancher; or
                          ``(iii) a socially disadvantaged farmer or 
                        rancher.
                  ``(F) Veteran farmer or rancher.--The term `veteran 
                farmer or rancher' has the meaning given such term in 
                section 2501(a) of the Food, Agriculture, Conservation, 
                and Trade Act of 1990 (7 U.S.C. 2279(a)).'';
          (2) in paragraph (2)--
                  (A) by striking ``schools'' each place it appears and 
                inserting ``institutions'';
                  (B) by inserting ``land-grant colleges and 
                universities,'' before ``and nonprofit''; and
                  (C) by striking ``grants and technical assistance'' 
                and inserting ``grants, technical assistance, research, 
                and evaluation'';
          (3) in paragraph (3)--
                  (A) in subparagraph (A)--
                          (i) in clause (i), by inserting ``and 
                        technical assistance'' after ``training'';
                          (ii) by redesignating clauses (vi) and (vii) 
                        as clauses (viii) and (ix), respectively; and
                          (iii) by inserting after clause (v) the 
                        following:
                          ``(vi) implementing educational activities 
                        relating to agriculture, nutrition, or food;
                          ``(vii) implementing innovative approaches to 
                        aggregation, processing, transportation, and 
                        distribution of food;''; and
                  (B) by amending subparagraph (C) to read as follows:
                  ``(C) Awards.--
                          ``(i) Maximum amount.--The total amount 
                        provided to a grant recipient under this 
                        subsection shall not exceed $500,000.
                          ``(ii) Term.--The term of an award shall not 
                        exceed 3 years.
                          ``(iii) Purpose and scope.--In making awards 
                        under this subsection, the Secretary shall, to 
                        the extent practicable, make awards of diverse 
                        amounts and duration in order to best match the 
                        award to the purpose and scope of the project 
                        to be funded.'';
          (4) by striking paragraph (4);
          (5) by redesignating paragraphs (5) through (9) as paragraphs 
        (4) through (8), respectively;
          (6) in paragraph (4), as so redesignated--
                  (A) in the heading, by striking ``Criteria for 
                selection'' and inserting ``Priority'';
                  (B) in the matter preceding subparagraph (A), by 
                striking ``To the maximum extent practicable'' and 
                inserting the following:
                  ``(A) In general.--To the maximum extent 
                practicable'';
                  (C) in subparagraph (A), by striking ``school'' and 
                inserting ``institution'';
                  (D) in subparagraph (B), by striking ``lunches'' and 
                inserting ``meals'';
                  (E) by striking subparagraph (C);
                  (F) in subparagraph (D), by striking ``eligible 
                schools'' and all that follows through ``partners'' and 
                inserting ``eligible institutions, State and local 
                agencies, Tribal organizations and agencies, 
                agricultural producers or groups of agricultural 
                producers, land-grant colleges and universities, and 
                nonprofit entities on the activities described in 
                paragraph (3)'';
                  (G) in subparagraph (F), by striking ``and'' at the 
                end;
                  (H) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii) and adjusting the margins 
                accordingly;
                  (I) by redesignating subparagraphs (D) through (F) as 
                clauses (iv) through (vi), respectively, and adjusting 
                the margins accordingly;
                  (J) by inserting after clause (ii), as so 
                redesignated by subparagraph (H), the following:
                          ``(iii) incorporate experiential, 
                        traditional, and culturally appropriate food, 
                        nutrition, or agricultural education activities 
                        in curriculum planning;''.
                  (K) by redesignating subparagraph (G) as clause (ix);
                  (L) by inserting after clause (vi) (as so 
                redesignated) the following:
                          ``(vii) expand the selection of local 
                        commodities for eligible institutions;
                          ``(viii) identify and address chronic diet-
                        related health issues of children served by 
                        eligible institutions; and''; and
                  (M) by adding at the end the following:
                  ``(B) Tribal community projects.--In the case of 
                projects serving Tribal communities, the Secretary 
                shall, to the maximum extent practicable, give priority 
                to projects that best utilize products, including 
                traditional foods, from Tribal agricultural producers, 
                as determined by the Secretary.'';
          (7) in paragraph (6), as so redesignated--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``The Secretary'' and all that follows through 
                ``nonprofit entities'' and inserting the following:
                  ``(A) In general.--The Secretary shall provide 
                technical assistance and information to assist eligible 
                institutions, State and local agencies, Indian Tribal 
                organizations, agricultural producers or agricultural 
                producer groups, and nonprofit entities'';
                  (B) in subparagraph (B), by striking ``and'' at the 
                end;
                  (C) in subparagraph (C), by striking the period at 
                the end and inserting ``; and'';
                  (D) by redesignating subparagraphs (A) through (C) as 
                clauses (i) through (iii), respectively, and adjusting 
                the margins accordingly;
                  (E) by adding after clause (iii), as so redesignated 
                by subparagraph (D), the following:
                          ``(iv) to increase awareness of, and 
                        participation in, farm to school programs among 
                        agricultural producers or agricultural producer 
                        groups, including--
                                  ``(I) underserved or limited resource 
                                producers; and
                                  ``(II) local farmers.''; and
                  (F) by adding at the end the following:
                  ``(B) Review.--
                          ``(i) In general.--Not later than 1 year 
                        after the date of enactment of the Healthy 
                        Meals, Healthy Kids Act, and every 3 years 
                        thereafter, the Secretary shall submit to the 
                        Committee on Agriculture of the House of 
                        Representatives, 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 progress that has been made in identifying 
                        and eliminating barriers related to developing 
                        farm to school programs.
                          ``(ii) Requirements.--In preparing the 
                        report, the Secretary shall examine--
                                  ``(I) the direct and indirect 
                                regulatory compliance costs affecting 
                                the production and marketing of locally 
                                or regionally produced agricultural 
                                food products to child nutrition 
                                programs;
                                  ``(II) barriers to local and regional 
                                child nutrition program market access 
                                for small-scale production;
                                  ``(III) barriers to funding projects 
                                that meet the criteria described in 
                                paragraph (5)(A);
                                  ``(IV) barriers to local and regional 
                                child nutrition market access for 
                                Tribal farmers and ranchers; and
                                  ``(V) barriers to funding Tribal 
                                projects under farm to school 
                                programs.'';
          (8) in paragraph (7), as so redesignated--
                  (A) in subparagraph (A), by striking ``$5,000,000'' 
                and inserting ``$15,000,000''; and
                  (B) by adding at the end the following:
                  ``(C) Administration.--Of the funds provided to the 
                Secretary under subparagraph (A), not more than 5 
                percent may be used to pay administrative costs 
                incurred by the Secretary in carrying out this 
                subsection.''; and
          (9) in paragraph (8), as so redesignated, by striking ``2011 
        through 2015'' and inserting ``2023 through 2028''.

       TITLE VII--SUPPORTING TRIBES AND FREELY ASSOCIATED STATES

SEC. 701. TRIBALLY OPERATED MEAL AND SNACK PILOT PROJECT.

  Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by inserting after subsection (e), as added by 
section 605 of this Act, the following:
  ``(f) Tribally Operated Meal and Snack Pilot Project.--
          ``(1) In general.--The Secretary of Agriculture shall 
        establish a pilot project to award grants to up to 10 eligible 
        entities to prepare such entities to administer or operate and 
        implement, in covered schools--
                  ``(A) the school lunch program authorized under this 
                Act;
                  ``(B) the child and adult care food program 
                established by section 17 of this Act;
                  ``(C) the summer food service program for children 
                established by section 13 of this Act; and
                  ``(D) the school breakfast program established by 
                section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773).
          ``(2) Application.--To be eligible to participate in the 
        pilot project under this subsection, an eligible entity shall 
        submit to the Secretary an application at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
          ``(3) Criteria for selection.--In selecting participants 
        under this subsection, the Secretary shall select up to 10 
        eligible entities that--
                  ``(A) are located in diverse geographic areas; and
                  ``(B) serve Indian tribes of varying population size.
          ``(4) Grants.--
                  ``(A) In general.--The Secretary shall award, to each 
                eligible entity selected to participate in the project 
                under this subsection, a grant, of an amount negotiated 
                with such eligible entity, that is not less than 
                $10,000 and not more than $200,000.
                  ``(B) Sunset.--The authority of the Secretary to 
                award grants under this subsection shall terminate on 
                the date that is 5 years after the date on which the 
                first grant is awarded under this subsection.
          ``(5) Reimbursements.--
                  ``(A) In general.--Notwithstanding any other 
                provision of law, an eligible entity participating in 
                the project under this subsection--
                          ``(i) may carry out the programs referenced 
                        in subparagraphs (A) through (D) of paragraph 
                        (1);
                          ``(ii) with respect to the school lunch 
                        program authorized under this Act, shall be 
                        reimbursed as if it were a State under section 
                        12(f);
                          ``(iii) with respect to the child and adult 
                        care food program established under this Act, 
                        shall be reimbursed as if it were a State under 
                        section 17, including audit funds under 
                        subsection (i) of such section;
                          ``(iv) with respect to the summer food 
                        service program for children established under 
                        this Act, shall be reimbursed as if it were a 
                        State under section 13, including 
                        administrative funds under subsection (k) of 
                        such section; and
                          ``(v) with respect to the school breakfast 
                        program established by section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1733), shall 
                        be reimbursed as if it were a State under such 
                        section.
                  ``(B) Administrative funds.-- An eligible entity that 
                participates in the project under this subsection may 
                receive administrative funds at a rate that is 
                consistent with the amount received by a State under 
                section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1776).
                  ``(C) Tribal operators.--An eligible entity that is 
                an Indian tribe that participates in the project under 
                this subsection as direct program operators shall be 
                reimbursed by the Department.
          ``(6) Definitions.--In this subsection:
                  ``(A) Bureau-funded school.--The term `Bureau-funded 
                school' has the meaning given such term in section 1141 
                of the Education Amendments of 1978 (25 U.S.C. 2021).
                  ``(B) Covered school.--The term `covered school' 
                means--
                          ``(i) a Bureau-funded school;
                          ``(ii) a school--
                                  ``(I) on or in proximity to a 
                                reservation; or
                                  ``(II) that primarily serves Native 
                                American students; and
                          ``(iii) early care and education facilities, 
                        including facilities that participate in a Head 
                        Start program authorized under the Head Start 
                        Act (42 U.S.C. 9831 et seq.).
                  ``(C) Eligible entity.--The term `eligible entity' 
                means--
                          ``(i) an Indian tribe or tribal organization 
                        approved by an Indian tribe;
                          ``(ii) a consortium of Indian tribes; and
                          ``(iii) a partnership between--
                                  ``(I) an Indian tribe; and
                                  ``(II) either--
                                          ``(aa) a State educational 
                                        agency;
                                          ``(bb) a local educational 
                                        agency;
                                          ``(cc) a tribal educational 
                                        agency; or
                                          ``(dd) the Bureau of Indian 
                                        Education.
                  ``(D) Indian tribe.--The term `Indian tribe' has the 
                meaning given such term in section 4 of the Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 5304).
                  ``(E) School.--The term `school' has the meaning 
                given such term in section 12(d) of the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1760(d)).
                  ``(F) Tribal educational agency.--The term `tribal 
                educational agency' has the meaning given such term in 
                section 6132(b) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7452(b)).''.

SEC. 702. ISLAND AREAS ELIGIBILITY FEASIBILITY STUDY UNDER THE RICHARD 
                    B. RUSSELL NATIONAL SCHOOL LUNCH ACT.

  Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by adding at the end the following:
  ``(l) Island Areas Eligibility Feasibility Study.--
          ``(1) In general.--Not later than 12 months after the date of 
        the enactment of this subsection, the Secretary shall begin a 
        feasibility study to assess the ability and preparedness of the 
        freely associated States to operate--
                  ``(A) the school lunch program authorized under this 
                Act;
                  ``(B) the child and adult care food program 
                established by section 17 of this Act;
                  ``(C) the summer food service program for children 
                established by section 13 of this Act; and
                  ``(D) the school breakfast program established by 
                section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773).
          ``(2) Contents.--In conducting the study described in 
        paragraph (1), the Secretary shall consider--
                  ``(A) any new or additional administrative processes 
                and technology needed to implement each program listed 
                under paragraph (1);
                  ``(B) an assessment of preparedness to--
                          ``(i) comply with management evaluations 
                        conducted by the Secretary, acting through the 
                        Administrator of the Food and Nutrition 
                        Service; and
                          ``(ii) cooperate in Federal audits and 
                        evaluations;
                  ``(C) administrative and financial capability to meet 
                the requirements of each program listed under paragraph 
                (1);
                  ``(D) ability to oversee each program listed under 
                paragraph (1);
                  ``(E) statutory requirements that require waiver or 
                modification by the Secretary and the feasibility of 
                carrying out such waivers or modifications; and
                  ``(F) any other relevant considerations, as 
                determined by the Secretary.
          ``(3) Submission.--Not later than 24 months after the date on 
        which the Secretary begins the study under paragraph (1), the 
        Secretary shall--
                  ``(A) complete such study; and
                  ``(B) submit the findings of such study to the 
                Committee on Education and Labor of the House of 
                Representatives and the Senate Committee on 
                Agriculture, Nutrition, and Forestry.
          ``(4) Freely associated state defined.--In this subsection, 
        the term `freely associated State' means--
                  ``(A) the Federated States of Micronesia;
                  ``(B) the Republic of the Marshall Islands; and
                  ``(C) the Republic of Palau.''.

       TITLE VIII--ADDRESSING LUNCH SHAMING AND UNPAID MEAL DEBT

SEC. 801. UNPAID MEAL DEBT.

  (a) Retroactive Reimbursement.--Section 9(b)(9)(C) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(9)(C)) is 
amended--
          (1) by striking ``Except'' and inserting the following:
                          ``(i) In general.--Except'';
          (2) by redesignating clauses (i) and (ii) as subclauses (I) 
        and (II); and
          (3) by adding at the end the following:
                          ``(ii) Retroactivity.--A local educational 
                        agency shall revise a previously submitted meal 
                        claim to reflect the eligibility approval of a 
                        child for free or reduced price meals for the 
                        period that begins on the first day of the 
                        current school year.
                          ``(iii) Meal claim defined.--In this 
                        subsection, the term `meal claim' means any 
                        documentation provided by a school food 
                        authority to a State agency in order to receive 
                        reimbursement for the cost of a meal served to 
                        a child by such school food authority.''.
  (b) Reducing Stigma Associated With Unpaid School Meal Fees.--Section 
9(b)(10) of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1758(b)(10)) is amended to read as follows:
          ``(10) Reducing stigma associated with unpaid school meal 
        fees.--
                  ``(A) Overt identification prohibited.--A local 
                educational agency or school food authority may not, 
                based on the status of a child as a covered child--
                          ``(i) physically segregate or otherwise 
                        discriminate against such covered child;
                          ``(ii) overtly identify such covered child--
                                  ``(I) through the use of special 
                                tokens or tickets; or
                                  ``(II) by an announcement or a 
                                published list of names; or
                          ``(iii) identify or stigmatize such covered 
                        child by any other means.
                  ``(B) Eligibility determination by local educational 
                agency.--For any covered child who is a member of a 
                household that owes a week or more of unpaid school 
                meal fees, a local educational agency shall--
                          ``(i) attempt to directly certify such 
                        covered child for free meals under paragraph 
                        (4) or (5); or
                          ``(ii) in a case where the local educational 
                        agency is not able to directly certify such 
                        covered child under paragraph (4) or (5), 
                        provide to the household of such covered 
                        child--
                                  ``(I) a household application and 
                                applicable descriptive material; and
                                  ``(II) written and oral 
                                communications to encourage submission 
                                of the application.
                  ``(C) Collection of unpaid school meal fees.--In 
                attempting to collect unpaid school meal fees from a 
                household, a local educational agency or school food 
                authority may not--
                          ``(i) except as described in subparagraph 
                        (D), direct any communication regarding unpaid 
                        school meal fees to a covered child who is a 
                        member of such household;
                          ``(ii) withhold educational opportunities 
                        (including grades and participation in 
                        extracurricular activities or local educational 
                        agency programs or services) from, or otherwise 
                        stigmatize, a covered child due to the status 
                        of the covered child as a covered child; or
                          ``(iii) use a debt collector (as such term is 
                        defined in section 803 of the Consumer Credit 
                        Protection Act (15 U.S.C. 1692a)).
                  ``(D) Letters.--A school food authority may require 
                that a covered child deliver a sealed letter addressed 
                to a parent or guardian of the covered child that 
                contains a communication relating to unpaid school meal 
                fees, subject to the condition that the letter shall 
                not be distributed to the covered child in a manner 
                that stigmatizes the covered child.
                  ``(E) Eliminating stigma in meal service.--In 
                providing a meal to a covered child, a local 
                educational agency or school food authority may not, 
                based on the status of the covered child as a covered 
                child, dispose of or take away from the covered child 
                any food that has already been served to such covered 
                child.
                  ``(F) Definitions.--In this paragraph:
                          ``(i) Covered child.--The term `covered 
                        child' means a child who--
                                  ``(I) is--
                                          ``(aa) enrolled in a school 
                                        that participates 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); and
                                          ``(bb) is a member of a 
                                        household that owes unpaid 
                                        school meal fees; or
                                  ``(II) is eligible for a free or 
                                reduced price lunch under this section.
                          ``(ii) Unpaid school meal fees.--The term 
                        `unpaid school meal fees' means outstanding 
                        fees owed by a household to a school food 
                        authority or local educational agency (or both) 
                        for lunches under this Act or breakfasts under 
                        section 4 of the Child Nutrition Act of 1966 
                        (42 U.S.C. 1773).''.

SEC. 802. NATIONAL ADVISORY COUNCIL ON UNPAID MEAL DEBT IN CHILD 
                    NUTRITION PROGRAMS.

  (a) Establishment.--There is established a National Advisory Council 
on Unpaid Meal Debt in Child Nutrition Programs (in this section 
referred to as the ``Council'').
  (b) Duties.--The Council shall provide recommendations, in accordance 
with subsection (g), to the Administrator of the Food and Nutrition 
Service with respect to addressing unpaid school meal fees by ensuring 
that--
          (1) students are not stigmatized; and
          (2) school food authorities can maintain fiscal solvency in 
        order to ensure the long-term viability of school meal 
        programs.
  (c) Membership.--
          (1) Number and appointment.--The Council shall be composed of 
        14 members appointed by the Secretary as follows:
                  (A) 2 members shall be school nutrition State agency 
                directors who are employed in different States;
                  (B) 2 members shall be school food service directors 
                of a school meal program in an urban area who are 
                employed in different States;
                  (C) 2 members shall be school food service directors 
                of a school meal program in a rural area who are 
                employed in different States;
                  (D) 2 members shall be officials of the Food and 
                Nutrition Service office of the Department of 
                Agriculture;
                  (E) 2 members shall be parents or guardians (who are 
                not related to one another or to the same child) of 
                children who are eligible for free and reduced price 
                school meals;
                  (F) 2 members shall represent organizations with 
                expertise in the school meal programs; and
                  (G) 2 members shall be food service professionals 
                who--
                          (i) work in school cafeterias; and
                          (ii) maintain daily contact with students, 
                        including by preparing or serving meals or 
                        working at registers.
          (2) Terms.--
                  (A) In general.--Each member shall be appointed for 
                the life of the Council.
                  (B) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the life of 
                the Council shall be appointed for the remainder of the 
                life of the Council.
  (d) Compensation.--
          (1) In general.--Members shall serve without pay.
          (2) Travel expenses.-- Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter I of 
        chapter 57 of title 5, United States Code.
          (3) Parents or guardians.--In the case of a member who is a 
        parent or guardian appointed under subsection (c)(1)(E), such 
        member, in addition to reimbursement under paragraph (2), 
        shall, at the discretion of the Secretary, be compensated in 
        advance for other personal expenses related to participation on 
        the Council, including child care expenses and lost wages 
        during scheduled Council meetings.
          (4) Authorization of appropriations.--There are authorized to 
        be appropriated to carry out this subsection $1,500,000, to 
        remain available through the date described in subsection (h).
  (e) Chairperson; Vice Chairperson.--
          (1) Eligibility.--To be eligible for election to Chairperson 
        or Vice Chairperson of the Council, an individual must be a 
        member of the Council described in subsection (c)(1).
          (2) Election.--The Chairperson and Vice Chairperson of the 
        Council shall be elected by such members.
  (f) Meetings.--
          (1) In general.--The Council shall meet not fewer than 2 
        times per year at the call of the Chairperson.
          (2) Quorum.--5 members of the Council shall constitute a 
        quorum.
  (g) Report.--
          (1) In general.--Not later than 3 years after the 
        establishment of the Council under subsection (a), the Council 
        shall submit to the Administrator of the Food and Nutrition 
        Service a report containing the recommendations described in 
        subsection (b).
          (2) Guidance.--Not later than 1 year after the submission of 
        the report under paragraph (1), the Secretary, acting through 
        the Administrator of the Food and Nutrition Service, shall use 
        the recommendations contained in such report to issue guidance 
        with respect to addressing unpaid school meal fees.
  (h) Termination.--The Council shall terminate on the date that is 1 
day after the submission of the report required under subsection (g).
  (i) Technical Assistance.--The Secretary shall provide the Council 
with such technical and other assistance, including secretarial and 
clerical assistance, as may be required to carry out its functions.
  (j) Unpaid School Meal Fees Defined.--In this section, the term 
``unpaid school meal fees'' means outstanding fees owed by a household 
to a local educational agency for lunches under this Act or breakfasts 
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).

       TITLE IX--STRENGTHENING EVIDENCE-BASED NUTRITION STANDARDS

SEC. 901. UPDATING NUTRITION STANDARDS FOR MEAL PATTERNS.

  (a) Nutrition Standards for School Meals.--
          (1) Amendments to the richard b. russell national school 
        lunch act.--Section 9(f) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1758(f)) is amended--
                  (A) in paragraph (1)--
                          (i) by striking ``Schools that are 
                        participating'' and inserting the following:
                  ``(A) Schools participating in meal programs.--
                Schools that are participating'';
                          (ii) in subparagraph (B)--
                                  (I) by striking ``nutrient'' and 
                                inserting ``dietary''; and
                                  (II) by striking `` and food 
                                insecurity'' and inserting ``, food and 
                                nutrition insecurity, or chronic 
                                disease'';
                          (iii) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively, and 
                        adjusting the margins accordingly; and
                          (iv) by adding at the end the following:
                  ``(B) Updating standards.--Not later than 1 year 
                after the first publication of the Dietary Guidelines 
                for Americans under section 301 of the National 
                Nutrition Monitoring and Related Research Act of 1990 
                (7 U.S.C. 5341) that occurs after the date of the 
                enactment of this subparagraph, and not less frequently 
                than once every 10 years, or not later than 1 year 
                after the publication of 2 consecutive updates to 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) 
                thereafter, whichever occurs first, the Secretary 
                shall:
                          ``(i) Enter into an agreement with the 
                        National Academies of Sciences, Engineering, 
                        and Medicine to--
                                  ``(I) conduct a review of the 
                                nutrition standards and requirements 
                                under paragraph (1); and
                                  ``(II) recommend updates to such 
                                requirements so that they are 
                                substantially similar to 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), 
                                taking into account the practical 
                                application for implementation.
                          ``(ii) Not later than 1 year after the 
                        conclusion of the review described in clause 
                        (i)(I), promulgate regulations to update the 
                        school nutrition standards and requirements 
                        pursuant to paragraph (1) to align with the 
                        recommendations under clause (i)(II).  
                  ``(C) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out subparagraph 
                (B), $3,000,000, for the fiscal year in which the first 
                publication of the Dietary Guidelines for Americans 
                under section 301 of the National Nutrition Monitoring 
                and Related Research Act of 1990 (7 U.S.C. 5341) occurs 
                after the date of the enactment of this Act, to remain 
                available until expended.'';
                  (B) in paragraph (2)--
                          (i) by striking ``To assist schools in 
                        meeting the requirements of this subsection, 
                        the Secretary'' and inserting ``Assistance to 
                        schools.'';
                          (ii) in subparagraph (A)--
                                  (I) by striking ``shall'' and 
                                inserting ``Assistance required.--To 
                                assist schools in meeting the 
                                requirements of this subsection, the 
                                Secretary shall'';
                                  (II) in clause (i), by striking 
                                ``and'' at the end;
                                  (III) in clause (ii), by striking 
                                ``and'' at the end;
                                  (IV) by adding at the end of 
                                subparagraph (A) the following:
                          ``(iii) develop and provide to schools best 
                        practices, trainings (including peer-to-peer 
                        trainings), and other resources;
                          ``(iv) implement healthier school environment 
                        recognition programs; and
                          ``(v) work with food manufacturers and 
                        retailers to support development and increased 
                        availability and affordability of products that 
                        meet the nutrition standards; and'';
                          (iii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) Assistance permitted.--
                          ``(i) In general.--To assist schools in 
                        meeting the requirements of this subsection, 
                        the Secretary may--
                                  ``(I) provide to schools information 
                                regarding other approaches, as 
                                determined by the Secretary; and
                                  ``(II) award grants and monetary 
                                incentives to carry out 1 or more of 
                                the following:
                                          ``(aa) Improving the 
                                        nutritional quality of meals 
                                        and snacks served under a child 
                                        nutrition program.
                                          ``(bb) Enhancing the 
                                        nutrition and wellness 
                                        environment of institutions 
                                        participating in a child 
                                        nutrition program, including by 
                                        reducing the availability of 
                                        less healthy foods during the 
                                        school day.
                                          ``(cc) Supporting food 
                                        systems that supply nutritious 
                                        foods and beverages for 
                                        children in both schools and 
                                        retail markets, including those 
                                        in underserved communities.
                                          ``(dd) Funding a statewide 
                                        nutrition education coordinator 
                                        to support individual school 
                                        food authority nutrition 
                                        education efforts and to 
                                        facilitate collaboration with 
                                        other nutrition education 
                                        efforts in the State.
                          ``(ii) Recipients.--Grants provided pursuant 
                        to clause (i) may be made available to third 
                        party entities that have experience working 
                        with school food service personnel 
                        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) to provide technical assistance to 
                        schools in meeting the goals of this 
                        subparagraph.
                          ``(iii) Authorization of appropriations.--
                        There is authorized to be appropriated to carry 
                        out grants and monetary incentives pursuant to 
                        clause (i) $30,000,000 for fiscal year 2024, to 
                        be available until expended.''; and
                  (C) by striking paragraphs (3) and (4).
          (2) Amendments to the child nutrition act of 1966.--Section 
        10(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1779) is 
        amended--
                  (A) by striking ``(b) National School Nutrition 
                Standards.--'';
                  (B) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) in clause (i)--
                                          (aa) by inserting ``that 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)'' 
                                        after ``nutrition standards''; 
                                        and
                                          (bb) by striking ``; and'' 
                                        and inserting a period;
                                  (II) by striking ``Secretary shall--
                                '' and inserting ``Secretary shall'';
                                  (III) by striking ``(i) establish 
                                science-based'' and inserting 
                                ``establish science-based''; and
                                  (IV) by striking clause (ii);
                          (ii) by striking subparagraph (D);
                          (iii) by redesignating paragraph (1) as 
                        subsection (b) and adjusting the margins 
                        accordingly; and
                          (iv) by redesignating subparagraphs (A) 
                        through (C) as paragraphs (1) through (3), 
                        respectively, and adjusting the margins 
                        accordingly;
                  (C) by adding at the end of subsection (b) (as so 
                redesignated) the following:
          ``(4) Updating standards.--Not later than 1 year after the 
        first publication of the Dietary Guidelines for Americans under 
        section 301 of the National Nutrition Monitoring and Related 
        Research Act of 1990 (7 U.S.C. 5341) that occurs after the date 
        of the enactment of this subparagraph, and not less frequently 
        than once every 10 years or not later than 1 year after the 
        publication of 2 consecutive updates to 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), thereafter, whichever occurs first, the Secretary shall:
                  ``(A) Enter into an agreement with the National 
                Academies of Sciences, Engineering, and Medicine to--
                          ``(i) conduct a review of the school 
                        nutrition standards and requirements 
                        established under this subsection; and
                          ``(ii) recommend updates to such standards 
                        and requirements so that they are substantially 
                        similar to 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), taking into account 
                        the practical application for implementation.
                  ``(B) Not later than 1 year after the conclusion of 
                the review described in subparagraph (A)(i), promulgate 
                regulations to update the school nutrition standards 
                and requirements established under this subsection to 
                align with the recommendations under subparagraph 
                (A)(ii).  
          ``(5) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out paragraph (4), $3,000,000, for 
        the fiscal year in which the first publication of the Dietary 
        Guidelines for Americans under section 301 of the National 
        Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 
        5341) occurs after the date of the enactment of this Act, to 
        remain available until expended.''; and
                  (D) by striking paragraph (2).
          (3) Applicability.--This subsection and the amendments made 
        by this subsection shall apply on and after the date on which 
        the first publication of the Dietary Guidelines for Americans 
        under section 301 of the National Nutrition Monitoring and 
        Related Research Act of 1990 (7 U.S.C. 5341) occurs after the 
        date of the enactment of this Act.
          (4) Regulations.--Regulations promulgated pursuant to 
        amendments made by this subsection to update the nutrition 
        standards and requirements under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall not 
        prohibit any variety of milk that is consistent with the most 
        recent Dietary Guidelines for Americans.
  (b) Additional Reimbursement.--Section 4(b)(3)(D) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1753(b)(3)(D)) is 
amended--
          (1) by striking ``To be eligible'' and inserting the 
        following:
                          ``(i) In general.--To be eligible''; and
          (2) by adding at the end the following:
                          ``(ii) Report.--The Secretary shall make 
                        publicly available on the website of the 
                        Department and update on an annual basis a list 
                        of school food authorities certified to be in 
                        compliance in accordance with clause (i).''.

SEC. 902. NON-NUTRITIVE SWEETENERS, SYNTHETIC DYES, AND OTHER 
                    POTENTIALLY HARMFUL SUBSTANCES IN SCHOOL MEALS.

  (a) In General.--Not later than 6 months after the date of the 
enactment of this section, the Secretary shall seek to enter into an 
agreement with the National Academy of Sciences, Engineering, and 
Medicine (referred to in this section as the ``National Academy'') 
under which the National Academy shall create and publish the report 
described in subsection (b).
  (b) Report.--The report shall include recommendations for nutrition 
standards for the school lunch program authorized under the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) and the 
school breakfast program established by section 4 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773) with respect to non-nutritive 
sweeteners, synthetics dyes, and other potentially harmful substances 
in school meals.
  (c) Publication.--
          (1) National academy.--Not later than 1 year after the date 
        on which the Secretary and the National Academy enter into the 
        agreement described in subsection (a), the National Academy 
        shall--
                  (A) submit the report to the Secretary; and
                  (B) publish the report.
          (2) Secretary.--Not later than 30 days after the submission 
        of the report under paragraph (1)(A), the Secretary shall make 
        such report publicly available in an easily identifiable place 
        on the website of the Department.
  (d) Non-nutritive Sweeteners, Synthetic Dyes, and Other Potentially 
Harmful Substances Standards.--Not later than 18 months after the 
submission of the report under subsection (c)(1)(A), the Secretary may 
promulgate proposed regulations to include standards for non-nutritive 
sweeteners, synthetic dyes, and other potentially harmful substances 
for the school lunch program authorized under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.) 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 in such report.

                         TITLE X--OTHER MATTERS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act

SEC. 1001. ACCOMMODATING DIETARY REQUIREMENTS.

  Section 9(a) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(a)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), by amending clause (i) to 
                read as follows:
          ``(i) shall not--
                                  ``(I) be construed to prohibit the 
                                substitution of foods to accommodate 
                                the medical needs of individual 
                                students; or
                                  ``(II) be construed to prohibit the 
                                nutritionally-equivalent substitution 
                                of foods to accommodate religiously-
                                based or other special dietary needs of 
                                individual students; and''; and
                  (B) in subparagraph (B), by striking ``lower-fat 
                versions of foods commonly used in the school lunch 
                program under this Act'' and inserting ``foods that 
                comply with the meal patterns prescribed by the 
                Secretary''; and
          (2) in paragraph (2)--
                  (A) by amending subparagraph (A)(iii) to read as 
                follows:
                          ``(iii) as a reasonable accommodation under 
                        the Americans with Disabilities Act (42 U.S.C. 
                        12101 et seq.) and section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 794), 
                        shall provide a substitute for fluid milk for a 
                        student whose disability restricts their 
                        diet.''; and
                  (B) by amending subparagraph (B) to read as follows:
                  ``(B) Other substitutions.--
                          ``(i) Standards for required substitution.--
                                  ``(I) A school shall substitute, for 
                                the fluid milk provided under 
                                subparagraph (A), a nondairy beverage 
                                that meets the nutritional needs of a 
                                student for whom fluid milk is not 
                                nutritionally appropriate due to a 
                                medical or other special dietary need 
                                other than a disability described in 
                                subparagraph (A)(iii), as determined by 
                                the school in consultation with the 
                                parent or legal guardian of such 
                                student.
                                  ``(II) A school shall 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 
                                if the substitution is requested by 
                                written statement by a parent or legal 
                                guardian of such student.
                          ``(ii) Standards for discretionary 
                        substitution.--A school may offer all students 
                        a nondairy beverage as a substitute for fluid 
                        milk that is nutritionally equivalent to fluid 
                        milk and meets nutritional standards 
                        established by the Secretary.
                          ``(iii) Excess expenses.--Except as provided 
                        in clause (iv), expenses incurred by providing 
                        substitutions under clauses (i) and (ii) that 
                        are in excess of expenses covered by 
                        reimbursements under this Act shall be paid by 
                        the school food authority.
                          ``(iv) Pilot program.--
                                  ``(I) Program authorized.--Not later 
                                than 90 days after the date of the 
                                enactment of this subparagraph, the 
                                Secretary shall establish and carry out 
                                a pilot grant program to award grants 
                                to eligible school food authorities to 
                                carry out subclause (III).
                                  ``(II) Priority.--In awarding grants 
                                under this clause, the Secretary may 
                                give priority to--
                                          ``(aa) an eligible school 
                                        food authority that serves high 
                                        proportions of children who 
                                        demonstrate high rates of 
                                        lactose intolerance; and
                                          ``(bb) an eligible school 
                                        food authority that--
                                                  ``(AA) submits, as 
                                                part of the application 
                                                for a grant, a need for 
                                                nondairy beverages 
                                                among its student 
                                                population due to 
                                                dietary reasons; and
                                                  ``(BB) demonstrates a 
                                                need for providing 
                                                nondairy beverages to 
                                                children by serving a 
                                                sufficient number (as 
                                                determined by the 
                                                Secretary) of such 
                                                children.
                                  ``(III) Use of funds.--A school food 
                                authority shall use grant funds awarded 
                                under this clause to reimburse the full 
                                cost of providing nondairy beverages as 
                                substitutes for fluid milk under clause 
                                (i)(I) incurred by such school food 
                                authority.
                                  ``(IV) Reports.--
                                          ``(aa) Annual report by 
                                        school food authority.--Not 
                                        later than 1 year after 
                                        receiving a grant under this 
                                        clause, and on an annual basis 
                                        for the duration of the pilot 
                                        program thereafter, a school 
                                        food authority shall submit to 
                                        the Secretary a report on the 
                                        pilot grant program, including 
                                        information with respect to--
                                                  ``(AA) the number of 
                                                schools served by the 
                                                school food authority 
                                                pursuant to the grant; 
                                                and
                                                  ``(BB) the number of 
                                                students served by the 
                                                school food authority 
                                                pursuant to the grant.
                                          ``(bb) Final report by school 
                                        food authority.--The report 
                                        that is the final report 
                                        submitted under item (aa) shall 
                                        include, in addition to the 
                                        information required under 
                                        subitems (AA) and (BB) of such 
                                        item--
                                                  ``(AA) the number of 
                                                nondairy beverages as 
                                                substitutes for fluid 
                                                milk that the school 
                                                food authority served 
                                                during the grant 
                                                period; compared with
                                                  ``(BB) the number of 
                                                nondairy beverages as 
                                                substitutes for fluid 
                                                milk that the school 
                                                food authority served 
                                                during the school year 
                                                immediately preceding 
                                                the start of the grant 
                                                period.
                                          ``(cc) Report by the 
                                        secretary.--Not later than 6 
                                        months after the date described 
                                        in subclause (V), the Secretary 
                                        shall submit to Congress a 
                                        report that includes a summary 
                                        of the information included in 
                                        the reports received under this 
                                        subclause and any such 
                                        information with respect to the 
                                        pilot program the Secretary 
                                        determines to be relevant.
                                  ``(V) Sunset.--The authority to carry 
                                out this clause shall terminate on the 
                                date that is 3 years after the date of 
                                the enactment of this subparagraph.
                                  ``(VI) Eligible school food authority 
                                defined.--In this clause, the term 
                                `eligible school food authority' means 
                                a school food authority for which 50 
                                percent or more of the students served 
                                by such school food authority are 
                                eligible for free or reduced price 
                                lunch under this Act or free or reduced 
                                price breakfast under section 4 of the 
                                Child Nutrition Act of 1966 (42 U.S.C. 
                                1773).
                                  ``(VII) Authorization of 
                                appropriations.--There is authorized to 
                                be appropriated to carry out this 
                                clause $2,000,000 for fiscal year 2024, 
                                to remain available until the date 
                                described in subclause (V).''.

SEC. 1002. DATA PROTECTIONS FOR HOUSEHOLD APPLICATIONS.

  Section 9(b)(3)(B) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(b)(3)(B)) is amended by adding at the end the 
following:
                          ``(iii) Confidentiality standards.--The 
                        confidentiality standards established by the 
                        Secretary shall ensure--
                                  ``(I) the maintenance of reasonable 
                                and appropriate administrative, 
                                technical, and physical safeguards to 
                                ensure the integrity and 
                                confidentiality of information 
                                submitted through electronic 
                                applications described in clause (ii);
                                  ``(II) protection against security 
                                threats or unauthorized uses or 
                                disclosures of the information 
                                submitted through such electronic 
                                applications; and
                                  ``(III) that data collected by such 
                                electronic applications shall be used 
                                only as permitted under paragraph 
                                (6).''.

SEC. 1003. EATING DISORDER PREVENTION.

  Section 9A of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758b) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by inserting ``mental health 
                promotion and education, including awareness of eating 
                disorders'' after ``physical activity,'';
                  (B) in paragraph (2)(B), by striking ``childhood 
                obesity'' and inserting ``diet-related illnesses''; and
                  (C) in paragraph (3), by inserting ``school-based 
                registered dietitians, school-based mental health 
                services providers,'' after ``school administrators,'';
          (2) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by inserting ``and the Administrator of 
                        the Substance Abuse and Mental Health Services 
                        Administration'' after ``Prevention''; and
                          (ii) by inserting ``, school health 
                        professionals (including school-based mental 
                        health services providers when available)'' 
                        after ``school food authorities'';
                  (B) by amending paragraph (2)(C) to read as follows:
                  ``(C) includes such other technical assistance as is 
                required to--
                          ``(i) promote sound nutrition and establish 
                        healthy school nutrition environments; and
                          ``(ii) promote mental health, encourage 
                        mental health assessments, and establish 
                        resilient school environments; and''; and
                  (C) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``conjunction'' and 
                                inserting ``consultation''; and
                                  (II) by inserting ``and the 
                                Administrator of the Substance Abuse 
                                and Mental Health Services 
                                Administration'' after ``Centers for 
                                Disease Control and Prevention'';
                          (ii) in subparagraph (C), by striking 
                        ``January 1, 2014,'' and inserting ``4 years 
                        after the date on which funds are first 
                        appropriated to carry out this section after 
                        the date of the enactment of the Healthy Meals, 
                        Healthy Kids Act,''; and
                          (iii) in subparagraph (D)--
                                  (I) by striking ``$3,000,000'' and 
                                inserting ``$5,000,000''; and
                                  (II) by striking ``2011'' and 
                                inserting ``2024''.

SEC. 1004. COMPLIANCE AND ACCOUNTABILITY.

  Section 22(d) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769c) is amended by striking ``fiscal years 2011 through 2015'' 
and inserting ``fiscal years 2023 through 2028''.

SEC. 1005. NATIONAL HUNGER HOTLINE AND CLEARINGHOUSE.

  Section 26(d) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769g(d)) is amended by striking ``$250,000 for each of fiscal 
years 2010 through 2023'' and inserting ``$500,000 for each of fiscal 
years 2023 through 2028''.

SEC. 1006. ENSURING ADEQUATE MEAL TIME.

  The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) is amended by adding at the end the following:

``SEC. 30. MEAL TIME STUDY AND GUIDANCE.

  ``(a) Study.--The Secretary shall--
          ``(1) not later than 1 year after the date on which funds are 
        first appropriated under subsection (c), enter into an 
        agreement with an independent, nonpartisan, science-based 
        research organization to carry out a study on the time lunches 
        are served, recess is offered, and the duration of lunch 
        periods at schools participating in the school lunch program 
        under this Act; and
          ``(2) not later than 4 years after the date on which funds 
        are first appropriated under subsection (c), publish on the 
        publicly available website of the Department a report that 
        includes the findings of the study required under paragraph 
        (1).
  ``(b) Development and Dissemination of Best Practices.--The Secretary 
shall--
          ``(1) not later than 1 year after the date on which the 
        report required under subsection (a)(2) is published, in 
        coordination with the Secretary of Education, establish a task 
        force to--
                  ``(A) review such report;
                  ``(B) review other research relating to the time 
                lunches are served, recess is offered, and the duration 
                of lunch periods in schools; and
                  ``(C) develop best practices with respect to the time 
                lunches are served, recess is offered, and the duration 
                of lunch periods in schools to ensure student health, 
                including appropriate nutritional intake; and
          ``(2) not later than 2 years after the date on which the 
        report required under subsection (a)(2) is published--
                  ``(A) review the best practices developed under 
                paragraph (1)(C); and
                  ``(B) issue guidance with respect to such best 
                practices to schools participating in the school lunch 
                program under this Act.
  ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for fiscal year 2024, 
to remain available until expended.''.

       Subtitle B--Programs Under the Child Nutrition Act of 1966

SEC. 1011. ENHANCING NUTRITION EDUCATION.

  Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is 
amended--
          (1) in subsection (a)--
                  (A) in paragraph (3), by inserting ``, including 
                training on scratch cooking,'' after ``provide 
                training''; and
                  (B) in paragraph (5), by striking ``helping children 
                to maintain a healthy weight by'';
          (2) in subsection (h)--
                  (A) in paragraph (5)(B)--
                          (i) in clause (i)--
                                  (I) by striking ``educate'' and 
                                inserting ``conduct evidence-based 
                                nutrition education for''; and
                                  (II) by striking ``of a poor diet and 
                                inactivity to obesity and other health 
                                problems'' and inserting ``between 
                                diet, activity, and health'';
                          (ii) in clause (iv), by inserting `` other 
                        classroom education,'' after ``health 
                        education,'';
                          (iii) in clause (viii), by striking ``and'' 
                        at the end;
                          (iv) in clause (ix), by striking the period 
                        at the end and inserting ``; and''; and
                          (v) by adding at the end the following:
                          ``(x) conduct projects that--
                                  ``(I) hire qualified food and 
                                nutrition educators to carry out 
                                programs in schools; and
                                  ``(II) have the goal of improving 
                                student health and nutrition through 
                                such programs.''; and
                  (B) by striking paragraph (6);
          (3) by striking subsection (k); and
          (4) by redesignating subsection (l) as subsection (k).

                  Subtitle C--Improving Food Donations

SEC. 1021. FOOD DONATION IN SCHOOLS.

  Section 9(l) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(l)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``local educational agency'' and 
                inserting ``school food authority'';
                  (B) by striking ``eligible local food banks or 
                charitable organizations'' and inserting ``nonprofit 
                organizations or individuals in need as determined by 
                such school or school food authority'';
                  (C) by striking ``general.--Each'' and inserting the 
                following: ``general.--
                  ``(A) Food donations permissible.--Each''; and
                  (D) by adding at the end the following:
                  ``(B) Use of school campus.--The food donated by a 
                school through the school food authority serving such 
                school pursuant to this paragraph may be received, 
                stored, and distributed on the campus of such 
                school.'';
          (2) in paragraph (2)(A), by striking ``local educational 
        agencies'' in each place it appears and inserting ``school food 
        authorities'';
          (3) in paragraph (3), by striking ``local educational 
        agency'' and inserting ``school food authority''; and
          (4) by amending paragraph (4) to read as follows:
          ``(4) Definition.--In this subsection, the term `nonprofit 
        organization' means an incorporated or unincorporated entity 
        that--
                  ``(A) is operating for religious, charitable, or 
                educational purposes; and
                  ``(B) does not provide net earnings to operate in any 
                other manner that inures to the benefit of any officer, 
                employee, or shareholder of the entity.''.

SEC. 1022. BILL EMERSON GOOD SAMARITAN FOOD DONATION ACT.

  Section 22 of the Child Nutrition Act of 1966 (42 U.S.C. 1791) is 
amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) by striking ``quality and labeling'' and 
                        inserting ``safety and safety-related 
                        labeling''; and
                          (ii) by inserting ``being past date label,'' 
                        after ``surplus,'';
                  (B) in paragraph (2)--
                          (i) by striking ``quality and labeling'' and 
                        inserting ``safety and safety-related 
                        labeling''; and
                          (ii) by inserting ``being past date label,'' 
                        after ``surplus,'';
                  (C) in paragraph (3), by adding ``or is charged a 
                good Samaritan Reduced Price'' before the period at the 
                end;
                  (D) in paragraph (4), by striking ``for human'' and 
                inserting the following: ``for--
                  ``(A) human consumption; or
                  ``(B) pet, emotional support animal, or service 
                animal consumption.'';
                  (E) in paragraph (6), by adding ``pet supply,'' after 
                ``cleaning product,'';
                  (F) in paragraph (10), by inserting ``pet food 
                supplier, school, school food authority,'' after 
                ``caterer, farmer,'';
                  (G) by adding at the end the following:
          ``(11) Emotional support animal.--The term `emotional support 
        animal' means an animal that is covered by the exclusion 
        specified in section 5.303 of title 24, Code of Federal 
        Regulations (or a successor regulation) and that is not a 
        service animal.
          ``(12) Good samaritan reduced price.--The term `good 
        Samaritan reduced price' means, with respect to an apparently 
        wholesome food or an apparently fit grocery product, a price 
        that is an amount not greater than the cost of handling, 
        administering, and distributing such food or grocery product.
          ``(13) Pet.--The term `pet' means a domesticated animal that 
        is kept for pleasure rather than for commercial purposes.
          ``(14) Pet supplies.--The term `pet supplies' means tangible 
        personal property used for the caring of pets.
          ``(15) Qualified direct donor.--The term `qualified direct 
        donor' means a retail grocer, wholesaler, agricultural 
        producer, restaurant, caterer, school food authority, or 
        institution of higher education (as defined in section 101 or 
        102(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 
        1001; 1002(a)(1)(B))).
          ``(16) Service animal.--The term `service animal' has the 
        meaning given the term in section 36.104 of title 28, Code of 
        Federal Regulations (or a successor regulation).''; and
                  (H) by reordering paragraphs (1) through (10) and the 
                paragraphs added by subparagraph (G) of this paragraph 
                in alphabetical order based on the headings of such 
                paragraphs, and renumbering such paragraphs as so 
                reordered;
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by inserting ``or State or unit of local 
                        government'' after ``nonprofit organization''; 
                        and
                          (ii) by inserting ``or sale at a good 
                        Samaritan reduced price'' after ``ultimate 
                        distribution'';
                  (B) in paragraph (2), by inserting ``or sale at a 
                good Samaritan reduced price'' after ``ultimate 
                distribution'';
                  (C) by adding after paragraph (2) the following:
          ``(3) Liability of state or unit of local government.--A 
        State or unit of local government shall not be subject to 
        liability arising from the nature, age, packaging, or condition 
        of apparently wholesome food or an apparently fit grocery 
        product that the State or unit of local government received as 
        a donation in good faith from a person, gleaner, or nonprofit 
        organization for ultimate distribution to needy individuals.
          ``(4) Direct donations to needy individuals.--A qualified 
        direct donor shall not be subject to civil or criminal 
        liability arising from the nature, age, packaging, or condition 
        of apparently wholesome food or an apparently fit grocery 
        product that the qualified direct donor donates in good faith 
        to needy individuals.
          ``(5) Liability with respect to pets.--
                  ``(A) Donations made.--A person or gleaner shall not 
                be subject to civil or criminal liability arising from 
                the nature, age, packaging, or condition of food 
                described in subsection (b)(4)(B) or pet supplies that 
                the person or gleaner donates in good faith to a 
                nonprofit organization or State or unit of local 
                government for direct distribution to pets.
                  ``(B) Donations received.--A nonprofit organization 
                or State or unit of local government shall not be 
                subject to civil or criminal liability arising from the 
                nature, age, packaging, or condition of food described 
                in subsection (b)(4)(B) or pet supplies that the 
                nonprofit organization or State or unit of local 
                government received as a donation in good faith from a 
                person or gleaner for direct distribution to pets.'';
                  (D) by redesignating paragraph (3) as paragraph (6); 
                and
                  (E) in paragraph (6), as so redesignated by 
                subparagraph (D)--
                          (i) by striking ``Paragraphs (1) and (2)'' 
                        and inserting ``Paragraphs (1), (2), (3), (4), 
                        and (5)''; and
                          (ii) by inserting ``qualified direct donor, 
                        State or local government,'' after ``person, 
                        gleaner,''; and
          (3) in subsection (e)--
                  (A) by inserting ``or State or unit of local 
                government'' after ``the nonprofit organization''; and
                  (B) by striking ``quality and labeling'' in each 
                place it appears and inserting ``safety and safety-
                related labeling''.

SEC. 1023. REGULATIONS.

  Not later than 180 days after the date of the enactment of this 
section, the Secretary shall--
          (1) in consultation with the Secretary of Health Human 
        Services, issue regulations with respect to the safety and 
        safety-related labeling standards of apparently wholesome food 
        and an apparently fit grocery product under section 22 of the 
        Child Nutrition Act of 1966 (42 U.S.C. 1791);
          (2) issue guidance with respect to section 22 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1791), including promoting 
        awareness of food donation under such section.

                       Subtitle D--Miscellaneous

SEC. 1031. TECHNICAL AMENDMENTS.

  (a) Committee on Education and Labor.--The following Acts are amended 
by striking ``Committee on Education and the Workforce'' each place 
such term appears in heading and text and inserting ``Committee on 
Education and Labor'':
          (1) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
          (2) The Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.).
  (b) Other Amendments.--Section 17(h)(4)(A)(vi) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(4)(A)(vi)) is amended by striking 
``and'' at the end.
  (c) Citation to Section 504 of Rehabilitation Act of 1973.--Section 
12(d)(3) of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1760(d)(3)) is amended by striking ``in the'' and all that follows 
through the period at the end and inserting ``in section 7 of the 
Rehabilitation Act of 1973 (29 U.S.C. 705).''

                          Purpose and Summary

    The purpose of H.R. 8450, the Healthy Meals, Healthy Kids 
Act, is to modernize and reauthorize federal child nutrition 
programs to better meet the needs of children and families.
    The Healthy Meals, Healthy Kids Act is a comprehensive 
reauthorization of child nutrition and related programs 
authorized under the Richard B. Russell National School Lunch 
Act\1\ and the Child Nutrition Act of 1966.\2\ These programs 
include, but are not limited to, the National School Lunch 
Program (NSLP), the Child and Adult Care Food Program (CACFP), 
the School Breakfast Program (SBP), and the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
(WIC). Collectively, these programs ensure nutrition security 
for our nation's infants and children, and they provide 
nutritious meals and snacks in a variety of settings. Child 
nutrition programs have not been reauthorized since 2010. 
Reauthorization will ensure greater certainty for child 
nutrition programs that fill a critical role in meeting the 
nutrition needs of children and families and get us closer to 
achieving our goal of ending child hunger.
---------------------------------------------------------------------------
    \1\The Richard B. Russell National School Lunch Act, Pub. L. No. 
79-396, 60 Stat. (1946) (codified in scattered sections of 7 U.S.C.).
    \2\Child Nutrition Act of 1966, Pub. L. No. 89-642, 80 Stat. (1966) 
(codified in scattered sections of 7 U.S.C.).
---------------------------------------------------------------------------
    H.R. 8450 builds upon the successes of prior child 
nutrition reauthorizations to meet current nutrition needs and 
respond to new needs as we emerge from the COVID-19 pandemic. 
H.R. 8450 expands school meals and out-of-school feeding 
programs and strengthens and expands WIC. This bill ensures 
alignment with the Dietary Guidelines for Americans\3\ and 
establishes grant programs to improve kitchen infrastructure, 
invest in Farm to School, and support scratch cooking.
---------------------------------------------------------------------------
    \3\U.S. Dep't of Agric. and U.S. Dep't of Health & Human Servs. 
Dietary Guidelines for Americans, 2020-2025. 9th Edition. (December 
2020). https://www.dietaryguidelines.gov/sites/default/files/2020-12/
Dietary_Guidelines_for_Americans_2020-2025.pdf.
---------------------------------------------------------------------------

                            Committee Action


                             117TH CONGRESS

    On May 12, 2021, the Committee on Education and Labor's 
(Committee) Subcommittee on Civil Rights and Human Services 
(CRHS Subcommittee) held a hearing titled ``Examining the 
Policies and Priorities of the U.S. Department of Agriculture's 
Food and Nutrition Service'' (May 12 Hearing). The purpose of 
this hearing was to discuss President Biden's Fiscal Year (FY) 
2022 Budget proposal for child nutrition programs under the 
U.S. Department of Agriculture's (USDA) Food and Nutrition 
Service (FNS) as well as the Biden Administration's priorities 
for federal child nutrition programs. The Subcommittee heard 
testimony from Ms. Stacy Dean, Deputy Under Secretary for Food, 
Nutrition, and Consumer Services, USDA, Washington, DC.
    On June 10, 2021, the CRHS Subcommittee held a hearing 
titled ``Ending Child Hunger: Priorities for Child Nutrition 
Reauthorization.'' The purpose of this hearing was to explore 
ideas for congressional action to end child hunger, including 
through the reauthorization of federal child nutrition programs 
and additional federal investment. The Subcommittee heard 
testimony from: Mr. Michael Wilson, Director, Maryland Hunger 
Solutions, Baltimore, MD; Ms. Crystal Cooper, Executive 
Director, Nutrition Support Services in Chicago Public Schools, 
Chicago, IL; Mr. Brandon Lipps, Principal, Caprock Strategies, 
Alexandria, VA; and Mr. Tom Colicchio, Chef and Owner, Crafted 
Hospitality, New York, NY.
    On July 28, 2021, the CRHS Subcommittee held a hearing 
titled ``Food for Thought: Examining Federal Nutrition Programs 
for Young Children and Infants.'' The purpose of this hearing 
was to discuss ways to improve and strengthen WIC and CACFP. 
The Subcommittee heard testimony from: Ms. Teresa Turner, MS, 
RD, LDN, SNS, FAND, Nutritionist, Child and Youth Services, 
United States Army, Glen Burnie, MD; Ms. Paula Garrett, MS, RD, 
Division Director for Community Nutrition, Virginia Department 
of Health, Richmond, VA; Ms. Jessica Burris, North Carolina WIC 
Participant and Breastfeeding Peer Counselor, Montgomery County 
Department of Health, Troy, NC; and Mr. Trevor Farrell, Senior 
Vice President and Chief Commercial Officer, Americas, 
Schreiber Foods, Inc., Green Bay, WI.
    On June 23, 2022, the CRHS Subcommittee held a hearing 
titled ``Examining the Policies and Priorities of the U.S. 
Department of Agriculture's Food and Nutrition Service.'' The 
purpose of the hearing was to discuss President Biden's FY 2023 
Budget proposal for child nutrition programs under FNS as well 
as the Biden Administration's priorities for federal child 
nutrition programs. The Subcommittee heard testimony from Ms. 
Cindy Long, Administrator, Food and Nutrition Service, USDA, 
Washington, DC.
    On July 27, 2022, the Committee marked up H.R. 8450. The 
Committee considered the following amendments to H.R. 8450:
           Representative Suzanne Bonamici (D-OR-1) 
        offered an amendment in the nature of a substitute. The 
        amendment was adopted by voice vote and made the 
        following modifications:
                   adds improvement grants and 
                technical assistance to support direct 
                certification;
                   expands the request for 
                information from food service management 
                companies to include trends in compensation and 
                benefits and requires the Secretary of 
                Agriculture (Secretary) to issue a rule 
                regarding food service management companies;
                   streamlines and clarifies the 
                requirement for school food authorities to 
                submit a report to the Secretary on the impact 
                of scratch cooking at the conclusion of the 
                grant period;
                   adds a prohibition on 
                interchange and transaction fees on WIC 
                vendors;
                   increases WIC back spend 
                authority for food funds, nutrition services 
                and administration funds, and the WIC Farmers' 
                Market Nutrition Program (FMNP);
                   adds a maximum FMNP benefit of 
                $100;
                   directs the Secretary to award 
                competitive grants to states to award subgrants 
                to improve nutrition in hard-to-reach areas 
                under the Summer Food Service Program (SFSP);
                   allows SFSP to operate at school 
                sites during unanticipated closures;
                   clarifies the application for 
                the Summer Electronic Benefits Transfer (Summer 
                EBT) Program;
                   directs the Secretary to provide 
                Summer EBT Program implementation grants to 
                states and Indian Tribal organizations in FY 
                2023;
                   requires school food 
                authorities, in the context of administrative 
                reviews and surveys, to note if they have 
                experienced suspected, alleged, or confirmed 
                noncompliance with Buy American requirements on 
                the part of a distributor in the last 12 
                months;
                   changes the timeframe in which 
                the Secretary submits a report to Congress 
                regarding the school food waste reduction grant 
                program;
                   increases the maximum Farm to 
                School grant award to $500,000 and removes the 
                match requirement;
                   updates the reimbursement 
                amounts for the tribally operated meal and 
                snack pilot project to include administrative 
                funds for SFSP;
                   updates the definitions of 
                Indian Tribe and Tribal Operator;
                   updates the definition of a 
                covered child under the unpaid meal debt 
                provision;
                   updates the requirements for the 
                Island Areas Eligibility Feasibility Study;
                   clarifies the process and timing 
                for updating the nutrition standards and adds a 
                National Academies of Sciences, Engineering, 
                and Medicine study as part of the process to 
                ensure that school nutrition standards align 
                with the Dietary Guidelines for Americans 
                (DGAs);
                   adds a requirement for the 
                Secretary to annually post a list of schools in 
                compliance with nutrition standards on the USDA 
                website;
                   includes additional language to 
                ensure milk varieties consistent with the DGAs 
                are made available; and
                   makes minor and technical 
                changes throughout.
           Chairman Bobby Scott (D-VA-3) offered a 
        Democratic Manager's Amendment. The amendment was 
        adopted by voice vote and made the following 
        modifications:
                   allows a state to establish a 
                system for statewide online application to 
                determine eligibility for free or reduced price 
                meals;
                   makes technical corrections to 
                the commodity assistance provisions;
                   allows non-school sponsors under 
                SFSP to utilize the offer versus serve 
                provision;
                   makes minor and technical 
                changes to the Summer EBT Program, CACFP, and 
                the plant-based foods grant program;
                   adds appropriations to provide 
                technical assistance to support the healthy 
                food initiative and improve the nutritional 
                quality of meals served in schools, including 
                funding for a statewide nutrition education 
                coordinator;
                   clarifies that non-dairy 
                alternatives (when not provided for a medical 
                reason or dietary reason) must be nutritionally 
                equivalent to fluid milk and meet nutritional 
                standards established by the Secretary;
                   clarifies the application of the 
                food donation provisions to instances where 
                donations are given to animal shelters; and
                   makes minor and technical 
                changes throughout.
           Representative Lisa McClain (R-MI-10) 
        offered an amendment to allow any vegetable to be 
        substituted for fruit in the School Breakfast Program. 
        The amendment was withdrawn.
           Representative Glenn Thompson (R-PA-15) 
        offered an amendment to allow any milk to be served in 
        certain school meals programs and provided through WIC. 
        The amendment was defeated by voice vote.
           Representative Tim Walberg (R-MI-7) offered 
        an amendment to ensure that schools may make food 
        substitutions for religious dietary needs. The 
        amendment was adopted by voice vote.
           Representative Bob Good (R-VA-5) offered an 
        amendment to require nutrition regulations promulgated 
        under the bill to make grain-based desserts eligible 
        for reimbursement. The amendment was withdrawn.
           Representative McClain offered an amendment 
        to prohibit changes in the bill from taking effect 
        until an independent economist certifies that the bill 
        will not increase inflation and inflation drops to two 
        percent or below. The amendment was defeated by a vote 
        of 19 Yeas and 27 Nays.
           Representative Diana Harshbarger (R-TN-1) 
        offered an amendment to require a feasibility study 
        prior to the issuance of new or updated regulations on 
        school meal programs to determine if potential 
        nutrition standards would impact cost or increase food 
        waste and to examine the time necessary for school meal 
        program operators to have food that meets the standards 
        available for purchase. The amendment was defeated by a 
        vote of 19 Yeas and 27 Nays.
           Representative Elise Stefanik (R-NY-21) 
        offered an amendment to require WIC to contract with 
        two infant formula manufacturers per state or state 
        consortia. The amendment was defeated by a vote of 20 
        Yeas and 24 Nays.
           Representative Glenn Grothman (R-WI-6) 
        offered an amendment to prohibit the enforcement of the 
        May 25, 2022, memorandum on Title IX enforcement as it 
        relates to child nutrition programs. The amendment was 
        defeated by a vote of 20 Yeas and 25 Nays.
           Representative Mary Miller (R-IL-15) offered 
        an amendment to strike the word ``individual'' in each 
        place it appears in the definitions of ``breastfeeding 
        woman'' and ``postpartum woman'' and insert ``woman'' 
        in each instance and strike the definition of 
        ``pregnant woman.'' The amendment was defeated by a 
        vote of 20 Yeas and 25 Nays.
    The Committee voted to report H.R. 8450 favorably, as 
amended, to the House of Representatives by a vote of 27 Yeas 
and 19 Nays.

                            Committee Views

    Since the 1930s, the federal government has invested in 
programs to feed children, beginning with aid provided to 
support school lunch programs.\4\ These programs have evolved, 
and today, federal child nutrition programs are generally 
authorized in two federal statutes. The Richard B. Russell 
National School Lunch Act\5\ was first signed into law by 
President Truman in 1946 to create the NSLP to bolster national 
security threatened by rampant malnutrition among military 
recruits. The Child Nutrition Act of 1966\6\ later authorized 
the SBP and other relevant programs. All of these programs are 
administered by USDA. Both statutes are generally reauthorized 
by Congress at the same time in a process commonly referred to 
as Child Nutrition Reauthorization (CNR).
---------------------------------------------------------------------------
    \4\Kara Clifford Billings, School Meals and Other Child Nutrition 
Programs: Background and Funding (R46234v8), Cong. Rsch. Serv. (2022), 
https://crsreports.congress.gov/product/pdf/R/R46234.
    \5\The Richard B. Russell National School Lunch Act, Pub. L. No. 
79-396, 60 Stat. (1946) (codified in scattered sections of 7 U.S.C.).
    \6\Child Nutrition Act of 1966, Pub. L. No. 89-642, 80 Stat. (1966) 
(codified in scattered sections of 7 U.S.C.).
---------------------------------------------------------------------------
    The most recent CNR was the Healthy Hunger-Free Kids Act of 
2010 (HHFKA), which received bipartisan congressional support 
and was signed into law by President Obama on December 13, 
2010.\7\ After September 30, 2015, that authorization lapsed. 
Still, with few exceptions, the child nutrition programs 
continue to operate without disruption through annual 
appropriations. The Healthy Meals, Healthy Kids Act provides an 
opportunity to address issues that could not have been 
forecasted when HHKFA was enacted, such as meeting the 
nutrition needs of our nation's children amidst a public health 
crisis. This reauthorization is an important opportunity for 
Congress to assess what is working from the prior 
reauthorization--which expired nearly seven years ago--and 
build upon lessons learned to address the current reality of 
child nutrition programs.
---------------------------------------------------------------------------
    \7\Healthy, Hunger-Free Kids Act of 2010, Pub. L. No. 111-296, 124 
Stat. 3183 (2010) (codified in scattered sections of 7 U.S.C., 20 
U.S.C. and 42 U.S.C.).
---------------------------------------------------------------------------
    The critical role of federal nutrition programs in ensuring 
the food security and health of children was made clear during 
the COVID-19 pandemic. As the nation emerges from this public 
health and economic crisis, Congress must take action to ensure 
that families continue to receive the support they need by 
expanding access to federal child nutrition programs. H.R. 8450 
implements the lessons from the pandemic as well as the 
changing landscape over the past seven years since the prior 
authorization to modernize the programs and ensure that they 
can meet the needs of children and families today. 
Fundamentally, H.R. 8450 is a comprehensive and long overdue 
six-year child nutrition reauthorization that invests in the 
nation's future.

            EXPANDING AND PROTECTING ACCESS TO SCHOOL MEALS

    Federal school meal programs provide reimbursement to 
schools that provide healthy meals to students. Meals are 
served to all children in schools that participate in the 
programs and the reimbursement rate varies based on whether the 
meal is provided to a student who qualifies for free or reduced 
price meals. USDA sets income eligibility guidelines annually 
based upon the federal poverty guidelines that determine 
whether a child is eligible for free or reduced price meals. 
Families making under 130 percent of the federal poverty 
guidelines qualify for free meals and families making between 
185 and 130 percent of the federal poverty guidelines qualify 
for reduced price lunch. A child can be certified for a free or 
reduced price meal through household income eligibility 
typically through household applications, categorical (or 
automatic) eligibility via household applications or direct 
certification, or the community eligibility provision (CEP).
    In 2019, roughly 30 million children participated in the 
NSLP daily and nearly 15 million children participated in the 
SBP.\8\ These programs are especially impactful for children 
from low-income and food insecure families, as children who 
participate in SBP and NLSP receive over half of their daily 
energy intake from school.\9\ School meal programs have 
multiple benefits to children including increasing focus in the 
classroom, improving educational outcomes, and reducing food 
insecurity.\10\ Additionally, children who participate in 
school meal programs consume more whole grains, fruits, and 
vegetables and have a better overall diet than children who do 
not participate in school meals.\11\
---------------------------------------------------------------------------
    \8\National Level Annual Summary Tables: FY 1969-2021, U.S. Dep't 
of Agric. Food & Nutrition Serv. (Jul. 8, 2022), https://
www.fns.usda.gov/ pd/child-nutrition-tables.
    \9\The Importance of School Meals, No Kid Hungry (last visited Aug. 
5, 2022), https://state.nokidhungry.org/new-york/wp-content/uploads/
sites/16/2020/08/Importance-of-School-Meals
.pdf.
    \10\Why School Meals?, Hunger Free Vermont (last visited Aug. 5, 
2022), https://www.hungerfreevt.org/why-school-
meals#::text=School%20meals%20are%20a %20powerful,sources%20or 
%20pack%20from%20home.
    \11\School Nutrition And Meal Cost Study: Volume 4--Student 
Participation, Satisfaction, And Dietary Intakes, U.S. Dep't of Agric. 
Food & Nutrition Serv. (Apr. 2019), https://fns-prod.azureedge.us/ 
sites/default/ files/resource-files/ SNMCS-Volume4-Summary.pdf.
---------------------------------------------------------------------------

Building on the Success of Community Eligibility

    CEP was first authorized in 2010 and was available 
nationwide beginning July 1, 2014.\12\ CEP allows schools and 
local educational agencies (LEAs) to provide free breakfast and 
lunch to all enrolled students if more than 40 percent of the 
students are directly certified for free school meals by virtue 
of their household participation in other means-tested 
programs, such as the Supplemental Nutrition Assistance Program 
(SNAP) or Temporary Assistance for Needy Families (TANF). The 
percentage of children who are directly certified is called the 
identified student percentage (ISP). States may also opt-in to 
use Medicaid data through a USDA demonstration project to 
evaluate the use of Medicaid eligibility data to directly 
certify children for free or reduced price school meals.
---------------------------------------------------------------------------
    \12\The Community Eligibility Provision (CEP): What Does It Mean 
For Your School or Local Educational Agency?, U.S. Dep't of Agric. Food 
& Nutrition Serv. (Apr. 19, 2019), https://www.fns.usda.gov/cn/
community-eligibility-provision.
---------------------------------------------------------------------------
    Community eligibility has been linked to positive outcomes 
for students, including lower disciplinary rates and healthier 
body mass indexes.\13\ CEP helps fight the stigma of receiving 
free and reduced price meals by providing universal benefits 
without having to prove eligibility. Additionally, many 
immigrant families have indicated reluctance to complete meal 
applications due to their immigration status.\14\ CEP also 
reduces barriers for families since it eliminates the need for 
families to spend time filling out paperwork. Schools benefit 
from CEP as school personnel enjoy more streamlined meal 
programs and less administrative work. Finally, healthier meals 
for students have shown to increase scores on achievement 
tests.\15\
---------------------------------------------------------------------------
    \13\Amelie A. Hecht et.al., Impact of The Community Eligibility 
Provision of the Healthy, Hunger-Free Kids Act on Student Nutrition, 
Behavior, and Academic Outcomes: 2011-2019, 110 Am. J. of Pub. Health, 
1405, 1407 (2020).
    \14\Cecibel Henriquez, New Report Shows that Fear in Immigrant 
Communities Kept Children from Getting the Food They Needed, No Kid 
Hungry (Dec. 9, 2021), https://www.nokidhungry.org/blog/new-report-
shows-fear-immigrant-communities-kept-children-getting-food-they-
needed.
    \15\Michael L. Anderson et al., School Meal Quality and Academic 
Performance, UC Berkeley (Oct. 23, 2018), https://are.berkeley.edu/
mlanderson/pdf/school_lunch.pdf.
---------------------------------------------------------------------------
    When utilizing CEP, schools are reimbursed based on an 
estimate of the number of students eligible for free school 
meals using a multiplier of 1.6 times the ISP. Schools with 
lower ISPs do not always see CEP as a financially viable 
option; in some areas of the country, an estimated 30 percent 
of eligible schools do not elect to participate in CEP.\16\ 
H.R. 8450 increases the multiplier used to determine school 
reimbursement rates from 1.6 to 2.5, thereby increasing the 
reimbursement level for schools and incentivizing more schools 
to participate. An increase in the multiplier encourages CEP 
participation in school districts with high costs for producing 
meals, such as rural districts that often have smaller 
economies of scale and limited food purchasing and 
transportation options.\17\
---------------------------------------------------------------------------
    \16\Community Eligibility: The Key to Hunger-Free Schools: School 
Year 2019-2020, Food Rsch. & Action Ctr. (May 2020), https://frac.org/
cep-report-2020.
    \17\Zoe Neuberger, American Families Plan Could Substantially 
Reduce Children's Food Hardship, Ctr. on Budget & Pol'y Priorities (May 
2020), https://www.cbpp.org/sites/default/files/5-21-21pov.pdf.
---------------------------------------------------------------------------
    Additionally, H.R. 8450 lowers the participation threshold 
for schools from 40 percent to 25 percent of identified 
students and allows statewide election of CEP. A new statewide 
CEP option would ensure that states with high child poverty 
rates can administer the school breakfast and lunch programs 
more effectively.\18\ It also ensures that low-income students 
can easily receive free meals regardless of whether they 
transfer schools or poverty is not concentrated in their 
area.\19\
---------------------------------------------------------------------------
    \18\Emily Gutierrez, The States That Need It Most Might Not Enroll 
in Statewide Free Meals, Urb. Inst. (Nov. 2021), https://www.urban.org/
sites/default/files/publication/105065/the-states-that-need-it-most-
might-not-enroll-in-statewide-free-meals.pdf.
    \19\Zoe Neuberger, Nutrition Provisions in New House Build Back 
Better Legislation Could Substantially Reduce Children's Food Hardship, 
Ctr. on Budget & Pol'y Priorities (Nov. 2021), https://www.cbpp.org/
sites/default/files/11-5-21fa.pdf.
---------------------------------------------------------------------------

Expanding Direct Certification

    Direct certification allows children from low-income 
families to access free school meals without having to complete 
an additional application if they are already participating in 
certain benefits programs. Direct certification is therefore 
beneficial for both schools and families as it does not require 
any individual household paperwork. Instead, states and school 
districts use data-matching between school enrollment 
information and state agency program enrollment at least three 
times per year.\20\ USDA introduced the policy of direct 
certification for free meals in the late 1980s.\21\ In 2004, 
Congress began requiring school districts to directly certify 
children residing in households that receive SNAP benefits, and 
HHFKA required states to directly certify at least 95 percent 
of children residing in households that receive SNAP benefits 
by the 2013-2014 school year.\22\ HHFKA also created a pilot 
program for states to use Medicaid data for direct 
certification in addition to SNAP data. In 2020, USDA found 
that 1.2 million students were directly certified for free 
meals based on access to Medicaid data in the 13 states that 
had opted into the pilot.\23\ Over the years, USDA and Congress 
have empowered states to include additional data in their 
direct certification process, such as TANF and foster care 
data.\24\ As a result of expanding direct certification, state 
administrative costs decreased over the 2019-2020 school 
year.\25\
---------------------------------------------------------------------------
    \20\Alison Maurice, Direct Certification Improves Low-Income 
Student Access to School Meals: An Updated Guide to Direct 
Certification, Food Rsch. & Action Ctr. (Nov. 2018), https://frac.org/
wp-content/uploads/direct-cert-improves-low-income-school-meal-
access.pdf.
    \21\Philip Gleason et al., Direct Certification in the National 
School Lunch Program--Impacts on Program Access and Integrity, 
Mathematica (2003), https://www.ers.usda.gov/webdocs/publications/
43317/15905_efan03009fm_1_.pdf?v=0.
    \22\Madeline Levin and Zoe Neuberger, Improving Direct 
Certification Will Help More Low-Income Children Receive School Meals, 
Ctr. on Budget & Pol'y Priorities (July 2014), https://www.cbpp.org/
sites/default/files/atoms/files/7-25-14fa.pdf.
    \23\Lara Hulsey et al., Direct Certification with Medicaid for Free 
and Reduced-Price Meals (DCM-F/RP) Demonstration, School Year 2019-2020 
Report, Mathematica (Mar. 2022), https://www.fns.usda.gov/cn/usda-dcm-
frp-demonstration.
    \24\Levin and Neuberger, supra note 22.
    \25\Hulsey, supra note 23.
---------------------------------------------------------------------------
    H.R. 8450 builds on the success of direct certification by 
discontinuing the Medicaid pilot program and permanently 
allowing children in Medicaid to directly qualify to receive 
free or reduced price meals. Under the bill, children who are 
enrolled in Medicaid and are members of households with incomes 
at or below 133 percent of the poverty line, or who are 
eligible to receive assistance under Medicaid by virtue of 
receiving Adoption Assistance, Social Security Income, or 
Guardianship Assistance can be directly certified to receive 
free school meals. The bill also allows children who are 
enrolled in Medicaid and who are members of households with 
incomes between 133 and 185 percent of the poverty line to be 
directly certified for reduced price meals.

Addressing Lunch Shaming and Unpaid Meal Debt

    Not every child who is food insecure qualifies for free or 
reduced price school meals. An estimated 29 percent of 
individuals who are food insecure live in a household with an 
income that makes them unlikely to qualify for federal 
assistance.\26\ Many students can begin accumulating a negative 
balance on their school meal account and, in fact, 75 percent 
of school districts surveyed by the School Nutrition 
Association in 2019 reported that they had outstanding school 
lunch debts.\27\ Reports have indicated that students who were 
unable to pay have had their food thrown away, been subjected 
to wearing wristbands and stamps, and have had their 
extracurricular activities limited.\28\
---------------------------------------------------------------------------
    \26\Craig Gunderson et al., Map The Meal Gap 2019, Feeding Am. 
(2019), https://www.feedingamerica.org/sites/default/files/2019-05/
2017-map-the-meal-gap-all-modules_0.pdf.
    \27\Sch. Nutrition Ass'n., School Meal Trends & Stats, (last 
visited Aug. 5, 2022), https://schoolnutrition.org/aboutschoolmeals/
schoolmealtrendsstats/#6.
    \28\Crystal FitzSimons, School Lunch Debt and Lunch Shaming Is a 
Problem That Needs a National Solution, NBC News (Oct. 16, 2019), 
https://www.nbcnews.com/think/opinion/school-lunch-debt-lunch-shaming-
problem-needs-national-solution-ncna1066461.
---------------------------------------------------------------------------
    The notion of shaming, embarrassing, and penalizing 
students and families struggling to afford school meals is 
unacceptable. H.R. 8450 prohibits these alienating practices 
and requires schools to attempt to directly certify students 
with unpaid meal debt. The legislation also allows schools to 
be retroactively reimbursed for meals served once a child is 
deemed eligible and necessary documentation is provided by the 
School Food Authority (SFA)--the administering unit for the 
operation of a school feeding program--to the state agency. 
Additionally, H.R. 8450 establishes an advisory council to 
provide recommendations to the Department on addressing unpaid 
meal debt that ensures that no student is stigmatized and that 
school food authorities can maintain fiscal solvency.

Providing Flexibility During Qualified Emergencies

    During the COVID-19 pandemic, the USDA's FNS has provided 
various waivers to child nutrition program operators to allow 
them to adjust and react to the complexities arising from the 
pandemic.\29\ Many of these administrative simplifications--
such as waiving certain reporting requirements--have eased the 
burden on operators during these challenging and uncertain 
times. H.R. 8450 provides the Secretary with the authority to 
waive certain statutory or regulatory requirements under child 
nutrition programs on a state-by-state or national level in the 
event of a qualifying emergency, such as a public health 
emergency or a federally declared natural disaster. This 
authority is temporary and limited to respond to extenuating 
circumstances and prevent meal disruption.
---------------------------------------------------------------------------
    \29\U.S. Dep't of Agric. Food & Nutrition Serv. FNS Responds to 
COVID-19 (last visited Aug. 5, 2022), https://www.fns.usda.gov/
coronavirus.
---------------------------------------------------------------------------

                   INVESTING IN SCHOOL MEAL CAPACITY

    Ongoing supply chain disruptions that began in 2020 persist 
as a result of pandemic related interruptions in production and 
regional instability in areas with high exports of wheat, 
including Ukraine.\30\ As a result, SFAs have been increasingly 
concerned about supply shortages and have been forced to make 
last minute arrangements to accommodate supply challenges 
(e.g., delayed and incorrect deliveries).\31\ H.R. 8450 
increases the reimbursement rate for school lunches by ten 
cents and provides six cents in commodity assistance per school 
breakfast. These increases reduce the pressure on schools as 
they try to keep pace with rising costs. Such investments are 
crucial to ensuring school food service directors have the 
means to serve meals that meet or exceed the nutrition 
standards consistent with the DGAs.\32\ Additionally, H.R. 8450 
provides grants for the purchase of kitchen equipment and 
software to support the establishment, maintenance, and 
expansion of child nutrition programs in schools. Separately, 
school food authorities can receive subgrants from state 
agencies to purchase or improve equipment needed to serve 
healthy meals. These new grant programs will help schools 
improve food safety and promote scratch cooking to better serve 
nutritious meals.
---------------------------------------------------------------------------
    \30\Press Release, U.S. Dep't of Agric., USDA Announces Framework 
for Shoring Up the Food Supply Chain and Transforming the Food System 
to Be Fairer, More Competitive, More Resilient (June 1, 2022), https://
www.usda.gov/media/press-releases/2022/06/01/usda-announces-framework-
shoring-food-supply-chain-and-transforming.
    \31\Sch. Nutrition Ass'n., Sch. Nutrition Foundation, and No Kid 
Hungry, Staying Afloat in a Prefect Storm: The K-12 School Nutrition 
Segment Contends with Historic Supply Challenges, (2022), https://
schoolnutrition.org/resource/2022-supply-chain-report-staying-afloat-
in-a-perfect-storm/.
    \32\Id.
---------------------------------------------------------------------------

Investing in Local Communities and Sustainability

    H.R. 8450 ensures schools have the financial means and 
technical assistance to not only serve kids nutritious, fresh, 
and appealing meals, but support local producers and 
communities. SFAs nationwide spent over $1 billion on local 
foods during the 2018-2019 school year.\33\ Under the Buy 
American provisions in the National School Lunch Act,\34\ SFAs 
in the continental United States are required to purchase 
domestic agriculture commodities and food products to the 
``maximum extent practicable.''\35\ There are two exceptions to 
the Buy American rule: (1) when a product is not produced or 
manufactured in the U.S. in sufficiently available quantities, 
and (2) when costs are significantly higher to buy a domestic 
product.\36\ While purchasing domestically benefits local 
communities and empowers farmers and their families, a lack of 
clarity surrounding compliance requirements has stymied 
enforcement, among other challenges. To support local 
procurement and local farmers, H.R. 8450 clarifies Buy American 
requirements for SFAs in the context of existing administrative 
review processes. The bill also allows the Secretary to obtain 
information on the availability of domestically-produced 
products and where cost differentials between domestically-
produced and foreign goods are prohibitive. Additionally, the 
bill allows SFAs to report suspected, alleged, or confirmed 
noncompliance on the part of food distributors. Together, these 
provisions clarify existing standards for Buy American 
compliance, collect compliance information in a way that is 
usable and meaningful for both states and USDA, and enable 
adequate oversight of the law.
---------------------------------------------------------------------------
    \33\Farm to School Census Results Overview, U.S. Dep't of Agric. 
Food & Nutrition Serv. (last visited Jul. 15, 2022), https://
farmtoschoolcensus.fns.usda.gov/census-results-overview.
    \34\Richard B. Russell National School Lunch Act. 79 P.L. 396, 60 
Stat. 230 (2010) (codified in scattered sections of 7 U.S.C, 20 U.S.C. 
and 42 U.S.C.).
    \35\Buy American Provision Fact Sheet, U.S. Dep't of Agric. Food & 
Nutrition Serv. (2019), https://fns-prod.azureedge.us/sites/default/
files/resource-files/FactSheet_BuyAmerican.pdf; 42 U.S.C. Sec. 1760(n).
    \36\Compliance with and Enforcement of the Buy American Provision 
in the NSLP, U.S. Dep't of Agric. Food & Nutrition Serv. (2017), 
https://www.fns.usda.gov/nslp/compliance-enforcement-buy-american.
---------------------------------------------------------------------------
    H.R. 8450 expands the list of criteria institutions are 
encouraged to use to purchase food for their school meal 
programs, such as unprocessed foods that were locally grown and 
raised, foods produced sustainably or organically, or foods 
produced by a small farm or underserved producer. In addition, 
H.R. 8450 invests in the proven success of the Farm to School 
Program. First authorized in 2010, Farm to School familiarizes 
students with where their food comes from through education 
activities, taste tests, school gardens, field trips, and local 
procurement.\37\ Schools participating in the Farm to School 
Program have reported benefits, including higher quality meals, 
increased student awareness of healthy food and agriculture, 
lower program costs, and reduced food waste.\38\ Schools have 
also experienced how the Farm to School Program can greatly 
benefit the surrounding communities, through job creation and 
increased economic resiliency.\39\ In recent years, 
participation in the program has increased, with an estimated 
two-thirds of SFAs participating in the 2018-2019 school year 
and an increase to nearly three-fourths for the 2019-2020 
school year.\40\ H.R. 8450 makes an important investment in 
this program by tripling the grant authorization level from 
$5,000,000 to $15,000,000 per year, striking the match 
requirement, and increasing the maximum grant to $500,000.\41\
---------------------------------------------------------------------------
    \37\The USDA Farm to School Grant Program, U.S. Dep't of Agric. 
Food & Nutrition Serv. (2021), https://fns-prod.azureedge.us/sites/
default/files/resource-files/USDA_OCFS_FactSheet_
GrantProgram_508.pdf.
    \38\Ellen Bobronnikov et al., 2019 Farm to School Census, Abt 
Associates (2019), https://fns-prod.azureedge.us/sites/default/files/
resource-files/2019-Farm-to-School-Census.pdf.
    \39\Id., at 38.
    \40\Id., at 38.
    \41\The Committee notes that the H.R. 8239, Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2023, which passed the House Committee on 
Appropriations on June 23, 2022, also increased the maximum grant award 
to $500,000.
---------------------------------------------------------------------------

Supporting Equitable Procurement and Improving Meal Practices

    H.R. 8450 extends the authorization of procurement training 
funding to ensure compliance with Buy American requirements, 
procurement of safe foods, and support for procurement of goods 
and services for programs under the Child Nutrition Act of 
1966. Education surrounding sustainable practices can empower 
children and their families to make informed and 
environmentally friendly choices and shift toward more 
equitable and sustainable practices.\42\ H.R. 8450 also 
establishes a grant program to carry out food waste management 
and reporting, prevention, education, and reduction projects in 
schools. While increased food waste is sometimes attributed to 
strong nutrition standards, a 2014 report revealed that the 
updated school meal standards that went into effect in 2012 did 
not result in increased food waste.\43\ A 2019 study on the 
barriers and motivators of food waste revealed that poor food 
preparation and cooking methods, lack of food choices, and 
school policies around meal time increased food waste in 
schools.\44\ To support food waste reduction efforts directly, 
H.R. 8450 takes steps to improve the capacity of school 
kitchens and thereby schools' ability to serve healthy and 
appealing foods. The bill establishes a grant program for 
school food authorities to promote scratch cooking through a 
variety of activities, including offering professional 
development, compensating employees for additional food 
preparation, and providing technical assistance and student 
education.
---------------------------------------------------------------------------
    \42\Child Nutrition Act Reauthorization--2022, Nat'l Farm to School 
Network (last visited Aug. 5, 2022), https://www.farmtoschool.org/
policy/cnr2022.
    \43\Juliana Cohen et al., Impact of the New U.S. Department of 
Agriculture School Meal Standards on Food Selection, Consumption, and 
Waste, 46 Am. J. of Preventive Medicine 388, 388 (2014).
    \44\Chenchen Zhao et al., Plate Waste in School Lunch: Barriers, 
Motivators, and Perspectives of SNAP-Eligible Early Adolescents in the 
US, 51 J. of Nutrition Educ. and Behavior 967, 967 (2019).
---------------------------------------------------------------------------
    For schools committed to environmental sustainability and 
limiting pollution, H.R. 8450 establishes a pilot grant program 
to support plant-based foods in schools participating in NSLP. 
Research has shown that transitioning to a lower carbon food 
diet is essential to meeting global environmental targets as 
the food and agriculture sector accounts for between 21 and 37 
percent of global greenhouse gas emissions.\45\ Given that 30 
million children are served through NSLP,\46\ the program is 
uniquely situated to play a role in mitigating greenhouse 
emissions and subsequent environmental impacts. Additionally, 
many schools are interested in exploring more plant-based 
options since studies have shown that consuming plant-based 
foods reduces the risk of diabetes and cardiovascular disease, 
maintain a healthy weight, and protect against certain cancers 
and diseases.\47\ Plant-based diets have also been identified 
as a potential tool to address racial health disparities.\48\ 
The pilot program aims to promote sustainable practices in 
school lunches through professional development training, 
technical assistance, student engagement and education, and 
outreach.
---------------------------------------------------------------------------
    \45\Chaopeng Hong et al., Global And Regional Drivers Of Land-Use 
Emissions In 1961-2017. 589 Nature 554, 554 (2021).
    \46\U.S. Dep't of Agric. Food & Nutrition Serv., supra note 4.
    \47\Renata Micha, et al., Red and Processed Meat Consumption and 
Risk of Incident Coronary Heart Disease, Stroke, and Diabetes Mellitus: 
A Systematic Review and Meta-Analysis, 121 Circulation, 2271, 2271 
(2010).
    \48\Samara R. Sterling & Shelly-Ann Bowen, The Potential for Plant-
Based Diets to Promote Health Among Blacks Living in the United States, 
11 Nutrients 2915, 2915 (2019).
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   STRENGTHENING AND ENSURING EVIDENCE-BASED NUTRITION STANDARDS AND 
                   DEVELOPING LIFE-LONG EATING HABITS

Updating Nutrition Standards in Meal Patterns

    Often, more than half of a child's daily caloric intake 
comes from school meals, as breakfast and lunch provide one-
fourth and one-third of a child's total daily caloric intake, 
respectively.\49\ With a substantial percentage of calories 
consumed from school meals, high nutrition standards are vital. 
High standards also provide us a tool for achieving greater 
health equity, acknowledging that NSLP and SBP serve a high 
percentage of low-income, children of color,\50\ and Black and 
Hispanic communities face food insecurity and diet-related 
chronic diseases at a disproportionate rate.\51\ In order to 
address health disparities and support racial equity in school 
meals, it is important that the nutrition standards conform to 
recommendations that are evidence-based.
---------------------------------------------------------------------------
    \49\Meal Patterns for Grades K-12 In School Nutrition Programs, 
Connecticut Dep't of Educ. (last visited Aug. 5, 2022), https://
portal.ct.gov/SDE/Nutrition/Meal-Patterns-School-Nutrition-Programs/
Documents.
    \50\Mary Kay Fox et al., School Nutrition and Meal Cost Study Final 
Report Volume 4: Student Participation, Satisfaction, Plate Waste, and 
Dietary Intakes, Mathematica (Apr. 2019), https://www.mathematica.org/
publications/school-nutrition-and-meal-cost-study-final-report-volume-
4-student-participation-satisfaction-plate.
    \51\Alisha Coleman-Jenseny et al., Household Food Security in the 
United States in 2020, U.S. Dep't of Agric. Econ. Rsch. Serv. (2021), 
https://www.ers.usda.gov/webdocs/publications/102076/err-
298.pdf?v=7553.8; Debbie Thompson et al., Perspectives of Black/African 
American and Hispanic Parents and Children Living in Under-Resourced 
Communities Regarding Factors That Influence Food Choices and 
Decisions: A Qualitative Investigation, 8 Children 236, 236 (2021).
---------------------------------------------------------------------------
    HHFKA required the Secretary to promulgate regulations to 
update meal patterns and nutrition standards based upon 
recommendations made by the Food and Nutrition Board of the 
National Research Council of the National Academy of 
Science.\52\ The updated standards resulted in an overall 
improvement in the nutritional quality of meals.\53\ The 
Healthy Eating Index (HEI) measures the diet quality of how 
consistent meals are with the recommendations of the DGAs by 
assigning scores out of 100 total possible points. In school 
year (SY) 2009-2010, the total HEI for lunch was 58 percent of 
the maximum score and the HEI for breakfast was 50 percent of 
the maximum score.\54\ As a result of HHFKA, the updated 
nutrition standards went into effect in SY 2012-2013 and by SY 
2014-2015, the HEI score for lunch was 82 percent of the 
maximum score and the HEI for breakfast was 71 percent of the 
maximum score, both demonstrating a statistically significant 
improvement.\55\ Although HHFKA updated the standards for meals 
and foods served in schools, there is no process outlined in 
the statute for updating the nutrition standards based on the 
most recent iteration of the DGAs. H.R. 8450 adds requirements 
to ensure that the nutrition standards align with the newest 
DGAs and the latest evidence. H.R. 8450 requires the Secretary 
to promulgate regulations to update the nutrition standards to 
be consistent with the most recent DGAs not less than once 
every ten years or not later than one year after two 
consecutive publications.
---------------------------------------------------------------------------
    \52\Healthy, Hunger-Free Kids Act of 2010, Pub. L. No. 111-296, 124 
Stat. 3183 (2010) (codified in scattered sections of 7 U.S.C, 20 U.S.C. 
and 42 U.S.C.).
    \53\Elizabeth C. Gearan & Mary Kay Fox, Updated Nutrition Standards 
Have Significantly Improved the Nutrition Quality of School Lunches and 
Breakfasts, 120 J. Acad. Nutr, Diet. 363, 363 (2020).
    \54\Gearan, supra note 53.
    \55\Gearan, supra note 53.
---------------------------------------------------------------------------

Supporting the National Hunger Hotline and Clearinghouse

    On behalf of USDA, the National Hunger Clearinghouse/
National Hunger Hotline is operated by Hunger Free America and 
serves as a resource for low-income individuals or communities 
on how and where to obtain food. The database provides 
information about where individuals can access soup kitchens, 
food pantries, gleaning programs, and food banks, as well as 
federal nutrition assistance programs. This database houses 
over 15,000 listings.\56\
---------------------------------------------------------------------------
    \56\Letter from Joel Berg, CEO, Hunger Free America, to 
Representative Robert Scott, Chairman, H. Comm. On Educ. & Labor, and 
Senator Debbie Stabenow, Chair, of the S. Comm. On Ag. (Apr. 13, 2021) 
(on file with committee staff).
---------------------------------------------------------------------------
    In 2020, the call volume into the National Hunger Hotline 
was 308 percent higher than in 2019 while federal funding 
remained the same.\57\ In fact, federal funding for the 
National Hunger Hotline has remained at $250,000 annually for 
more than ten years.\58\ H.R. 8450 responds to the increased 
demand by doubling the authorization for appropriations from 
$250,000 to $500,000 for each fiscal year through FY 2028.
---------------------------------------------------------------------------
    \57\Id. at 56.
    \58\Id. at 56.
---------------------------------------------------------------------------

Enhancing Nutrition Education

    Nutrition education in schools can help students establish 
healthy eating behaviors and empower them to make more 
nutritious food and beverage choices. A school's role in 
providing nutrition education to students can include offering 
more nutritious and appealing foods and beverages, displaying 
consistent and accurate messaging about good nutrition, and 
providing different ways to learn about and practice healthy 
eating. Teaching children about nutrition in schools can help 
them learn about the food groups and benefits to eating a 
variety of foods, teach them to limit beverages higher in added 
sugars and foods higher in saturated fat, and how to follow an 
eating pattern that will support their growth and 
development.\59\
---------------------------------------------------------------------------
    \59\Opportunities for Nutrition Education in Schools, U.S. Dep't of 
Health & Human Servs. Ctrs. for Disease Control and Prevention (2019), 
https://www.cdc.gov/healthyschools/nutrition/pdf/308155-
A_FS_SchoolNutritionEd-508.pdf.
---------------------------------------------------------------------------
    Nutrition education can be incorporated in the classroom as 
health education or integrated throughout the curriculum in 
other subjects. Activities such as gardening, cooking 
demonstrations, and field trips can also be used to incorporate 
nutrition education, where having taste tests in the cafeteria, 
displaying posters and artwork promoting healthy eating, and 
sending resources and materials home to families can be 
opportunities for learning throughout the day. H.R. 8450 aims 
to enhance nutrition education by allowing Team Nutrition funds 
to be used for hiring qualified nutrition educators to carry 
out nutrition education programs in schools.

Ensuring Adequate Meal Time

    Ensuring a child has enough time to eat a meal is an 
important factor in reducing food waste and making sure the 
child has proper nutrition. The Centers for Disease Control and 
Prevention (CDC) recommends that children have at least 20 
minutes of ``seat time'' to eat and socialize.\60\ Seat time 
refers to the amount of time allocated to eating meals, not 
considering the time waiting in line for food, using the 
restroom, waiting to pay, cleaning up afterwards, or any other 
activity done during meal periods.\61\
---------------------------------------------------------------------------
    \60\Making Time for School Lunch, U.S. Dep't of Health & Human 
Servs. Ctrs. for Disease Control & Prevention (Sept. 11, 2019), https:/
/www.cdc.gov/healthyschools/nutrition/pdf/310518-
A_FS_SchoolLunchUpdate_508.pdf.
    \61\Ibid.
---------------------------------------------------------------------------
    When students have enough time to eat, there is less plate 
waste\62\ and more consumption of fruits and vegetables as well 
as other meal components that provide necessary nutrients for 
optimal growth and development.\63\ H.R. 8450 requires the 
Secretary to enter into an agreement with an independent, 
nonpartisan, science-based research organization to carry out a 
study on the time lunches are served, recess is offered, and 
the duration of lunch periods. Within one year of the 
appropriation of funds, the Secretary is required to partner 
with the Secretary of Education to form a task force to review 
the study and issue guidance on best practices for meal time, 
recess, and duration of lunch periods.
---------------------------------------------------------------------------
    \62\See Ethan A. Bergman et.al., The Relationship Between the 
Length of the Lunch Period and Nutrient Consumption in the Elementary 
School Lunch Setting, 28 J. of Child Nutrition & Mgmt. (2004).
    \63\See Juliana Cohen, Jaquelyn L. Jahn, Scott Richardson, Sarah A. 
Cluggish, Ellen Parker, Eric B. Rimm, The Amount of Time to Eat Lunch 
is Associated with Children's Selection and Consumption of School Meal 
Entree, Fruits, Vegetable, and Milk, 116 J. of the Acad. of Nutrition 
and Dietetics 123, 127-128 (2016).
---------------------------------------------------------------------------

Responding to the Health Needs of Students

    An eating disorder is a serious and potentially fatal 
mental illness that relates to severe persistent disturbances 
in eating behaviors and negatively affects an individual's 
health, emotions, thoughts, and ability to function.\64\ 
Anorexia nervosa is the most severe and deadly eating disorder 
characterized by restrictive eating, food avoidance, compulsive 
exercise, extreme fear of gaining weight, and distorted 
perception of weight or body shape.\65\ Eating disorders affect 
people of different ages, races, genders, and socioeconomic 
groups, with a higher risk of prevalence in 15-19-year-old 
girls.\66\
---------------------------------------------------------------------------
    \64\Eating Disorders, Nat'l Inst. of Mental Health, https://
www.nimh.nih.gov/health/topics/eating-disorders (last visited July 28, 
2022).
    \65\Eating Disorders, Mayo Clinic (last visited July 28, 2022), 
https://www.mayoclinic.org/diseases-conditions/eating-disorders/
symptoms-causes/syc-20353603.
    \66\Frederique R.E. Smink et. al., Epidemiology of Eating 
Disorders: Incidence, Prevalence and Mortality Rates, 14 Current 
Psychiatry Reports 406 (2012).
---------------------------------------------------------------------------
    H.R. 8450 incorporates mental health promotion and 
education, including awareness of eating disorders, into local 
school wellness policies.\67\ H.R. 8450 increases investments, 
up to $5,000,000 from $3,000,000, which will support technical 
assistance to promote nutrition and establish healthy school 
nutrition environments and promote student mental health.
---------------------------------------------------------------------------
    \67\The Richard B. Russell National School Lunch Act requires the 
Secretary to promulgate regulations that provide the framework and 
guidelines for local educational agencies to establish local school 
wellness policies. School wellness policies are intended to guide LEA's 
efforts to promote student health, well-being, and ability to learn. 
These policies must include specific goals for nutrition promotion and 
education that promote student wellness, standards and nutrition 
guidelines for all foods and beverages available to students at 
schools, including foods that are sold and not sold at schools, 
policies for food and beverage marketing, and a description of public 
involvement, public updates, policy leadership, and evaluation plan. 
See, U.S. Dep't. of Agric., Local School Wellness Policies, (last 
visited Aug. 11, 2022), https://www.fns.usda.gov/tn/local-school-
wellness-policy.
---------------------------------------------------------------------------
    In addition to mental health promotion, H.R. 8450 is 
responsive to students with disabilities that cause the student 
to require a non-dairy substitute. Currently, schools are 
required to provide a non-dairy substitute to a student with a 
disability only if a parent or guardian has a letter from a 
physician documenting the disability that restricts the child's 
diet. Obtaining a letter from a physician may be difficult for 
some families; there can be financial and administrative 
barriers that can make obtaining the needed paperwork from a 
medical provider challenging, including limited transportation, 
the cost of a physician visit, and parent work schedules. H.R. 
8450 changes this requirement to instead provide reasonable 
accommodations to students with disabilities without requiring 
a physician's letter. This change will make it easier for 
families to access alternatives if they have a child with a 
disability that restricts the child's diet or presents other 
challenges to consuming lactose.
    H.R. 8450 is also responsive to other medical and dietary 
reasons why a student should not consume dairy milk. Currently, 
schools have flexibility to provide a non-dairy substitute if a 
child has a note from a physician or parent speaking to the 
medical or dietary reason why dairy milk should not be consumed 
by the student such as lactose intolerance, which is widespread 
among people of color.\68\ According to Boston Children's 
Hospital, 80 percent of all African Americans and Native 
Americans and over 90 percent of Asian Americans are lactose 
intolerant, whereas lactose intolerance is least common among 
those with Northern European descent.\69\ To address equity 
concerns and ensure that students who need a non-dairy 
alternative can access one, H.R. 8450 removes the requirement 
for a physician's note and reduces the parental burden by no 
longer requiring an explanation of the need for a non-dairy 
alternative. The bill also allows schools to provide a non-
dairy substitute, that is nutritionally equivalent to fluid 
milk and meets nutrition standards, to any student as part of a 
reimbursable meal without a note. Additionally, H.R. 8450 
creates a pilot grant program to help schools offset the cost 
difference between dairy and non-dairy milk options and allows 
the Secretary to prioritize schools for participation in the 
pilot program that serve a high population of students with 
lactose intolerance.
---------------------------------------------------------------------------
    \68\John Hopkins Medicine, Lactose Intolerance (last visited Aug. 
18, 2022), https://www.hopkinsmedicine.org/health/conditions-and-
diseases/lactose-intolerance.
    \69\Boston Children's Hospital, Lactose Intolerance (last visited 
Aug. 19, 2022), https://www.childrenshospital.org/conditions/lactose-
intolerance.
---------------------------------------------------------------------------

          REMOVING BARRIERS AND INCREASING ACCESS TO THE CACFP

    Initially created as a pilot in 1968, the CACFP in its 
current form was built incrementally over decades of 
congressional action to support the nutritional needs of 
millions of children and adults.\70\ CACFP provides meals to 
children up to age 12 or migrant children up to age 15 in child 
care settings, at-risk children up to age 18 enrolled in after-
school programs, and children up to age 18 in emergency or 
homeless shelters.\71\ CACFP also provides reimbursements to 
non-residential adult day care facilities that provide food to 
disabled individuals and older individuals (age 60 or 
older).\72\ In 2019, CACFP served almost 4.8 million 
people.\73\ CACFP has demonstrated success in increasing 
children's consumption of vegetables and milk\74\ and 
decreasing the financial barrier for child care centers to 
provide healthy food options.\75\
---------------------------------------------------------------------------
    \70\Nat'l CACFP Sponsors Ass'n, Program History: Celebrating 50 
Years (last visited Aug. 17, 2022), https://www.cacfp.org/program-
history/.
    \71\Billings, supra note 4.
    \72\Billings, supra note 4.
    \73\Billings, supra note 4.
    \74\Sanders Korenman et al., The Child and Adult Care Food Program 
and the nutrition of preschoolers, 28 Early Childhood Rsch. Quarterly 
325, 340 (2013).
    \75\Daniel Zaltz et al., Participation in the Child and Adult Care 
Food Program is associated with fewer barriers to serving healthier 
foods in early care and education, 20 BMC Public Health 856, 860 
(2020). See also, Billings, supra note 4.
---------------------------------------------------------------------------
    CACFP centers are reimbursed based on the income of their 
participants, ranging from fully-covered, or ``free rate,'' 
reimbursement for households below 130 percent of the federal 
poverty line to the lowest reimbursement rate, or ``paid 
rate,'' for households making above 185 percent of the federal 
poverty level. For those households between 130 percent and 185 
percent of the poverty line, centers receive a partial 
reimbursement for reduced-price meals and snacks. Centers can 
use categorical eligibility for their reimbursements as well, 
receiving reimbursement at the free rate for certain categories 
of children, including children enrolled in Head Start, 
children in foster care, and children who live in households 
that participate in SNAP, the Food Distribution Program on 
Indian Reservations (FDPIR), or TANF.
    The Healthy Meals, Healthy Kids Act builds on the success 
of CACFP by removing barriers and increasing access to the 
program, mirroring provisions contained in bipartisan 
legislative proposals introduced in prior Congressional 
sessions.\76\
---------------------------------------------------------------------------
    \76\See, e.g., Early Childhood Nutrition Improvement Act, H.R. 
5919, 117th Cong. (2021).
---------------------------------------------------------------------------

Increasing Access to CACFP

    H.R. 8450 takes significant steps to ensure access to meals 
and snacks through CACFP. Under current law, children who live 
in households that participate in several federal assistance 
programs, such as SNAP and TANF, are categorically eligible to 
receive assistance through CACFP. H.R. 8450 expands this 
provision and allows a child to be automatically eligible for 
benefits without further application or eligibility 
determination if the child is a member of a household that 
receives SNAP benefits. Before the pandemic, 14.6 million 
children received SNAP benefits, and 4.8 million individuals, 
including 4.7 million children, participated in CACFP through 
their child care or day care centers.\77\ Allowing receipt of 
SNAP benefits to confer automatic eligibility reduces barriers 
to participation and could help CACFP serve more children by 
closing the gap for children who receive SNAP benefits but who 
do not participate in CACFP.
---------------------------------------------------------------------------
    \77\Michael King and Katherine Geifer, Nearly a Third of Children 
Who Receive SNAP Participate in Two or More Additional Programs, US 
Census Bureau, (2021), https://www.census.gov/library/stories/2021/06/
most-children-receiving-snap-get-at-least-one-other-social-safety-net-
benefit.html; Billings, supra note 4.
---------------------------------------------------------------------------
    CACFP currently provides funding for two meals and one 
snack or one meal and two snacks daily. H.R. 8450 expands the 
program to cover up to two meals and two snacks or three meals 
and one snack per child per day for children in care for at 
least eight hours per day. The CDC recommends that parents and 
caregivers provide snacks for children every two to three 
hours;\78\ therefore, an additional snack or meal over the 
longer than eight-hour time period would greatly help 
caregivers meet that nutrition goal. Parents often work long 
hours where children are in care for more than eight hours and 
thus rely on providers for a significant portion of their 
child's nutritional needs. Further, the COVID-19 pandemic has 
increased families' reliance on child care and exacerbated the 
need for additional nourishment to be provided by the program.
---------------------------------------------------------------------------
    \78\Cntrs. for Disease Control & Prevention, Nutrition: How Much 
and How Often to Feed, CDC, (last visited Aug. 18, 2022), https://
www.cdc.gov/nutrition/infantandtoddlernutrition/foods-and-drinks/how-
much-and-how-often.html#::text=Give%20your%20child%20something%20to, 
to%203%20snacks%20every%20day.
---------------------------------------------------------------------------
    Additionally, H.R. 8450 increases the age limit for 
reimbursement for meals and supplements served in homeless and 
emergency shelters from the age of 18 to individuals under the 
age of 25. This change is modeled off a temporary allowance 
under the American Rescue Plan Act of 2021.\79\ Nearly half of 
those experiencing homelessness are under the age of 30. 
Therefore, increasing the eligibility threshold for meal 
assistance will make a significant impact on the wellbeing of 
one of the country's most vulnerable populations.\80\
---------------------------------------------------------------------------
    \79\Press Release, U.S. Dep't of Agriculture, USDA Boosts Food 
Assistance for Homeless Young Adults Seeking Refuge in Shelters (Apr. 
9, 2021), https://www.fns.usda.gov/news-item/usda-007021.
    \80\Kristen Paquette, Current Statistics on the Prevalence and 
Characteristics of People Experiencing Homelessness in the United 
States, Substance Abuse & Mental Health Serv's Admin. (July 2011), 
https://www.samhsa.gov/sites/default/files/programs_campaigns/
homelessness_programs_resources/hrc-factsheet-current-statistics-
prevalence-characteristics-homelessness.pdf.
---------------------------------------------------------------------------

Modernizing CACFP and Improving Administrative Efficiency

    H.R. 8450 updates the annual adjustment of the CACFP 
reimbursement rates to reflect the Consumer Price Index (CPI) 
for food away from home to be used for reimbursements for food 
served in family or group day care homes. This provision 
ensures that reimbursement aligns with the actual cost of 
providing meals through CACFP.
    H.R. 8450 also improves CACFP program integrity. USDA uses 
a system of accountability for institutions that receive CACFP 
funds, known as the serious deficiency process. The serious 
deficiency process ``provides a systematic way to correct 
serious management problems, and when that effort fails, 
protects the program through due process.''\81\ If an 
institution is found in violation of CACFP guidelines, it must 
take corrective action and provide a written corrective action 
plan within 30 to 90 days of receiving the notice, depending on 
the offense.\82\ If the institution is still found to be in 
violation of program guidelines, it can be disqualified from 
receiving CACFP funding.\83\ Not later than one year after the 
date of enactment, H.R. 8450 requires the Secretary to review 
and issue guidance on the regulations regarding this process 
for CACFP that will streamline and modernize the program.
---------------------------------------------------------------------------
    \81\Request for Information: The Serious Deficiency Process in the 
Child and Adult Care Food Program, 84 Fed. Reg. 22,431 (May 17, 2019).
    \82\Serious Deficiency, Suspension, & Appeals for State Agencies & 
Sponsoring Organizations: A Child and Adult Care Food Program Handbook, 
U.S. Dep't of Agric. Food & Nutrition Serv. (Feb. 2015), https://
www.decal.ga.gov/documents/attachments/SD_SuspensionandAppeals
Handbook.pdf.
    \83\Id.
---------------------------------------------------------------------------
    H.R. 8450 makes other modest improvements to help 
streamline CACFP. The bill allows CACFP eligibility for 
proprietary child care centers to be determined on an annual 
basis, in alignment with eligibility determination for other 
child care centers. Currently, CACFP providers--particularly 
smaller family homes--face administrative burdens to operating 
the program. Eligibility certification for proprietary 
institutions can differ state by state, and several states 
require monthly submission by the child care provider in order 
to continue receiving reimbursements.\84\ A streamlined annual 
eligibility certification that aligns with other administrative 
processes will reduce complications for both state agencies and 
smaller providers.
---------------------------------------------------------------------------
    \84\Report to Congress: Reducing Paperwork in the Child and Adult 
Care Food Program, U.S. Dep't of Agric. Food & Nutrition Serv. . (Aug. 
2015), https://omb.report/icr/201809_0584_001/doc/original/
86419001.pdf.
---------------------------------------------------------------------------
    The bill also creates a new Advisory Committee on Paperwork 
Reduction to examine the feasibility of reducing unnecessary or 
duplicative paperwork and provide recommendations to the 
Secretary. USDA previously formed the CACFP Paperwork Reduction 
Work Group (Work Group) in response to the HHFKA, requiring the 
Department to examine the feasibility of reducing unnecessary 
or duplicative paperwork. A 2015 report to Congress submitted 
by USDA on behalf of the Work Group outlined the inefficiencies 
in current program operations and urged the Secretary to work 
with state agencies to decrease the administrative burden for 
child care centers and families.\85\ The Work Group also 
recommended continued stakeholder engagement to guide paperwork 
reduction efforts.\ 86\ H.R. 8450 also requires the Secretary 
to issue guidance and, if appropriate, regulations, in response 
to these new recommendations within two years.
---------------------------------------------------------------------------
    \85\Id. at 84.
    \86\Id. at 84.
---------------------------------------------------------------------------

  ENSURING CHILDREN'S ACCESS TO NUTRITIOUS FOOD DURING THE SUMMER AND 
                              AFTER SCHOOL

    When schools close for the summer break, food insecurity 
continues to be a challenge for families and children. Thirty-
two percent of low-income families report that they do not have 
enough food during the summer months, and studies show that 
children without consistent access to healthy meals face 
significant threats to their health and educational achievement 
as a result.\87\ Recognizing the need for intervention, in 
1968, Congress created the Special Food Service Program for 
Children--a pilot program that provided states with grants to 
feed children when school was not in session.\88\ In 1975, that 
program split, and the Child Care Food Program and the SFSP 
were authorized.\89\
---------------------------------------------------------------------------
    \87\Katie Orovecz, et. al., Summer Nutrition Program Social Impact 
Analysis, Deloitte, No Kid Hungry, and Arby's Foundation (2015), http:/
/bestpractices.nokidhungry.org/sites/default/files/2019-11/
Summer%20Nutrition%20Program%20Social%20Impact%20Analysis_1in7.pdf.
    \88\ U.S. Dep't of Agric. Food & Nutrition Serv., Summer Food 
Service Program History (last visited Aug. 18, 2022), https://
www.fns.usda.gov/sfsp/program-history.
    \89\Ibid.
---------------------------------------------------------------------------
    In its current form, SFSP reimburses program operators who 
provide free meals and snacks to children in low-income areas 
through camps, schools, and community organizations. Meals 
provided through SFSP help to manage diet, reduce food 
insecurity, and minimize summer learning loss, which accounts 
for up to 80 percent of the reading skills gap between low- and 
high-income students.\90\
---------------------------------------------------------------------------
    \90\Orovecz, supra note 87.
---------------------------------------------------------------------------
    In 2019, SFSP provided over 141 million meals and snacks to 
children when school was not in session, and in 2020 the 
program served 4.7 million children each day in its peak month 
of July.\91\ Access to nutritious meals during the summertime 
has far-reaching effects, with implications on children's food 
security, physical and mental health, educational attainment, 
and long-term benefits associated with economic and workforce 
development for children and their communities.\92\ SFSP also 
emphasizes the importance of enrichment activities to engage 
children through music, games, art, and movement.\93\ 
Educational or instructional activities are the type of 
activity most often offered in SFSP programs (81 percent) and 
serve a critical role in addressing learning loss.\94\
---------------------------------------------------------------------------
    \91\U.S. Dep't of Agric. Food & Nutrition Serv., Summer Food 
Service Program (last visited Aug. 18, 2022), https://www.fns.usda.gov/
sfsp/summer-food-service-program.
    \92\Orovecz, supra note 87.
    \93\U.S. Dep't of Agric., Nutrition Education Activities (last 
visited July 13, 2022), https://fns-prod.azureedge.us/sites/default/
files/resource-files/smt-nutrition_education.pdf.
    \94\Tracy Vericker et al., USDA Summer Meals Study Summary, Westat 
(Oct. 2021), https://fns-prod.azureedge.us/sites/default/files/
resource-files/SummerMealsStudy-2018-SummaryofFindings.pdf.
---------------------------------------------------------------------------
    Other innovative approaches to reducing summer food 
insecurity have played a key role in ensuring children do not 
go hungry during the summer months, such as the Summer EBT 
Program.\95\ The Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2010 
provided authority and funding for USDA to implement 
demonstration projects to develop and test methods of improving 
food access for children during the summer.\96\ Using this 
authority, USDA initially established Summer EBT as a 
demonstration project to test a household-based method of 
delivering nutrition assistance to low-income children during 
the summer.\97\ Due to the success of the pilot project, 
Congress invested additional resources into Summer EBT through 
the annual appropriations process as the program has since 
grown to serve more states and children. The program is not yet 
authorized in permanent statute and operates in select states, 
providing families with an EBT card with $30 or $60 per child 
monthly to pay for meals during the summer.\98\
---------------------------------------------------------------------------
    \95\Supra note 91.
    \96\Agriculture, Rural Development Food and Drug Administration, 
and Related Agencies Appropriations Act, 2010, Pub. L. No. 111-80, tit. 
VII, Sec. 749, 123 Stat. 2132 (2009).
    \97\FY 2010 Summer Electronic Benefits Transfer for Children 
(SEBTC) SNAP Model, U.S. Dep't of Agric. (last visited Aug. 16, 2022), 
https://www.fns.usda.gov/sfsp/fy-2010-summer-electronic-benefits-
transfer-children-sebtc-snap-model.
    \98\Kara Clifford Billings, Summer Meals for Children: An Overview 
of Federal Aid (IF11633), Cong. Rsch. Serv. (2020), https://
crsreports.congress.gov/product/pdf/IF/IF11633; Agriculture 
Appropriations Act of Fiscal Year 2010,Sec.  749, Pub. L. No. 111-80, 
123 Stat. 2090 (2010).
---------------------------------------------------------------------------
    Other child nutrition programs, including CACFP At-Risk and 
NSLP Afterschool Snack also ensure children are fed during 
after-school hours. The CACFP At-Risk Afterschool component 
allows providers to be reimbursed for up to one snack and one 
meal per child per day, while the NSLP Afterschool Snack option 
allows schools to be reimbursed for one snack per day.\99\ The 
reimbursement rates for both CACFP At-Risk and NSLP Afterschool 
Snack are in line with the CACFP reimbursement rates under 
existing statute. Additionally, both CACFP At-Risk and NSLP 
Afterschool Snack require some sort of educational or 
enrichment activity.\100\
---------------------------------------------------------------------------
    \99\Billings, Supra note 4.
    \100\Billings, Supra note 4.
    The requirement for an educational or enrichment activity for CACFP 
At-Risk is dictated in statute and the requirement for the NSLP 
Afterschool Snack option is through USDA guidance.
---------------------------------------------------------------------------
    H.R. 8450 includes several provisions that will strengthen 
both SFSP and Summer EBT to ensure that all children have 
access to nutritious food even when school is not in session.

Expanding the Summer Food Service Program for Children

    H.R. 8450 expands SFSP by lowering the eligibility 
threshold for participation in SFSP from 50 to 40 percent of 
children residing in the area who have been determined to be 
eligible for free or reduced price meals. This new threshold 
will increase the geographical areas in which children are 
served, expanding the number of children who can access healthy 
meals through SFSP. H.R. 8450 also creates an option to allow 
for year-round meal service under SFSP for non-school meal 
providers during afterschool hours, weekends, and school 
holidays.
    The bill authorizes a competitive grant program to increase 
participation in SFSP at congregate feeding sites through 
innovative approaches to addressing transportation barriers and 
mobile meal delivery. This kind of innovation has proven 
successful in places such as Huntsville, Alabama, where 
children and teenagers were offered free specially designed bus 
passes to increase access to meal sites, and in Murfreesboro, 
Tennessee, where refurbished school buses have been used to 
deliver hot meals directly to children.\101\ H.R. 8450 allows 
service institutions that participate in SFSP to serve up to 
three meals, or two meals and one snack, per child per day, an 
increase from the current maximum of two meals per day. The 
bill also allows non-school sponsors under SFSP to utilize the 
offer versus serve (OVS) provision. The OVS provision, 
currently operating under the NSLP and the SBP, allows students 
to decline some of the food offered to reduce food waste. This 
change simply aligns the requirements for non-school sponsors 
with those of schools. H.R. 8450 recognizes the need to ensure 
strong nutrition during the summer months by further requiring 
the Secretary of Agriculture to issue proposed regulations to 
update SFSP nutrition standards in alignment with the goals of 
the DGAs.
---------------------------------------------------------------------------
    \101\Report: Transportation Strategies to Connect Youth with Summer 
Food Programs, Nat'l Ctr. for Mobility Mgmt. (last visited July 13, 
2022), https://nationalcenterformobilitymanagement.org/wp-content/
uploads/Pdfs/FNS-Transport-Final-.pdf.
---------------------------------------------------------------------------

Making the Summer Electronic Benefit Transfer Program for Children 
        Permanent and Nationwide

    Summer EBT provides families with a debit card containing a 
fixed dollar amount, historically either $30 or $60, to 
purchase groceries during the summer.\102\ Summer EBT is 
particularly important for food-insecure families in rural 
areas or areas with limited access to summer meals.\103\ 
According to a 2016 report on the impact of the initial Summer 
EBT demonstration project, providing a $30 or $60 per month per 
child benefit reduced very low food insecurity by one-third and 
food insecurity by one-fifth.\104\ Recognizing the positive 
impact, H.R. 8450 will authorize a permanent and nationwide 
Summer EBT Program, providing $75 per child per summer 
month.\105\ A permanent and nationwide Summer EBT Program will 
help to ensure that all children, regardless of their 
geographic proximity to meal providers, have access to healthy 
food when schools are closed.
---------------------------------------------------------------------------
    \102\The Summer Electronic Benefit Program (Summer EBT), Food Rsch 
& Action Ctr. (July 2021), https://frac.org/wp-content/uploads/frac-
facts-summer-ebt-program.pdf.
    \103\Supra note 97.
    \104\Supra note 97.
    \105\Changes during the markup removed the pre-appropriated funding 
for the bill's Summer EBT Program; the Committee's intent is to create 
a permanent entitlement funded through annual appropriations.
---------------------------------------------------------------------------

                MODERNIZING AND INCREASING ACCESS TO WIC

    First authorized as a pilot program in 1972, WIC is a 
federally funded program that provides vital services to low-
income pregnant, postpartum, and breastfeeding women, infants, 
and children up to age five who are at nutritional risk.\106\ 
These services include access to nutrient-dense food, education 
on balanced nutrition, breastfeeding support, and referrals to 
health care and social services. Individuals are considered 
income eligible if they belong to a household that has an 
income at or below 185 percent of the federal poverty level or 
are a member of a household that receives benefits through 
TANF, SNAP, Medicaid, or other identified state programs.\107\ 
WIC has proven vital for participants by demonstrating improved 
growth and development in infants and children, increased 
enrollment in prenatal care, higher intakes of vitamins, 
minerals, and nutrient-dense foods, savings in health care 
costs, and fewer infant deaths.\108 \With proven results, the 
WIC program enjoys robust bipartisan support.\109\
---------------------------------------------------------------------------
    \106\Randy Aussenberg, A Primer on WIC: The Special Supplemental 
Nutrition Program for Women (R44115), Cong.. Rsch. Serv. (2017), 
https://crsreports.congress.gov/product/pdf/R/R44115.
    \107\Ibid..
    \108\WIC Helps Your Community, WIC Strong (last visited Aug. 18, 
2022), https://www.wicstrong.com/community/wic-helps-your-community/.
    \109\Press Release, U.S. Representative Gwen Moore, Congresswoman 
Gwen Moore and Congresswoman Jennifer Gonzalez-Colon Lead Bipartisan 
Effort to Increase WIC funding (Apr. 28, 2022), https://
gwenmoore.house.gov/news/documentsingle.aspx?DocumentID=5004.
---------------------------------------------------------------------------

Increasing Access to WIC by Expanding Eligibility

    H.R. 8450 expands WIC eligibility by requiring that WIC 
automatically certify infants born to a mother participating in 
WIC and extending adjunctive eligibility to women, infants, and 
children (under six-years-old) living in a household in which a 
member participates in the Children's Health Insurance Program 
(commonly referred to as CHIP), Head Start, Early Head Start, 
or FDPIR. These changes to adjunctive eligibility in WIC may 
help ease administrative burdens on both applicants and local 
WIC providers and serve as an effective tool for enrolling and 
retaining more eligible children in the program.\110\ The bill 
also extends eligibility for WIC through either a child's sixth 
birthday or their first day of kindergarten, whichever is 
earlier, allowing participating children to glean the benefits 
of WIC until they are able to receive school meals.
---------------------------------------------------------------------------
    \110\Food for Thought: Examining Federal Nutrition Programs for 
Young Children and Infants Before the H. Comm. On Educ. & Labor, 117th 
Cong. (July 28, 2021) [Hereafter Garrett Testimony] (Statement of Paula 
N. Garrett MS, RD, Division Director, Division of Community Nutrition, 
Virginia Department of Health, https://edlabor.house.gov/imo/media/doc/
GarrettPaulaTestimony0728211.pdf).
---------------------------------------------------------------------------
    H.R. 8450 extends certification periods to ensure 
continuity of access to WIC services. Currently, certification 
periods can restrict participants' ability to consistently 
receive their benefits.\111\ The annual requirement for 
recertification can also lead to repetitive paperwork and 
deters ongoing participation.\112\ Extending certification 
periods is vital to ensure that eligible families consistently 
have access to the services they need, strengthen retention of 
child participants, and promote administrative efficiency. The 
bill requires WIC agencies to certify infants, children, 
breastfeeding women, and (non-breastfeeding) postpartum women 
for two-year periods, an increase from the current period that 
ranges from six months to one year. To further improve the 
certification process, the bill allows WIC agencies to adjust 
certification periods for members within the same household so 
that the periods align and allows a single document provided by 
a health care provider, including an electronic form, to be 
used to establish the nutritional risk determination required 
for certification or recertification.
---------------------------------------------------------------------------
    \111\Maximizing Efficiency: Streamlining WIC Services to Reach More 
Children, National WIC Ass'n (Mar. 2021), https://s3.amazonaws.com/
aws.upl/nwica.org/updated_fy21_nwa_factsheet_
certs-003.pdf.
    \112\Garett Testimony, supra note 110.
---------------------------------------------------------------------------
    Nutrition risk is an eligibility requirement that is unique 
to the WIC program. In addition to meeting categorical, income, 
and residency requirements, all WIC participants must be 
determined to be at nutrition risk by a physician, 
nutritionist, dietitian, nurse, or other competent professional 
authority.\113\ There are two major types of nutrition risk 
that are recognized for WIC eligibility: medically-based risks, 
such as anemia, underweight, maternal age, history of pregnancy 
complications, or poor pregnancy outcomes; and diet-based 
risks, such as inadequate dietary pattern.\114\ H.R. 8450 
provides a 90-day period of interim nutritional risk 
eligibility for all participants and allows 30-day temporary 
eligibility for all participants based on a signed self-
attestation of eligibility to ensure that individuals who are 
likely to be served by the program have adequate time to 
determine full nutrition risk. The Committee recognizes and 
encourages service delivery models that facilitate nutrition 
risk assessment and coordinated care between WIC agencies and 
health care providers.
---------------------------------------------------------------------------
    \113\Debra R. Whitford, WIC Policy Memorandum 2011-5 WIC Nutrition 
Risk Criteria, U.S. Dep't of Agric. Food & Nutrition Serv. (May 20, 
2011), https://fns-prod.azureedge.us/sites/default/files/2011-5-
WICNutritionRiskCriteria.pdf.
    \114\WIC Frequently Asked Questions (FAQs), U.S. Dep't of Agric. 
Food & Nutrition Serv. https://www.fns.usda.gov/wic/frequently-asked-
questions (last visited Oct. 5, 2022).
---------------------------------------------------------------------------
    H.R. 8450 further modernizes the certification and 
recertification process by requiring WIC clinics to offer 
applicants in-person, phone, and video options for 
certification and recertification and nutritional risk 
evaluation appointments. Congress temporarily provided targeted 
flexibilities to WIC in response to the COVID-19 public health 
emergency including by providing authority for USDA to waive 
the physical presence requirement for participants to become 
certified or recertified in the program and allowing WIC 
agencies to issue benefits remotely to minimize exposure.\115\ 
As demonstrated by the pandemic, offering remote options can 
increase access for individuals who have traditionally faced 
transportation, child care, and work-related challenges that 
make in-person appointments difficult to attend. Income, 
health, or other information collected by a health care 
provider should be shared with a WIC agency to inform 
determinations of program eligibility and nutrition risk. H.R. 
8450 builds upon flexibility provided during the public health 
emergency by permanently allowing state agencies to provide 
benefits remotely. This change further modernizes and 
streamlines the WIC program, enhancing participants' experience 
while building on the success of emerging and evolving 
technologies in implementing social services programs.\116\ The 
bill authorizes $90,000,000 in annual discretionary 
appropriations for FY 2023 through FY 2028 for investments in 
WIC technology to improve the existing infrastructure and 
establish efficient communication between WIC clinics and other 
health care providers to ensure the program works more 
effectively for both participants and providers. H.R. 8450 also 
requires the Secretary to collect data on the percentage of 
WIC-eligible SNAP recipients and the percentage of WIC-eligible 
Medicaid recipients certified in WIC and develop a plan across 
programs to increase these percentages, with the goal to reach 
more eligible individuals.
---------------------------------------------------------------------------
    \115\42 U.S.C. Sec.  1786.
    \116\Ending Child Hunger: Priorities for Child Nutrition 
Reauthorization Before the H. Comm. On Educ. & Labor, 117th Cong. (June 
10, 2021) (Statement of Michael J. Wilson, Director, Maryland Hunger 
Solutions, https://edlabor.house.gov/imo/media/doc/
WilsonMichaelTestimony
061021.pdf).
---------------------------------------------------------------------------

Modernizing WIC to Increase Access

    As online sales have increased significantly in recent 
years, particularly during the COVID-19 pandemic,\117\ online 
purchasing has grown to be an important tool for expanding food 
access. In the wake of the pandemic and the need for social 
distancing, USDA rapidly expanded its SNAP Online Purchasing 
Pilot to reach more recipients of SNAP and Pandemic Electronic 
Benefit Transfer (P-EBT). During first year of the pandemic, 
monthly online SNAP and P-EBT purchases grew from $3 million in 
February 2020 to $246 million in December 2020--86 times the 
value in February 2020.\118\ In light of the expansion of 
online SNAP and P-EBT purchasing and allowing more SNAP 
recipients flexibility in redeeming benefits, USDA announced 
plans to test and implement online ordering in the WIC 
program.\119\ Allowing for online ordering in WIC will ease 
access for participating households, a priority identified by 
USDA and food security advocates, particularly after the 2022 
infant formula shortage.\120\ H.R. 8450 facilitates online 
purchasing in several key ways. First, the bill makes statutory 
updates needed to allow for online and mobile payments in WIC 
and prohibits interchange and transaction fees from being 
imposed on WIC vendors. Second, the bill requires each state 
agency to approve at least three vendors for online WIC 
purchases by October 1, 2025, and to report to Congress on the 
implementation of online and mobile payments in WIC. Finally, 
the bill includes $40,000,000 in annual discretionary 
appropriations to be made available each year from FY 2023 to 
FY 2028 to ensure support for retailers, particularly small 
businesses, in building out modernization efforts.
---------------------------------------------------------------------------
    \117\Mayumi Brewster, Annual Retail Trade Survey Shows Impact of 
Online Shopping on Retail Sales During COVID-19 Pandemic, U.S. Census 
Bureau (Apr. 27, 2022), https://www.census.gov/library/stories/2022/04/
ecommerce-sales-surged-during-pandemic.html.
    \118\Jordan W. Jones, Online Supplemental Nutrition Assistance 
Program (SNAP) Purchasing Grew Substantially in 2020, U.S. Dep't of 
Agric. Economic Rsch. Serv. (July 6, 2021), https://www.ers.usda.gov/
amber-waves/2021/july/online-supplemental-nutrition-assistance-program-
snap-purchasing-grew-substantially-in-2020/.
    \119\Press Release, U.S. Dep't of Agric. Food & Nutrition Serv., 
USDA Expands Access to Online Shopping in SNAP, Invests in Future WIC 
Opportunities (Nov. 2, 2020), https://www.fns.usda.gov/news-item/fns-
001820.
    \120\Brenda Goodman, Families can't use WIC benefits to buy baby 
formula online, making shortage woes worse, CNN (June 30, 2022), 
https://www.cnn.com/2022/06/30/health/wic-online-formula-shortage/
index.html.
---------------------------------------------------------------------------
    H.R. 8450 includes provisions to ensure the program works 
effectively for both participants and retailers. First, the 
bill increases flexibility for WIC state agencies around the 
use of funds for food purchases and Nutrition Services and 
Administration (NSA) funding. Second, it makes a technical 
change to the way product prices are described to align with 
modern retail systems. These updates are intended to ensure 
that state and local WIC agencies are best able to serve all 
eligible women and children.

Modernizing the WIC Farmers' Market Nutrition Program

    H.R. 8450 includes several provisions to modernize WIC 
FMNP. FMNP was established in 1992 to provide locally grown 
produce to WIC families and to expand awareness and access to 
farmers' markets.\121\ FMNP exposes children and their families 
to fruits and vegetables as well as nutrition education to 
encourage recipients to improve their diet and teach them how 
to store and prepare nutritious foods.\122\ H.R. 8450 
modernizes FMNP by allowing benefits to be accepted by 
Community Supported Agriculture programs and allowing benefits 
to be redeemed at a central point of sale, making it easier for 
participating families to redeem benefits at a farmers' market. 
The bill also eliminates the state matching requirement for 
states and Tribal state agencies for FMNP, and it increases the 
minimum benefit level to $20 and the maximum to $100.
---------------------------------------------------------------------------
    \121\Farmers Market Nutrition Program, U.S. Dep't of Agric. Food & 
Nutrition Serv. (last visited Aug. 18, 2022), https://www.fns.usda.gov/
fmnp/wic-farmers-market-nutrition-program.
    \122\Ibid.
---------------------------------------------------------------------------

Breastfeeding Promotion and Ensuring Access to Infant Formula

    Increasing breastfeeding rates has long been a priority for 
WIC due to its proven benefits, including lowering the risk of 
certain infections and diseases, encouraging digestive system 
growth, decreasing health costs, and reducing breastfeeding 
mothers' risk for certain types of cancer.\123\ Due to these 
proven benefits, H.R. 8450 includes provisions that support and 
promote breastfeeding. H.R. 8450 marks the first time the 
Breastfeeding Peer Counseling Program (BFPC) has been codified. 
This successful program--which was officially launched in 2004 
as part of FNS's national peer counseling initiative, Using 
Loving Support to Implement Best Practices in Peer 
Counseling\124\--links breastfeeding women with other 
breastfeeding women within their community who can provide 
support, advice, and tips throughout the breastfeeding 
process.\125\ Pairing breastfeeding women with peer counselors 
from their communities fosters shared understanding and 
personalized supports that many health professionals are not 
able to provide. Evidence suggests that participation in the 
WIC BFPC is associated with several positive outcomes, such as 
increased initiation of breastfeeding and longer breastfeeding 
duration.\126\ The bill increases the authorization of 
discretionary annual appropriations for breastfeeding peer 
counselors from $90,000,000 to $180,000,000, including funding 
for providing breastfeeding support in health care settings 
outside of WIC clinics, such as hospitals or physicians' 
offices, or in partnership with the Maternal, Infant, and Early 
Childhood Home Visiting Program. H.R. 8450 also allows 
breastfeeding supplies to be purchased with funds available for 
the provision of food benefits, further easing cost barriers 
that may prevent women from choosing to breastfeed.
---------------------------------------------------------------------------
    \123\WIC Breastfeeding Support, U.S. Dep't of Agric. Food & 
Nutrition Serv. (last visited Aug. 18, 2022), https://
wicbreastfeeding.fns.usda.gov/breastfeeding-benefits.
    \124\WIC Breastfeeding Peer Counseling Study Supporting Statement 
for Paperwork Reduction Act Submission GSA Mobis Task Order #AG-3198-D-
06-0105, Abt Associates Inc. (June 26, 2008), https://www.reginfo.gov/
public/do/DownloadDocument?objectID=5786202.
    \125\Breastfeeding Peer Counselors: A Successful Program that 
Should be Expanded, Nat'l WIC Ass'n (Mar. 2019), https://
s3.amazonaws.com/aws.upl/nwica.org/2019-breastfeeding-peer-
counselors.pdf.
    \126\National WIC Ass'n, Breastfeeding Peer Counselors: A 
Successful Program that Should be Expanded (last visited Aug. 18, 
2022), https://s3.amazonaws.com/aws.upl/nwica.org/2019-breast
feeding-peer-counselors.pdf.
---------------------------------------------------------------------------
    While breastfeeding has been shown to provide important 
benefits, it is not always a viable option. When breastfeeding 
is not possible, infant formula provides a safe and nutritious 
alternative. The vast majority of WIC supported infants, 
approximately 88 percent, receive some amount of formula 
through the program.\127\ In the wake of the 2022 infant 
formula shortage that left thousands of families struggling to 
access formula, Congress took decisive bipartisan action 
through the passage and subsequent enactment of the Access to 
Baby Formula Act to ease the challenges faced by WIC families 
during emergency periods and supply chain disruptions.\128\ 
While the shortage was not unique to WIC and was compounded by 
supply issues, H.R. 8450 takes steps to strengthen the infant 
formula contracting process by requiring the Secretary to 
create an online source of information pertaining to state 
agency infant formula bid solicitations. The bill also allows 
state or local agencies to purchase and distribute safe 
drinking water to WIC participants during an emergency period 
for preparing infant formula, helping to protect women and 
children affected by crises.
---------------------------------------------------------------------------
    \127\Christina Szalinski, For Many Low-Income Families, Getting 
Formula Has Always Been a Strain, KHN (June 3, 2022), https://khn.org/
news/article/low-income-families-baby-formula-
strain-wic/.
    \128\Access to Baby Formula Act, Pub. L. No. 117-129, 136 Stat. 
1225 (2022) (codified at 42 U.S.C. Sec.  1786).
---------------------------------------------------------------------------

Supporting Healthy Mothers and Infants

    Substance use disorder (SUD) is defined as ``impairment 
caused by the recurrent use of alcohol or other drugs (or 
both), including health problems, disability, and failure to 
meet major responsibilities at work, school, or home.''\129\ 
SUD can have particularly damaging effects on families as 
prenatal substance use can result in health challenges to the 
infant, including birth defects and learning disabilities.\130\ 
The COVID-19 pandemic brought an increase in SUD and related 
deaths; for example, in 2020, 40 states experienced an increase 
in opioid-related mortality.\131\ Mothers have not been immune 
to the rising occurrence of SUD. Between 1999 and 2014, the 
number of women with an opioid use disorder during labor and 
delivery quadrupled.\132\ H.R. 8450 recognizes the importance 
of assisting women and infants impacted by SUD. The bill 
requires the Secretary, in collaboration with the Secretary of 
Health and Human Services, to develop and disseminate evidence-
based WIC nutrition education materials for individuals 
impacted by a SUD and requires the Secretary to make available 
to state agencies an online clearinghouse with nutrition 
education and training materials for such individuals. To 
implement these provisions, $1,000,000 is authorized to be 
appropriated in FY 2024.
---------------------------------------------------------------------------
    \129\Key Substance Use and Mental Health Indicators in the United 
States: Results from the 2020 National Survey on Drug Use and Health, 
U.S. Dep't of Health & Human Servs. Substance Abuse & Mental Health 
Servs. Admin. (2020), https://www.samhsa.gov/data/
sites/default/files/reports/rpt35325/ NSDUHFFRPDFWHTMLFiles2020/
2020NSDUHFFR1PDFW
102121.pdf.
    \130\ Grace Chang, Maternal Substance Use: Consequences, 
Identification, and Interventions, 40 Alcohol Res. no. 2, 2020, at 1, 
3.
    \131\Ashley Abramson, Substance use during the pandemic, Am. 
Psychological Ass'n (Mar. 1, 2021), https://www.apa.org/ monitor/ 2021/
03/ substance-use-pandemic#::text=According%20
to%20the %20Centers%20for,the %20onset%20of%20the %20pandemic.
    \132\ Chang, supra note 130.
---------------------------------------------------------------------------

Improving Nutrition Education Materials Related to Food Allergies

    H.R. 8450 allows the provision of nutrition education 
materials for WIC-eligible individuals with food allergies. A 
food allergy is a serious and potentially life-threatening 
immune system reaction that occurs soon after eating a certain 
food.\133\ Reactions can include congestion, coughing, 
itchiness of the skin, and difficulty breathing. In the United 
States, approximately 7.6 percent, or 1 in 13 children, have a 
food allergy.\134\ Providing nutrition education materials for 
WIC-eligible households will help protect against potentially 
harmful allergic reactions and ensure that the needs of women, 
infants, and children with unique nutritional and medical 
considerations can be better met through the program.
---------------------------------------------------------------------------
    \133\U.S. Dep't of Agric. Food Allergies (last visited Aug. 18, 
2022), https://wicworks.fns.usda.gov/resources/food-allergies.
    \134\Ruchi Gupta et al., The public health impact of parent-
reported childhood food allergies in the United States. 142 Pediatrics 
1, 1 (2018).
---------------------------------------------------------------------------

                         SUPPORTING COMMUNITIES

Bolstering Tribal Sovereignty

    Federal nutrition assistance programs are crucial to the 
American Indian/Alaska Native (AI/AN) community as this 
population is often susceptible to high poverty rates, food 
insecurity, and an increased risk of nutrition-related health 
conditions.\135\ Adults are 60 percent more likely to face 
obesity\136\ and three times more likely to receive a diabetes 
diagnosis compared to their non-Hispanic white 
counterparts.\137\ Additionally, only one-fourth reside within 
a mile of a supermarket.\138\
---------------------------------------------------------------------------
    \135\Steven Garasky et. al., Feasibility of Tribal Administration 
of Federal Nutrition Assistance Programs, U.S. Dep't of Agric. Food & 
Nutrition Serv. Office of Pol'y Support (July 2016), https://fns-
prod.azureedge.us/sites/default/files/ops/TribalAdministration.pdf. .
    \136\U.S. Dep't of Health & Human Servs. Office of Minority Health, 
Obesity and American Indians/Alaska Natives (last visited Aug. 18, 
2022), http://minorityhealth.hhs.gov/omh/browse.aspx?lvl=4&lvlID=40.
    \137\U.S. Dep't of Health & Human Servs. Office of Minority Health, 
Diabetes and American Indians/Alaska Natives (last visited Aug. 18, 
2022), http://minorityhealth.hhs.gov/omh/browse.aspx?lvl=4&lvlID=33.
    \138\Phillip Kaufman et. al., Measuring Access to Healthful, 
Affordable Food in American Indian and Alaska Native Tribal Areas, U.S. 
Dep't of Agric. Economic Rsch. Serv. (Dec. 2014), https://
www.ers.usda.gov/webdocs/publications/43905/49690_eib131_errata.pdf.
---------------------------------------------------------------------------
    The majority of federal nutrition assistance programs are 
operated by state agencies, but programs currently administered 
by Tribes include the Commodity Supplemental Food Program; WIC; 
FDPIR; FMNP; and the Senior Farmer's Market Nutrition Program. 
In a 2016 report on the feasibility of Tribal administration, 
surveyed Tribal leaders and administrators from large Tribes 
indicated that additional flexibility to administer other 
programs not currently administered by Tribes would allow them 
to offer more culturally appropriate programming and 
services.\139\ Tribal members also believe that they have the 
means to administer these programs more efficiently and 
promptly in their communities.\140\
---------------------------------------------------------------------------
    \139\Garasky, supra note 135.
    \140\Garasky, supra note 135.
---------------------------------------------------------------------------
    The Indian Self-Determination and Education Assistance Act 
of 1975\141\ was enacted to allow greater Tribal control of 
federal programs that impact their members, resources, and 
governments. Tribal members have often reported numerous 
instances of program administrators impeding the administration 
of programs because they could not comprehend the differences 
in finance, operations, and governance across Tribes.\142\ The 
recognition of Tribes as autonomous and distinct nations 
ensures that community needs are met. In the June 23 Hearing on 
USDA FNS policies and priorities for FY 2023, Food and 
Nutrition Service Administrator, Cindy Long, emphasized the 
importance of Tribal sovereignty as well as the Department's 
commitment to advancing sovereignty and self-determination 
across programs.\143\
---------------------------------------------------------------------------
    \141\Pub. L. No. 93-638, as amended, 88 Stat. 2203, (1975) 
(codified at 25 U.S.C. Sec.  450).
    \142\Garasky, supra note 135.
    \143\Examining the Policies and Priorities of the U.S. Department 
of Agriculture's Food and Nutrition Service: Hearing Before the Comm. 
On Educ. & the Workforce, 117th Cong. 30 (2022) (statement of Cindy 
Long, Administrator, U.S. Department of Agriculture).
---------------------------------------------------------------------------
    However, it is important to note that some Tribes, 
particularly smaller Tribes, have voiced concerns about the 
ability to independently operate nutrition programs due to a 
lack of resources. In a 2016 FNS report on the feasibility of 
Tribal administration, 44 percent of interviewed Tribes 
reported the lack of financial resources as an expected 
challenge in administering a nutrition program, and nearly a 
third indicated a lack of human resources and technological 
infrastructure as obstacles.\144\ A USDA feasibility study 
found concerns with the Tribal operation of child nutrition 
programs, specifically concerning the resources and assistance 
needed for Tribes to update internal systems for program 
administration.\145\ There are also logistical realities that 
would need to be considered for the administration of these 
programs to transition from states to Tribes. In order to 
examine any potential challenges and mitigate unforeseen 
complications, H.R. 8450 creates a pilot project to allow 
Indian tribes to assume responsibility for administering SBP, 
NSLP, CACFP, and SFSP in lieu of a state agency.
---------------------------------------------------------------------------
    \144\Garasky, supra note 135.
    \145\Garasky, supra note 135.
---------------------------------------------------------------------------

Supporting the Freely Associated States

    The Freely Associated States (FAS), formerly known as Trust 
Territories, include the Marshall Islands, Micronesia, and 
Palau. They are sovereign ``insular areas'' that have 
established bilateral Compacts of Free Association with the 
U.S., and thus they receive economic assistance and allow the 
U.S. to operate military bases and provide mutual 
security.\146\ In 1975, the National School Lunch Act and Child 
Nutrition Act Amendments of 1975\147\ added language regarding 
the Trust Territories to statute and added the Trust 
Territories to the definition of a state. This addition 
authorized the Freely Associated States to receive child 
nutrition program and WIC funding. However, the Personal 
Responsibility and Work Opportunity Reconciliation Act of 
1996\148\ repealed those provisions.
---------------------------------------------------------------------------
    \146\Thomas Lum, Cong. Rsch. Serv., The Freely Associated States 
and Issues for Congress, R46573 (2020), https://
crsreports.congress.gov/product/pdf/R/R46573/2. The Marshall Islands, 
Micronesia, Palau, and the Northern Mariana Islands became U.S. Trust 
Territories in 1947. In 1978, the Marshall Islands, Micronesia, and 
Paula rejected territorial or commonwealth status, and instead chose 
free association.
    \147\Pub. L. No. 94-105, 89 Stat. 511, (1975) (codified at 42 
U.S.C. Sec. Sec.  1751, 1773).
    \148\The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1988, Pub. L. No. 104-193, 110 Stat. 2105 (1996) 
(codified at 42 U.S.C. Sec. 1305).
---------------------------------------------------------------------------
    FNS does not currently work with any of the Freely 
Associated States on child nutrition efforts, and therefore 
additional work is needed to assess the administrative and 
financial capability of doing so. If Freely Associated States 
were to be included in the definition of a state in statute for 
the purpose of participation in the child nutrition programs, 
they would need to adopt new administrative processes and 
technology to implement programs and would be responsible for 
program operations, including program oversight and payments. 
To gather information regarding administrative and financial 
capacity, potential challenges, and needed changes to statute 
to effectuate the policy of allowing Freely Associated States 
to participate in child nutrition programs, H.R. 8450 directs 
the Secretary to complete a feasibility study to assess the 
ability and preparedness of the Freely Associated States to 
operate such programs.

Supporting Food Donation

    According to the Environmental Protection Agency, the 
United States wastes over one-third of its food supply each 
year, containing enough calories to feed more than 150 million 
people.\149\ The Natural Resources Defense Council found in 
2015 that 8 percent of food waste comes from institutional 
settings such as schools and hospitals.\150\ While this may be 
a small percentage of overall food waste, schools can play an 
important role in helping eliminate child hunger and reducing 
food waste. Further, food donation provisions can be helpful in 
diverting leftover food from going to landfills and help feed 
more children and families.\151\
---------------------------------------------------------------------------
    \149\From Farm to Kitchen: The Environmental Impacts of U.S. Food 
Waste, U.S. Env't Prot. Agency (last visited Aug. 4, 2022), https://
www.epa.gov/system/files/documents/2021-11/from-farm-to-kitchen-the-
environmental-impacts-of-u.s.-food-waste_508-tagged.pdf.
    \150\Wasted: How America is Losing up to 40 Percent of its Food 
from Farm to Fork to Landfill, National Resources Defense Council (Aug. 
2017), https://www.nrdc.org/sites/default/files/wasted-2017-report.pdf.
    \151\Food Waste and Lost: Donations, U.S. Dep't of Agric. (last 
visited Aug. 19, 2022), https://www.usda.gov/foodlossandwaste/donating.
---------------------------------------------------------------------------
    The Bill Emerson Good Samaritan Food Donation Act of 1996 
(the Emerson Act) provided the first federal protection for 
individuals and organizations who wish to donate food in good 
faith.\152\ The Emerson Act provides protection from civil and 
criminal liability for persons involved in the donation and 
distribution of food and grocery products to needy individuals 
when donations are made in good faith and the products are 
apparently wholesome or apparently fit. With millions of 
Americans facing food insecurity,\153\ the provisions included 
in H.R. 8450 take important steps to encourage food donation 
efforts by updating the provisions of the Emerson Act. First, 
H.R. 8450 allows food donated by a school to be received, 
stored, and distributed on the campus of the same school 
donating the food. This provision complements child nutrition 
programs by helping ensure that children and families can 
access food after the school day has ended. Additionally, this 
provision may help reduce stigma associated with food 
insecurity as schools are already a place where children and 
families are regularly present and feel comfortable.
---------------------------------------------------------------------------
    \152\42 U.S. Code Sec.  1791. In 1996, Pub. Law No. 104-210 
converted the Model Good Samaritan Food Donation Act to permanent law 
and transferred the Act to the Child Nutrition Act of 1966, renaming it 
as the Bill Emerson Good Samaritan Food Donation Act.
    \153\The Committee notes that both 42 U.S.C. Sec.  1791 and 42 
U.S.C. Sec.  1758(l) contain provisions relating to food donation, with 
the latter pertaining specifically to food donation in schools. 
Further, the Committees notes that USDA has interpreted the Emerson Act 
to provide protections for schools because of the Emergency Food 
Assistance Act of 1983's definition of ``qualified direct donor.'' H.R. 
8450 adds school and school food authority under the Emerson Act to 
preclude any ambiguity. See e.g., U.S. Dep't of Agric., Frequently 
Asked Questions about the Bill Emerson Good Samaritan Food Donation Act 
(last visited Aug. 18, 2022), https://www.usda.gov/sites/default/files/
documents/usda-good-samaritan-faqs.pdf.
---------------------------------------------------------------------------
    The bill extends liability protections to donors when a 
recipient pays a deeply reduced price (referred to as a ``good 
Samaritan reduced price''). Currently, the Emerson Act only 
protects food donations when the ultimate recipient receives 
the donation free of charge. H.R. 8450 expands protections to 
include instances where small fees are incurred, allowing 
nonprofit organizations to provide food at a low price, for 
example, through nonprofit grocery stores. Additionally, H.R. 
8450 extends liability protection from the Emerson Act to 
direct donations to individuals. Further, H.R. 8450 requires 
USDA to release updated regulations on the donations process, 
which will provide much-needed clarity to businesses and food 
pantries alike. The bill also makes technical and other changes 
to modernize the provisions of the statutes.\154\
---------------------------------------------------------------------------
    \154\H.R. 8450 includes several changes to bring more alignment 
across the two sets of provisions. For example, the definition of 
``nonprofit organization'' has been made consistent.
---------------------------------------------------------------------------
    In addition to addressing food insecurity for children and 
families, H.R. 8450 expressly extends liability protections to 
pet supplies donated to animal shelters. These provisions build 
upon other aspects of H.R. 8450, such as ensuring adequate meal 
time, reducing meal shaming, and reducing food waste, to 
collectively achieve the goal of eliminating child hunger.

                               CONCLUSION

    For over seventy-five years, child nutrition programs have 
provided vital nutrition support to children and families and 
nurtured children's health and school readiness. Child 
nutrition and related programs are essential to addressing food 
insecurity for our nation's children. These crucial programs 
help ensure that infants and children receive adequate 
nutrients to support their health during a critical period of 
growth and development. Reauthorizing and updating these child 
nutrition programs is necessary to meet the needs of our 
nation. H.R. 8450 modernizes and invests in these vital 
programs.

                      Section-by-Section Analysis


Section 1. Short title; Table of contents

    This section states that the title of the bill is the 
Healthy Meals, Healthy Kids Act and lists the table of 
contents.

Section 2. Definition of Secretary

    This section states that the term ``Secretary'' means the 
Secretary of Agriculture.

               TITLE I--EXPANDING ACCESS TO SCHOOL MEALS

Section 101. Emergency waivers or modifications

    This section provides the Secretary with the authority to 
waive certain statutory or regulatory requirements under 
certain child nutrition programs on a state-by-state or 
national level in the event of a qualifying emergency.

Section 102. Direct certification for children receiving Medicaid 
        benefits

    This section discontinues the pilot program allowing for 
direct certification of children receiving Medicaid and 
permanently extends eligibility for direct certification of 
such children for free or reduced price school meals. For free 
school meals, the bill allows for direct certification of 
children receiving Medicaid who are members of households with 
incomes at or below 133 percent of the poverty line and who are 
eligible to receive Medicaid by virtue of receiving Adoption 
Assistance, Social Security Income, or Guardianship Assistance. 
For reduced price meals, the bill allows direct certification 
of children receiving Medicaid who are members of households 
with incomes between 133 to 185 percent of the poverty line. 
This section also provides improvement grants and technical 
assistance to state agencies or Tribal organizations to carry 
out direct certification.

Section 103. Expanding community eligibility

    This section changes the multiplier used to determine the 
rate of federal reimbursement to schools participating in the 
Community Eligibility Provision (CEP) from 1.6 to 2.5, lowers 
the participation threshold for schools to elect CEP from 40 
percent to 25 percent of identified students, and allows 
statewide election of CEP.

   TITLE II--ENSURING THE LONG-TERM VIABILITY OF SCHOOL MEAL PROGRAMS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act


Section 201. Increasing reimbursement rate of school meals

    This section increases the base reimbursement rate for 
meals served in the National School Lunch Program (NSLP) by 10 
cents.

Section 202. Statewide technology solutions included as State 
        administrative costs

    This section allows state administrative expense (SAE) 
funds to be used for statewide technology solutions.

Section 203. Annual reimbursement rate and commodity improvements

    This section adds commodity assistance at a rate of 6 cents 
per meal, adjusted for inflation, to the School Breakfast 
Program (SBP). This section also changes the date on which the 
value of commodities is updated (based on the Price Index for 
Food Used in Schools and Institutions) to January 15 each year.

Section 204. Food service management

    This section requires that the Secretary issue a request 
for information: on the role of food service management 
companies (FSMCs) in carrying out child nutrition programs, 
including contract practices; trends in compensation and 
benefits; participation of small, women, and minority owned 
businesses as FSMCs; and any practices undermining collective 
bargaining. This sections also requires the Secretary to issue 
a rule regarding the role of food service management companies.

Section 205. Kitchen improvement and personnel training

    This section authorizes $35,000,000 per year for FY 2024 
through FY 2028 in discretionary appropriations to purchase 
kitchen equipment, improve kitchen infrastructure, purchase 
software and technology systems needed to serve healthy meals 
and promote food safety, support scratch cooking, and 
facilitate the use of salad bars in school meal programs. This 
section also establishes a grant program to support scratch 
cooking by promoting professional development and training for 
preparing, procuring, and serving scratch cooked meals and by 
providing student engagement activities. This section 
authorizes a technical assistance center on scratch cooking to 
support grantees and reserves 10 percent of the funding for 
this purpose.

Section 206. Statewide online household applications

    This section allows state agencies to establish a statewide 
online application to determine the eligibility of children in 
households in that state to receive free or reduced price 
school meals. This section also requires that eligibility 
determinations be maintained when a student transfers to a new 
school in the state.

       Subtitle B--Programs Under the Child Nutrition Act of 1966


Section 211. Professional development and training

    This section requires that training for school food service 
personnel be scheduled during regular, paid working hours. If 
training is not done during paid working hours, then the time 
spent in training must be considered compensable at a rate not 
less than the individual's regular rate of pay. Any food 
service personnel who cannot attend such training may not be 
discharged.

Section 212. Technology and infrastructure improvement

    This section extends the authorization of appropriations 
for Technology Infrastructure Grants through FY 2028.

Section 213. State administrative expenses

    This section extends the authorization of appropriations 
for SAE funds through FY 2028.

 TITLE III--MODERNIZING THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 
                   WOMEN, INFANTS, AND CHILDREN (WIC)

Section 301. Adjunctive eligibility

    This section requires WIC to automatically certify infants 
born to a mother participating in WIC, and it extends 
adjunctive eligibility to women, infants, or children under the 
age of six residing in a household in which a member 
participates in the Children's Health Insurance Program (CHIP), 
Head Start, Early Head Start, or the Food Distribution Program 
on Indian Reservations (FDPIR).

Section 302. WIC eligibility and certification periods

    This section extends eligibility for WIC through a child's 
sixth birthday or the day they begin kindergarten, whichever is 
earlier. Additionally, this section requires WIC agencies to 
certify infants, children, breastfeeding women, and (non-
breastfeeding) postpartum women for two-year periods. These 
changes in certification are mandatory beginning on October 1, 
2026. This section also makes breastfeeding and (non-
breastfeeding) post-partum women eligible for WIC for two years 
post-partum. This section allows WIC agencies to adjust 
certification periods for members of the same household in 
order to establish alignment of household members' 
certification periods. This section allows information provided 
by a health care provider to be used to establish nutrition 
risk for program eligibility. This section also provides a 90-
day period of interim nutritional risk eligibility for all 
participants and allows 30-day temporary eligibility for all 
participants based on a signed self-attestation of eligibility. 
Finally, this section requires states to develop policies on 
eligibility for children in kinship care in alignment with the 
current statutory requirements for children in foster care.

Section 303. Certification and recertification determinations and 
        nutritional risk evaluations

    This section requires WIC clinics to offer applicants in-
person, phone, and video options, as determined by the 
Secretary, for certification and recertification appointments, 
and for evaluation of nutritional risk. This section also 
allows state agencies to issue benefits remotely (such as by 
uploading them to a benefit card or by mail). This section 
authorizes $90,000,000 in annual discretionary appropriations 
for investments in WIC technology, including the development of 
secure communication systems to share data between WIC clinics 
and other health care providers. This section requires the 
Secretary to collect data on the percentage of WIC-eligible 
SNAP recipients and the percentage of WIC-eligible Medicaid 
recipients certified in WIC and develop a plan across programs 
to increase these percentages.

Section 304. Paperwork reduction

    This section allows a single document, including in 
electronic form or provided electronically, to provide all 
information required for certification or recertification.

Section 305. Nutrition education materials related to food allergies

    This section allows the provision of nutrition education 
materials for WIC-eligible individuals with food allergies.

Section 306. Breastfeeding supply coverage

    This section allows breastfeeding supplies to be purchased 
with funds available for the provision of food benefits.

Section 307. Water benefits during disasters

    This section allows a state or local agency to purchase and 
distribute safe drinking water to WIC participants during an 
emergency period for preparation of infant formula.

Section 308. Infant formula procurement online source of information

    This section requires the Secretary to create an online 
source of information pertaining to state agency infant formula 
bid solicitations.

Section 309. Breastfeeding peer counselor program

    This section permanently authorizes the breastfeeding peer 
counselor program and increases the authorization of 
discretionary annual appropriations for breastfeeding peer 
counselors from $90,000,000 to $180,000,000 to be used for 
establishing and administering the breastfeeding peer counselor 
programs and providing breastfeeding support in health care 
settings outside of the WIC clinic, or in partnership with the 
Maternal, Infant, and Early Childhood Home Visiting program.

Section 310. Product pricing

    This section makes a technical update to the way product 
prices are described and it brings it in alignment with modern 
retail systems.

Section 311. WIC A50 stores

    This section allows stores that derive more than 50 percent 
of their food sales from WIC to receive a reimbursement rate 
that consists of the average reimbursement rate for the same 
food products at other stores within a 5 percent margin.

Section 312. WIC EBT modernization

    This section makes statutory updates needed to permit 
online and mobile payments in WIC, and it prohibits interchange 
and transaction fees from being imposed on WIC vendors. This 
section requires each state agency to approve at least three 
vendors for online WIC purchases by October 1, 2025 and 
requires a report to Congress on the implementation of online 
and mobile payments in WIC. This section also sets aside 
$40,000,000 in annual discretionary appropriations in FY 2023 
through FY 2028 to support retailers, particularly small 
businesses, in modernization efforts.

Section 313. Spend forward authorities

    This section increases WIC state agency back spending 
authority for food funds in a preceding fiscal year from 1 
percent to 10 percent, and it increases WIC State agency back 
spending authority for NSA funds in a preceding fiscal year 
from 1 percent to 10 percent. This section also increases the 
percentage of NSA funding that can be spent in a subsequent 
fiscal year from 3 percent to 10 percent and allows up to 3 
percent of WIC state funding to be spent in a subsequent fiscal 
year, provided that the funds go toward activities related to 
food delivery.

Section 314. Administrative simplification

    This section streamlines the process for submitting state 
plans. This section also eliminates the National Advisory 
Council on Maternal, Infant, and Fetal Nutrition which is no 
longer in operation.

Section 315. Authorization of appropriations

    This section amends the authorization of appropriations for 
WIC from FY 2010 through FY 2015 to FY 2023 through FY 2028.

Section 316. WIC Farmers' Market Nutrition Program

    This section allows WIC FMNP benefits to be accepted by 
Community Supported Agriculture programs. This section also 
allows WIC FMNP benefits to be redeemed at a central point of 
sale, making it easier to redeem benefits at a farmers' market. 
This section further eliminates the state matching requirement 
for states and Tribal state agencies for FMNP. This section 
increases the minimum FMNP benefit level to $20 and the maximum 
benefit level to $100 and increases the percentage of funding 
states may use for administrative expenses.

Section 317. Supporting healthy mothers and infants

    This section requires the Secretary, in collaboration with 
the Secretary of Health and Human Services, to develop and 
disseminate evidence-based WIC nutrition education materials 
for individuals impacted by a substance use disorder. This 
section also requires the Secretary to make available to state 
agencies an online clearinghouse with nutrition education and 
training materials for individuals impacted by a substance use 
disorder. To carry out this section, $1,000,000 is authorized 
to be appropriated in FY 2024 and remains available until 
expended.

  TITLE IV--MODERNIZING THE CHILD AND ADULT CARE FOOD PROGRAM (CACFP)

Section 401. Eligibility certification criteria for proprietary child 
        care centers

    This section allows CACFP eligibility for proprietary child 
care centers to be determined on an annual basis in alignment 
with other child care centers.

Section 402. Automatic eligibility for children in supplemental 
        nutrition assistance households

    This section allows a child to be automatically eligible 
for benefits if the child is a member of household that 
receives SNAP benefits.

Section 403. Review of serious deficiency process

    This section requires the Secretary to review and issue 
guidance on the regulations regarding the serious deficiency 
process for CACFP not later than one year after the date of 
enactment of the bill.

Section 404. Authorization of reimbursements for additional meal or 
        snack

    This section allows reimbursement of up to two meals and 
two snacks or three meals and one snack per child per day for 
children in care for at least eight hours per day.

Section 405. Adjustments

    This section allows annual adjustments to reflect the 
Consumer Price Index for food away from home to be used for 
reimbursements for food served in family or group day care 
homes.

Section 406. Age limits in homeless shelters and emergency shelters

    This section increases the age limit for reimbursement for 
meals and supplements served in homeless shelters and emergency 
shelters to individuals who have not yet attained the age of 
25.

Section 407. Advisory committee on paperwork reduction

    This section establishes an advisory committee to examine 
the feasibility of reducing unnecessary or duplicative 
paperwork and provide recommendations to the Secretary to 
reduce paperwork. This section also requires the Secretary to 
issue guidance and, if appropriate, regulations, in response to 
these recommendations within three years of enactment.

      TITLE V--ADDRESSING CHILD FOOD INSECURITY DURING THE SUMMER

Section 501. Summer Food Service Program for children

    This section reduces the eligibility threshold for 
participation in the SFSP from 50 to 40 percent of the children 
residing in the area who have been determined to be eligible 
for free or reduced-price meals. This section allows schools 
operating the NSLP to continue operating the Seamless Summer 
Option for meals served during the summer and school vacation 
periods. This section creates an option for year-round meal 
service under SFSP for non-school meal providers during 
afterschool hours, weekends, and holidays. This section 
authorizes a competitive grant program to increase 
participation in SFSP at feeding sites through innovative 
approaches including transportation and mobile meal delivery 
and authorizes $10,000,000 each fiscal year for such grants. 
This section allows meal service through SFSP during 
unanticipated closures for school sites. This section allows 
service institutions that participate in SFSP to serve up to 
three meals, or two meals and one snack, per child per day. 
This section also requires updated nutrition standards for SFSP 
and specifies that outreach materials for SFSP be culturally 
and linguistically appropriate. This section allows non-school 
sponsors under SFSP to utilize the offer versus serve provision 
to allow students to decline some of the foods offered to help 
prevent food waste. Finally, the section authorizes the SFSP 
through FY 2028.

Section 502. Summer Electronic Benefit Transfer for children program

    This section authorizes a permanent nationwide Summer 
Electronic Benefit Transfer (Summer EBT) program to provide 
benefits at a rate of $75 per child per month during the 
summer. This section requires the Secretary to issue 
implementation grants to support Summer EBT.

       TITLE VI--IMPROVING CAPACITY AND PROMOTING SUSTAINABILITY

Section 601. Values-aligned procurement

    This section expands the list of criteria institutions may 
use to source agricultural products, including unprocessed food 
products that were locally grown and locally raised or produced 
by a socially disadvantaged or beginning farmer or rancher. 
This section also authorizes school districts to include 
certain values-aligned purchasing criteria as a specification 
in their competitive bids.

Section 602. Procurement training

    This section extends an annual authorization of $1,000,000 
each year for procurement training for FY 2023 through FY 2028.

Section 603. Buy American

    This section clarifies requirements for SFAs in assessing 
compliance with current Buy American requirements in the 
context of existing administrative review processes. This 
section enables the Secretary to receive information on the 
availability of domestically-produced products and where cost 
differentials between domestically-produced and foreign-
produced goods are prohibitive. Additionally, the section 
requires the Secretary to add certain questions to assessments, 
including information on the use of foreign-produced goods.

Section 604. Plant-based foods in schools

    This section establishes a pilot grant program to support 
the provision of plant-based foods in schools participating in 
NSLP. Grant funds may be used for professional development 
training for food service personnel, technical assistance, 
student engagement and education, outreach, and procurement 
costs associated with purchasing plant-based foods. To carry 
out this section, $10,000,000 is authorized for FY 2024, to 
remain available through 2028.

Section 605. Food waste and nutrition education

    This section establishes a grant program to carry out food 
waste measurement and reporting, prevention, education, and 
reduction projects in schools. Funds may be used to plan and 
carry out food waste measurement, prevention, and reduction 
projects; provide training; purchase equipment to support 
projects; and offer food waste education. To carry out this 
section, $10,000,000 is authorized for FY 2024, to remain 
available through 2028.

Section 606. Farm to School Grant Program

    This section makes updates to the Farm to School Program 
and changes the mandatory authorization of funds from 
$5,000,000 per year to $15,000,000 per year. This section also 
increases the maximum Farm to School grant award to $500,000 
and removes the matching funds requirement.

       TITLE VII--SUPPORTING TRIBES AND FREELY ASSOCIATED STATES

Section 701. Tribally operated meal and snack pilot project

    This section creates a pilot project to allow for Indian 
tribes to assume responsibility for administering the School 
Breakfast Program, the National School Lunch Program, the Child 
and Adult Care Food Program, or the Summer Food Service Program 
in lieu of a state agency.

Section 702. Island areas eligibility feasibility study under the 
        Richard B. Russell National School Lunch Act

    This section directs the Secretary to complete a 
feasibility study within 12 months to assess the ability and 
preparedness of the freely associated states to operate child 
nutrition programs authorized under the Richard B. Russell 
National School Lunch Act and the Child Nutrition Act of 1966.

       TITLE VIII--ADDRESSING LUNCH SHAMING AND UNPAID MEAL DEBT

Section 801. Unpaid meal debt

    This section prohibits school districts from publicly 
identifying students who have unpaid meal debts or hiring debt 
collectors to recover unpaid meal debts. Additionally, this 
section requires schools to attempt to directly certify a child 
with unpaid meal debt and allows schools to be retroactively 
reimbursed for meals served to a child who was unable to pay 
for them and is later deemed eligible for free or reduced price 
meals.

Section 802. National advisory council on unpaid meal debt in child 
        nutrition programs

    This section establishes an advisory council to provide 
recommendations to the Secretary pertaining to addressing 
unpaid meal debt that ensures that no student is stigmatized 
and that school food authorities can maintain fiscal solvency. 
This section also requires the Secretary to issue guidance 
based on these recommendations. To carry out this section, 
$1,500,000 is authorized to be appropriated to remain available 
until after the submission of the report.

       TITLE IX--STRENGTHENING EVIDENCE-BASED NUTRITION STANDARDS

Section 901. Updating Nutrition Standards for Meal Patterns

    This section requires the Secretary to promulgate 
regulations to update the nutrition standards for schools 
participating in the NSLP or SBP to align with the most recent 
DGAs not less than once every 10 years or not later than one 
year after two consecutive publications of the DGAs.
    This section allows the Secretary to provide assistance to 
schools to improve school health environments and provide 
healthy meals. Assistance can include grants and monetary 
incentives to schools and entities working with schools to 
carry out NSLP and SBP. This section provides $3,000,000 in 
grants for FY 2023 and $3,000,000 for each following year to be 
adjusted for inflation, in addition to $30,000,000 for grants 
and monetary incentives to improve the nutritional quality of 
school meals and support other healthy food initiatives in 
schools. This section also requires the Secretary to annually 
publish a list of schools that are in compliance with the 
updated nutrition standards on the Department's website.

Section 902. Non-nutritive sweeteners, synthetic dyes, and other 
        potentially harmful substances in school meals

    This section requires the Secretary to establish an 
agreement with the National Academy of Sciences under which the 
National Academy will create and publish a report that includes 
recommendations on nutrition standards including the use of 
non-nutritive sweeteners, synthetics dyes, and other 
potentially harmful substances in school meals. Based on the 
recommendations, the Secretary may promulgate proposed 
regulations.

                         TITLE X--OTHER MATTERS

Subtitle A--Programs Under the Richard B. Russell National School Lunch 
                                  Act


Section 1001. Accommodating dietary requirements

    This section requires schools to provide a non-dairy fluid 
milk substitute to children with special dietary needs if a 
parent or guardian makes a written request to the school 
district. This section also allows schools to provide a non-
dairy fluid milk substitute to any student as part of a 
reimbursable meal without a note. All non-dairy fluid milk 
substitutes must meet the nutrition standards established by 
the Secretary and be consistent with the most recent DGAs. This 
section also ensures that nutritionally equivalent food 
substitutions for religious dietary needs are permitted. This 
section provides $2,000,000 in grants for FY 2024 to remain 
available for three years after the enactment of the section.

Section 1002. Data protections for household applications

    This section requires the Secretary to establish 
requirements for the protection of school meal applicant data.

Section 1003. Eating disorder prevention

    This section incorporates mental health promotion and 
education, including awareness of eating disorders, into local 
school wellness policies. This section increases the 
authorization for these activities from $3,000,000 to 
$5,000,000 for FY 2024 and allows those funds to remain 
available until expended.

Section 1004. Compliance and accountability

    This section reauthorizes funding to support compliance and 
accountability activities through FY 2028.

Section 1005. National Hunger Hotline and Clearinghouse

    This section increases the authorization for appropriations 
for the National Hunger Hotline and Clearinghouse from $250,000 
to $500,000 for each year from FY 2023 through FY 2028.

Section 1006. Ensuring adequate meal time

    This section requires the Secretary to enter into an 
agreement with an independent, nonpartisan, science-based 
research organization to carry out a study on the time lunches 
are served, recess is offered, and the duration of lunch 
periods. This section also directs the Secretary to establish a 
task force in coordination with the Secretary of Education to 
review the study and other pertinent research and to develop 
best practices. This section further requires the Secretary to 
issue guidance on best practices developed by the task force. 
To carry out this section, $1,000,000 is authorized for FY 2024 
and allows those funds to remain available until expended.

       Subtitle B--Programs Under the Child Nutrition Act of 1966


Section 1011. Enhancing nutrition education

    This section adds scratch cooking training as part of the 
Team Nutrition program to promote nutritional health. This 
section also allows Team Nutrition funds to be used for hiring 
qualified, full-time food and nutrition educators to carry out 
nutrition education programs in schools.

                  Subtitle C--Improving Food Donations


Section 1021. Food donation in schools

    This section updates terminology around food donation and 
permits school campuses to receive, store, and distribute 
donated food.

Section 1022. Bill Emerson Good Samaritan Food Donation Act

    This section updates the Bill Emerson Good Samaritan Food 
Donation Act\155\ by expanding liability protections for food 
that is apparently wholesome and sold at a price that is an 
amount not greater than the cost of handling, administering, 
and distributing the food; extending protections to food and 
supplies donated for pets; and providing liability protections 
for direct donations. This section also clarifies the 
application of food donation provisions to instances where 
donations are given to animal shelters.
---------------------------------------------------------------------------
    \155\Bill Emerson Good Samaritan Food Donation Act, Pub. L. No. 
104-210, 110 Stat. 3011 (1996) (codified at 42 U.S.C. Sec. 1791).
---------------------------------------------------------------------------

Section 1023. Regulations

    This section requires the Secretary to issue regulations 
regarding food donation.

                       Subtitle D--Miscellaneous


Section 1031. Technical Amendments

    This section makes technical and conforming amendments to 
the Child Nutrition Act and the National School Lunch Act.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the descriptive portions of this 
report.

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act of 1995, Pub. L. No. 104-1, H.R. 8450, as 
amended, does not apply to terms and conditions of employment 
or to access to public services or accommodations within the 
legislative branch.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended 
by Section 101(a)(2) of the Unfunded Mandates Reform Act of 
1995, Pub. L. No. 104-4), the Committee traditionally adopts as 
its own the cost estimate prepared by the Director of the 
Congressional Budget Office (CBO) pursuant to section 402 of 
the Congressional Budget and Impoundment Control Act of 1974. 
The Committee reports that because this cost estimate was not 
timely submitted to the Committee before the filing of this 
report, the Committee is not in a position to make a cost 
estimate for H.R. 8450, as amended.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 8450 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                            Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 8450:


             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 8450 are to 
comprehensively update and improve the child nutrition programs 
under the Richard B. Russell National School Lunch Act of 1946 
and the Child Nutrition Act of 1966 to better meet the needs of 
children and families.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 8450 is known to be duplicative of another 
federal program, including any program that was included in a 
report to Congress pursuant to section 21 of Pub. L. No. 111-
139 or the most recent Catalog of Federal Domestic Assistance.

                                Hearings

    Pursuant to clause 3(c)(6) of rule XIII of the Rules of the 
House of Representatives, the Committee held four hearings that 
were used to develop H.R. 8450.
    The CRHS Subcommittee held a hearing on May 12, 2021, 
titled ``Examining the Policies and Priorities of the U.S. 
Department of Agriculture's Food and Nutrition Service,'' which 
was used to develop H.R. 8450. The Subcommittee heard testimony 
on President Biden's FY 2022 Budget proposal for child 
nutrition programs under the Department of Agriculture's Food 
and Nutrition Service (FNS) and the Biden Administration's 
priorities for federal child nutrition programs. The 
Subcommittee heard testimony from Ms. Stacy Dean, Deputy Under 
Secretary for Food, Nutrition, and Consumer Services, U.S. 
Department of Agriculture, Washington, DC.
    The CRHS Subcommittee held a hearing on June 10, 2021, 
titled ``Ending Child Hunger: Priorities for Child Nutrition 
Reauthorization,'' which was used to develop H.R. 8450. The 
Subcommittee heard testimony on ideas for Congressional action 
to end child hunger, including through the reauthorization of 
federal child nutrition programs and additional federal 
investment. The Subcommittee heard testimony from: Mr. Michael 
Wilson, Director, Maryland Hunger Solutions, Baltimore, MD; Ms. 
Crystal Cooper, Executive Director, Nutrition Support Services 
in Chicago Public Schools, Chicago, IL; Mr. Brandon Lipps, 
Principal, Caprock Strategies, Alexandria, VA; and Mr. Tom 
Colicchio, Chef and Owner, Crafted Hospitality, New York, NY.
    The CRHS Subcommittee held a hearing on July 28, 2021, 
titled ``Food for Thought: Examining Federal Nutrition Programs 
for Young Children and Infants,'' which was used to develop 
H.R. 8450. The Subcommittee heard testimony on ways to improve 
and strengthen WIC and the CACFP. The Subcommittee heard 
testimony from: Ms. Teresa Turner, MS, RD, LDN, SNS, FAND, 
Nutritionist, Child and Youth Services, United States Army, 
Glen Burnie, MD; Ms. Paula Garrett, MS, RD, Division Director 
for Community Nutrition, Virginia Department of Health, 
Richmond, VA; Ms. Jessica Burris, North Carolina WIC 
Participant and Breastfeeding Peer Counselor, Montgomery County 
Department of Health, Troy, NC; and Mr. Trevor Farrell, Senior 
Vice President and Chief Commercial Officer, Americas, 
Schreiber Foods, Inc., Green Bay, WI.
    The CRHS Subcommittee held a hearing on June 23, 2022, 
titled ``Examining the Policies and Priorities of the U.S. 
Department of Agriculture's Food and Nutrition Service,'' which 
was used to develop H.R. 8450. The Subcommittee heard testimony 
on President Biden's FY 2023 Budget proposal for child 
nutrition programs under the Department of Agriculture's Food 
and Nutrition Service (FNS) and the Biden Administration's 
priorities for federal child nutrition programs. The 
Subcommittee heard testimony from Ms. Cindy Long, 
Administrator, Food and Nutrition Service, U.S. Department of 
Agriculture, Washington, DC.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

               New Budget Authority and CBO Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget and Impoundment Control Act of 1974, and 
pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives and section 402 of the Congressional 
Budget and Impoundment Control Act of 1974, the Committee has 
requested but not received a cost estimate for the bill from 
the Director of the Congressional Budget Office.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 8450. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget and Impoundment 
Control Act of 1974. The Committee reports that because this 
cost estimate was not timely submitted to the Committee before 
the filing of this report, the Committee is not in a position 
to make a cost estimate for H.R. 8450, as amended.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 8450, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

              RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT



           *       *       *       *       *       *       *
                        APPORTIONMENTS TO STATES

  Sec. 4. (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
          (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] 20.5 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).
                  (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]
                          (i) In general._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).
                          (ii) Report.--The Secretary shall 
                        make publicly available on the website 
                        of the Department and update on an 
                        annual basis a list of school food 
                        authorities certified to be in 
                        compliance in accordance with clause 
                        (i).
                  (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, 
                        statewide technology solutions, 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.

           *       *       *       *       *       *       *


                      DIRECT FEDERAL EXPENDITURES

  Sec. 6. (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, other than section 3 thereof, 
less
          (1) not to exceed 3\1/2\ 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; 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,
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. 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, facilitating operations with respect to the purchase 
and disposition of surplus agricultural commodities under 
section 32 of the Act approved August 24, 1935, 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.]
  (b) The Secretary shall deliver, to each State participating 
in the school lunch program under this Act and the school 
breakfast program under section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773), commodities valued at the total level of 
assistance authorized under subsections (c) and (d) for each 
school year for the school lunch and school breakfast programs 
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, 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.]
  (c) National School Lunch Commodity Assistance.--
          (1)(A) Not later than January 15 of each year after 
        the date of the enactment of the Healthy Meals, Healthy 
        Kids Act, the Secretary shall--
                  (i) calculate the national average value of 
                donated foods for school lunch, or cash 
                payments in lieu thereof, in accordance with 
                subparagraph (B); and
                  (ii) adjust the amount calculated under 
                clause (i) by the annual percentage change in 
                the 3-month average value of the Producer Price 
                Index for Foods Used in Schools and 
                Institutions--
                          (I) for the preceding August, 
                        September, and October, computed to the 
                        nearest 1/4 cent;
                          (II) using 5 major food components in 
                        the Producer Price Index of the Bureau 
                        of Labor Statistics, which are--
                                  (aa) cereal and bakery 
                                products;
                                  (bb) meats, poultry, and 
                                fish;
                                  (cc) dairy products;
                                  (dd) processed fruits and 
                                vegetables; and
                                  (ee) fats and oils; and
                          (III) weighing each such component 
                        using the same relative weight as 
                        determined by the Bureau of Labor 
                        Statistics.
          (B) The national average value of donated foods, or 
        cash payments in lieu thereof, shall be equal to 12 
        percent of the quotient obtained by dividing--
                  (i) the total assistance provided in the 
                preceding school year under section 4, this 
                section, and section 11; by
                  (ii) the number of lunches served in the 
                preceding school year.
          (C) Not later than January 15 of each year after the 
        date of the enactment of the Healthy Meals, Healthy 
        Kids Act, the Secretary shall calculate the total 
        commodity assistance or cash payments in lieu thereof 
        available to a State for the upcoming school year by 
        multiplying the number of lunches served in the most 
        recent school year for which data are available by the 
        rate established in subparagraph (A). The Secretary 
        shall also annually reconcile the amount of commodity 
        assistance or cash payments in lieu thereof made 
        available under this subparagraph with the amount of 
        assistance used by each State and increase or reduce 
        subsequent commodity assistance or cash payments in 
        lieu thereof based on such reconciliation.
          (D) Among those commodities delivered under this 
        section, the Secretary shall give special emphasis to 
        high protein foods, meat, 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.
  [(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.]
  (d) School Breakfast Level of Commodity Assistance.--
          (1) In general.--The national average value of 
        donated foods for school breakfasts, or cash payments 
        in lieu thereof, shall be 6 cents, adjusted in the same 
        manner as the amount calculated under clause (i) of 
        subparagraph (A) of subsection (c)(1) is adjusted under 
        clause (ii) of such subparagraph.
          (2) Allocation.--Not later than January 15 of each 
        year after the date of the enactment of the Healthy 
        Meals, Healthy Kids Act, the Secretary shall--
                  (A) calculate the total commodity assistance 
                or cash payments in lieu thereof available to a 
                State for the upcoming school year by 
                multiplying the number of breakfasts served in 
                the most recent school year for which data are 
                available by the rate established in paragraph 
                (1); and
                  (B) annually reconcile the amount of 
                commodity assistance or cash payments in lieu 
                thereof made available under this subparagraph 
                with the amount of assistance used by each 
                State and increase or reduce subsequent 
                commodity assistance or cash payments in lieu 
                thereof based on such reconciliation.
  [(f)] (e) 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.
                  (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.

           *       *       *       *       *       *       *


               NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

  Sec. 9. (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]
          (i) shall not--
                  (I) be construed to prohibit the substitution 
                of foods to accommodate the medical needs of 
                individual students; or
                  (II) be construed to prohibit the 
                nutritionally-equivalent substitution of foods 
                to accommodate religiously-based 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] foods that comply with 
the meal patterns prescribed by the Secretary, 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.]
                          (iii) as a reasonable accommodation 
                        under the Americans with Disabilities 
                        Act (42 U.S.C. 12101 et seq.) and 
                        section 504 of the Rehabilitation Act 
                        of 1973 (29 U.S.C. 794), shall provide 
                        a substitute for fluid milk for a 
                        student whose disability restricts 
                        their diet.
                  [(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, 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.]
                  (B) Other substitutions.--
                          (i) Standards for required 
                        substitution.--
                                  (I) A school shall 
                                substitute, for the fluid milk 
                                provided under subparagraph 
                                (A), a nondairy beverage that 
                                meets the nutritional needs of 
                                a student for whom fluid milk 
                                is not nutritionally 
                                appropriate due to a medical or 
                                other special dietary need 
                                other than a disability 
                                described in subparagraph 
                                (A)(iii), as determined by the 
                                school in consultation with the 
                                parent or legal guardian of 
                                such student.
                                  (II) A school shall 
                                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 if 
                                the substitution is requested 
                                by written statement by a 
                                parent or legal guardian of 
                                such student.
                          (ii) Standards for discretionary 
                        substitution.--A school may offer all 
                        students a nondairy beverage as a 
                        substitute for fluid milk that is 
                        nutritionally equivalent to fluid milk 
                        and meets nutritional standards 
                        established by the Secretary.
                          (iii) Excess expenses.--Except as 
                        provided in clause (iv), expenses 
                        incurred by providing substitutions 
                        under clauses (i) and (ii) that are in 
                        excess of expenses covered by 
                        reimbursements under this Act shall be 
                        paid by the school food authority.
                          (iv) Pilot program.--
                                  (I) Program authorized.--Not 
                                later than 90 days after the 
                                date of the enactment of this 
                                subparagraph, the Secretary 
                                shall establish and carry out a 
                                pilot grant program to award 
                                grants to eligible school food 
                                authorities to carry out 
                                subclause (III).
                                  (II) Priority.--In awarding 
                                grants under this clause, the 
                                Secretary may give priority 
                                to--
                                          (aa) an eligible 
                                        school food authority 
                                        that serves high 
                                        proportions of children 
                                        who demonstrate high 
                                        rates of lactose 
                                        intolerance; and
                                          (bb) an eligible 
                                        school food authority 
                                        that--
                                                  (AA) submits, 
                                                as part of the 
                                                application for 
                                                a grant, a need 
                                                for nondairy 
                                                beverages among 
                                                its student 
                                                population due 
                                                to dietary 
                                                reasons; and
                                                  (BB) 
                                                demonstrates a 
                                                need for 
                                                providing 
                                                nondairy 
                                                beverages to 
                                                children by 
                                                serving a 
                                                sufficient 
                                                number (as 
                                                determined by 
                                                the Secretary) 
                                                of such 
                                                children.
                                  (III) Use of funds.--A school 
                                food authority shall use grant 
                                funds awarded under this clause 
                                to reimburse the full cost of 
                                providing nondairy beverages as 
                                substitutes for fluid milk 
                                under clause (i)(I) incurred by 
                                such school food authority.
                                  (IV) Reports.--
                                          (aa) Annual report by 
                                        school food 
                                        authority.--Not later 
                                        than 1 year after 
                                        receiving a grant under 
                                        this clause, and on an 
                                        annual basis for the 
                                        duration of the pilot 
                                        program thereafter, a 
                                        school food authority 
                                        shall submit to the 
                                        Secretary a report on 
                                        the pilot grant 
                                        program, including 
                                        information with 
                                        respect to--
                                                  (AA) the 
                                                number of 
                                                schools served 
                                                by the school 
                                                food authority 
                                                pursuant to the 
                                                grant; and
                                                  (BB) the 
                                                number of 
                                                students served 
                                                by the school 
                                                food authority 
                                                pursuant to the 
                                                grant.
                                          (bb) Final report by 
                                        school food 
                                        authority.--The report 
                                        that is the final 
                                        report submitted under 
                                        item (aa) shall 
                                        include, in addition to 
                                        the information 
                                        required under subitems 
                                        (AA) and (BB) of such 
                                        item--
                                                  (AA) the 
                                                number of 
                                                nondairy 
                                                beverages as 
                                                substitutes for 
                                                fluid milk that 
                                                the school food 
                                                authority 
                                                served during 
                                                the grant 
                                                period; 
                                                compared with
                                                  (BB) the 
                                                number of 
                                                nondairy 
                                                beverages as 
                                                substitutes for 
                                                fluid milk that 
                                                the school food 
                                                authority 
                                                served during 
                                                the school year 
                                                immediately 
                                                preceding the 
                                                start of the 
                                                grant period.
                                          (cc) Report by the 
                                        secretary.--Not later 
                                        than 6 months after the 
                                        date described in 
                                        subclause (V), the 
                                        Secretary shall submit 
                                        to Congress a report 
                                        that includes a summary 
                                        of the information 
                                        included in the reports 
                                        received under this 
                                        subclause and any such 
                                        information with 
                                        respect to the pilot 
                                        program the Secretary 
                                        determines to be 
                                        relevant.
                                  (V) Sunset.--The authority to 
                                carry out this clause shall 
                                terminate on the date that is 3 
                                years after the date of the 
                                enactment of this subparagraph.
                                  (VI) Eligible school food 
                                authority defined.--In this 
                                clause, the term ``eligible 
                                school food authority'' means a 
                                school food authority for which 
                                50 percent or more of the 
                                students served by such school 
                                food authority are eligible for 
                                free or reduced price lunch 
                                under this Act or free or 
                                reduced price breakfast under 
                                section 4 of the Child 
                                Nutrition Act of 1966 (42 
                                U.S.C. 1773).
                                  (VII) Authorization of 
                                appropriations.--There is 
                                authorized to be appropriated 
                                to carry out this clause 
                                $2,000,000 for fiscal year 
                                2024, to remain available until 
                                the date described in subclause 
                                (V).
                  (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--
                          (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
          (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 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.).
          (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.
                          (iii) Confidentiality standards.--The 
                        confidentiality standards established 
                        by the Secretary shall ensure--
                                  (I) the maintenance of 
                                reasonable and appropriate 
                                administrative, technical, and 
                                physical safeguards to ensure 
                                the integrity and 
                                confidentiality of information 
                                submitted through electronic 
                                applications described in 
                                clause (ii);
                                  (II) protection against 
                                security threats or 
                                unauthorized uses or 
                                disclosures of the information 
                                submitted through such 
                                electronic applications; and
                                  (III) that data collected by 
                                such electronic applications 
                                shall be used only as permitted 
                                under paragraph (6).
                          (iv) Transferring eligibility 
                        status.--
                                  (I) Transfers to a new local 
                                educational agency.--When a 
                                child transfers to a new local 
                                educational agency, the new 
                                local educational agency shall 
                                obtain and accept the 
                                eligibility determination from 
                                the State or the child's former 
                                local educational agency.
                                  (II) Transfers out of a local 
                                educational agency.--When a 
                                child transfers out of a local 
                                educational agency, the local 
                                educational agency shall 
                                provide the child's eligibility 
                                determination to the new local 
                                educational agency.
                                  (III) Cost of meals.--When 
                                the former local educational 
                                agency is claiming meals under 
                                a special provision described 
                                in section 11, and the child 
                                does not have an individual 
                                eligibility determination, the 
                                new local educational agency 
                                shall serve the child meals at 
                                no cost and claim the child's 
                                meals at the free rate for up 
                                to 30 operating days, or until 
                                a new eligibility determination 
                                is made, whichever comes first.
                  (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 
                        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
                                                  (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 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 reduced-price 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 recent 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
                                  (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 
                                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) or paragraph 
                        (16)(B)(iii); 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] Committee on Education and 
                        Labor 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 supplemental 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
                                  [(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.]
                  (E) Performance improvement grants.--
                          (i) In general.--For each school year 
                        beginning after July 1, 2023, the 
                        Secretary shall offer performance 
                        improvement grants and technical 
                        assistance to State agencies or Tribal 
                        organizations (as defined in section 4 
                        of the Indian Self-Determination and 
                        Education Assistance Act (25 U.S.C. 
                        5304)) to increase the percentage of 
                        children eligible for direct 
                        certification under this paragraph or 
                        paragraph (5) who are certified in 
                        accordance with this paragraph or 
                        paragraph (5).
                          (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);
                                  (II) make performance 
                                improvement grants to States 
                                and Tribal organizations to 
                                increase the percentage of 
                                children eligible for direct 
                                certification under this 
                                paragraph or paragraph (5) who 
                                are certified in accordance 
                                with this paragraph or 
                                paragraph (5); and
                                  (III) provide technical 
                                assistance to the recipients of 
                                grants under this subparagraph, 
                                and other eligible entities, as 
                                appropriate, in improving the 
                                rates of direct certification.
                          (iii) Use of funds.--An eligible 
                        entity that receives a grant under 
                        clause (i) shall use the grant funds to 
                        pay costs relating to improving the 
                        rate of direct certification in the 
                        State or Indian Tribe, as applicable, 
                        including the cost of--
                                  (I) improving technology 
                                relating to direct 
                                certification;
                                  (II) providing technical 
                                assistance to local educational 
                                agencies;
                                  (III) implementing or 
                                improving a direct 
                                certification system or process 
                                in the State (including at 
                                local educational agencies in 
                                the State) or Indian Tribe, 
                                including the cost of 
                                equipment;
                                  (IV) establishing or 
                                improving the rate of direct 
                                certification of children that 
                                are members of households 
                                receiving assistance under the 
                                food distribution program on 
                                Indian reservations under 
                                section 4(b) of the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2013(b)); and
                                  (V) coordinating with 
                                multiple public benefits 
                                programs to increase the rate 
                                of direct certification, 
                                including by conducting 
                                feasibility studies and 
                                demonstration projects under 
                                section 18(c) of this Act.
                          (iv) Funding.--On October 1, 2022, 
                        and each subsequent October 1, out of 
                        any funds in the Treasury not otherwise 
                        appropriated, the Secretary of the 
                        Treasury shall transfer to the 
                        Secretary--
                                  (I) $15,000,000 to carry out 
                                clause (ii)(II); and
                                  (II) $500,000 to carry out 
                                clause (ii)(III).
                  (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 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) 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));
                  [(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
                  [(ii) a foster child who a court has placed 
                with a caretaker household.]
          (5) Discretionary certification.--
                  (A) Free lunches or breakfasts.--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--
                          (i) 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.);
                          (ii) 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));
                          (iii) served by the runaway and 
                        homeless youth grant program 
                        established under the Runaway and 
                        Homeless Youth Act (42 U.S.C. 5701 et 
                        seq.);
                          (iv) a migratory child (as defined in 
                        section 1309 of the Elementary and 
                        Secondary Education Act of 1965 (20 
                        U.S.C. 6399));
                          (v) an eligible child (as defined in 
                        paragraph (15)(A)); or
                          (vi)(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) Reduced price lunches or breakfasts.--
                Subject to paragraph (6), any local educational 
                agency may certify any child who is not 
                eligible for free lunches or breakfasts as 
                eligible for reduced price 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 child eligible 
                for reduced price meals (as defined in 
                paragraph (15)(A)).
          (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)] (5), or (15), 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)] (5), or (15);
                          (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 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 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]
                          (i) In general._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)] (I) beginning on the 
                                date of eligibility approval 
                                for the current school year; 
                                and
                                  [(ii)] (II) ending on a date 
                                during the subsequent school 
                                year determined by the 
                                Secretary.
                          (ii) Retroactivity.--A local 
                        educational agency shall revise a 
                        previously submitted meal claim to 
                        reflect the eligibility approval of a 
                        child for free or reduced price meals 
                        for the period that begins on the first 
                        day of the current school year.
                          (iii) Meal claim defined.--In this 
                        subsection, the term ``meal claim'' 
                        means any documentation provided by a 
                        school food authority to a State agency 
                        in order to receive reimbursement for 
                        the cost of a meal served to a child by 
                        such school food authority.
  [(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.]
          (10) Reducing stigma associated with unpaid school 
        meal fees.--
                  (A) Overt identification prohibited.--A local 
                educational agency or school food authority may 
                not, based on the status of a child as a 
                covered child--
                          (i) physically segregate or otherwise 
                        discriminate against such covered 
                        child;
                          (ii) overtly identify such covered 
                        child--
                                  (I) through the use of 
                                special tokens or tickets; or
                                  (II) by an announcement or a 
                                published list of names; or
                          (iii) identify or stigmatize such 
                        covered child by any other means.
                  (B) Eligibility determination by local 
                educational agency.--For any covered child who 
                is a member of a household that owes a week or 
                more of unpaid school meal fees, a local 
                educational agency shall--
                          (i) attempt to directly certify such 
                        covered child for free meals under 
                        paragraph (4) or (5); or
                          (ii) in a case where the local 
                        educational agency is not able to 
                        directly certify such covered child 
                        under paragraph (4) or (5), provide to 
                        the household of such covered child--
                                  (I) a household application 
                                and applicable descriptive 
                                material; and
                                  (II) written and oral 
                                communications to encourage 
                                submission of the application.
                  (C) Collection of unpaid school meal fees.--
                In attempting to collect unpaid school meal 
                fees from a household, a local educational 
                agency or school food authority may not--
                          (i) except as described in 
                        subparagraph (D), direct any 
                        communication regarding unpaid school 
                        meal fees to a covered child who is a 
                        member of such household;
                          (ii) withhold educational 
                        opportunities (including grades and 
                        participation in extracurricular 
                        activities or local educational agency 
                        programs or services) from, or 
                        otherwise stigmatize, a covered child 
                        due to the status of the covered child 
                        as a covered child; or
                          (iii) use a debt collector (as such 
                        term is defined in section 803 of the 
                        Consumer Credit Protection Act (15 
                        U.S.C. 1692a)).
                  (D) Letters.--A school food authority may 
                require that a covered child deliver a sealed 
                letter addressed to a parent or guardian of the 
                covered child that contains a communication 
                relating to unpaid school meal fees, subject to 
                the condition that the letter shall not be 
                distributed to the covered child in a manner 
                that stigmatizes the covered child.
                  (E) Eliminating stigma in meal service.--In 
                providing a meal to a covered child, a local 
                educational agency or school food authority may 
                not, based on the status of the covered child 
                as a covered child, dispose of or take away 
                from the covered child any food that has 
                already been served to such covered child.
                  (F) Definitions.--In this paragraph:
                          (i) Covered child.--The term 
                        ``covered child'' means a child who--
                                  (I) is--
                                          (aa) enrolled in a 
                                        school that 
                                        participates 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); and
                                          (bb) is a member of a 
                                        household that owes 
                                        unpaid school meal 
                                        fees; or
                                  (II) is eligible for a free 
                                or reduced price lunch under 
                                this section.
                          (ii) Unpaid school meal fees.--The 
                        term ``unpaid school meal fees'' means 
                        outstanding fees owed by a household to 
                        a school food authority or local 
                        educational agency (or both) for 
                        lunches under this Act or breakfasts 
                        under section 4 of the Child Nutrition 
                        Act of 1966 (42 U.S.C. 1773).
  (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.
  (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.--
                  (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).]
                          (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 that does not exceed 
                                133 percent of the poverty line 
                                (as determined under the 
                                poverty guidelines updated 
                                periodically in the Federal 
                                Register by the Department of 
                                Health and Human Services under 
                                the authority of 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;
                                  (II) who is eligible for the 
                                Medicaid program because such 
                                child receives supplemental 
                                security income benefits under 
                                title XVI of the Social 
                                Security Act (42 U.S.C. 1381-
                                1385) or State supplementary 
                                benefits of the type referred 
                                to in section 1616(a) of such 
                                Act (or payments of the type 
                                described in section 212(a) of 
                                Public Law 93-66);
                                  (III) who is eligible for the 
                                Medicaid program because such 
                                child receives an adoption 
                                assistance payment made under 
                                section 473(a) of the Social 
                                Security Act (42 U.S.C. 673(a)) 
                                or under a similar State-funded 
                                or State-operated program, as 
                                determined by the Secretary;
                                  (IV) who is eligible for the 
                                Medicaid program because such 
                                child receives a kinship 
                                guardianship assistance payment 
                                made under section 473(d) of 
                                the Social Security Act (42 
                                U.S.C. 673(d)) or under a 
                                similar State-funded or State-
                                operated program, as determined 
                                by the Secretary, without 
                                regard to whether such child 
                                was previously in foster care; 
                                or
                                  (V) 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), (III), or (IV).
                          (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.).
                          (iii) Child eligible for reduced 
                        price meals.--The term ``child eligible 
                        for reduced price meals'' 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 that is greater than 
                                133 percent but does not exceed 
                                185 percent of the poverty line 
                                (as determined under the 
                                poverty guidelines updated 
                                periodically in the Federal 
                                Register by the Department of 
                                Health and Human Services under 
                                the authority of 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).
                  [(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)).
                          [(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 paragraph (6), the agreement 
                        described in subparagraph (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.]
                  (B) Agreements to carry out certification.--
                To certify a child under subparagraph (A)(v) or 
                (B) of paragraph (5), a State agency shall 
                enter into an agreement with 1 or more State 
                agencies conducting eligibility determinations 
                for the Medicaid program.
                  (C) Procedures.--Subject to paragraph (6), an 
                agreement under subparagraph (B) shall 
                establish procedures under which--
                          (i) an eligible child may 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)); and
                          (ii) a child eligible for reduced 
                        price meals may be certified for 
                        reduced price lunches under this Act 
                        and reduced price 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)).
                  [(F)] (D) Access to data.--For purposes of 
                [conducting the demonstration project under 
                this paragraph] carrying out 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.--
                          [(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.]
          (16) Statewide online household applications.--
                  (A) In general.--Subject to subparagraphs (B) 
                and (C), beginning in the first school year 
                that begins after the date of the enactment of 
                this paragraph, a State agency may elect to 
                establish a Statewide online application to 
                determine the eligibility of children in 
                households in that State to receive free or 
                reduced price meals.
                  (B) State agency requirements.--
                          (i) Household application.--A 
                        Statewide online school meal 
                        application under this paragraph shall 
                        comply with the requirements of--
                                  (I) this subsection; and
                                  (II) paragraphs (1) through 
                                (5) of section 245.6(a)(1) of 
                                title 7, Code of Federal 
                                Regulations (or a successor 
                                regulation).
                          (ii) Processing timeline.--A State 
                        agency electing the option under this 
                        paragraph shall--
                                  (I) determine the eligibility 
                                of a household applying for 
                                free or reduced price meals; 
                                and
                                  (II) communicate that 
                                determination to the local 
                                educational agency and the 
                                household, within 10 operating 
                                days of the date on which the 
                                household submitted the 
                                application to the State 
                                agency.
                          (iii) Verification.--A State agency 
                        electing the option under this 
                        paragraph shall--
                                  (I) select at random for 
                                verification 3 percent of all 
                                household applications approved 
                                by the State agency for the 
                                school year, as of October 1 of 
                                the school year;
                                  (II) directly verify the 
                                selected household applications 
                                under subclause (I) in a manner 
                                consistent with paragraph 
                                (3)(F); and
                                  (III) prior to October 10 of 
                                the school year, communicate to 
                                the local educational agency 
                                which household applications 
                                have been selected for 
                                verification and the outcome of 
                                the direct verification 
                                conducted under paragraph 
                                (3)(F).
                  (C) Local educational agency requirements.--
                          (i) Eligibility determination.--A 
                        local educational agency in a State 
                        with a Statewide online household 
                        application established under this 
                        paragraph shall accept the eligibility 
                        determination made by the State agency 
                        for a household and provide an eligible 
                        child with free or reduced price meals 
                        beginning on the first day of the 
                        current school year.
                          (ii) Transferring students.--When a 
                        student transfers to a new local 
                        educational agency, the new local 
                        educational agency shall obtain and 
                        accept the eligibility determination 
                        made by the State agency.
                          (iii) Use of state school meal 
                        application.--A local educational 
                        agency in a State with a Statewide 
                        online household application 
                        established under this paragraph shall 
                        not use an alternative online household 
                        application unless the State agency has 
                        approved its use.
                          (iv) Paper application.--A local 
                        educational agency in a State with a 
                        Statewide online household application 
                        established under this paragraph 
                        shall--
                                  (I) provide households with 
                                the option to submit a paper 
                                application to the local 
                                educational agency;
                                  (II) communicate to 
                                households the availability of 
                                this option and the Statewide 
                                online household application; 
                                and
                                  (III) make an eligibility 
                                determination for any paper 
                                application submitted.
                          (v) Verification.--A local 
                        educational agency shall verify the 
                        household applications selected by the 
                        State agency under subparagraph 
                        (B)(iii) that were not directly 
                        verified by the State agency under 
                        paragraph (3)(F) in a manner consistent 
                        with subparagraphs (G) through (J) of 
                        paragraph (3).
  (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, 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 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 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 or child eligible for 
        reduced price meals (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]
                  (A) Schools participating in meal programs._
                Schools that are participating  in the school 
                lunch program or school breakfast program shall 
                serve lunches and breakfasts that--
                          [(A)] (i) 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)] (ii) consider the [nutrient] 
                        dietary needs of children who may be at 
                        risk for inadequate food intake [and 
                        food insecurity], food and nutrition 
                        insecurity, or chronic disease.
                  (B) Updating standards.--Not later than 1 
                year after the first publication of the Dietary 
                Guidelines for Americans under section 301 of 
                the National Nutrition Monitoring and Related 
                Research Act of 1990 (7 U.S.C. 5341) that 
                occurs after the date of the enactment of this 
                subparagraph, and not less frequently than once 
                every 10 years, or not later than 1 year after 
                the publication of 2 consecutive updates to 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) thereafter, whichever occurs 
                first, the Secretary shall:
                          (i) Enter into an agreement with the 
                        National Academies of Sciences, 
                        Engineering, and Medicine to--
                                  (I) conduct a review of the 
                                nutrition standards and 
                                requirements under paragraph 
                                (1); and
                                  (II) recommend updates to 
                                such requirements so that they 
                                are substantially similar to 
                                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), taking into 
                                account the practical 
                                application for implementation.
                          (ii) Not later than 1 year after the 
                        conclusion of the review described in 
                        clause (i)(I), promulgate regulations 
                        to update the school nutrition 
                        standards and requirements pursuant to 
                        paragraph (1) to align with the 
                        recommendations under clause (i)(II). 
                  (C) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                subparagraph (B), $3,000,000, for the fiscal 
                year in which the first publication of the 
                Dietary Guidelines for Americans under section 
                301 of the National Nutrition Monitoring and 
                Related Research Act of 1990 (7 U.S.C. 5341) 
                occurs after the date of the enactment of this 
                Act, to remain available until expended.
  (2) [To assist schools in meeting the requirements of this 
subsection, the Secretary] Assistance to schools.--
          (A) [shall] Assistance required._To assist schools in 
        meeting the requirements of this subsection, the 
        Secretary 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]
                  (iii) develop and provide to schools best 
                practices, trainings (including peer-to-peer 
                trainings), and other resources;
                  (iv) implement healthier school environment 
                recognition programs; and
                  (v) work with food manufacturers and 
                retailers to support development and increased 
                availability and affordability of products that 
                meet the nutrition standards; and
          [(B) may provide to schools information regarding 
        other approaches, as determined by the Secretary.]
          (B) Assistance permitted.--
                  (i) In general.--To assist schools in meeting 
                the requirements of this subsection, the 
                Secretary may--
                          (I) provide to schools information 
                        regarding other approaches, as 
                        determined by the Secretary; and
                          (II) award grants and monetary 
                        incentives to carry out 1 or more of 
                        the following:
                                  (aa) Improving the 
                                nutritional quality of meals 
                                and snacks served under a child 
                                nutrition program.
                                  (bb) Enhancing the nutrition 
                                and wellness environment of 
                                institutions participating in a 
                                child nutrition program, 
                                including by reducing the 
                                availability of less healthy 
                                foods during the school day.
                                  (cc) Supporting food systems 
                                that supply nutritious foods 
                                and beverages for children in 
                                both schools and retail 
                                markets, including those in 
                                underserved communities.
                                  (dd) Funding a statewide 
                                nutrition education coordinator 
                                to support individual school 
                                food authority nutrition 
                                education efforts and to 
                                facilitate collaboration with 
                                other nutrition education 
                                efforts in the State.
                  (ii) Recipients.--Grants provided pursuant to 
                clause (i) may be made available to third party 
                entities that have experience working with 
                school food service personnel 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) to provide 
                technical assistance to schools in meeting the 
                goals of this subparagraph.
                  (iii) Authorization of appropriations.--There 
                is authorized to be appropriated to carry out 
                grants and monetary incentives pursuant to 
                clause (i) $30,000,000 for fiscal year 2024, to 
                be available until expended.
  [(3) Use of any reasonable approach.--
          [(A) In general.--A school food service authority may 
        use any reasonable approach, within guidelines 
        established by the 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 
        2022, 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.
          (4) Audit by the secretary.--For fiscal year 2022, 
        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[;] , to 
        purchase unprocessed agricultural products that were--
                  (A) locally grown and locally raised; 
                  (B) produced in an environmentally 
                sustainable manner; 
                  (C) produced by a certified organic farm or 
                ranch; 
                  (D) produced by an underserved or limited 
                resource producer; 
                  (E) produced by a small or mid-sized farm 
                that is structured as a family farm; 
                  (F) produced by a farm with employees who, as 
                permitted by law, are represented by a 
                collective bargaining agreement or memorandum 
                of understanding; 
                  (G) produced by a farm participating in a 
                worker justice certification program; or 
                  (H) produced by a farm participating in an 
                independent animal welfare certification 
                program; 
          (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.]
          (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--
                  (A)(i) use a geographic preference for the 
                procurement of unprocessed agricultural 
                products, both locally grown and locally 
                raised; or
                          (ii) use locally grown, locally 
                        raised, or locally caught as a product 
                        specification; and
                  (B) procure unprocessed agricultural products 
                that are produced--
                          (i) in an environmentally sustainable 
                        manner;
                          (ii) by a certified organic farm or 
                        ranch;
                          (iii) by an underserved or limited 
                        resource producer;
                          (iv) by a small or mid-sized farm 
                        that is structured as a family farm;
                          (v) by a farm with employees who, as 
                        permitted by law, are represented by a 
                        collective bargaining agreement or 
                        memorandum of understanding;
                          (vi) by a farm participating in a 
                        worker justice certification program; 
                        or
                          (vii) by a farm participating in an 
                        independent animal welfare 
                        certification program.
          (4) Definitions.--In this subsection:
                  (A) Beginning farmer or rancher.--The term 
                ``beginning farmer or rancher'' has the meaning 
                given such term in section 343(a) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 1991(a)).
                  (B) Family farm.--The term ``family farm'' 
                has the meaning given such term in section 
                4284.902 of title 7, Code of Federal 
                Regulations (as in effect on the date of the 
                enactment of this paragraph).
                  (C) Underserved producer.--The term 
                ``underserved producer'' means an individual 
                (including a member of an Indian Tribe) that 
                is--
                          (i) a beginning farmer or rancher;
                          (ii) a veteran farmer or rancher; or
                          (iii) a socially disadvantaged farmer 
                        or rancher.
                  (D) Veteran farmer or rancher.--The term 
                ``veteran farmer or rancher'' has the meaning 
                given such term in section 2501(a) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (7 U.S.C. 2279(a)).
  (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 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] general._
                  (A) Food donations permissible._Each  school 
                and [local educational agency] school food 
                authority 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] 
                nonprofit organizations or individuals in need 
                as determined by such school or school food 
                authority.
                  (B) Use of school campus.--The food donated 
                by a school through the school food authority 
                serving such school pursuant to this paragraph 
                may be received, stored, and distributed on the 
                campus of such school.
          (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] school food authorities 
                participating in the school lunch program under 
                this Act to assist such schools and [local 
                educational agencies] school food authorities 
                in donating food under this subsection.
                  (B) Updates.--The Secretary shall update such 
                guidance as necessary.
          (3) Liability.--Any school or [local educational 
        agency] school food authority 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)).]
          (4) Definition.--In this subsection, the term 
        ``nonprofit organization'' means an incorporated or 
        unincorporated entity that--
                  (A) is operating for religious, charitable, 
                or educational purposes; and
                  (B) does not provide net earnings to operate 
                in any other manner that inures to the benefit 
                of any officer, employee, or shareholder of the 
                entity.

SEC. 9A. 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 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, mental health promotion and 
        education, including awareness of eating disorders 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] diet-related illnesses;
          (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, school-based registered dietitians, 
        school-based mental health services providers, 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 and the Administrator of 
        the Substance Abuse and Mental Health Services 
        Administration, shall provide information and technical 
        assistance to local educational agencies, school food 
        authorities, school health professionals (including 
        school-based mental health services providers when 
        available), and State educational agencies for use in 
        establishing healthy 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]
                  (C) includes such other technical assistance 
                as is required to--
                          (i) promote sound nutrition and 
                        establish healthy school nutrition 
                        environments; and
                          (ii) promote mental health, encourage 
                        mental health assessments, and 
                        establish resilient school 
                        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] consultation with the Director of 
                the Centers for Disease Control and Prevention 
                and the Administrator of the Substance Abuse 
                and Mental Health Services Administration, 
                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,] 4 years after the date on which funds 
                are first appropriated to carry out this 
                section after the date of the enactment of the 
                Healthy Meals, Healthy Kids Act, 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] $5,000,000 for 
                fiscal year [2011] 2024, to remain available 
                until expended.

                DISBURSEMENT TO SCHOOLS BY THE SECRETARY

  Sec. 10. (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 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. (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 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 4-school-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, 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 4-school-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 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 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.
                          [(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.]
                          (vii) Multiplier.--For each school 
                        year beginning on or after July 1, 
                        2023, the Secretary shall use a 
                        multiplier of 2.5.
                          (viii) Threshold.--For each school 
                        year beginning on or after July 1, 
                        2023, the threshold shall be not more 
                        than 25 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 
                                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 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)--
                                          (aa) barriers to 
                                        participation in the 
                                        special assistance 
                                        option under this 
                                        subparagraph, 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 use to 
                                carry out clause (xii) the 
                                funds transferred under 
                                subclause (I), without further 
                                appropriation.
                          (xiv) Statewide community 
                        eligibility.--For each school year 
                        beginning on or after July 1, 2023, the 
                        Secretary shall establish an option for 
                        States to utilize a statewide community 
                        eligibility program under which, in the 
                        case of a State agency that agrees to 
                        provide funding from sources other than 
                        Federal funds to ensure that local 
                        educational agencies in the State 
                        receive the free reimbursement rate for 
                        100 percent of the meals served at 
                        applicable schools--
                                  (I) the multiplier described 
                                in clause (vii) shall apply;
                                  (II) the threshold described 
                                in clause (viii) shall be 
                                applied by substituting 
                                ``zero'' for ``25''; and
                                  (III) the percentage of 
                                enrolled students who were 
                                identified students shall be 
                                calculated across all 
                                applicable schools in the State 
                                regardless of local educational 
                                agency.
  (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 ).
          (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, 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 
                ending on the preceding April 30 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 ending on April 
                30.
  (b) Except as provided in section 10 of the Child Nutrition 
Act of 1966, 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 
number 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 be any overt 
identification of any such child by any means.
  (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;
                                  (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--
                                  (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. (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.--
                  (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) 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.).] in section 7 of the Rehabilitation Act of 
        1973 (29 U.S.C. 705).
          (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) Scratch cooking.--The term ``scratch cooking'' 
        means the preparation of food using ingredients that 
        are unprocessed or minimally processed.
          [(7)] (8) ``Secretary'' means the Secretary of 
        Agriculture.
          [(8)] (9) ``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)] (10) ``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.
  (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, 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, 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 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 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.
  (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.
  (k) Emergency Waivers or Modifications.--
          (1) In general.--Except as provided in paragraph (4), 
        during an emergency period, the Secretary may waive 
        (including by modifying) 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 States or eligible service providers on a multi-
        State, State, or eligible service provider basis if--
                  (A) the requirement cannot reasonably be 
                implemented under the conditions which prompted 
                the emergency period in the affected area;
                  (B) a State or eligible service provider 
                requests a waiver in a format prescribed by the 
                Secretary;
                  (C) in the case of a request by an eligible 
                service provider under subparagraph (B), the 
                State in which such eligible service provider 
                is located includes a statement of support or 
                opposition with respect to the request; and
                  (D) the Secretary determines that the waiver 
                would--
                          (i) facilitate the ability of such 
                        States or eligible service providers to 
                        carry out the purpose of such Acts; and
                          (ii) not decrease access to, or 
                        eligibility for, any program under such 
                        Acts.
          (2) Nationwide, regional, and state-wide basis.--
        Except as provided in paragraph (3), during an 
        emergency period, the Secretary may waive (including by 
        modifying) 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, on a 
        nationwide, regional, or State-wide basis if the 
        Secretary determines that the waiver would facilitate 
        the ability of States or eligible service providers to 
        carry out the purpose of such Acts.
          (3) Duration.--A waiver established under this 
        subsection may be available for a period of not greater 
        than the emergency period and the 90 days after the end 
        of the emergency period.
          (4) Limitations.--A waiver under this subsection is 
        subject to the limitations in subsection (l)(4).
          (5) Definitions.--In this subsection:
                  (A) Eligible service provider.--The term 
                ``eligible service provider'' has the meaning 
                given the term in subsection (l).
                  (B) Emergency period.--The term ``emergency 
                period'' means a period during which there 
                exists--
                          (i) a major disaster declared by the 
                        President under section 401 of the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 
                        5170);
                          (ii) an emergency declared by the 
                        President under section 501 of the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 
                        5191);
                          (iii) a public health emergency 
                        declared by the Secretary of Health and 
                        Human Services under section 319 of the 
                        Public Health Service Act (42 U.S.C. 
                        247d); or
                          (iv) any renewal of such a public 
                        health emergency pursuant to such 
                        section 319.
  (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] Except as provided in paragraph (4), 
the Secretary may waive (including by modifying) 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, on a nationwide, State, multi-State, or eligible 
service provider basis if--
          (i) a State or eligible service provider requests the 
        waiver;
          [(i)] (ii) 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)] (iii) the State or eligible service provider 
        has provided notice and information to the public 
        regarding the proposed waiver; and
          [(iii)] (iv) 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.]
  (B) An application described in subparagraph (A) shall--
          (i) be submitted in a format prescribed by the 
        Secretary;
          (ii) be completed by the State or eligible service 
        provider;
          (iii) be submitted to the Secretary by--
                  (I) the State; or
                  (II) an eligible service provider through the 
                State; and
          (iv) if submitted as described in clause (iii)(II), 
        include a statement of support or opposition from 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] 
        standards;
          (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 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.]
          (A) a local school food service authority, local 
        educational agency, or school;
          (B) a service institution or private nonprofit 
        organization described in section 13; or
          (C) institutions described in section 17.
  (m) Procurement Training.--
          (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] fiscal years 2023 through 2028, 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 program 
        under section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773).
          (5) Administrative reviews.--
                  (A) In general.--In conducting the reviews 
                required under section 22(b)(1)(C)(i) of the 
                Richard B. Russell National School Lunch Act 
                (42 U.S.C. 1769c(b)(1)(C)(i)), a State agency 
                located in Puerto Rico, Hawaii, or the 
                contiguous United States shall include the 
                information described in subparagraph (B) 
                regarding compliance with the requirements 
                under this subsection.
                  (B) Information required.--The information 
                required under subparagraph (A) shall include, 
                with respect to a school food authority served 
                by the State agency--
                          (i) the 10 commodities or food 
                        products purchased by such school food 
                        authority that--
                                  (I) are not domestic 
                                commodities or food products; 
                                and
                                  (II) make up the largest 
                                share of the school food 
                                authority's spending with 
                                respect to commodities or food 
                                products; and
                          (ii) whether each such commodity or 
                        food product--
                                  (I) is not produced 
                                domestically in sufficient 
                                quantities of satisfactory 
                                quality 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); and
                                  (II) would be significantly 
                                higher in price if purchased 
                                domestically; and
                          (iii) whether the school food 
                        authority experienced suspected, 
                        alleged, or confirmed noncompliance on 
                        the part of a distributor in the last 
                        12 months.
          (6) Annual nationally representative evaluation.--
                  (A) In general.--The Secretary shall--
                          (i) annually evaluate in a nationally 
                        representative study the extent to 
                        which school food authorities are in 
                        compliance with the requirements of 
                        this subsection; and
                          (ii) publish the findings of such 
                        evaluation on the publicly available 
                        website of the Department.
                  (B) Requirements.--The Secretary shall 
                require each school food authority that 
                participates in the evaluation under 
                subparagraph (A) to disclose, as part of such 
                evaluation--
                          (i) the 10 commodities or food 
                        products purchased by such school food 
                        authority that--
                                  (I) are not domestic 
                                commodities or food products; 
                                and
                                  (II) make up the largest 
                                share of the school food 
                                authority's spending with 
                                respect to commodities or food 
                                products;
                          (ii) whether each such commodity or 
                        food product--
                                  (I) is not produced 
                                domestically in sufficient 
                                quantities of satisfactory 
                                quality 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); and
                                  (II) would be significantly 
                                higher in price if purchased 
                                domestically; and
                          (iii) whether the school food 
                        authority experienced suspected, 
                        alleged, or confirmed noncompliance on 
                        the part of a distributor in the last 
                        12 months.
          (7) Study and report.--The Secretary, in consultation 
        with the Secretary of Labor and the heads of other 
        Federal agencies determined by the Secretary to be 
        necessary, shall conduct a study that examines whether 
        the requirement under this subsection has an impact on 
        the supply of commodities or food products in schools, 
        including with respect to--
                  (A) the availability of domestic commodities 
                or food products;
                  (B) the wages, occupational safety and 
                health, and access to and quality of benefits 
                of agricultural workers;
                  (C) the price of locally grown and locally 
                raised domestic commodities or food products as 
                compared to commodities or food products that 
                are not domestic commodities or food products;
                  (D) the prevalence of seasonal foods in 
                schools; and
                  (E) the extent to which schools rely on 
                processed commodities and food products.
  (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 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 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. 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] 40 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] 40 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] 40 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 which at least 
                                [50 percent] 40 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] 40 
                                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;
                          (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 
                year-round 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.
                          (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.
          (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.--
                          [(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 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.]
          (8) Year-round meal service.--
                  (A) Seamless summer option for schools.--
                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.).
                  (B) Year-round meal service for other service 
                institutions.--Each service institution (other 
                than a service institution described in 
                subparagraph (A)), in addition to being 
                eligible for reimbursement for meals described 
                in subsection (b)(2) served during each day of 
                operation during the periods described in 
                subsection (c)(1), may be reimbursed for up to 
                1 meal and 1 snack per child served at sites 
                that provide educational or enrichment 
                activities during the regular school year 
                during--
                          (i) afterschool hours;
                          (ii) weekends; and
                          (iii) school holidays.
          (9) Improve nutrition in underserved, hard-to-reach 
        areas.--
                  (A) In general.--Subject to the availability 
                of appropriations specifically for the purpose 
                of carrying out this paragraph, the Secretary 
                may award competitive grants to States to award 
                subgrants to service institutions in accordance 
                with subparagraph (B).
                  (B) Subgrants.--
                          (i) In general.--A State that 
                        receives a grant under subparagraph (A) 
                        shall use such grant funds to award 
                        competitive subgrants to service 
                        institutions selected by the State to 
                        increase participation in the program--
                                  (I) at congregate feeding 
                                sites; and
                                  (II) through--
                                          (aa) innovative 
                                        approaches to 
                                        addressing barriers in 
                                        transportation to such 
                                        sites; and
                                          (bb) mobile meal 
                                        delivery.
                          (ii) Eligibility.--To be selected to 
                        receive a subgrant under this 
                        subparagraph, a service institution 
                        shall--
                                  (I) be located in the State;
                                  (II) submit to the State an 
                                application at such time, in 
                                such manner, and containing 
                                such information as the State 
                                may require;
                                  (III) meet criteria 
                                established by the State; and
                                  (IV) agree to the terms and 
                                conditions of the subgrant, as 
                                established by the State.
                          (iii) Priority.--In awarding 
                        subgrants under this subparagraph, the 
                        State shall give priority to service 
                        institutions that--
                                  (I) serve both breakfast and 
                                lunch; or
                                  (II) offer educational or 
                                enrichment programs.
                          (iv) Travel reimbursement.--A service 
                        institution that receives a subgrant 
                        under this subparagraph may use 
                        subgrant funds to provide reimbursement 
                        for travel to satellite congregate 
                        feeding sites.
                  (C) Authorization of appropriations.--There 
                are authorized to be appropriated to the 
                Secretary to make competitive grants under this 
                paragraph, $10,000,000 for each fiscal year.
          [(11)] (10) 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--
                          (i) the development or dissemination 
                        of culturally and linguistically 
                        appropriate 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 culturally and linguistically 
                        appropriate 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)] (11) 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 low-income 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.
  (b) Service Institutions.--
          (1) Payments.--
                  (A) 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] ending on the preceding October 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)--
                                  (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.
  (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 seventy-five 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 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] to a 
        service institution for the meal.
  (8) Not later than 2 years after the date of the enactment of 
this paragraph and in accordance with paragraph (1), the 
Secretary shall promulgate proposed regulations to update the 
nutrition standards for the summer food service program 
authorized under this Act to be guided by 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), taking into account the structure 
of the Program.
  (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 authorized to donate to States, for distribution 
to service institutions, food available under section 416 of 
the Agricultural Act of 1949, or purchased under section 32 of 
the Act of August 24, 1935 or section 709 of the Food and 
Agriculture Act of 1965. Donated foods may be distributed only 
to service institutions that can use commodities efficiently 
and effectively, as determined by the Secretary.
  (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) 2\1/2\ 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.
  (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 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.
  (r) For the period beginning October 1, 1977, and ending 
September 30, [2015] 2028, there are hereby authorized to be 
appropriated such sums as are necessary to carry out the 
purposes of this section.

SEC. 13A. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.

  (a) Program Established.--The Secretary shall establish a 
program under which States and covered Indian Tribal 
organizations participating in such program shall, beginning 
with summer 2024 and annually for each summer thereafter, issue 
to eligible households summer EBT benefits--
          (1) in accordance with this section; and
          (2) for the purpose of providing nutrition assistance 
        through electronic benefits transfer during the summer 
        months for eligible children, to ensure continued 
        access to food when school is not in session for the 
        summer.
  (b) Summer EBT Benefits Requirements.--
          (1) Purchase options.--
                  (A) Benefits issued by states.--
                          (i) WIC participation states.--In the 
                        case of a State that participated in a 
                        demonstration program under section 
                        749(g) of the Agriculture, Rural 
                        Development, Food and Drug 
                        Administration, and Related Agencies 
                        Appropriations Act, 2010 (Public Law 
                        111-80; 123 Stat. 2132) during calendar 
                        year 2018 using a WIC model, summer EBT 
                        benefits issued pursuant to subsection 
                        (a) by such a State may only be used by 
                        the eligible household that receives 
                        such summer EBT benefits to purchase--
                                  (I) supplemental foods from 
                                retailers that have been 
                                approved for participation in--
                                          (aa) the special 
                                        supplemental nutrition 
                                        program for women, 
                                        infants, and children 
                                        under section 17 of the 
                                        Child Nutrition Act of 
                                        1966 (42 U.S.C. 1786); 
                                        or
                                          (bb) the program 
                                        under this section; or
                                  (II) food (as defined in 
                                section 3(k) of the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 
                                2011(k))) from retail food 
                                stores that have been approved 
                                for participation in the 
                                supplemental nutrition 
                                assistance program established 
                                under such Act, in accordance 
                                with section 7(b) of such Act 
                                (7 U.S.C. 2016(b)).
                          (ii) Other states.--Summer EBT 
                        benefits issued pursuant to subsection 
                        (a) by a State not described in clause 
                        (i) may only be used by the eligible 
                        household that receives such summer EBT 
                        benefits to purchase food (as defined 
                        in section 3(k) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2011(k))) from retail food stores that 
                        have been approved for participation in 
                        the supplemental nutrition assistance 
                        program established under such Act, in 
                        accordance with section 7(b) of such 
                        Act (7 U.S.C. 2016(b)).
                  (B) Benefits issued by covered indian tribal 
                organizations.--Summer EBT benefits issued 
                pursuant to subsection (a) by a covered Indian 
                Tribal organization may only be used by the 
                eligible household that receives such summer 
                EBT benefits to purchase supplemental foods 
                from retailers that have been approved for 
                participation in--
                          (i) the special supplemental 
                        nutrition program for women, infants, 
                        and children under section 17 of the 
                        Child Nutrition Act of 1966 (42 U.S.C. 
                        1786); or
                          (ii) the program under this section.
          (2) Amount.--Summer EBT benefits issued pursuant to 
        subsection (a)--
                  (A) shall be--
                          (i) for calendar year 2024, in an 
                        amount equal to $75 for each child in 
                        the eligible household per month during 
                        the summer; and
                          (ii) for calendar year 2025 and each 
                        year thereafter, in an amount equal to 
                        the amount described in clause (i), 
                        adjusted to the nearest lower dollar 
                        increment to reflect changes to the 
                        cost of the thrifty food plan (as 
                        defined in section 3(u) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2012(u)) for the 12-month period ending 
                        on November 30 of the preceding 
                        calendar year; and
                  (B) may be issued--
                          (i) in the form of an EBT card; or
                          (ii) through electronic delivery.
  (c) Enrollment in Program.--
          (1) State requirements.--States participating in the 
        program under this section--
                  (A) shall, with respect to summer, 
                automatically enroll eligible children who, in 
                the school year immediately preceding the 
                summer, are directly certified, are identified 
                students (as defined in section 
                11(a)(1)(F)(i)), or are otherwise determined by 
                a local educational agency to be eligible to 
                receive free or reduce price meals in the 
                program under this section, without further 
                application from households;
                  (B) may provide an application for children 
                who do not meet the criteria specified in 
                subparagraph (A) and make eligibility 
                determinations using the same eligibility 
                criteria for free or reduced price lunches 
                under this Act;
                  (C) shall establish procedures to carry out 
                the enrollment described in subparagraph (A); 
                and
                  (D) shall require local educational agencies 
                to allow eligible households to opt out of 
                participation in the program under this section 
                and establish procedures for opting out of such 
                participation.
          (2) Covered indian tribal organization 
        requirements.--Covered Indian Tribal organizations 
        participating in the program under this section shall, 
        to the maximum extent practicable, meet the 
        requirements under subparagraphs (A) through (C) of 
        paragraph (1).
  (d) Implementation Grants.--Not later than October 1, 2022, 
the Secretary shall carry out a program to make grants to 
States and covered Indian Tribal organizations to build 
capacity for implementing the program under this section.
  (e) Alternate Plans in the Case of Continuous School 
Calendar.--The Secretary shall establish alternative plans for 
when summer EBT benefits may be issued pursuant to subsection 
(a) in the case of children who are under a continuous school 
calendar.
  (f) Definitions.--In this section:
          (1) Covered indian tribal organization.--The term 
        ``covered Indian Tribal organization'' means an Indian 
        Tribal organization that participates in the special 
        supplemental nutrition program for women, infants, and 
        children under section 17 of the Child Nutrition Act of 
        1966 (42 U.S.C. 1786).
          (2) Eligible child.--The term ``eligible child'' 
        means, with respect to a summer, a child who--
                  (A) was, during the school year immediately 
                preceding such summer--
                          (i) certified to receive free or 
                        reduced price lunch under the school 
                        lunch program under this Act;
                          (ii) certified to receive free or 
                        reduced price breakfast under the 
                        school breakfast program under section 
                        4 of the Child Nutrition Act of 1966 
                        (42 U.S.C. 1773); or
                          (iii) certified by the State through 
                        the process described in subsection 
                        (c)(1)(B); or
                  (B)(i) was, during the school year 
                immediately preceding such summer, enrolled in 
                a school described in subparagraph (B), (C), 
                (D), (E), or (F) of section 11(a)(1); and
                  (ii) either--
                          (I) is an identified student (as 
                        defined in section 11(a)(1)(F)(i)); or
                          (II) otherwise meets the requirements 
                        to receive free or reduced price lunch 
                        as determined by a local educational 
                        agency through an application process 
                        using the same eligibility criteria for 
                        free or reduced price lunches under 
                        this Act.
          (3) Eligible household.--The term ``eligible 
        household'' means a household that includes at least 1 
        eligible child.
          (4) Supplemental foods.--The term ``supplemental 
        foods''--
                  (A) means foods--
                          (i) containing nutrients determined 
                        by nutritional research to be lacking 
                        in the diets of children; and
                          (ii) that promote the health of the 
                        population served by the program under 
                        this section, as indicated by relevant 
                        nutrition science, public health 
                        concerns, and cultural eating patterns, 
                        as determined by the Secretary; and
                  (B) includes foods not described in 
                subparagraph (A) substituted by State agencies, 
                with the approval of the Secretary, that--
                          (i) provide the nutritional 
                        equivalent of foods described in such 
                        subparagraph; and
                          (ii) allow for different cultural 
                        eating patterns than foods described in 
                        such subparagraph.

           *       *       *       *       *       *       *


SEC. 17. 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--
                          (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:] 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, 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
                  (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[.]; and
                  (G) in the case of an institution described 
                in paragraph (2)(B), the eligibility of such 
                institution shall be determined on an annual 
                basis in accordance with this section.
  (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.
  (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 (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 supplements 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) 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.).
          (7) Automatic eligibility for children in 
        supplemental nutrition assistance households.--A child 
        shall be considered automatically eligible for benefits 
        under this section without further application or 
        eligibility determination if the child is a member of a 
        household receiving assistance under the supplemental 
        nutrition assistance program established under the Food 
        and Nutrition Act of 2008 (7 U.S.C. 2011 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;
                                          (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
                                  (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
                          (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 for the dissemination to State agencies and 
        sponsoring organizations 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;
                                          (bb) provide the 
                                        State agency and the 
                                        institution the right 
                                        to submit written 
                                        documentation 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.
                  (F) Serious deficiency process.--
                          (i) In general.--Not later than 1 
                        year after the date of the enactment of 
                        this subparagraph, the Secretary shall 
                        review and issue guidance and, as 
                        appropriate, regulations regarding the 
                        serious deficiency process for the 
                        program under this section.
                          (ii) Review.--In carrying out clause 
                        (i), the Secretary shall review, at a 
                        minimum, the processes involved in--
                                  (I) determining when there is 
                                a serious deficiency with 
                                respect to an institution, 
                                facility, or a family or group 
                                day care home by a State 
                                agency, including--
                                          (aa) what measures 
                                        automatically result in 
                                        a finding of serious 
                                        deficiency; and
                                          (bb) how to 
                                        differentiate between--
                                                  (AA) a 
                                                reasonable 
                                                margin of human 
                                                error and 
                                                systematic or 
                                                intentional 
                                                noncompliance; 
                                                and
                                                  (BB) State-
                                                specific 
                                                requirements 
                                                and Federal 
                                                regulations;
                                  (II) appealing and mediating 
                                a finding of serious deficiency 
                                with respect to an institution 
                                or a family or group day care 
                                home, including--
                                          (aa) findings related 
                                        to requirements and 
                                        Federal regulations; 
                                        and
                                          (bb) processes for 
                                        ensuring officials 
                                        involved in appeals and 
                                        mediation are fair and 
                                        impartial;
                                  (III) determining the 
                                circumstances under which a 
                                corrective action plan is 
                                acceptable;
                                  (IV) termination and 
                                disqualification, including 
                                maintenance of the list under 
                                subparagraph (E); and
                                  (V) determining opportunities 
                                for strengthening the processes 
                                intended to reduce additional 
                                State agency program 
                                requirements on institutions or 
                                family or group day care homes 
                                that are in addition to those 
                                required under Federal law, 
                                including--
                                          (aa) State evaluation 
                                        of practices used at 
                                        the time of review;
                                          (bb) regional 
                                        approval of such 
                                        additional State agency 
                                        requirements; and
                                          (cc) oversight 
                                        through the management 
                                        evaluation process.
                          (iii) Guidance and regulations.--
                                  (I) In general.--Not later 
                                than 1 year after conducting 
                                the review under clause (ii), 
                                the Secretary shall make 
                                findings from the information 
                                collected and issue guidance 
                                and, as appropriate, 
                                regulations from such findings 
                                that will--
                                          (aa) streamline and 
                                        modernize the program; 
                                        and
                                          (bb) assist 
                                        sponsoring 
                                        organizations, State 
                                        agencies, and the Food 
                                        and Nutrition Service 
                                        in ensuring a fair, 
                                        uniform, and effective 
                                        administration of the 
                                        serious deficiency 
                                        process, while 
                                        retaining program 
                                        integrity.
                                  (II) Scope.--The guidance or, 
                                as appropriate, regulations 
                                made or issued under subclause 
                                (I) shall include--
                                          (aa) clarity on the 
                                        required measures for 
                                        noncompliance, 
                                        including--
                                                  (AA) an 
                                                allowance for a 
                                                reasonable 
                                                margin of human 
                                                error; and
                                                  (BB) a 
                                                distinction 
                                                between a 
                                                reasonable 
                                                margin of human 
                                                error and 
                                                systematic or 
                                                intentional 
                                                noncompliance;
                                          (bb) a formal appeals 
                                        and mediation process 
                                        that--
                                                  (AA) is 
                                                conducted by a 
                                                trained 
                                                official who is 
                                                independent 
                                                from and not 
                                                affiliated with 
                                                any person or 
                                                agency involved 
                                                in the 
                                                determination 
                                                being appealed 
                                                or mediated;
                                                  (BB) provides 
                                                an opportunity 
                                                for a fair 
                                                hearing for any 
                                                institution or 
                                                family or group 
                                                day care home 
                                                determined to 
                                                have a serious 
                                                deficiency 
                                                finding or 
                                                inadequate 
                                                corrective 
                                                action plan; 
                                                and
                                                  (CC) provides 
                                                for the 
                                                evaluation and 
                                                resolution of 
                                                disputes over 
                                                State agency 
                                                program 
                                                requirements on 
                                                institutions or 
                                                family or group 
                                                day care homes 
                                                that are in 
                                                addition to 
                                                those required 
                                                under Federal 
                                                law;
                                          (cc) timeframes for 
                                        acceptable corrective 
                                        action plans for group 
                                        or family day care 
                                        homes that are 
                                        consistent with 
                                        corrective action 
                                        timeframes for child 
                                        care centers; and
                                          (dd) a process to 
                                        dismiss a serious 
                                        deficiency upon 
                                        correction of such 
                                        deficiency.
  (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 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]
          (2) Disbursements._
                  (A) In general._Subject to subparagraph (B), 
                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) served in such 
                institution in that fiscal year by the 
                applicable national 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.]
          (B) Limitation.--No reimbursement may be made to any 
        institution under this paragraph, or to family or group 
        day care home sponsoring organizations under paragraph 
        (3), for more than--
                  (i) 2 meals and 1 supplement or 1 meal and 2 
                supplements per day per child; or
                  (ii) 3 meals and 1 supplement or 2 meals and 
                2 supplements per day per child, in the case of 
                child care during which there are 8 or more 
                hours between the beginning of the first meal 
                service period and the beginning of the fourth 
                meal service period.
          (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
                                          (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.]
                                  (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 away from 
                                home for the 12-month period 
                                ending on the preceding April 
                                30. The reimbursement factors 
                                under this subparagraph shall 
                                be rounded to the nearest lower 
                                cent increment and based on the 
                                unrounded adjustment in effect 
                                on April 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 12-month 
                                        period.]
                                          (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 
                                        away from home for the 
                                        12-month period ending 
                                        on the preceding April 
                                        30. The reimbursement 
                                        factors under this item 
                                        shall be rounded down 
                                        to the nearest lower 
                                        cent increment and 
                                        based on the unrounded 
                                        adjustment in effect on 
                                        April 30 of the 
                                        preceding 12- month 
                                        period.
                                          (cc) Reimbursement.--
                                        A family or group day 
                                        care home shall be 
                                        provided reimbursement 
                                        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 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 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.]
                          (ii) Annual adjustment.--The 
                        administrative reimbursement levels 
                        specified in clause (i) shall be 
                        adjusted July 1 of each year to reflect 
                        changes in the 12-month period ending 
                        on 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.
                          (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 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.
                                  (II) Use of data from 
                                preceding school year.--In 
                                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.--
                          (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
                          (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--
          (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.--
                          (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 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 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, 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, 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.
  (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 at-risk 
                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).
                          (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 at-risk 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--
                  (A) an emergency shelter (as defined in 
                section 321 of the Stewart B. McKinney Homeless 
                Assistance Act (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 or individuals 
                        residing at an emergency shelter, if 
                        the children or individuals are--
                                  (I) not more than [18 years 
                                of age] 25 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.--
                  (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
                          (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.
  (v) Advisory Committee on Paperwork Reduction.--
          (1) Establishment.--Not later than 180 days after the 
        date of the enactment of this subsection, the Secretary 
        shall establish an advisory committee (referred to in 
        this subsection as the ``Advisory Committee'') to carry 
        out the duties described in paragraph (2).
          (2) Duties.--The duties of the Advisory Committee 
        shall be to--
                  (A) examine the feasibility of reducing 
                unnecessary or duplicative paperwork resulting 
                from regulations and recordkeeping 
                requirements, including paperwork resulting 
                from additional State requirements, for those 
                participating or seeking to participate in the 
                program under this section, including State 
                agencies, family child care homes, child care 
                centers, and sponsoring organizations; and
                  (B) provide recommendations to the Secretary 
                to reduce such paperwork for participants in 
                the program under this section while ensuring 
                that proper accountability and program 
                integrity are maintained and make such 
                recommendations publicly available.
          (3) Membership.--The Advisory Committee shall be 
        composed of not fewer than 14 members, of whom:
                  (A) 1 shall be a representative of a public 
                nonprofit center.
                  (B) 1 shall be a representative of a private 
                nonprofit center.
                  (C) 1 shall be a representative of a family 
                or group day care home.
                  (D) 1 shall be a representative of a Head 
                Start center.
                  (E) 1 shall be a representative of a for-
                profit center.
                  (F) 1 shall be a representative of an 
                emergency shelter.
                  (G) 1 shall be a representative of an adult 
                day care center.
                  (H) 1 shall be a representative of a State 
                agency.
                  (I) 1 shall be a representative of a 
                sponsoring organization for the entities 
                referred to in subparagraphs (A), (B), (D), 
                (E), (F), and (G).
                  (J) 1 shall be a representative of a 
                sponsoring organization of family or group day 
                care homes.
                  (K) 1 shall be a representative of an anti-
                hunger advocacy organization.
                  (L) 1 shall be a representative of an at-
                risk, after school program.
                  (M) 1 shall be a representative of a child 
                care advocacy organization.
                  (N) 1 shall be a representative of an 
                advocacy organization representing parents with 
                young children.
          (4) Considerations.--In developing the 
        recommendations described in paragraph (2)(B), the 
        Advisory Committee shall consider--
                  (A) information, recommendations, and reports 
                from the Paperwork Reduction Work Group 
                established by the Food and Nutrition Service 
                pursuant to section 119(i) of the Child 
                Nutrition and WIC Reauthorization Act of 2004 
                (42 U.S.C. 1766);
                  (B) the use of electronic systems and 
                recordkeeping technologies to reduce paperwork 
                for program participants and program operators; 
                and
                  (C) duplicative requirements across multiple 
                Federal programs.
          (5) Guidance and regulations.--Not later than 3 years 
        after the date of the enactment of this subsection, the 
        Secretary shall issue guidance and, as appropriate, 
        regulations based on the recommendations described in 
        paragraph (2)(B) for streamlined and consolidated 
        paperwork and recordkeeping requirements for the 
        program, including actions taken to reduce paperwork 
        for parents and program operators by--
                  (A) streamlining and modernizing 
                applications; and
                  (B) streamlining and modernizing the 
                monitoring and auditing of programmatic 
                documentation and recordkeeping, including--
                          (i) eliminating the use of the 
                        enrollment form for the purpose of 
                        claiming meals;
                          (ii) allowing the use of direct 
                        certification in all States;
                          (iii) requiring States to accept as 
                        documentation digital forms, digitized 
                        and electronic signatures, and 
                        electronic records;
                          (iv) allowing the use of electronic 
                        data collection systems containing all 
                        required Federal child and adult care 
                        food program standards;
                          (v) addressing non-mandated State-
                        specific requirements; and
                          (vi) requiring the adoption of 
                        generally accepted technologies for 
                        client-facing technology, virtual 
                        visits, and technology used for 
                        administrative functions by the child 
                        and adult care food program to reduce 
                        the burden on participants and program 
                        operators and administrators.
          (6) Report.--
                  (A) In general.--Not later than 180 days 
                after issuing the guidance and, as appropriate, 
                regulations described in paragraph (5), the 
                Secretary shall submit a report to the 
                Committee on Agriculture, Nutrition, and 
                Forestry of the Senate and the Committee on 
                Education and Labor of the House of 
                Representatives containing the information 
                described in subparagraph (B).
                  (B) Contents.--The report under subparagraph 
                (A) shall contain the following:
                          (i) With respect to each instance in 
                        which the Secretary did not implement a 
                        recommendation of the Advisory 
                        Committee, an explanation with respect 
                        to why such recommendation was not 
                        implemented.
                          (ii) Additional recommendations with 
                        respect to legislative action that may 
                        further strengthen and streamline the 
                        program application and monitoring 
                        process and reduce administrative 
                        burdens on grantees, program 
                        participants, and local, State, and 
                        Federal governments.

           *       *       *       *       *       *       *


                             PILOT PROJECTS

  Sec. 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.
  (d) Pilot Grant Program for 100 Percent Plant-based Food 
Options.--
          (1) Program authorized.--The Secretary shall 
        establish and carry out a pilot grant program to award 
        grants to eligible school food authorities to carry out 
        the activities described in paragraph (4).
          (2) In general.--
                  (A) Term.--The term of a grant awarded under 
                this subsection shall be 3 years.
                  (B) Grant amount.--In awarding grants under 
                this subsection, the Secretary shall, to the 
                extent practicable, award grants of diverse 
                amounts.
          (3) Application.--
                  (A) In general.--To be eligible to receive a 
                grant under this subsection, an eligible school 
                food authority shall submit to the Secretary an 
                application at such time, in such manner, and 
                containing such information as the Secretary 
                may require, including--
                          (i) a participatory evaluation plan; 
                        and
                          (ii) a plan for providing culturally 
                        appropriate meals.
                  (B) Priority.--To the maximum extent 
                practicable, in awarding grants under this 
                subsection, the Secretary shall give priority 
                to an eligible school food authority that--
                          (i) will use the grant funds to--
                                  (I) serve a high proportion 
                                of children who are eligible 
                                for free or reduced price 
                                meals;
                                  (II) demonstrate 
                                collaboration with 
                                nongovernmental and community-
                                based organizations, 
                                agricultural producers, and 
                                other community partners on the 
                                activities described in 
                                paragraph (4); and
                                  (III) incorporate 
                                experiential and culturally 
                                appropriate food, nutrition, or 
                                agricultural education 
                                activities related to 100 
                                percent plant-based food 
                                options in the classroom; and
                          (ii) meets any other criteria that 
                        the Secretary determines appropriate.
          (4) Use of funds.--A grant awarded under this 
        subsection may be used for any of the following 
        activities:
                  (A) To contract with qualified third parties 
                for professional development training for food 
                service personnel on serving (including 
                preparing, procuring, marketing, and creating 
                menus) 100 percent plant-based food options.
                  (B) To provide compensation, for each 
                employee who participates in the professional 
                development training described in subparagraph 
                (A), at the regular rate of pay of each such 
                employee.
                  (C) To provide technical assistance and 
                student engagement and education on 100 percent 
                plant-based food options, including providing 
                taste tests, recipe development, and culinary 
                education.
                  (D) To provide compensation for additional 
                work relating to serving meals that include a 
                100 percent plant-based food option.
                  (E) To conduct outreach to, and cover costs 
                of procurement of foods from, agricultural 
                producers of 100 percent plant-based food 
                options, including--
                          (i) underserved or limited resource 
                        producers; and
                          (ii) local farmers.
          (5) Reports.--
                  (A) Recordkeeping required.--Each eligible 
                school food authority awarded a grant under 
                this subsection shall keep records of the 100 
                percent plant-based food options served 
                pursuant to this subsection as the Secretary 
                determines appropriate.
                  (B) Report required by school food 
                authorities.--Not later than 1 year after 
                receiving a grant under this subsection, and 
                annually for the duration of the pilot grant 
                program thereafter, a school food authority 
                shall submit to the Secretary a report on the 
                pilot grant program, including information on--
                          (i) the number of 100 percent plant-
                        based food options that the school food 
                        authority served during the grant 
                        period compared with the preceding 
                        school year;
                          (ii) the number of schools served by 
                        the school food authority pursuant to 
                        the grant;
                          (iii) the number of students served 
                        by the school food authority pursuant 
                        to the grant; and
                          (iv) how the school food authority 
                        used the grant funds.
                  (C) Report by secretary.--Not later than 1 
                year after the end of a school year during 
                which the Secretary receives reports required 
                under subparagraph (B), the Secretary shall 
                submit to Congress a report that includes a 
                summary of such reports received and such 
                information with respect to the pilot program 
                as the Secretary determines to be relevant.
          (6) Technical assistance.--The Secretary shall 
        provide technical assistance and information to assist 
        school food authorities--
                  (A) to facilitate the coordination and 
                sharing of information and resources that may 
                be applicable to the activities described in 
                paragraph (4); and
                  (B) to collect and share information on best 
                practices.
          (7) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $10,000,000 for fiscal year 2024, to remain 
        available through fiscal year 2028.
          (8) Definitions.--In this subsection:
                  (A) 100 percent plant-based food option.--The 
                term ``100 percent plant-based food option'' 
                means a breakfast or lunch meal option or 
                component that--
                          (i) includes a meat alternate as 
                        described in--
                                  (I) section 210.10 of title 
                                7, Code of Federal Regulations 
                                (or successor regulations); or
                                  (II) appendix A to part 210 
                                of 7, Code of Federal 
                                Regulations (or successor 
                                regulations); and
                          (ii) does not contain any animal 
                        products or byproducts, such as meat, 
                        poultry, honey, fish, dairy, or eggs.
                  (B) Beginning farmer or rancher.--The term 
                ``beginning farmer or rancher'' has the meaning 
                given such term in section 343(a) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 1991(a)).
                  (C) Eligible school food authority.--The term 
                ``eligible school food authority'' means a 
                school food authority for which 50 percent or 
                more of the students served by such school food 
                authority are eligible for free or reduced 
                price lunch under this Act or free or reduced 
                price breakfast under section 4 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1773).
                  (D) Underserved producer.--The term 
                ``underserved producer'' means an individual 
                (including a member of an Indian Tribe) that 
                is--
                          (i) a beginning farmer or rancher;
                          (ii) a veteran farmer or rancher; or
                          (iii) a socially disadvantaged farmer 
                        or rancher.
                  (E) Veteran farmer or rancher.--The term 
                ``veteran farmer or rancher'' has the meaning 
                given such term in section 2501(a) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (7 U.S.C. 2279(a)).
  (e) School Food Waste Reduction Grant Program.--
          (1) Grant program established.--
                  (A) In general.--The Secretary shall carry 
                out a program to award grants, on a competitive 
                basis, to school food authorities to carry out 
                food waste measurement and reporting, 
                prevention, education, and reduction projects.
                  (B) Regional balance.--In awarding grants 
                under this subsection, the Secretary shall, to 
                the maximum extent practicable, ensure that--
                          (i) a grant is awarded to a school 
                        food authority in each region served by 
                        the Administrator of the Food and 
                        Nutrition Service; and
                          (ii) there is equitable treatment of 
                        rural, urban, and tribal communities.
          (2) Application.--To be eligible to receive a grant 
        under this subsection, a school food authority shall 
        submit an application to the Secretary at such time, in 
        such manner, and containing such information as the 
        Secretary may require.
          (3) Priority.--In awarding grants under this 
        subsection, the Secretary shall give priority to a 
        school food authority that demonstrates in the 
        application under paragraph (2) that such school food 
        authority will use the grant to--
                  (A) carry out experiential education 
                activities that encourage children served by 
                such school food authority to participate in 
                food waste measurement and reporting, 
                prevention, education, and reduction projects;
                  (B) prioritize the best use of food in 
                accordance with the Food Recovery Hierarchy 
                published by the Administrator of the 
                Environmental Protection Agency;
                  (C) with respect to food waste measurement 
                and reporting, prevention, education, and 
                reduction projects, collaborate with other 
                school food authorities, tribes, 
                nongovernmental and community-based 
                organizations, and other community partners;
                  (D) make evaluation plans and evaluate the 
                activities carried out using grant funds; and
                  (E) establish a food waste measurement and 
                reporting, prevention, education, and reduction 
                project with the goal of long-term project 
                sustainability.
          (4) Use of funds.--A school food authority that 
        receives a grant under this section shall use funds 
        under such grant to carry out at least one of the 
        following:
                  (A) Planning and carrying out a food waste 
                measurement and reporting, prevention, 
                education, and reduction project.
                  (B) Providing training to support such a 
                project.
                  (C) Purchasing equipment to support such a 
                project.
                  (D) Offering food waste education to students 
                served by such school food authority.
          (5) Requirement.--A food waste measurement and 
        reporting, prevention, education, and reduction project 
        funded by a grant under this subsection shall comply 
        with the 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), as applicable.
          (6) Reports.--
                  (A) School food authority report.--Not later 
                than 1 year after receiving a grant under this 
                subsection, and on an annual basis thereafter, 
                a school food authority shall submit to the 
                Secretary a report that includes an evaluation 
                of the outcomes of the projects carried out 
                pursuant to such grant.
                  (B) Secretary report.--Not later than 1 year 
                after the end of a school year during which the 
                Secretary receives reports required under 
                subparagraph (B), the Secretary shall submit to 
                Congress a report that includes a summary of 
                the reports received under subparagraph (B) and 
                such information with respect to the program as 
                the Secretary determines to be relevant.
          (7) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $10,000,000 for fiscal year 2024, to remain 
        available through fiscal year 2028.
  (f) Tribally Operated Meal and Snack Pilot Project.--
          (1) In general.--The Secretary of Agriculture shall 
        establish a pilot project to award grants to up to 10 
        eligible entities to prepare such entities to 
        administer or operate and implement, in covered 
        schools--
                  (A) the school lunch program authorized under 
                this Act;
                  (B) the child and adult care food program 
                established by section 17 of this Act;
                  (C) the summer food service program for 
                children established by section 13 of this Act; 
                and
                  (D) the school breakfast program established 
                by section 4 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1773).
          (2) Application.--To be eligible to participate in 
        the pilot project under this subsection, an eligible 
        entity shall submit to the Secretary an application at 
        such time, in such manner, and containing such 
        information as the Secretary may require.
          (3) Criteria for selection.--In selecting 
        participants under this subsection, the Secretary shall 
        select up to 10 eligible entities that--
                  (A) are located in diverse geographic areas; 
                and
                  (B) serve Indian tribes of varying population 
                size.
          (4) Grants.--
                  (A) In general.--The Secretary shall award, 
                to each eligible entity selected to participate 
                in the project under this subsection, a grant, 
                of an amount negotiated with such eligible 
                entity, that is not less than $10,000 and not 
                more than $200,000.
                  (B) Sunset.--The authority of the Secretary 
                to award grants under this subsection shall 
                terminate on the date that is 5 years after the 
                date on which the first grant is awarded under 
                this subsection.
          (5) Reimbursements.--
                  (A) In general.--Notwithstanding any other 
                provision of law, an eligible entity 
                participating in the project under this 
                subsection--
                          (i) may carry out the programs 
                        referenced in subparagraphs (A) through 
                        (D) of paragraph (1);
                          (ii) with respect to the school lunch 
                        program authorized under this Act, 
                        shall be reimbursed as if it were a 
                        State under section 12(f);
                          (iii) with respect to the child and 
                        adult care food program established 
                        under this Act, shall be reimbursed as 
                        if it were a State under section 17, 
                        including audit funds under subsection 
                        (i) of such section;
                          (iv) with respect to the summer food 
                        service program for children 
                        established under this Act, shall be 
                        reimbursed as if it were a State under 
                        section 13, including administrative 
                        funds under subsection (k) of such 
                        section; and
                          (v) with respect to the school 
                        breakfast program established by 
                        section 4 of the Child Nutrition Act of 
                        1966 (42 U.S.C. 1733), shall be 
                        reimbursed as if it were a State under 
                        such section.
                  (B) Administrative funds.-- An eligible 
                entity that participates in the project under 
                this subsection may receive administrative 
                funds at a rate that is consistent with the 
                amount received by a State under section 7 of 
                the Child Nutrition Act of 1966 (42 U.S.C. 
                1776).
                  (C) Tribal operators.--An eligible entity 
                that is an Indian tribe that participates in 
                the project under this subsection as direct 
                program operators shall be reimbursed by the 
                Department.
          (6) Definitions.--In this subsection:
                  (A) Bureau-funded school.--The term ``Bureau-
                funded school'' has the meaning given such term 
                in section 1141 of the Education Amendments of 
                1978 (25 U.S.C. 2021).
                  (B) Covered school.--The term ``covered 
                school'' means--
                          (i) a Bureau-funded school;
                          (ii) a school--
                                  (I) on or in proximity to a 
                                reservation; or
                                  (II) that primarily serves 
                                Native American students; and
                          (iii) early care and education 
                        facilities, including facilities that 
                        participate in a Head Start program 
                        authorized under the Head Start Act (42 
                        U.S.C. 9831 et seq.).
                  (C) Eligible entity.--The term ``eligible 
                entity'' means--
                          (i) an Indian tribe or tribal 
                        organization approved by an Indian 
                        tribe;
                          (ii) a consortium of Indian tribes; 
                        and
                          (iii) a partnership between--
                                  (I) an Indian tribe; and
                                  (II) either--
                                          (aa) a State 
                                        educational agency;
                                          (bb) a local 
                                        educational agency;
                                          (cc) a tribal 
                                        educational agency; or
                                          (dd) the Bureau of 
                                        Indian Education.
                  (D) Indian tribe.--The term ``Indian tribe'' 
                has the meaning given such term in section 4 of 
                the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 5304).
                  (E) School.--The term ``school'' has the 
                meaning given such term in section 12(d) of the 
                Richard B. Russell National School Lunch Act 
                (42 U.S.C. 1760(d)).
                  (F) Tribal educational agency.--The term 
                ``tribal educational agency'' has the meaning 
                given such term in section 6132(b) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7452(b)).
  (g) Access to Local Foods: Farm to School Program.--
          [(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).]
          (1) Definitions.--In this subsection:
                  (A) Agricultural producer.--The term 
                ``agricultural producer'' means a farmer, 
                rancher, or fisher (including of farm-raised 
                fish).
                  (B) Beginning farmer or rancher.--The term 
                ``beginning farmer or rancher'' has the meaning 
                given such term in section 343(a) of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 1991(a)).
                  (C) Eligible institution.--The term 
                ``eligible institution'' 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).
                  (D) Farm to school program.--The term ``farm 
                to school program'' means a program that--
                          (i) benefits an eligible institution, 
                        as determined by the Secretary; and
                          (ii) carries out--
                                  (I) planting and maintenance 
                                of farms or gardens;
                                  (II) procurement from local 
                                agricultural producers; or
                                  (III) educational activities 
                                relating to agriculture, 
                                nutrition, or food.
                  (E) Underserved producer.--The term 
                ``underserved producer'' means an individual 
                (including a member of an Indian Tribe) that 
                is--
                          (i) a beginning farmer or rancher;
                          (ii) a veteran farmer or rancher; or
                          (iii) a socially disadvantaged farmer 
                        or rancher.
                  (F) Veteran farmer or rancher.--The term 
                ``veteran farmer or rancher'' has the meaning 
                given such term in section 2501(a) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (7 U.S.C. 2279(a)).
          (2) Program.--The Secretary shall carry out a program 
        to assist eligible [schools] institutions, State and 
        local agencies, Indian tribal organizations, 
        agricultural producers or groups of agricultural 
        producers, land-grant colleges and universities, and 
        nonprofit entities through [grants and technical 
        assistance] grants, technical assistance, research, and 
        evaluation to implement farm to school programs that 
        improve access to local foods in eligible [schools] 
        institutions.
          (3) Grants.--
                  (A) In general.--The Secretary shall award 
                competitive grants under this subsection to be 
                used for--
                          (i) training and technical 
                        assistance;
                          (ii) supporting operations;
                          (iii) planning;
                          (iv) purchasing equipment;
                          (v) developing school gardens;
                          (vi) implementing educational 
                        activities relating to agriculture, 
                        nutrition, or food;
                          (vii) implementing innovative 
                        approaches to aggregation, processing, 
                        transportation, and distribution of 
                        food;
                          [(vi)] (viii) developing 
                        partnerships; and
                          [(vii)] (ix) 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.]
                  (C) Awards.--
                          (i) Maximum amount.--The total amount 
                        provided to a grant recipient under 
                        this subsection shall not exceed 
                        $500,000.
                          (ii) Term.--The term of an award 
                        shall not exceed 3 years.
                          (iii) Purpose and scope.--In making 
                        awards under this subsection, the 
                        Secretary shall, to the extent 
                        practicable, make awards of diverse 
                        amounts and duration in order to best 
                        match the award to the purpose and 
                        scope of the project to be funded.
          [(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]
          (4) Priority._
                  (A) In general._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)] (i) make local food products 
                        available on the menu of the eligible 
                        [school] institution;
                          [(B)] (ii) serve a high proportion of 
                        children who are eligible for free or 
                        reduced price [lunches] meals;
                          (iii) incorporate experiential, 
                        traditional, and culturally appropriate 
                        food, nutrition, or agricultural 
                        education activities in curriculum 
                        planning;
                  [(C) incorporate experiential nutrition 
                education activities in curriculum planning 
                that encourage the participation of school 
                children in farm and garden-based agricultural 
                education activities;]
                          [(D)] (iv) demonstrate collaboration 
                        between [eligible schools, 
                        nongovernmental and community-based 
                        organizations, agricultural producer 
                        groups, and other community partners] 
                        eligible institutions, State and local 
                        agencies, Tribal organizations and 
                        agencies, agricultural producers or 
                        groups of agricultural producers, land-
                        grant colleges and universities, and 
                        nonprofit entities on the activities 
                        described in paragraph (3);
                          [(E)] (v) include adequate and 
                        participatory evaluation plans;
                          [(F)] (vi) demonstrate the potential 
                        for long-term program sustainability; 
                        [and]
                          (vii) expand the selection of local 
                        commodities for eligible institutions;
                          (viii) identify and address chronic 
                        diet-related health issues of children 
                        served by eligible institutions; and
                          [(G)] (ix) meet any other criteria 
                        that the Secretary determines 
                        appropriate.
                  (B) Tribal community projects.--In the case 
                of projects serving Tribal communities, the 
                Secretary shall, to the maximum extent 
                practicable, give priority to projects that 
                best utilize products, including traditional 
                foods, from Tribal agricultural producers, as 
                determined by the Secretary.
          [(6)] (5) 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)] (6) 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) In general._The Secretary shall provide 
                technical assistance and information to assist 
                eligible institutions, State and local 
                agencies, Indian Tribal organizations, 
                agricultural producers or agricultural producer 
                groups, and nonprofit entities  --
                          [(A)] (i) to facilitate the 
                        coordination and sharing of information 
                        and resources in the Department that 
                        may be applicable to the farm to school 
                        program;
                          [(B)] (ii) to collect and share 
                        information on best practices; [and]
                          [(C)] (iii) to disseminate research 
                        and data on existing farm to school 
                        programs and the potential for programs 
                        in underserved areas[.]; and
                          (iv) to increase awareness of, and 
                        participation in, farm to school 
                        programs among agricultural producers 
                        or agricultural producer groups, 
                        including--
                                  (I) underserved or limited 
                                resource producers; and
                                  (II) local farmers.
                  (B) Review.--
                          (i) In general.--Not later than 1 
                        year after the date of enactment of the 
                        Healthy Meals, Healthy Kids Act, and 
                        every 3 years thereafter, the Secretary 
                        shall submit to the Committee on 
                        Agriculture of the House of 
                        Representatives, 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 
                        progress that has been made in 
                        identifying and eliminating barriers 
                        related to developing farm to school 
                        programs.
                          (ii) Requirements.--In preparing the 
                        report, the Secretary shall examine--
                                  (I) the direct and indirect 
                                regulatory compliance costs 
                                affecting the production and 
                                marketing of locally or 
                                regionally produced 
                                agricultural food products to 
                                child nutrition programs;
                                  (II) barriers to local and 
                                regional child nutrition 
                                program market access for 
                                small-scale production;
                                  (III) barriers to funding 
                                projects that meet the criteria 
                                described in paragraph (5)(A);
                                  (IV) barriers to local and 
                                regional child nutrition market 
                                access for Tribal farmers and 
                                ranchers; and
                                  (V) barriers to funding 
                                Tribal projects under farm to 
                                school programs.
          [(8)] (7) 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] $15,000,000, 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.
                  (C) Administration.--Of the funds provided to 
                the Secretary under subparagraph (A), not more 
                than 5 percent may be used to pay 
                administrative costs incurred by the Secretary 
                in carrying out this subsection.
          [(9)] (8) 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] 2023 through 2028.
  (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.
                          (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 
                        vacation, 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
                                  (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] Committee on 
                Education and Labor 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.--
                  (A) In general.--A school food authority 
                seeking a contract, grant, or cooperative 
                agreement under this subsection 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.
  (l) Island Areas Eligibility Feasibility Study.--
          (1) In general.--Not later than 12 months after the 
        date of the enactment of this subsection, the Secretary 
        shall begin a feasibility study to assess the ability 
        and preparedness of the freely associated States to 
        operate--
                  (A) the school lunch program authorized under 
                this Act;
                  (B) the child and adult care food program 
                established by section 17 of this Act;
                  (C) the summer food service program for 
                children established by section 13 of this Act; 
                and
                  (D) the school breakfast program established 
                by section 4 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1773).
          (2) Contents.--In conducting the study described in 
        paragraph (1), the Secretary shall consider--
                  (A) any new or additional administrative 
                processes and technology needed to implement 
                each program listed under paragraph (1);
                  (B) an assessment of preparedness to--
                          (i) comply with management 
                        evaluations conducted by the Secretary, 
                        acting through the Administrator of the 
                        Food and Nutrition Service; and
                          (ii) cooperate in Federal audits and 
                        evaluations;
                  (C) administrative and financial capability 
                to meet the requirements of each program listed 
                under paragraph (1);
                  (D) ability to oversee each program listed 
                under paragraph (1);
                  (E) statutory requirements that require 
                waiver or modification by the Secretary and the 
                feasibility of carrying out such waivers or 
                modifications; and
                  (F) any other relevant considerations, as 
                determined by the Secretary.
          (3) Submission.--Not later than 24 months after the 
        date on which the Secretary begins the study under 
        paragraph (1), the Secretary shall--
                  (A) complete such study; and
                  (B) submit the findings of such study to the 
                Committee on Education and Labor of the House 
                of Representatives and the Senate Committee on 
                Agriculture, Nutrition, and Forestry.
          (4) Freely associated state defined.--In this 
        subsection, the term ``freely associated State'' 
        means--
                  (A) the Federated States of Micronesia;
                  (B) the Republic of the Marshall Islands; and
                  (C) the Republic of Palau.

           *       *       *       *       *       *       *


SEC. 21A. GRANTS TO SUPPORT SCRATCH COOKING.

  (a) Establishment.--Not later than 180 days after the date of 
the enactment of this section, the Secretary shall establish a 
program to award grants, on a competitive basis, to school food 
authorities to promote scratch cooking.
  (b) Application.--To be eligible for a grant under this 
section, a school food authority shall submit to the Secretary 
an application at such time, in such manner, and containing 
such information as the Secretary may require.
  (c) Grant Amounts and Duration.--
          (1) Grant amount.--The Secretary shall award a grant 
        of not more than $100,000 to each school food authority 
        with an application selected under this subsection.
          (2) Grant period.--A grant awarded under this section 
        shall be for a period of not more than 2 years.
  (d) Grant Uses.--A school food authority that receives a 
grant under this section shall use such grant funds to promote 
scratch cooking, including by--
          (1) offering professional development and training 
        related to preparing, procuring, advertising, serving, 
        and creating menus of meals made with scratch cooking;
          (2) investing in software and technology systems for 
        procurement to support scratch cooking;
          (3) compensating employees for additional food 
        preparation required for scratch cooking;
          (4) providing technical assistance, student 
        engagement, and education with respect to scratch 
        cooking, including taste tests, recipe development, and 
        culinary education; or
          (5) carrying out any additional activities to promote 
        scratch cooking that will help school food authorities 
        meet or exceed the 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).
  (e) Priority.--In awarding grants under this section, the 
Secretary shall give priority to school food authorities--
          (1) that serve the greatest proportion of students 
        eligible for free or reduced price lunch under this 
        Act; and
          (2) that--
                  (A) are self-operated; or
                  (B) provide an assurance to the Secretary 
                that the school food authority will be self-
                operated on or before the date that is 1 year 
                before the last day of the grant period.
  (f) Technical Assistance Center.--
          (1) In general.--The Secretary shall enter into an 
        agreement with one or more eligible third-party 
        institutions to establish and carry out a single 
        technical assistance and resource center to provide 
        technical assistance for school food service personnel.
          (2) Collaboration requirement.--As soon as 
        practicable after receiving a grant under this section, 
        a school food authority shall collaborate with the 
        technical assistance and resource center established 
        under paragraph (1) to--
                  (A) conduct a scratch cooking needs 
                assessment to evaluate, with respect to such 
                school food authority--
                          (i) equipment needs;
                          (ii) equipment utilization;
                          (iii) procurement processes; and
                          (iv) workforce capabilities; and
                  (B) establish a strategic plan based on such 
                needs assessment to carry out the activities 
                under subsection (d).
          (3) Eligible third-party institutions.--
                  (A) Eligible third-party institution 
                defined.--For purposes of this subsection, the 
                term ``eligible third-party institution'' 
                means--
                          (i) a nonprofit organization with 
                        demonstrated experience in food or 
                        nutrition services training and 
                        technical assistance;
                          (ii) an institution of higher 
                        education as defined in section 101 or 
                        102(a)(1)(B) of the Higher Education 
                        Act of 1965 (20 U.S.C. 1001; 
                        1002(a)(1)(B));
                          (iii) an area career and technical 
                        education school as defined in section 
                        3 of the Carl D. Perkins Career and 
                        Technical Education Act of 2006 (20 
                        U.S.C. 2302); or
                          (iv) a consortium of entities 
                        described in subclauses (I) through 
                        (III).
                  (B) Criteria for eligible third-party 
                institutions.--The Secretary shall establish 
                specific criteria that eligible third-party 
                training institutions must meet to qualify to 
                enter into an agreement under paragraph (1), 
                which shall include--
                          (i) prior successful experience in 
                        providing or engaging in training and 
                        technical assistance programming or 
                        applied research activities involving 
                        eligible entities, school food service 
                        administrators, or school food service 
                        directors;
                          (ii) prior successful experience in 
                        developing relevant educational 
                        training tools or course materials or 
                        curricula on topics addressing child 
                        and school nutrition or the updated 
                        nutrition standards under section 
                        4(b)(3); and
                          (iii) the ability to deliver 
                        effective and cost-efficient training 
                        and technical assistance programming to 
                        school food service personnel--
                                  (I) at training sites that 
                                are located within a proximate 
                                geographic distance to schools, 
                                central kitchens, or other 
                                worksites; or
                                  (II) through an online 
                                training and assistance program 
                                on topics that do not require 
                                in-person attendance.
          (4) Funding.--Of the amounts made available under 
        subsection (h) to carry out this section, not more than 
        10 percent may be used to carry out this subsection.
  (g) Report.--Not later than 180 days after the conclusion of 
the grant period described in subsection (c)(2), each school 
food authority that receives a grant under this section shall 
submit to the Secretary a report that includes, with respect to 
such school food authority, the change at the end of the grant 
period, as compared with the school year immediately preceding 
the beginning of the grant period, in--
          (1) the percentage of whole ingredients, raw 
        ingredients, or both, used in school meals; and
          (2) the percentage of menu items prepared with 
        scratch cooking.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated $20,000,000 to carry out this section for each 
of fiscal years 2024 through 2028.

SEC. 22. 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.
          (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--
                                  (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 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.
  (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] fiscal 
years 2023 through 2028.
  (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.
                  (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. 26. 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, 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 2023] $500,000 
for each of fiscal years 2023 through 2028. The Secretary shall 
be entitled to receive the funds and shall accept the funds, 
without further appropriation.

SEC. 27. GRANTS TO FINANCE CERTAIN IMPROVEMENTS TO SCHOOL LUNCH 
                    FACILITIES.

  (a) In General.--Beginning fiscal year 2024, the Secretary 
shall award grants to State agencies to carry out the 
activities described in subsection (b).
  (b) Subgrants.--
          (1) In general.--A State agency receiving a grant 
        under this section shall use such grant funds to award 
        subgrants, on a competitive basis, to school food 
        authorities.
          (2) Application.--A school food authority seeking a 
        subgrant under this subsection shall submit to the 
        State agency an application at such time, in such 
        manner, and containing such information as the State 
        agency may require.
          (3) Priority.--In awarding a subgrant under this 
        subsection, the State agency shall give priority to a 
        school food authority that serves, as determined by the 
        State agency, schools with substantial or 
        disproportionate--
                  (A) need for infrastructure improvement; or
                  (B) durable equipment need or impairment.
          (4) Subgrant uses.--A school food authority receiving 
        a subgrant under this subsection shall use such 
        subgrant funds to support the establishment, 
        maintenance, and expansion of 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) at schools served by the school 
        food authority, including by--
                  (A) purchasing equipment, including software 
                and technology systems, needed to serve healthy 
                meals, improve food safety, promote scratch 
                cooking, facilitate the use of salad bars; or
                  (B) improving or adapting equipment needed to 
                serve healthy meals, including by retrofitting 
                such equipment.
  (c) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated $35,000,000 for each of fiscal years 2024 
        through 2028 to carry out this section.
          (2) Technical assistance.--The Secretary may use not 
        more than 5 percent of the amounts made available to 
        carry out this section for each fiscal year to provide 
        technical assistance to applicants and prospective 
        applicants in preparing applications.

SEC. 30. MEAL TIME STUDY AND GUIDANCE.

  (a) Study.--The Secretary shall--
          (1) not later than 1 year after the date on which 
        funds are first appropriated under subsection (c), 
        enter into an agreement with an independent, 
        nonpartisan, science-based research organization to 
        carry out a study on the time lunches are served, 
        recess is offered, and the duration of lunch periods at 
        schools participating in the school lunch program under 
        this Act; and
          (2) not later than 4 years after the date on which 
        funds are first appropriated under subsection (c), 
        publish on the publicly available website of the 
        Department a report that includes the findings of the 
        study required under paragraph (1).
  (b) Development and Dissemination of Best Practices.--The 
Secretary shall--
          (1) not later than 1 year after the date on which the 
        report required under subsection (a)(2) is published, 
        in coordination with the Secretary of Education, 
        establish a task force to--
                  (A) review such report;
                  (B) review other research relating to the 
                time lunches are served, recess is offered, and 
                the duration of lunch periods in schools; and
                  (C) develop best practices with respect to 
                the time lunches are served, recess is offered, 
                and the duration of lunch periods in schools to 
                ensure student health, including appropriate 
                nutritional intake; and
          (2) not later than 2 years after the date on which 
        the report required under subsection (a)(2) is 
        published--
                  (A) review the best practices developed under 
                paragraph (1)(C); and
                  (B) issue guidance with respect to such best 
                practices to schools participating in the 
                school lunch program under this Act.
  (c) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $1,000,000 for fiscal 
year 2024, to remain available until expended.
                              ----------                              


                      CHILD NUTRITION ACT OF 1966



           *       *       *       *       *       *       *
SEC. 7. STATE ADMINISTRATIVE EXPENSES.

  (a) Amount and Allocation of Funds.--
          (1) Amount available.--
                  (A) In general.--Each fiscal year, the 
                Secretary shall make available to the States 
                for their administrative costs an amount equal 
                to not less than 1\1/2\ percent of the Federal 
                funds expended under sections 4, 11, and 17 of 
                the Richard B. Russell National School Lunch 
                Act and sections 3 and 4 of this Act during the 
                second preceding fiscal year.
                  (B) Allocation.--The Secretary shall allocate 
                the funds so provided in accordance with 
                paragraphs (2), (3), and (4) of this 
                subsection.
          (2) Expense grants.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary shall allocate to each State for 
                administrative costs incurred in any fiscal 
                year in connection with the programs authorized 
                under the Richard B. Russell National School 
                Lunch Act or under this Act, except for the 
                programs authorized under section 13 or 17 of 
                the Richard B. Russell National School Lunch 
                Act or under section 17 of this Act, an amount 
                equal to not less than 1 percent and not more 
                than 1\1/2\ percent of the funds expended by 
                each State under sections 4 and 11 of the 
                Richard B. Russell National School Lunch Act 
                and sections 3 and 4 of this Act during the 
                second preceding fiscal year.
                  (B) Minimum amount.--
                          (i) In general.--In no case shall the 
                        grant available to any State under this 
                        paragraph be less than the amount such 
                        State was allocated in the fiscal year 
                        ending September 30, 1981, or $200,000 
                        (as adjusted under clause (ii), 
                        whichever is larger.
                          (ii) Adjustment.--On October 1, 2008, 
                        and each October 1 thereafter, the 
                        minimum dollar amount for a fiscal year 
                        specified in clause (i) shall be 
                        adjusted to reflect the percentage 
                        change between--
                                  (I) the value of the index 
                                for State and local government 
                                purchases, as published by the 
                                Bureau of Economic Analysis of 
                                the Department of Commerce, for 
                                the 12-month period ending June 
                                30 of the second preceding 
                                fiscal year; and
                                  (II) the value of that index 
                                for the 12-month period ending 
                                June 30 of the preceding fiscal 
                                year.
  (3) The Secretary shall allocate to each State for its 
administrative costs incurred under the program authorized by 
section 17 of the Richard B. Russell National School Lunch Act 
in any fiscal year an amount, based upon funds expended under 
that program in the second preceding fiscal year, equal to (A) 
20 percent of the first $50,000, (B) 10 percent of the next 
$100,000, (C) 5 percent of the next $250,000, and (D) 2\1/2\ 
percent of any remaining funds. If an agency in the State other 
than the State educational agency administers such program, the 
State shall ensure that an amount equal to no less than the 
funds due the State under this paragraph is provided to such 
agency for costs incurred by such agency in administering the 
program, except as provided in paragraph (5). The Secretary may 
adjust any State's allocation to reflect changes in the size of 
its program.
  (4) The remaining funds appropriated under this section shall 
be allocated among the States by the Secretary in amounts the 
Secretary determines necessary for the improvement in the 
States of the administration of the programs authorized under 
the Richard B. Russell National School Lunch Act and this Act, 
except for section 17 of this Act, including, but not limited 
to, improved program integrity and the quality of meals served 
to children.
  (5)(A) Not more than 25 percent of the amounts made available 
to each State under this section for the fiscal year 1991 and 
20 percent of the amounts made available to each State under 
this section for the fiscal year 1992 and for each succeeding 
fiscal year may remain available for obligation [or 
expenditure] in the fiscal year succeeding the fiscal year for 
which such amounts were appropriated.
          (B) Reallocation of funds.--
                  (i) Return to secretary.--For each fiscal 
                year, any amounts appropriated that are not 
                obligated or expended during the fiscal year 
                and are not carried over for the succeeding 
                fiscal year under subparagraph (A) shall be 
                returned to the Secretary.
                  (ii) Reallocation by secretary.--The 
                Secretary shall allocate, for purposes of 
                administrative costs, any remaining amounts 
                among States that demonstrate a need for the 
                amounts.
          (6) Use of administrative funds.--Funds available to 
        a State under this subsection and under section 
        13(k)(1) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1761(k)(1)) may be used by the 
        State for the costs of administration of the programs 
        authorized under this Act (except for the programs 
        authorized under sections 17 and 21) and the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) without regard to the basis on which the funds 
        were earned and allocated.
  (7) Where the Secretary is responsible for the administration 
of programs under this Act or the Richard B. Russell National 
School Lunch Act, the amount of funds that would be allocated 
to the State agency under this section and under section 
13(k)(1) of the Richard B. Russell National School Lunch Act 
shall be retained by the Secretary for the Secretary's use in 
the administration of such programs.
  (8) In the fiscal year 1991 and each succeeding fiscal year, 
in accordance with regulations issued by the Secretary, each 
State shall ensure that the State agency administering the 
distribution of commodities under programs authorized under 
this Act and under the Richard B. Russell National School Lunch 
Act is provided, from funds made available to the State under 
this subsection, an appropriate amount of funds for 
administrative costs incurred in distributing such commodities. 
In developing such regulations, the Secretary may consider the 
value of commodities provided to the State under this Act and 
under the Richard B. Russell National School Lunch Act.
  (9)(A) If the Secretary determines that the administration of 
any program by a State under this Act (other than section 17) 
or under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) (including any requirement to provide 
sufficient training, technical assistance, and monitoring of 
the child and adult care food program under section 17 of that 
Act (42 U.S.C. 1766)), or compliance with a regulation issued 
pursuant to either of such Acts, is seriously deficient, and 
the State fails to correct the deficiency within a specified 
period of time, the Secretary may withhold from the State some 
or all of the funds allocated to the State under this section 
or under section 13(k)(1) or 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(k)(1) or 1766).
  (B) On a subsequent determination by the Secretary that the 
administration of any program referred to in subparagraph (A), 
or compliance with the regulations issued to carry out the 
program, is no longer seriously deficient and is operated in an 
acceptable manner, the Secretary may allocate some or all of 
the funds withheld under such subparagraph.
  (b) Funds paid to a State under subsection (a) of this 
section may be used to pay salaries, including employee 
benefits and travel expenses, for administrative and 
supervisory personnel; for support services; for office 
equipment; and for staff development.
  (c) If any State agency agrees to assume responsibility for 
the administration of food service programs in nonprofit 
private schools or child care institutions that were previously 
administered by the Secretary, an appropriate adjustment shall 
be made in the administrative funds paid under this section to 
the State not later than the succeeding fiscal year.
  (d) Notwithstanding any other provision of law, funds made 
available to each State under this section shall remain 
available for obligation [and expenditure] by that State during 
the fiscal year immediately following the fiscal year for which 
such funds were made available. For each fiscal year the 
Secretary shall establish a date by which each State shall 
submit to the Secretary a plan for the disbursement of funds 
provided under this section for each such year, and the 
Secretary shall reallocate any unused funds, as evidenced by 
such plans, to other States as the Secretary considers 
appropriate.
  (e) Plans for Use of Administrative Expense Funds.--
          (1) In general.--Each State shall submit to the 
        Secretary for approval by October 1 of the initial 
        fiscal year a plan for the use of State administrative 
        expense funds, including a staff formula for State 
        personnel, system level supervisory and operating 
        personnel, and school level personnel.
          (2) Updates and information management systems.--
                  (A) In general.--After submitting the initial 
                plan, a State shall be required to submit to 
                the Secretary for approval only a substantive 
                change in the plan.
                  (B) Plan contents.--Each State plan shall, at 
                a minimum, include a description of how 
                technology and information management systems 
                will be used to improve program integrity by--
                          (i) monitoring the nutrient content 
                        of meals served;
                          (ii) training local educational 
                        agencies, school food authorities, and 
                        schools in how to use technology and 
                        information management systems 
                        (including verifying eligibility for 
                        free or reduced price meals using 
                        program participation or income data 
                        gathered by State or local agencies); 
                        and
                          (iii) using electronic data to 
                        establish benchmarks to compare and 
                        monitor program integrity, program 
                        participation, and financial data.
          (3) Training and technical assistance.--Each State 
        shall submit to the Secretary for approval a plan 
        describing the manner in which the State intends to 
        implement subsection (g) and section 22(b)(3) of the 
        Richard B. Russell National School Lunch Act.
  (f) Payments of funds under this section shall be made only 
to States that agree to maintain a level of funding out of 
State revenues, for administrative costs in connection with 
programs under this Act (except section 17 of this Act) and the 
Richard B. Russell National School Lunch Act (except section 13 
of that Act ), not less than the amount expended or obligated 
in fiscal year 1977, and that agree to participate fully in any 
studies authorized by the Secretary.
  (g) Professional Standards for School Food Service.--
          (1) Criteria for school food service and state agency 
        directors.--
                  (A) School food service directors.--
                          (i) In general.--The Secretary shall 
                        establish a program of required 
                        education, training, and certification 
                        for all school food service directors 
                        responsible for the management of a 
                        school food authority.
                          (ii) Requirements.--The program shall 
                        include--
                                  (I) minimum educational 
                                requirements necessary to 
                                successfully manage the school 
                                lunch program established under 
                                the Richard B. Russell National 
                                School Lunch Act (42 U.S.C. 
                                1751 et seq.) and the school 
                                breakfast program established 
                                by section 4 of this Act;
                                  (II) minimum program training 
                                and certification criteria for 
                                school food service directors; 
                                and
                                  (III) minimum periodic 
                                training criteria to maintain 
                                school food service director 
                                certification.
                  (B) School nutrition state agency 
                directors.--The Secretary shall establish 
                criteria and standards for States to use in the 
                selection of State agency directors with 
                responsibility for the school lunch program 
                established under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et 
                seq.) and the school breakfast program 
                established by section 4 of this Act.
                  (C) Training program partnership.--The 
                Secretary may provide financial and other 
                assistance to 1 or more professional food 
                service management organizations--
                          (i) to establish and manage the 
                        program under this paragraph; and
                          (ii) to develop voluntary training 
                        and certification programs for other 
                        school food service workers.
                  (D) Required date of compliance.--
                          (i) School food service directors.--
                        The Secretary shall establish a date by 
                        which all school food service directors 
                        whose local educational agencies are 
                        participating in the school lunch 
                        program established under the Richard 
                        B. Russell National School Lunch Act 
                        (42 U.S.C. 1751 et seq.) and the school 
                        breakfast program established by 
                        section 4 of this Act shall be required 
                        to comply with the education, training, 
                        and certification criteria established 
                        in accordance with subparagraph (A).
                          (ii) School nutrition state agency 
                        directors.--The Secretary shall 
                        establish a date by which all State 
                        agencies shall be required to comply 
                        with criteria and standards established 
                        in accordance with subparagraph (B) for 
                        the selection of State agency directors 
                        with responsibility for the school 
                        lunch program established under the 
                        Richard B. Russell National School 
                        Lunch Act (42 U.S.C. 1751 et seq.) and 
                        the school breakfast program 
                        established by section 4 of this Act.
          (2) Training and certification of food service 
        personnel.--
                  (A) Training for individuals conducting or 
                overseeing administrative procedures.--
                          (i) In general.--At least annually, 
                        each State shall provide training in 
                        administrative practices (including 
                        training in application, certification, 
                        verification, meal counting, and meal 
                        claiming procedures) to local 
                        educational agency and school food 
                        authority personnel and other 
                        appropriate personnel.
                          (ii) Federal role.--The Secretary 
                        shall--
                                  (I) provide training and 
                                technical assistance described 
                                in clause (i) to the State; or
                                  (II) at the option of the 
                                Secretary, directly provide 
                                training and technical 
                                assistance described in clause 
                                (i).
                          (iii) Required participation.--In 
                        accordance with procedures established 
                        by the Secretary, each local 
                        educational agency or school food 
                        authority shall ensure that an 
                        individual conducting or overseeing 
                        administrative procedures described in 
                        clause (i) receives training at least 
                        annually, unless determined otherwise 
                        by the Secretary.
                  (B) Training and certification of all local 
                food service personnel.--
                          (i) In general.--The Secretary shall 
                        provide training designed to improve--
                                  (I) the accuracy of approvals 
                                for free and reduced price 
                                meals; and
                                  (II) the identification of 
                                reimbursable meals at the point 
                                of service.
                          (ii) Certification of local 
                        personnel.--In accordance with criteria 
                        established by the Secretary, local 
                        food service personnel shall complete 
                        annual training and receive annual 
                        certification--
                                  (I) to ensure program 
                                compliance and integrity; and
                                  (II) to demonstrate 
                                competence in the training 
                                provided under clause (i).
                          (iii) Training modules.--In addition 
                        to the topics described in clause (i), 
                        a training program carried out under 
                        this subparagraph shall include 
                        training modules on--
                                  (I) nutrition;
                                  (II) health and food safety 
                                standards and methodologies; 
                                and
                                  (III) any other appropriate 
                                topics, as determined by the 
                                Secretary.
                          (iv) Availability and appropriateness 
                        of training.--Training carried out 
                        under this subparagraph shall be--
                                  (I) scheduled primarily 
                                during regular, paid working 
                                hours;
                                  (II) if such training is 
                                scheduled outside of such 
                                regular, paid working hours--
                                          (aa) efforts shall be 
                                        made to inform food 
                                        service personnel of 
                                        the reasons requiring 
                                        the training to be 
                                        scheduled outside of 
                                        such hours;
                                          (bb) time spent 
                                        participating in such 
                                        training shall be 
                                        considered compensable 
                                        time and each 
                                        individual who 
                                        participates shall be 
                                        paid no less than the 
                                        individual's regular 
                                        rate of pay; and
                                          (cc) food service 
                                        personnel shall not be 
                                        discharged or in any 
                                        other manner 
                                        discriminated against 
                                        for not being able to 
                                        attend such training; 
                                        and
                                  (III) offered in-person and 
                                incorporate hands-on training 
                                techniques, when appropriate.
                          (v) Relationship to other laws.--
                        Nothing in this subparagraph may be 
                        construed to supersede or otherwise 
                        modify any Federal, State, or local law 
                        or legal obligation governing the 
                        relationship between an employee and 
                        employer.
          (3) Funding.--
                  (A) In general.--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, to 
                remain available until expended--
                          (i) on October 1, 2010, $5,000,000; 
                        and
                          (ii) on each October 1 thereafter, 
                        $1,000,000.
                  (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.
  (h) Funding for Training and Administrative Reviews.--
          (1) Funding.--
                  (A) In general.--On October 1, 2004, and on 
                each October 1 thereafter, 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 $4,000,000, 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.
          (2) Use of funds.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall use funds 
                provided under this subsection to assist States 
                in carrying out subsection (g) and 
                administrative reviews of selected local 
                educational agencies carried out under section 
                22 of the Richard B. Russell National School 
                Lunch Act (42 U.S.C. 1769c).
                  (B) Exception.--The Secretary may retain a 
                portion of the amount provided to cover costs 
                of activities carried out by the Secretary in 
                lieu of the State.
          (3) Allocation.--The Secretary shall allocate funds 
        provided under this subsection to States based on the 
        number of local educational agencies that have 
        demonstrated a high level of, or a high risk for, 
        administrative error, as determined by the Secretary, 
        taking into account the requirements established by the 
        Child Nutrition and WIC Reauthorization Act of 2004 and 
        the amendments made by that Act.
          (4) Reallocation.--The Secretary may reallocate, to 
        carry out this section, any amounts made available to 
        carry out this subsection that are not obligated or 
        expended, as determined by the Secretary.
  (i) Technology Infrastructure Improvement.--
          (1) In general.--Each State shall submit to the 
        Secretary, for approval by the Secretary, an amendment 
        to the plan required by subsection (e) that describes 
        the manner in which funds provided under this section 
        will be used for technology and information management 
        systems.
          (2) Requirements.--The amendment shall, at a minimum, 
        describe the manner in which the State will improve 
        program integrity by--
                  (A) monitoring the nutrient content of meals 
                served;
                  (B) providing training to local educational 
                agencies, school food authorities, and schools 
                on the use of technology and information 
                management systems for activities including--
                          (i) menu planning;
                          (ii) collection of point-of-sale 
                        data; and
                          (iii) the processing of applications 
                        for free and reduced price meals; and
                  (C) using electronic data to establish 
                benchmarks to compare and monitor program 
                integrity, program participation, and financial 
                data across schools and school food 
                authorities.
          (3) Technology infrastructure grants.--
                  (A) In general.--Subject to the availability 
                of funds made available under paragraph (4) to 
                carry out this paragraph, the Secretary shall, 
                on a competitive basis, provide funds to States 
                to be used to provide grants to local 
                educational agencies, school food authorities, 
                and schools to defray the cost of purchasing or 
                upgrading technology and information management 
                systems for use in programs authorized by this 
                Act (other than section 17) and the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.).
                  (B) Infrastructure development plan.--To be 
                eligible to receive a grant under this 
                paragraph, a school or school food authority 
                shall submit to the State a plan to purchase or 
                upgrade technology and information management 
                systems that addresses potential cost savings 
                and methods to improve program integrity, 
                including--
                          (i) processing and verification of 
                        applications for free and reduced price 
                        meals;
                          (ii) integration of menu planning, 
                        production, and serving data to monitor 
                        compliance with section 9(f)(1) of the 
                        Richard B. Russell National School 
                        Lunch Act (42 U.S.C. 1758(f)(1)); and
                          (iii) compatibility with statewide 
                        reporting systems.
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection such sums as are necessary for each of 
        fiscal years [2010 through 2015] 2023 through 2028, to 
        remain available until expended.
  (j) For the fiscal year beginning October 1, 1977, and each 
succeeding fiscal year ending before [October 1, 2015] October 
1, 2028, there are hereby authorized to be appropriated such 
sums as may be necessary for the purposes of this section.

           *       *       *       *       *       *       *


SEC. 10. REGULATIONS.

  (a) In General.--The Secretary shall prescribe such 
regulations as the Secretary may deem necessary to carry out 
this Act and the Richard B. Russell National School Lunch Act, 
including regulations relating to the service of food in 
participating schools and service institutions in competition 
with the programs authorized under this Act and the Richard B. 
Russell National School Lunch Act.
  [(b) National School Nutrition Standards.--]
  [(1)] (b) Proposed Regulations.--
          [(A)] (1) In general.--The [Secretary shall--] 
        Secretary shall
                  [(i) establish science-based] establish 
                science-based nutrition standards that 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) for foods sold in schools other 
                than foods provided under this Act and the 
                Richard B. Russell National School Lunch Act 
                (42 U.S.C. 1751 et seq.)[; and].
                  [(ii) not later than 1 year after the date of 
                enactment of this paragraph, promulgate 
                proposed regulations to carry out clause (i).]
          [(B)] (2) Application.--The nutrition standards shall 
        apply to all foods sold--
                  (i) outside the school meal programs;
                  (ii) on the school campus; and
                  (iii) at any time during the school day.
          [(C)] (3) Requirements.--In establishing nutrition 
        standards under this paragraph, the Secretary shall--
                  (i) establish standards that are 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), including 
                the food groups to encourage and nutrients of 
                concern identified in the Dietary Guidelines; 
                and
                  (ii) consider--
                          (I) authoritative scientific 
                        recommendations for nutrition 
                        standards;
                          (II) existing school nutrition 
                        standards, including voluntary 
                        standards for beverages and snack foods 
                        and State and local standards;
                          (III) the practical application of 
                        the nutrition standards; and
                          (IV) special exemptions for school-
                        sponsored fundraisers (other than 
                        fundraising through vending machines, 
                        school stores, snack bars, a la carte 
                        sales, and any other exclusions 
                        determined by the Secretary), if the 
                        fundraisers are approved by the school 
                        and are infrequent within the school.
          [(D) Updating standards.--As soon as practicable 
        after the date of publication by the Department of 
        Agriculture and the Department of Health and Human 
        Services of a new edition of the Dietary Guidelines for 
        Americans under section 301 of the National Nutrition 
        Monitoring and Related Research Act of 1990 (7 U.S.C. 
        5341), the Secretary shall review and update as 
        necessary the school nutrition standards and 
        requirements established under this subsection.]
          [(2) Implementation.--
                  [(A) Effective date.--The interim or final 
                regulations under this subsection shall take 
                effect at the beginning of the school year that 
                is not earlier than 1 year and not later than 2 
                years following the date on which the 
                regulations are finalized.
                  [(B) Reporting.--The Secretary shall submit 
                to the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate and the Committee on 
                Education and Labor of the House of 
                Representatives a quarterly report that 
                describes progress made toward promulgating 
                final regulations under this subsection.]
          (4) Updating standards.--Not later than 1 year after 
        the first publication of the Dietary Guidelines for 
        Americans under section 301 of the National Nutrition 
        Monitoring and Related Research Act of 1990 (7 U.S.C. 
        5341) that occurs after the date of the enactment of 
        this subparagraph, and not less frequently than once 
        every 10 years or not later than 1 year after the 
        publication of 2 consecutive updates to 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), thereafter, whichever 
        occurs first, the Secretary shall:
                  (A) Enter into an agreement with the National 
                Academies of Sciences, Engineering, and 
                Medicine to--
                          (i) conduct a review of the school 
                        nutrition standards and requirements 
                        established under this subsection; and
                          (ii) recommend updates to such 
                        standards and requirements so that they 
                        are substantially similar to 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), taking into account the 
                        practical application for 
                        implementation.
                  (B) Not later than 1 year after the 
                conclusion of the review described in 
                subparagraph (A)(i), promulgate regulations to 
                update the school nutrition standards and 
                requirements established under this subsection 
                to align with the recommendations under 
                subparagraph (A)(ii). 
          (5) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out paragraph 
        (4), $3,000,000, for the fiscal year in which the first 
        publication of the Dietary Guidelines for Americans 
        under section 301 of the National Nutrition Monitoring 
        and Related Research Act of 1990 (7 U.S.C. 5341) occurs 
        after the date of the enactment of this Act, to remain 
        available until expended.
  (c) In such regulations the Secretary may provide for the 
transfer of funds by any State between the programs authorized 
under this Act and the Richard B. Russell National School Lunch 
Act on the basis of an approved State plan of operation for the 
use of the funds and may provide for the reserve of up to 1 per 
centum of the funds available for apportionment to any State to 
carry out special developmental projects.

           *       *       *       *       *       *       *


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN

  Sec. 17. (a) Congress finds that substantial numbers of 
pregnant, postpartum, and breastfeeding women, infants, and 
young children from families with inadequate income are at 
special risk with respect to their physical and mental health 
by reason of inadequate nutrition or health care, or both. It 
is, therefore, the purpose of the program authorized by this 
section to provide, up to the authorization levels set forth in 
subsection (g) of this section, supplemental foods and 
nutrition education, including breastfeeding promotion and 
support, through any eligible local agency that applies for 
participation in the program. The program shall serve as an 
adjunct to good health care, during critical times of growth 
and development, to prevent the occurrence of health problems, 
including [drug abuse] substance use disorder, and improve the 
health status of these persons.
  (b) As used in this section--
          [(1) ``Breastfeeding women'' means women up to one 
        year postpartum who are breastfeeding their infants.
          [(2) ``Children'' means persons who have had their 
        first birthday but have not yet attained their fifth 
        birthday.]
          (1) Breastfeeding woman.--The term ``breastfeeding 
        woman'' means--
                  (A) before October 1, 2026, an individual up 
                to one year postpartum who is breastfeeding the 
                infant of the individual; and
                  (B) on and after October 1, 2026, an 
                individual who is not more than 2 years 
                postpartum and is breastfeeding the infant of 
                the individual.
          (2) Child.--The term ``child'' means--
                  (A) before October 1, 2026, an individual 
                who--
                          (i) has attained a first birthday but 
                        has not yet attained a fifth birthday; 
                        or
                          (ii)(I) has attained a fifth birthday 
                        but has not yet attained a sixth 
                        birthday;
                                  (II) does not attend full-day 
                                kindergarten; and
                                  (III) is certified before 
                                such date by a State agency 
                                under subsection 
                                (d)(3)(A)(iii)(II); and
                  (B) on and after October 1, 2026, an 
                individual who--
                          (i) has attained a first birthday but 
                        has not yet attained a sixth birthday; 
                        and
                          (ii) does not attend full day 
                        kindergarten.
          (3) ``Competent professional authority'' means 
        physicians, nutritionists, registered nurses, 
        dietitians, or State or local medically trained health 
        officials, or persons designated by physicians or State 
        or local medically trained health officials, in 
        accordance with standards prescribed by the Secretary, 
        as being competent professionally to evaluate 
        nutritional risk.
          (4) ``Costs of nutrition services and 
        administration'' or ``nutrition services and 
        administration'' means costs that shall include, but 
        not be limited to, costs for certification of 
        eligibility of persons for participation in the program 
        (including centrifuges, measuring boards, 
        spectrophotometers, and scales used for the 
        certification), food delivery, monitoring, nutrition 
        education, breastfeeding support and promotion, 
        outreach, startup costs, and general administration 
        applicable to implementation of the program under this 
        section, such as the cost of staff, transportation, 
        insurance, developing and printing food instruments, 
        and administration of State and local agency offices.
          (5) ``Infants'' means persons under one year of age.
          (6) ``Local agency'' means a public health or welfare 
        agency or a private nonprofit health or welfare agency, 
        which, directly or through an agency or physician with 
        which it has contracted, provides health services. The 
        term shall include an Indian tribe, band, or group 
        recognized by the Department of the Interior, the 
        Indian Health Service of the Department of Health and 
        Human Services, or an intertribal council or group that 
        is an authorized representative of Indian tribes, 
        bands, or groups recognized by the Department of the 
        Interior.
          (7) Nutrition education.--The term ``nutrition 
        education'' means individual and group sessions and the 
        provision of material that are designed to improve 
        health status and achieve positive change in dietary 
        and physical activity habits, and that emphasize the 
        relationship between nutrition, physical activity, and 
        health, all in keeping with the personal and cultural 
        preferences of the individual.
          (8) ``Nutritional risk'' means (A) detrimental or 
        abnormal nutritional conditions detectable by 
        biochemical or anthropometric measurements, (B) other 
        documented nutritionally related medical conditions, 
        (C) dietary deficiencies that impair or endanger 
        health, (D) conditions that directly affect the 
        nutritional health of a person, such as alcoholism or 
        [drug abuse] substance use disorder, or (E) conditions 
        that predispose persons to inadequate nutritional 
        patterns or nutritionally related medical conditions, 
        including, but not limited to, homelessness and 
        migrancy.
          (9) ``Plan of operation and administration'' means a 
        document that describes the manner in which the State 
        agency intends to implement and operate the program.
          [(10) ``Postpartum women'' means women up to six 
        months after termination of pregnancy.
          [(11) ``Pregnant women'' means women determined to 
        have one or more fetuses in utero.]
          (10) Postpartum woman.--The term ``postpartum woman'' 
        means--
                  (A) before October 1, 2026, an individual up 
                to six months after termination of pregnancy; 
                and
                  (B) on and after October 1, 2026, an 
                individual up to 2 years after termination of 
                pregnancy.
          (11) Pregnant woman.--The term ``pregnant woman'' 
        means an individual determined to have one or more 
        fetuses in utero.
          (12) ``Secretary'' means the Secretary of 
        Agriculture.
          (13) ``State agency'' means the health department or 
        comparable agency of each State; an Indian tribe, band, 
        or group recognized by the Department of the Interior; 
        an intertribal council or group that is the authorized 
        representative of Indian tribes, bands, or groups 
        recognized by the Department of the Interior; or the 
        Indian Health Service of the Department of Health and 
        Human Services.
          (14) ``Supplemental foods'' means those foods 
        containing nutrients determined by nutritional research 
        to be lacking in the diets of pregnant, breastfeeding, 
        and postpartum women, infants, and children and foods 
        that promote the health of the population served by the 
        program authorized by this section, as indicated by 
        relevant nutrition science, public health concerns, and 
        cultural eating patterns, as prescribed by the 
        Secretary. State agencies may, with the approval of the 
        Secretary, substitute different foods providing the 
        nutritional equivalent of foods prescribed by the 
        Secretary, to allow for different cultural eating 
        patterns.
          (15) ``Homeless individual'' means--
                  (A) an individual who lacks a fixed and 
                regular nighttime residence; or
                  (B) an individual whose primary nighttime 
                residence is--
                          (i) a supervised publicly or 
                        privately operated shelter (including a 
                        welfare hotel or congregate shelter) 
                        designed to provide temporary living 
                        accommodations;
                          (ii) an institution that provides a 
                        temporary residence for individuals 
                        intended to be institutionalized;
                          (iii) a temporary accommodation of 
                        not more than 365 days in the residence 
                        of another individual; or
                          (iv) a public or private place not 
                        designed for, or ordinarily used as, a 
                        regular sleeping accommodation for 
                        human beings.
          (16) `` [Drug abuse education] Substance use disorder 
        education'' means--
                  (A) the provision of information concerning 
                the [dangers of drug abuse] harm of substance 
                use on pregnancy and lactation; and
                  (B) the referral of participants who [are 
                suspected drug abusers] may have a substance 
                use disorder to [drug abuse clinics,] treatment 
                programs, counselors, or other [drug abuse 
                professionals] resources.
          (17) ``Competitive bidding'' means a procurement 
        process under which the Secretary or a State agency 
        selects a single source (a single infant formula 
        manufacturer) offering the lowest price, as determined 
        by the submission of sealed bids, for a product for 
        which bids are sought for use in the program authorized 
        by this section.
          (18) ``Rebate'' means the amount of money refunded 
        under cost containment procedures to any State agency 
        from the manufacturer or other supplier of the 
        particular food product as the result of the purchase 
        of the supplemental food with a voucher or other 
        purchase instrument by a participant in each such 
        agency's program established under this section.
          (19) ``Discount'' means, with respect to a State 
        agency that provides program foods to participants 
        without the use of retail grocery stores (such as a 
        State that provides for the home delivery or direct 
        distribution of supplemental food), the amount of the 
        price reduction or other price concession provided to 
        any State agency by the manufacturer or other supplier 
        of the particular food product as the result of the 
        purchase of program food by each such State agency, or 
        its representative, from the supplier.
          (20) ``Net price'' means the difference between the 
        manufacturer's wholesale price for infant formula and 
        the rebate level or the discount offered or provided by 
        the manufacturer under a cost containment contract 
        entered into with the pertinent State agency.
          (21) Remote indian or native village.--The term 
        ``remote Indian or Native village'' means an Indian or 
        Native village that--
                  (A) is located in a rural area;
                  (B) has a population of less than 5,000 
                inhabitants; and
                  (C) is not accessible year-around by means of 
                a public road (as defined in section 101 of 
                title 23, United States Code).''.
          (22) Primary contract infant formula.--The term 
        ``primary contract infant formula'' means the specific 
        infant formula for which manufacturers submit a bid to 
        a State agency in response to a rebate solicitation 
        under this section and for which a contract is awarded 
        by the State agency as a result of that bid.
          (23) State alliance.--The term ``State alliance'' 
        means 2 or more State agencies that join together for 
        the purpose of procuring infant formula under the 
        program by soliciting competitive bids for infant 
        formula.
          (24) Supply chain disruption.--The term ``supply 
        chain disruption'' means a shortage of supplemental 
        foods that impedes the redemption of food instruments, 
        as determined by the Secretary.
          (25) Breastfeeding peer counselor.--The term 
        ``breastfeeding peer counselor'' means an individual 
        who is recruited and hired from the adult population 
        described in subsection (d)(1) who has--
                  (A) previous experience with breastfeeding, 
                including experience having breastfed at least 
                one infant; and
                  (B) provides mother-to-mother support to 
                prenatal and postpartum women under the 
                program.
  (c)(1) The Secretary may carry out a special supplemental 
nutrition program to assist State agencies through grants-in-
aid and other means to provide, through local agencies, at no 
cost, supplemental foods, nutrition education, and 
breastfeeding support and promotion to low-income pregnant, 
postpartum, and breastfeeding women, infants, and children who 
satisfy the eligibility requirements specified in subsection 
(d) of this section. The program shall be supplementary to--
          (A) the supplemental nutrition assistance program;
          (B) any program under which foods are distributed to 
        needy families in lieu of supplemental nutrition 
        assistance program benefits; and
          (C) receipt of food or meals from soup kitchens, or 
        shelters, or other forms of emergency food assistance.
  (2) Subject to amounts appropriated to carry out this section 
under subsection (g)--
          (A) the Secretary shall make cash grants to State 
        agencies for the purpose of administering the program, 
        and
          (B) any State agency approved eligible local agency 
        that applies to participate in or expand the program 
        under this section shall immediately be provided with 
        the necessary funds to carry out the program.
  (3) Nothing in this subsection shall be construed to permit 
the Secretary to reduce ratably the amount of foods that an 
eligible local agency shall distribute under the program to 
participants. The Secretary shall take affirmative action to 
ensure that the program is instituted in areas most in need of 
supplemental foods. The existence of a commodity supplemental 
food program under section 4 of the Agriculture and Consumer 
Protection Act of 1973 shall not preclude the approval of an 
application from an eligible local agency to participate in the 
program under this section nor the operation of such program 
within the same geographic area as that of the commodity 
supplemental food program, but the Secretary shall issue such 
regulations as are necessary to prevent dual receipt of 
benefits under the commodity supplemental food program and the 
program under this section.
  (4) A State shall be ineligible to participate in programs 
authorized under this section if the Secretary determines that 
State or local sales taxes are collected within the State on 
purchases of food made to carry out this section.
  (d)(1) Participation in the program under this section shall 
be limited to pregnant, postpartum, and breastfeeding women, 
infants, and children from low-income families who are 
determined by a competent professional authority to be at 
nutritional risk.
  (2)(A) The Secretary shall establish income eligibility 
standards to be used in conjunction with the nutritional risk 
criteria in determining eligibility of individuals for 
participation in the program. Any individual at nutritional 
risk shall be eligible for the program under this section only 
if such individual--
          (i) is a member of a family with an income that is 
        less than the maximum income limit prescribed under 
        section 9(b) of the Richard B. Russell National School 
        Lunch Act for free and reduced price meals;
          (ii)(I) resides in a household (as such term is 
        defined in section 3 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2012)) that includes an individual who 
        receives supplemental nutrition assistance program 
        benefits under the Food and Nutrition Act of 2008; or
          (II) is a member of a family that receives assistance 
        under the State program funded established under part A 
        of title IV of the Social Security Act 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];
          [(iii)(I) receives medical assistance under title XIX 
        of the Social Security Act; or
          [(II) is a member of a family in which a pregnant 
        woman or an infant receives such assistance.]
          (iii)(I) receives medical assistance under title XIX 
        of the Social Security Act (42 U.S.C. 1396 et seq.) or 
        child health assistance under title XXI of such Act (42 
        U.S.C.1397aa et seq.); or
          (II) is a member of a family in which a pregnant 
        woman, postpartum woman, infant, or child receives 
        assistance or is enrolled as described in subclause 
        (I);
          (iv) is enrolled as a participant in a Head Start 
        program authorized under the Head Start Act (42 U.S.C. 
        9831 et seq.) or resides in a household in which one or 
        more children is enrolled as a participant in such a 
        Head Start program;
          (v) resides in a household that includes an 
        individual who receives assistance under 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)); or
          (vi) resides in a household that includes an 
        individual who receives assistance from a nutrition 
        assistance program funded by the consolidated block 
        grants for Puerto Rico and the American Samoa under 
        section 19 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2028) or funded by a block grant for the 
        Commonwealth of the Northern Mariana Islands pursuant 
        to section 601 of Public Law 96-597 (48 U.S.C. 
        1469d(c)).
  (B) For the purpose of determining income eligibility under 
this section, any State agency may choose to exclude from 
income--
          (i) any basic allowance--
                  (I) for housing received by military service 
                personnel residing off military installations; 
                or
                  (II) provided under section 403 of title 37, 
                United States Code, 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; and
          (ii) any cost-of-living allowance provided under 
        section 405 of title 37, United States Code, to a 
        member of a uniformed service who is on duty outside 
        the contiguous States of the United States.
          (C) Combat pay.--For the purpose of determining 
        income eligibility under this section, a State agency 
        shall exclude from income 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 subparagraph, 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.
  (D) In the case of a pregnant woman who is otherwise 
ineligible for participation in the program because the family 
of the woman is of insufficient size to meet the income 
eligibility standards of the program, the pregnant woman shall 
be considered to have satisfied the income eligibility 
standards if, by increasing the number of individuals in the 
family of the woman by 1 individual, the income eligibility 
standards would be met.
          (3) Certification.--
                  (A) Procedures.--
                          (i) In general.--Subject to [clause 
                        (ii)] clauses (ii) through (viii), a 
                        person shall be certified or 
                        recertified for participation in 
                        accordance with general procedures 
                        prescribed by the Secretary.
                          [(ii) Breastfeeding women.--A State 
                        may elect to certify a breastfeeding 
                        woman for a period of 1 year postpartum 
                        or until a woman discontinues 
                        breastfeeding, whichever is earlier.
                          [(iii) Children.--A State may elect 
                        to certify participant children for a 
                        period of up to 1 year, if the State 
                        electing the option provided under this 
                        clause ensures that participant 
                        children receive required health and 
                        nutrition assessments.]
                          (ii) Breastfeeding women.--With 
                        respect to a breastfeeding woman, a 
                        State--
                                  (I) before October 1, 2026, 
                                may elect to certify such 
                                breastfeeding woman for a 
                                period of 2 years postpartum; 
                                and
                                  (II) on and after October 1, 
                                2026, a State shall certify a 
                                postpartum woman for a period 
                                of 2 years postpartum.
                          (iii) Children.--
                                  (I) Children under 5.--With 
                                respect to a participant child 
                                who has not had a fifth 
                                birthday--
                                          (aa) before October 
                                        1, 2026, a State may 
                                        elect to certify a 
                                        participant child for a 
                                        period of 2 years, if 
                                        the State electing the 
                                        option provided under 
                                        this clause ensures 
                                        that a participant 
                                        child receives the 
                                        required health and 
                                        nutrition assessments; 
                                        and
                                          (bb) on and after 
                                        October 1, 2026 a State 
                                        shall--
                                                  (AA) certify 
                                                a participant 
                                                child for a 
                                                period of 2 
                                                years; and
                                                  (BB) ensure 
                                                that a 
                                                participant 
                                                child receives 
                                                the required 
                                                health and 
                                                nutrition 
                                                assessments, as 
                                                determined by 
                                                the Secretary 
                                                under clause 
                                                (ix).
                                  (II) 5-year-old children.--
                                          (aa) In general.--
                                        Beginning not later 
                                        than October 1, 2026, a 
                                        State shall certify a 
                                        participant child who 
                                        has had a fifth 
                                        birthday but has not 
                                        yet attained a sixth 
                                        birthday, for the 
                                        period that ends on the 
                                        earlier of--
                                                  (AA) the 
                                                sixth birthday 
                                                of the 
                                                participant 
                                                child; and
                                                  (BB) the 
                                                first date on 
                                                which the 
                                                participant 
                                                child attends 
                                                full-day 
                                                kindergarten.
                                          (bb) Requirements.--
                                        Each State that 
                                        certifies a participant 
                                        child under item (aa) 
                                        shall--
                                                  (AA) ensure 
                                                that such 
                                                participant 
                                                child receives 
                                                required health 
                                                and nutrition 
                                                assessments, as 
                                                determined by 
                                                the Secretary 
                                                under clause 
                                                (ix); and
                                                  (BB) 
                                                establish a 
                                                method to 
                                                determine the 
                                                first date on 
                                                which such 
                                                participant 
                                                child attends 
                                                full-day 
                                                kindergarten.
                          (iv) Infants.--
                                  (I) In general.--With respect 
                                to an infant, a State--
                                          (aa) before October 
                                        1, 2026, may elect to 
                                        certify an infant for 
                                        participation in the 
                                        program for a period of 
                                        2 years; and
                                          (bb) on and after 
                                        October 1, 2026, shall 
                                        certify an infant for 
                                        participation in the 
                                        program for a period of 
                                        2 years.
                                  (II) Assessments.--In 
                                certifying an infant under 
                                subclause (I), a State shall 
                                ensure that the infant receives 
                                required health and nutrition 
                                assessments, as determined by 
                                the Secretary under clause 
                                (ix).
                                  (III) Infants born to 
                                participant mothers.--For 
                                purposes of subclause (I), an 
                                infant born to a pregnant woman 
                                who is participating in the 
                                program shall be certified for 
                                participation without further 
                                application.
                                  (IV) Clarification relating 
                                to age.--An infant may be 
                                certified for participation in 
                                the program for a period of 2 
                                years, regardless of whether 
                                such infant will become a child 
                                during such period.
                          (v) Postpartum women.--With respect 
                        to a postpartum woman, a State--
                                  (I) before October 1, 2026, 
                                may elect to certify such 
                                postpartum woman for a period 
                                of 2 years after the 
                                termination of the pregnancy of 
                                the postpartum woman; and
                                  (II) on and after October 1, 
                                2026, a State shall certify a 
                                postpartum woman for a period 
                                of 2 years after the 
                                termination of pregnancy of the 
                                postpartum woman.
                          (vi) Pregnant women.--With respect to 
                        a pregnant woman, a State--
                                  (I) before October 1, 2026, 
                                may elect to certify a pregnant 
                                woman for the duration of the 
                                pregnancy and for the 90 days 
                                after the termination of 
                                pregnancy; and
                                  (II) on and after October 1, 
                                2026, shall certify a pregnant 
                                woman for the duration of the 
                                pregnancy and for the 90 days 
                                after the termination of 
                                pregnancy.
                          (vii) Certification within one 
                        household family.--In order to align 
                        certification periods or 
                        recertification appointments, when a 
                        State or local agency certifies an 
                        individual based on income 
                        documentation under subparagraph (D) or 
                        adjunct documentation under 
                        subparagraph (E), a new certification 
                        period that otherwise meets the 
                        requirements of the program may be 
                        initiated for eligible family members 
                        of such individual.
                          (viii) Recertification.--Before 
                        requesting new income documentation for 
                        purposes of recertifying an individual 
                        under the program, a State shall--
                                  (I) determine whether such 
                                individual is eligible for 
                                recertification under 
                                subparagraph (E); and
                                  (II) if such individual is so 
                                eligible--
                                          (aa) recertify such 
                                        individual; and
                                          (bb) notify such 
                                        individual of such 
                                        recertification.
                          (ix) Nutrition risk.--
                                  (I) In general.--The 
                                Secretary may require nutrition 
                                risk evaluations within a 
                                single certification period for 
                                the purposes of identifying 
                                specific risk factors.
                                  (II) Information provided by 
                                a health care provider.--
                                Information provided by a 
                                health care provider shall be 
                                sufficient to establish 
                                nutrition risk for the purposes 
                                of program eligibility under 
                                this section.
                                  (III) Determination.--If it 
                                is determined that the 
                                individual does not meet any 
                                nutritional risk criteria, the 
                                certification of the individual 
                                shall terminate on the date of 
                                determination.
  [(B) A State may consider pregnant women who meet the income 
eligibility standards to be presumptively eligible to 
participate in the program and may certify the women for 
participation immediately, without delaying certification until 
an evaluation is made concerning nutritional risk. A 
nutritional risk evaluation of such a woman shall be completed 
not later than 60 days after the woman is certified for 
participation. If it is subsequently determined that the woman 
does not meet nutritional risk criteria, the certification of 
the woman shall terminate on the date of the determination.
                  [(C) Physical presence.--
                          [(i) In general.--Except as provided 
                        in clause (ii) and subject to the 
                        requirements of the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 
                        12101 et seq.) and section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        794), each individual seeking 
                        certification or recertification for 
                        participation in the program shall be 
                        physically present at each 
                        certification or recertification 
                        determination in order to determine 
                        eligibility under the program.
                          [(ii) Waivers.--If the agency 
                        determines that the requirement of 
                        clause (i) would present an 
                        unreasonable barrier to participation, 
                        a local agency may waive the 
                        requirement of clause (i) with respect 
                        to--
                                  [(I) an infant or child who--
                                          [(aa) was present at 
                                        the initial 
                                        certification visit; 
                                        and
                                          [(bb) is receiving 
                                        ongoing health care;
                                  [(II) an infant or child 
                                who--
                                          [(aa) was present at 
                                        the initial 
                                        certification visit;
                                          [(bb) was present at 
                                        a certification or 
                                        recertification 
                                        determination within 
                                        the 1-year period 
                                        ending on the date of 
                                        the certification or 
                                        recertification 
                                        determination described 
                                        in clause (i); and
                                          [(cc) has one or more 
                                        parents who work; and
                                  [(III) an infant under 8 
                                weeks of age--
                                          [(aa) who cannot be 
                                        present at 
                                        certification for a 
                                        reason determined 
                                        appropriate by the 
                                        local agency; and
                                          [(bb) for whom all 
                                        necessary certification 
                                        information is 
                                        provided.]
                  (B) Interim eligibility.--
                          (i) Temporary certification.--
                                  (I) In general.--In the case 
                                of a pregnant woman, 
                                breastfeeding woman, postpartum 
                                woman, infant, or child who is 
                                not otherwise determined 
                                eligible under this section to 
                                participate in the program due 
                                to lack of documentation at the 
                                time of application, a State 
                                agency shall consider such a 
                                pregnant woman, breastfeeding 
                                woman, postpartum woman, 
                                infant, or child to be 
                                temporarily eligible to 
                                participate in the program 
                                based on a signed statement by 
                                the applicant.
                                  (II) 30-day period.--With 
                                respect to an individual that 
                                is temporarily eligible under 
                                subclause (I), the State agency 
                                shall--
                                          (aa) provide food 
                                        instruments for a 
                                        single 30-day period; 
                                        and
                                          (bb) require that 
                                        documentation for 
                                        purposes of certifying 
                                        such individual in 
                                        accordance with this 
                                        paragraph be provided 
                                        not later than 30 days 
                                        after the first day 
                                        such individual is 
                                        deemed temporarily 
                                        eligible under 
                                        subclause (I).
                                  (III) Documentation 
                                demonstrating eligibility.--If 
                                an individual provides 
                                documentation in accordance 
                                with subclause (II) that 
                                demonstrates eligibility for 
                                the program, the individual 
                                shall be certified in 
                                accordance with this paragraph 
                                beginning on the first day the 
                                individual was deemed 
                                temporarily eligible under 
                                subclause (I).
                                  (IV) Documentation failing to 
                                demonstrate eligibility.--If an 
                                individual does not provide 
                                documentation in accordance 
                                with subclause (II), or 
                                provides documentation that 
                                does not demonstrate 
                                eligibility for the program--
                                          (aa) the individual 
                                        shall be determined 
                                        ineligible to 
                                        participate in the 
                                        program; and
                                          (bb) the temporary 
                                        eligibility with 
                                        respect to such 
                                        individual shall 
                                        terminate at the end of 
                                        the single 30-day 
                                        period described in 
                                        subclause (II)(aa).
                          (ii) Nutritional risk.--A State may 
                        consider a pregnant woman, 
                        breastfeeding woman, postpartum woman, 
                        infant, or child applicant who meets 
                        the income eligibility standards to be 
                        temporarily eligible on an interim 
                        basis to participate in the program and 
                        may certify any such individual for 
                        participation immediately, without 
                        delaying certification until an 
                        evaluation is made concerning 
                        nutritional risk. A nutritional risk 
                        evaluation of such an individual shall 
                        be completed not later than 90 days 
                        after the individual is certified for 
                        participation. If it is subsequently 
                        determined that the individual does not 
                        meet nutritional risk criteria, the 
                        certification of the individual shall 
                        terminate on the date of the 
                        determination.
                  (C) Presence with respect to certain 
                determinations and evaluations.--
                          (i) In general.--Each individual 
                        seeking certification, recertification, 
                        or a nutritional risk evaluation for 
                        participation in the program shall be 
                        offered an appointment--
                                  (I) in-person, through video 
                                technology permitting 2-way, 
                                real-time interactive 
                                communications, by telephone, 
                                and in such other format as the 
                                Secretary determines 
                                appropriate in order to 
                                determine eligibility under the 
                                program, provided that such 
                                format permits 2-way, real-time 
                                interactive communications; and
                                  (II) that occurs in a format, 
                                setting, or platform that is 
                                accessible to the individual in 
                                accordance with the Americans 
                                with Disabilities Act of 1990 
                                (42 U.S.C. 12101 et seq.) and 
                                section 504 of the 
                                Rehabilitation Act of 1973 (29 
                                U.S.C. 794).
                          (ii) Anthropometric data for remote 
                        certification.--If an individual meets 
                        the certification presence requirement 
                        through technology permitting 2-way, 
                        real-time interactive communications or 
                        other methods described in clause 
                        (i)(I), the anthropometric data with 
                        respect to such individual shall be 
                        obtained within 90 days.
                  (D) Income documentation.--
                          (i) In general.--Except as provided 
                        in clause (ii), in order to participate 
                        in the program pursuant to clause (i) 
                        of paragraph (2)(A), an individual 
                        seeking certification or 
                        recertification for participation in 
                        the program shall provide documentation 
                        of family income.
                          (ii) Waivers.--A State agency may 
                        waive the documentation requirement of 
                        clause (i), in accordance with criteria 
                        established by the Secretary, with 
                        respect to--
                                  (I) an individual for whom 
                                the necessary documentation is 
                                not available; or
                                  (II) an individual, such as a 
                                homeless woman or child, for 
                                whom the agency determines the 
                                requirement of clause (i) would 
                                present an unreasonable barrier 
                                to participation.
                  [(E) Adjunct documentation.--In order to 
                participate in the program pursuant to clause 
                (ii) or (iii) of paragraph (2)(A), an 
                individual seeking certification or 
                recertification for participation in the 
                program shall provide documentation of receipt 
                of assistance described in that clause.]
                  (E) Adjunct documentation.--In order to 
                participate in the program under this section 
                pursuant to clause (ii) through (vi) of 
                paragraph (2)(A), not earlier than 90 days 
                prior to the date on which the certification or 
                recertification for participation in the 
                program is made--
                          (i) an individual shall provide 
                        documentation of receipt of assistance 
                        described in such clause; or
                          (ii) a State agency shall use 
                        available documentation to show receipt 
                        of such assistance.
                  (F) Proof of residency.--An individual 
                residing in a remote Indian or Native village 
                or an individual served by an Indian tribal 
                organization and residing on a reservation or 
                pueblo may, under standards established by the 
                Secretary, establish proof of residency under 
                this section by providing to the State agency 
                the mailing address of the individual and the 
                name of the remote Indian or Native village.
                  (G) Paperwork reduction.--
                          (i) In general.--A State agency shall 
                        accept a single document that provides 
                        all of the information required under 
                        this paragraph unless the State agency 
                        determines there is a sufficient reason 
                        to doubt the authenticity of such 
                        document.
                          (ii) Electronic form.--A State agency 
                        shall accept documentation under this 
                        paragraph in support of a household's 
                        application in electronic form or 
                        provided electronically unless the 
                        State agency determines there is a 
                        sufficient reason to doubt the 
                        authenticity of such electronically 
                        provided document.
  (e)(1) The State agency shall ensure that nutrition education 
and [drug abuse] substance use disorder education is provided 
to all pregnant, postpartum, and breastfeeding participants in 
the program and to parents or caretakers of infant and child 
participants in the program. The State agency may also provide 
nutrition education and [drug abuse] substance use disorder 
education to pregnant, postpartum, and breastfeeding women and 
to parents or caretakers of infants and children enrolled at 
local agencies operating the program under this section who do 
not participate in the program. A local agency participating in 
the program shall provide education or educational materials 
relating to the [effects of drug and alcohol use by] effects of 
a substance use disorder of a pregnant, postpartum, or 
breastfeeding woman on the developing child of the woman.
  (2) The Secretary shall prescribe standards to ensure that 
adequate nutrition education services and breastfeeding 
promotion and support are provided. The State agency shall 
provide training to persons providing nutrition education, 
including breastfeeding support and education, under this 
section.
          (3) Nutrition education materials.--
                  (A) In general.--The Secretary shall, after 
                submitting proposed nutrition education 
                materials to the Secretary of Health and Human 
                Services for comment, issue such materials for 
                use in the program under this section.
                  (B) Sharing of materials with other 
                programs.--
                          (i) Commodity supplemental food 
                        program.--The Secretary may provide, in 
                        bulk quantity, nutrition education 
                        materials (including materials 
                        promoting breastfeeding) developed with 
                        funds made available for the program 
                        authorized under this section to State 
                        agencies administering the commodity 
                        supplemental food program established 
                        under section 5 of the Agriculture and 
                        Consumer Protection Act of 1973 (7 
                        U.S.C. 612c note; Public Law 93-86) at 
                        no cost to that program.
                          (ii) Child and adult care food 
                        program.--A State agency may allow the 
                        local agencies or clinics under the 
                        State agency to share nutrition 
                        educational materials with institutions 
                        participating in the child and adult 
                        care food program established under 
                        section 17 of the Richard B. Russell 
                        National School Lunch Act (42 U.S.C. 
                        1766) at no cost to that program, if a 
                        written materials sharing agreement 
                        exists between the relevant agencies.
                  (C) Nutrition education materials related to 
                food allergies.--The nutrition education 
                materials issued under subparagraph (A) shall 
                include nutrition education materials with 
                respect to--
                          (i) individuals with food allergies 
                        during pregnancy and in the postpartum 
                        period;
                          (ii) infants impacted by prenatal 
                        food allergy exposure;
                          (iii) introducing potential food 
                        allergens to infants; and
                          (iv) children with food allergies.
  (4) The State agency--
          (A) shall provide each local agency with materials 
        showing the maximum income limits, according to family 
        size, applicable to pregnant women, infants, and 
        children [up to age 5] under the medical assistance 
        program established under title XIX of the Social 
        Security Act (in this section referred to as the 
        ``medicaid program'');
          (B) shall provide to individuals applying for the 
        program under this section, or reapplying at the end of 
        their certification period, written information about 
        the medicaid program and referral to such program or to 
        agencies authorized to determine presumptive 
        eligibility for such program, if such individuals are 
        not participating in such program and appear to have 
        family income below the applicable maximum income 
        limits for such program; and
          (C) may provide a local agency with materials 
        describing other programs for which a participant in 
        the program may be eligible.
  (5) Each local agency shall maintain and make available for 
distribution a list of local resources for [substance abuse] 
substance use disorder counseling and treatment.
  (f)(1)[(A) Each State agency shall submit to the Secretary, 
by a date specified by the Secretary, an initial date specified 
by the Secretary, a plan of operation and administration for a 
fiscal year. After submitting the initial plan, a State shall 
be required to submit to the Secretary for approval only a 
substantive change in the plan.](A) Each State agency shall 
submit to the Secretary a plan of operation and administration. 
A State shall be required to submit to the Secretary for 
approval any substantive change in the plan and annual 
requirements as specified by the Secretary.
  (B) To be eligible to receive funds under this section for a 
fiscal year, a State agency must receive the approval of the 
Secretary for the plan submitted for the fiscal year.
  (C) The plan shall include--
          (i) a description of the food delivery system of the 
        State agency and the method of enabling participants to 
        receive supplemental foods under the program at any of 
        the authorized retail stores under the program, to be 
        administered in accordance with standards developed by 
        the Secretary, including a description of the State 
        agency's vendor peer group system, competitive price 
        criteria, and allowable reimbursement levels that 
        demonstrate that the State is in compliance with the 
        cost-containment provisions in subsection (h)(11);
          (ii) procedures for accepting and processing vendor 
        applications outside of the established timeframes if 
        the State agency determines there will be inadequate 
        access to the program, including in a case in which a 
        previously authorized vendor sells a store under 
        circumstances that do not permit timely notification to 
        the State agency of the change in ownership;
          (iii) a description of the financial management 
        system of the State agency;
          (iv) a plan to coordinate operations under the 
        program with other services or programs that may 
        benefit participants in, and applicants for, the 
        program;
          (v) a plan to provide program benefits under this 
        section to, and to meet the special nutrition education 
        needs of, eligible migrants, homeless individuals, and 
        Indians;
          (vi) a plan to expend funds to carry out the program 
        during the relevant fiscal year;
          (vii) a plan to provide program benefits under this 
        section to unserved and underserved areas in the State 
        (including a plan to improve access to the program for 
        participants and prospective applicants who are 
        employed, or who reside in rural areas), if sufficient 
        funds are available to carry out this clause;
          (viii) a plan for reaching and enrolling eligible 
        women in the early months of pregnancy, including 
        provisions to reach and enroll eligible migrants;
          (ix) a plan to provide program benefits under this 
        section to unserved infants and children under the care 
        of a kinship family, foster parents, protective 
        services, or child welfare authorities, including 
        infants exposed to [drugs] illicit or other harmful 
        substances perinatally;
          (x) a plan to provide nutrition education and promote 
        breastfeeding; and
          (xi) such other information as the Secretary may 
        reasonably require.
  (D) The Secretary may not approve any plan that permits a 
person to participate simultaneously in both the program 
authorized under this section and the commodity supplemental 
food program authorized under sections 4 and 5 of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
note).
  (2) A State agency shall establish a procedure under which 
members of the general public are provided an opportunity to 
comment on the development of the State agency plan.
  (3) The Secretary shall establish procedures under which 
eligible migrants may, to the maximum extent feasible, continue 
to participate in the program under this section when they are 
present in States other than the State in which they were 
originally certified for participation in the program and shall 
ensure that local programs provide priority consideration to 
serving migrant participants who are residing in the State for 
a limited period of time. Each State agency shall be 
responsible for administering the program for migrant 
populations within its jurisdiction.
  (4) State agencies shall submit monthly financial reports and 
participation data to the Secretary.
  (5) State and local agencies operating under the program 
shall keep such accounts and records, including medical 
records, as may be necessary to enable the Secretary to 
determine whether there has been compliance with this section 
and to determine and evaluate the benefits of the nutritional 
assistance provided under this section. 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.
  (6)(A) Local agencies participating in the program under this 
section shall notify persons of their eligibility or 
ineligibility for the program within twenty days of the date 
that the household, during office hours of a local agency, 
personally makes an oral or written request to participate in 
the program. The Secretary shall establish a shorter 
notification period for categories of persons who, due to 
special nutritional risk conditions, must receive benefits more 
expeditiously.
  [(B) State agencies may provide for the delivery of vouchers 
to any participant who is not scheduled for nutrition education 
and breastfeeding counseling or a recertification interview 
through means, such as mailing, that do not require the 
participant to travel to the local agency to obtain vouchers.]
  (B) Delivery of food instruments._
          (i) In general._State agencies may provide for the 
        delivery of food instruments, including electronic 
        benefit transfer cards, to any participant through 
        means that do not require the participant to travel to 
        the local agency to obtain food instruments, such as 
        through mailing or remote issuance.  [The State]
          (ii) State plan._The State  agency shall describe any 
        plans for issuance of [vouchers by mail in its plan] 
        food instruments by mail, remote issuance, or other 
        means in the State plan submitted under paragraph (1). 
        [The Secretary]
          (iii) Disapproval of state plan._The Secretary  may 
        disapprove a State plan with respect to the issuance of 
        [vouchers by mail] food instruments by mail, remote 
        issuance, or other means in any specified jurisdiction 
        or part of a jurisdiction within a State only if the 
        Secretary finds that such issuance would pose a 
        significant threat to the integrity of the program 
        under this section in such jurisdiction or part of a 
        jurisdiction.
  (7)(A) The State agency shall, in cooperation with 
participating local agencies, publicly announce and distribute 
information on the availability of program benefits (including 
the eligibility criteria for participation and the location of 
local agencies operating the program) to offices and 
organizations that deal with significant numbers of potentially 
eligible individuals (including health and medical 
organizations, hospitals and clinics, welfare and unemployment 
offices, social service agencies, farmworker organizations, 
Indian tribal organizations, organizations and agencies serving 
homeless individuals and shelters for victims of domestic 
violence, and religious and community organizations in low 
income areas).
  (B) The information shall be publicly announced by the State 
agency and by local agencies at least annually.
  (C) The State agency and local agencies shall distribute the 
information in a manner designed to provide the information to 
potentially eligible individuals who are most in need of the 
benefits, including pregnant women in the early months of 
pregnancy.
  (D) Each local agency operating the program within a hospital 
and each local agency operating the program that has a 
cooperative arrangement with a hospital shall--
          (i) advise potentially eligible individuals that 
        receive inpatient or outpatient prenatal, maternity, or 
        postpartum services, or accompany a child [under the 
        age of 5] who receives well-child services, of the 
        availability of program benefits; and
          (ii) to the extent feasible, provide an opportunity 
        for individuals who may be eligible to be certified 
        within the hospital for participation in such program.
  (8)(A) The State agency shall grant a fair hearing, and a 
prompt determination thereafter, in accordance with regulations 
issued by the Secretary, to any applicant, participant, or 
local agency aggrieved by the action of a State or local agency 
as it affects participation.
  (B) Any State agency that must suspend or terminate benefits 
to any participant during the participant's certification 
period due to a shortage of funds for the program shall first 
issue a notice to such participant.
  (9) If an individual certified as eligible for participation 
in the program under this section in one area moves to another 
area in which the program is operating, that individual's 
certification of eligibility shall remain valid for the period 
for which the individual was originally certified.
  (10) The Secretary shall establish standards for the proper, 
efficient, and effective administration of the program. If the 
Secretary determines that a State agency has failed without 
good cause to administer the program in a manner consistent 
with this section or to implement the approved plan of 
operation and administration under this subsection, the 
Secretary may withhold such amounts of the State agency's funds 
for nutrition services and administration as the Secretary 
deems appropriate. Upon correction of such failure during a 
fiscal year by a State agency, any funds so withheld for such 
fiscal year shall be provided the State agency.
          (11) Supplemental foods.--
                  (A) In general.--The Secretary shall 
                prescribe by regulation the supplemental foods 
                to be made available in the program under this 
                section.
                  (B) Appropriate content.--To the degree 
                possible, the Secretary shall assure that the 
                fat, sugar, and salt content of the prescribed 
                foods is appropriate.
                  (C) Review of available supplemental foods.--
                As frequently as determined by the Secretary to 
                be necessary to reflect the most recent 
                scientific knowledge, but not less than every 
                10 years, the Secretary shall--
                          (i) conduct a scientific review of 
                        the supplemental foods available under 
                        the program; and
                          (ii) amend the supplemental foods 
                        available, as necessary, to reflect 
                        nutrition science, public health 
                        concerns, and cultural eating patterns.
  (12) A competent professional authority shall be responsible 
for prescribing the appropriate supplemental foods, taking into 
account medical and nutritional conditions and cultural eating 
patterns, and, in the case of homeless individuals, the special 
needs and problems of such individuals.
  (13) The State agency may (A) provide nutrition education, 
breastfeeding promotion, and [drug abuse education] substance 
use disorder education materials and instruction in languages 
other than English and (B) use appropriate foreign language 
materials in the administration of the program, in areas in 
which a substantial number of low-income households speak a 
language other than English.
  (14) If a State agency determines that a member of a family 
has received an overissuance of food benefits under the program 
authorized by this section as the result of such member 
intentionally making a false or misleading statement or 
intentionally misrepresenting, concealing, or withholding 
facts, the State agency shall recover, in cash, from such 
member an amount that the State agency determines is equal to 
the value of the overissued food benefits, unless the State 
agency determines that the recovery of the benefits would not 
be cost effective.
  (15) To be eligible to participate in the program authorized 
by this section, a manufacturer of infant formula that supplies 
formula for the program shall--
          (A) register with the Secretary of Health and Human 
        Services under the Federal Food, Drug, and Cosmetic Act 
        (21 U.S.C. 321 et seq.); and
          (B) before bidding for a State contract to supply 
        infant formula for the program, certify with the State 
        health department that the formula complies with such 
        Act and regulations issued pursuant to such Act.
  (16) The State agency may adopt methods of delivering 
benefits to accommodate the special needs and problems of 
homeless individuals.
  (17) Notwithstanding subsection (d)(2)(A)(i), not later than 
July 1 of each year, a State agency may implement income 
eligibility guidelines under this section concurrently with the 
implementation of income eligibility guidelines under the 
medicaid program established under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.).
  (18) Each local agency participating in the program under 
this section may provide information about other potential 
sources of food assistance in the local area to individuals who 
apply in person to participate in the program under this 
section, but who cannot be served because the program is 
operating at capacity in the local area.
  (19) The State agency shall adopt policies that--
          (A) require each local agency to attempt to contact 
        each pregnant woman who misses an appointment to apply 
        for participation in the program under this section, in 
        order to reschedule the appointment, unless the phone 
        number and the address of the woman are unavailable to 
        such local agency; and
          (B) in the case of local agencies that do not 
        routinely schedule appointments for individuals seeking 
        to apply or be recertified for participation in the 
        program under this section, require each such local 
        agency to schedule appointments for each employed 
        individual seeking to apply or be recertified for 
        participation in such program so as to minimize the 
        time each such individual is absent from the workplace 
        due to such application or request for recertification.
  (20) Each State agency shall conduct monitoring reviews of 
each local agency at least biennially.
          (21) Use of claims from local agencies, vendors, and 
        participants.--A State agency may use funds recovered 
        from local agencies, vendors, and participants, as a 
        result of a claim arising under the program, to carry 
        out the program during--
                  (A) the fiscal year in which the claim 
                arises;
                  (B) the fiscal year in which the funds are 
                collected; and
                  (C) the fiscal year following the fiscal year 
                in which the funds are collected.
  (22) The Secretary and the Secretary of Health and Human 
Services shall carry out an initiative to assure that, in a 
case in which a State medicaid program uses coordinated care 
providers under a contract entered into under section 1903(m), 
or a waiver granted under section 1915(b), of the Social 
Security Act (42 U.S.C. 1396b(m) or 1396n(b)), coordination 
between the program authorized by this section and the medicaid 
program is continued, including--
          (A) the referral of potentially eligible women, 
        infants, and children between the 2 programs; and
          (B) the timely provision of medical information 
        related to the program authorized by this section to 
        agencies carrying out the program.
          (23) Individuals participating at more than one 
        site.--Each State agency shall implement a system 
        designed by the State agency to identify individuals 
        who are participating at more than one site under the 
        program.
          (24) High risk vendors.--Each State agency shall--
                  (A) identify vendors that have a high 
                probability of program abuse; and
                  (B) conduct compliance investigations of the 
                vendors.
          (25) Infant formula benefits.--A State agency may 
        round up to the next whole can of infant formula to 
        allow all participants under the program to receive the 
        full-authorized nutritional benefit specified by 
        regulation.
          (26) Notification of violations.--If a State agency 
        finds that a vendor has committed a violation that 
        requires a pattern of occurrences in order to impose a 
        penalty or sanction, the State agency shall notify the 
        vendor of the initial violation in writing prior to 
        documentation of another violation, unless the State 
        agency determines that notifying the vendor would 
        compromise an investigation.
  (g) Authorization of Appropriations.--
          (1) In general.--
                  (A) Authorization.--There are authorized to 
                be appropriated to carry out this section such 
                sums as are necessary for each of fiscal years 
                [2010 through 2015] 2023 through 2028.
                  (B) Advance appropriations; availability.--As 
                authorized by section 3 of the Richard B. 
                Russell National School Lunch Act, 
                appropriations to carry out the provisions of 
                this section may be made not more than 1 year 
                in advance of the beginning of the fiscal year 
                in which the funds will become available for 
                disbursement to the States, and shall remain 
                available for the purposes for which 
                appropriated until expended.
  (2)(A) Notwithstanding any other provision of law, unless 
enacted in express limitation of this subparagraph, the 
Secretary--
          (i) in the case of legislation providing funds 
        through the end of a fiscal year, shall issue--
                  (I) an initial allocation of funds provided 
                by the enactment of such legislation not later 
                than the expiration of the 15-day period 
                beginning on the date of the enactment of such 
                legislation; and
                  (II) subsequent allocations of funds provided 
                by the enactment of such legislation not later 
                than the beginning of each of the second, 
                third, and fourth quarters of the fiscal year; 
                and
          (ii) in the case of legislation providing funds for a 
        period that ends prior to the end of a fiscal year, 
        shall issue an initial allocation of funds provided by 
        the enactment of such legislation not later than the 
        expiration of the 10-day period beginning on the date 
        of the enactment of such legislation.
  (B) In any fiscal year--
          (i) unused amounts from a prior fiscal year that are 
        identified by the end of the first quarter of the 
        fiscal year shall be recovered and reallocated not 
        later than the beginning of the second quarter of the 
        fiscal year; and
          (ii) unused amounts from a prior fiscal year that are 
        identified after the end of the first quarter of the 
        fiscal year shall be recovered and reallocated on a 
        timely basis.
  (3) Notwithstanding any other provision of law, unless 
enacted in express limitation of this paragraph--
          (A) the allocation of funds required by paragraph 
        (2)(A)(i)(I) shall include not less than \1/3\ of the 
        amounts appropriated by the legislation described in 
        such paragraph;
          (B) the allocations of funds required by paragraph 
        (2)(A)(i)(II) to be made not later than the beginning 
        of the second and third quarters of the fiscal year 
        shall each include not less than \1/4\ of the amounts 
        appropriated by the legislation described in such 
        paragraph; and
          (C) in the case of the enactment of legislation 
        providing appropriations for a period of not more than 
        4 months, the allocation of funds required by paragraph 
        (2)(A)(ii) shall include all amounts appropriated by 
        such legislation except amounts reserved by the 
        Secretary for purposes of carrying out paragraph (5).
  (4) Of the sums appropriated for any fiscal year for programs 
authorized under this section, not less than nine-tenths of 1 
percent shall be available first for services to eligible 
members of migrant populations. The migrant services shall be 
provided in a manner consistent with the priority system of a 
State for program participation.
  (5) Of the sums appropriated for any fiscal year for the 
program under this section, one-half of 1 percent, not to 
exceed $15,000,000, shall be available to the Secretary for the 
purpose of evaluating program performance, evaluating health 
benefits, preparing reports on program participant 
characteristics, providing technical assistance to improve 
State agency administrative systems, administration of pilot 
projects, including projects designed to meet the special needs 
of migrants, Indians, and rural populations, and carrying out 
technical assistance and research evaluation projects of the 
programs under this section.
  (h)(1)(A) Each fiscal year, the Secretary shall make 
available, from amounts appropriated for such fiscal year under 
subsection (g)(1) and amounts remaining from amounts 
appropriated under such subsection for the preceding fiscal 
year, an amount sufficient to guarantee a national average per 
participant grant to be allocated among State agencies for 
costs of nutrition services and administration incurred by 
State and local agencies for such year.
  (B)(i) The amount of the national average per participant 
grant for nutrition services and administration for any fiscal 
year shall be an amount equal to the amount of the national 
average per participant grant for nutrition services and 
administration issued the preceding fiscal year, as adjusted.
  (ii) Such adjustment, for any fiscal year, shall be made by 
revising the national average per participant grant for 
nutrition services and administration for the preceding fiscal 
year to reflect the percentage change between--
          (I) the value of the index for State and local 
        government purchases, as published by the Bureau of 
        Economic Analysis of the Department of Commerce, for 
        the 12-month period ending June 30 of the second 
        preceding fiscal year; and
          (II) the best estimate that is available as of the 
        start of the fiscal year of the value of such index for 
        the 12-month period ending June 30 of the previous 
        fiscal year.
                  (C) Remaining amounts.--
                          (i) In general.--Except as provided 
                        in clause (ii), in any fiscal year, 
                        amounts remaining from amounts 
                        appropriated for such fiscal year under 
                        subsection (g)(1) and from amounts 
                        appropriated under such section for the 
                        preceding fiscal year, after carrying 
                        out subparagraph (A), shall be made 
                        available for food benefits under this 
                        section, except to the extent that such 
                        amounts are needed to carry out the 
                        purposes of subsections (g)(4) and 
                        (g)(5).
                          (ii) Breast pumps and breastfeeding 
                        supplies.--A State agency may use 
                        amounts made available under clause (i) 
                        for the purchase of breast pumps and 
                        additional breastfeeding supplies.
                          (iii) Water benefits during 
                        disasters.--
                                  (I) In general.--During an 
                                emergency period for which the 
                                Secretary determines that, with 
                                respect to a State, access to 
                                safe drinking water is impacted 
                                and provision of safe drinking 
                                water is reasonably necessary 
                                to ensure safe preparation of 
                                infant formula, a State or 
                                local agency may use amounts 
                                made available under clause (i) 
                                to purchase and distribute safe 
                                drinking water to program 
                                participants.
                                  (II) Emergency period 
                                defined.--In this clause, the 
                                term ``emergency period'' means 
                                a period during which there 
                                exists--
                                          (aa) a major disaster 
                                        declared by the 
                                        President under section 
                                        401 of the Robert T. 
                                        Stafford Disaster 
                                        Relief and Emergency 
                                        Assistance Act (42 
                                        U.S.C. 5170);
                                          (bb) an emergency 
                                        declared by the 
                                        President under section 
                                        501 of the Robert T. 
                                        Stafford Disaster 
                                        Relief and Emergency 
                                        Assistance Act (42 
                                        U.S.C. 5191);
                                          (cc) a public health 
                                        emergency declared by 
                                        the Secretary of Health 
                                        and Human Services 
                                        pursuant to section 319 
                                        of the Public Health 
                                        Service Act (42 U.S.C. 
                                        247d); or
                                          (dd) any renewal of 
                                        such a public health 
                                        emergency pursuant to 
                                        such section 319.
  (2)(A) The Secretary shall allocate to each State agency from 
the amount described in paragraph (1)(A) an amount for costs of 
nutrition services and administration on the basis of a formula 
prescribed by the Secretary. Such formula--
          (i) shall be designed to take into account--
                  (I) the varying needs of each State;
                  (II) the number of individuals participating 
                in each State; and
                  (III) other factors which serve to promote 
                the proper, efficient, and effective 
                administration of the program under this 
                section;
          (ii) shall provide for each State agency--
                  (I) an estimate of the number of participants 
                for the fiscal year involved; and
                  (II) a per participant grant for nutrition 
                services and administration for such year;
          (iii) shall provide for a minimum grant amount for 
        State agencies; and
          (iv) may provide funds to help defray reasonable 
        anticipated expenses associated with innovations in 
        cost containment or associated with procedures that 
        tend to enhance competition.
  (B)[(i) Except as provided in clause (ii) and] Except as 
provided in subparagraph (C), in any fiscal year, the total 
amount allocated to a State agency for costs of nutrition 
services and administration under the formula prescribed by the 
Secretary under subparagraph (A) shall constitute the State 
agency's operational level for such costs for such year even if 
the number of participants in the program at such agency is 
lower than the estimate provided under subparagraph (A)(ii)(I).
  [(ii) If a State agency's per participant expenditure for 
nutrition services and administration is more than 10 percent 
(except that the Secretary may establish a higher percentage 
for State agencies that are small) higher than its per 
participant grant for nutrition services and administration 
without good cause, the Secretary may reduce such State 
agency's operational level for costs of nutrition services and 
administration.]
  (C) In any fiscal year, the Secretary may reallocate amounts 
provided to State agencies under subparagraph (A) for such 
fiscal year. When reallocating amounts under the preceding 
sentence, the Secretary may provide additional amounts to, or 
recover amounts from, any State agency.
  (3)(A) Except as provided in subparagraphs (B) and (C), in 
each fiscal year, each State agency shall expend--
          (i) for nutrition education activities and 
        breastfeeding promotion and support activities, an 
        aggregate amount that is not less than the sum of--
                  (I) \1/6\ of the amounts expended by the 
                State for costs of nutrition services and 
                administration; and
                  (II) except as otherwise provided in 
                subparagraphs (F) and (G), an amount equal to a 
                proportionate share of the national minimum 
                breastfeeding promotion expenditure, as 
                described in subparagraph (E), with each 
                State's share determined on the basis of the 
                number of pregnant women and breastfeeding 
                women in the program in the State as a 
                percentage of the number of pregnant women and 
                breastfeeding women in the program in all 
                States; and
          (ii) for breastfeeding promotion and support 
        activities an amount that is not less than the amount 
        determined for such State under clause (i)(II).
  (B) The Secretary may authorize a State agency to expend an 
amount less than the amount described in subparagraph (A)(ii) 
for purposes of breastfeeding promotion and support activities 
if--
          (i) the State agency so requests; and
          (ii) the request is accompanied by documentation that 
        other funds will be used to conduct nutrition education 
        activities at a level commensurate with the level at 
        which such activities would be conducted if the amount 
        described in subparagraph (A)(ii) were expended for 
        such activities.
  (C) The Secretary may authorize a State agency to expend for 
purposes of nutrition education an amount that is less than the 
difference between the aggregate amount described in 
subparagraph (A) and the amount expended by the State for 
breastfeeding promotion and support programs if--
          (i) the State agency so requests; and
          (ii) the request is accompanied by documentation that 
        other funds will be used to conduct such activities.
  (D) The Secretary shall limit to a minimal level any 
documentation required under this paragraph.
  (E) For each fiscal year, the national minimum breastfeeding 
promotion expenditure means an amount that is--
          (i) equal to $21 multiplied by the number of pregnant 
        women and breastfeeding women participating in the 
        program nationwide, based on the average number of 
        pregnant women and breastfeeding women so participating 
        during the last 3 months for which the Secretary has 
        final data; and
          (ii) adjusted for inflation on October 1, 1996, and 
        each October 1 thereafter, in accordance with paragraph 
        (1)(B)(ii).
          (4) Requirements.--
                  (A) In general.--The Secretary shall--
                          (i) in consultation with the 
                        Secretary of Health and Human Services, 
                        develop a definition of breastfeeding 
                        for the purposes of the program under 
                        this section;
                          (ii) authorize the purchase of 
                        breastfeeding aids by State and local 
                        agencies as an allowable expense under 
                        nutrition services and administration;
                          (iii) require each State agency to 
                        designate an agency staff member to 
                        coordinate breastfeeding promotion 
                        efforts identified in the State plan of 
                        operation and administration;
                          (iv) require the State agency to 
                        provide training on the promotion and 
                        management of breastfeeding to staff 
                        members of local agencies who are 
                        responsible for counseling participants 
                        in the program under this section 
                        concerning breastfeeding;
                          (v) not later than 1 year after the 
                        date of enactment of this subparagraph, 
                        develop uniform requirements for the 
                        collection of data regarding the 
                        incidence and duration of breastfeeding 
                        among participants in the program;
                          (vi) partner with communities, State 
                        and local agencies, employers, health 
                        care professionals, and other entities 
                        in the private sector to build a 
                        supportive breastfeeding environment 
                        for women participating in the program 
                        under this section to support the 
                        breastfeeding goals of the Healthy 
                        People initiative; [and]
                          (vii) annually compile and publish 
                        breastfeeding performance measurements 
                        based on program participant data on 
                        the number of partially and fully 
                        breast-fed infants, including 
                        breastfeeding performance measurements 
                        for--
                                  (I) each State agency; and
                                  (II) each local agency;
                          (viii) in accordance with 
                        subparagraph (B), implement a program 
                        to recognize exemplary breastfeeding 
                        support practices at local agencies or 
                        clinics participating in the special 
                        supplemental nutrition program 
                        established under this section; and
                          (ix) in accordance with subparagraph 
                        (C), implement a program to provide 
                        performance bonuses to State agencies.
                  (B) Exemplary breastfeeding support 
                practices.--
                          (i) In general.--In evaluating 
                        exemplary practices under subparagraph 
                        (A)(viii), the Secretary shall 
                        consider--
                                  (I) performance measurements 
                                of breastfeeding;
                                  (II) the effectiveness of a 
                                peer counselor program;
                                  (III) the extent to which the 
                                agency or clinic has partnered 
                                with other entities to build a 
                                supportive breastfeeding 
                                environment for women 
                                participating in the program; 
                                and
                                  (IV) such other criteria as 
                                the Secretary considers 
                                appropriate after consultation 
                                with State and local program 
                                agencies.
                          (ii) Authorization of 
                        appropriations.--There is authorized to 
                        be appropriated to carry out the 
                        activities described in clause (viii) 
                        of subparagraph (A) such sums as are 
                        necessary.
                  (C) Performance bonuses.--
                          (i) In general.--Following the 
                        publication of breastfeeding 
                        performance measurements under 
                        subparagraph (A)(vii), the Secretary 
                        shall provide performance bonus 
                        payments to not more than 15 State 
                        agencies that demonstrate, as compared 
                        to other State agencies participating 
                        in the program--
                                  (I) the highest proportion of 
                                breast-fed infants; or
                                  (II) the greatest improvement 
                                in proportion of breast-fed 
                                infants.
                          (ii) Consideration.--In providing 
                        performance bonus payments to State 
                        agencies under this subparagraph, the 
                        Secretary shall consider the proportion 
                        of fully breast-fed infants in the 
                        States.
                          (iii) Use of funds.--A State agency 
                        that receives a performance bonus under 
                        clause (i)--
                                  (I) shall treat the funds as 
                                program income; and
                                  (II) may transfer the funds 
                                to local agencies for use in 
                                carrying out the program.
                          (iv) Implementation.--The Secretary 
                        shall provide the first performance 
                        bonuses not later than 1 year after the 
                        date of enactment of this clause and 
                        may subsequently revise the criteria 
                        for awarding performance bonuses; and
  (5)(A) Subject to subparagraph (B), in any fiscal year that a 
State agency submits a plan to reduce average food costs per 
participant and to increase participation above the level 
estimated for the State agency, the State agency may, with the 
approval of the Secretary, convert amounts allocated for food 
benefits for such fiscal year for costs of nutrition services 
and administration to the extent that such conversion is 
necessary--
          (i) to cover allowable expenditures in such fiscal 
        year; and
          (ii) to ensure that the State agency maintains the 
        level established for the per participant grant for 
        nutrition services and administration for such fiscal 
        year.
  (B) If a State agency increases its participation level 
through measures that are not in the nutritional interests of 
participants or not otherwise allowable (such as reducing the 
quantities of foods provided for reasons not related to 
nutritional need), the Secretary may refuse to allow the State 
agency to convert amounts allocated for food benefits to defray 
costs of nutrition services and administration.
  (C) For the purposes of this paragraph, the term ``acceptable 
measures'' includes use of cost containment measures, 
curtailment of vendor abuse, and breastfeeding promotion 
activities.
          (D) Remote indian or native villages.--For 
        noncontiguous States containing a significant number of 
        remote Indian or Native villages, a State agency may 
        convert amounts allocated for food benefits for a 
        fiscal year to the costs of nutrition services and 
        administration to the extent that the conversion is 
        necessary to cover expenditures incurred in providing 
        services (including the full cost of air transportation 
        and other transportation) to remote Indian or Native 
        villages and to provide breastfeeding support in remote 
        Indian or Native villages.
  (6) In each fiscal year, each State agency shall provide, 
from the amounts allocated to such agency for such year for 
costs of nutrition services and administration, an amount to 
each local agency for its costs of nutrition services and 
administration. The amount to be provided to each local agency 
under the preceding sentence shall be determined under 
allocation standards developed by the State agency in 
cooperation with the several local agencies, taking into 
account factors deemed appropriate to further proper, 
efficient, and effective administration of the program, such 
as--
          (A) local agency staffing needs;
          (B) density of population;
          (C) number of individuals served; and
          (D) availability of administrative support from other 
        sources.
  (7) The State agency may provide in advance to any local 
agency any amounts for nutrition services and administration 
deemed necessary for successful commencement or significant 
expansion of program operations during a reasonable period 
following approval of--
          (A) a new local agency;
          (B) a new cost containment measure; or
          (C) a significant change in an existing cost 
        containment measure.
  (8)(A)(i) Except as provided in subparagraphs (B) and 
(C)(iii), any State that provides for the purchase of foods 
under the program at retail grocery stores shall, with respect 
to the procurement of infant formula, use--
          (I) a competitive bidding system; or
          (II) any other cost containment measure that yields 
        savings equal to or greater than savings generated by a 
        competitive bidding system when such savings are 
        determined by comparing the amounts of savings that 
        would be provided over the full term of contracts 
        offered in response to a single invitation to submit 
        both competitive bids and bids for other cost 
        containment systems for the sale of infant formula.
  (ii) In determining whether a cost containment measure other 
than competitive bidding yields equal or greater savings, the 
State, in accordance with regulations issued by the Secretary, 
may take into account other cost factors (in addition to rebate 
levels and procedures for adjusting rebate levels when 
wholesale price levels change), such as--
          (I) the number of infants who would not be expected 
        to receive the primary contract infant formula under a 
        competitive bidding system;
          (II) the number of cans of infant formula for which 
        no rebate would be provided under another rebate 
        system; and
          (III) differences in administrative costs relating to 
        the implementation of the various cost containment 
        systems (such as costs of converting a computer system 
        for the purpose of operating a cost containment system 
        and costs of preparing participants for conversion to a 
        new or alternate cost containment system).
                  (iii) Competitive bidding system.--A State 
                agency using a competitive bidding system for 
                infant formula shall award contracts to bidders 
                offering the lowest net price for a specific 
                infant formula for which manufacturers submit a 
                bid unless the State agency demonstrates to the 
                satisfaction of the Secretary that the weighted 
                average retail price for different brands of 
                infant formula in the State does not vary by 
                more than 5 percent.
                  (iv) Size of state alliances.--
                          (I) In general.--Except as provided 
                        in subclauses (II) through (IV), no 
                        State alliance may exist among States 
                        if the total number of infants served 
                        by States participating in the alliance 
                        as of October 1, 2003, or such 
                        subsequent date determined by the 
                        Secretary for which data is available, 
                        would exceed 100,000.
                          (II) Addition of infant 
                        participants.--In the case of a State 
                        alliance that exists on the date of 
                        enactment of this clause, the alliance 
                        may continue and may expand to serve 
                        more than 100,000 infants but, except 
                        as provided in subclause (III), may not 
                        expand to include any additional State 
                        agency.
                          (III) Addition of small state 
                        agencies and indian state agencies.--
                        Except as provided in paragraph 
                        (9)(B)(i)(II), any State alliance may 
                        expand to include any State agency that 
                        served less than 5,000 infant 
                        participants as of October 1, 2003, or 
                        such subsequent date determined by the 
                        Secretary for which data is available, 
                        or any Indian State agency, if the 
                        State agency or Indian State agency 
                        requests to join the State alliance.
                          (IV) Secretarial waiver.--The 
                        Secretary may waive the requirements of 
                        this clause not earlier than 30 days 
                        after submitting to the [Committee on 
                        Education and the Workforce] Committee 
                        on Education and Labor of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate a written report that 
                        describes the cost-containment and 
                        competitive benefits of the proposed 
                        waiver.
                  (v) First choice of issuance.--The State 
                agency shall use the primary contract infant 
                formula as the first choice of issuance (by 
                formula type), with all other infant formulas 
                issued as an alternative to the primary 
                contract infant formula.
                  (vi) Rebate invoices.--Effective beginning 
                October 1, 2004, each State agency shall have a 
                system to ensure that infant formula rebate 
                invoices, under competitive bidding, provide a 
                reasonable estimate or an actual count of the 
                number of units sold to participants in the 
                program under this section.
                  (vii) Separate solicitations.--In soliciting 
                bids for infant formula under a competitive 
                bidding system, any State agency, or State 
                alliance, that served under the program a 
                monthly average of more than 100,000 infants 
                during the preceding 12-month period shall 
                solicit bids from infant formula manufacturers 
                under procedures that require that bids for 
                rebates or discounts are solicited for milk-
                based and soy-based infant formula separately.
                  (viii) Cent-for-cent adjustments.--A bid 
                solicitation for infant formula under the 
                program shall require the manufacturer to 
                adjust for price changes subsequent to the 
                opening of the bidding process in a manner that 
                requires--
                          (I) a cent-for-cent increase in the 
                        rebate amounts if there is an increase 
                        in the lowest national wholesale price 
                        for a full truckload of the particular 
                        infant formula; and
                          (II) a cent-for-cent decrease in the 
                        rebate amounts if there is a decrease 
                        in the lowest national wholesale price 
                        for a full truckload of the particular 
                        infant formula.
                  (ix) List of infant formula wholesalers, 
                distributors, retailers, and manufacturers.--
                The State agency shall maintain a list of--
                          (I) infant formula wholesalers, 
                        distributors, and retailers licensed in 
                        the State in accordance with State law 
                        (including regulations); and
                          (II) infant formula manufacturers 
                        registered with the Food and Drug 
                        Administration that provide infant 
                        formula.
                  (x) Purchase requirement.--A vendor 
                authorized to participate in the program under 
                this section shall only purchase infant formula 
                from the list described in clause (ix).
                  (xi) Infant formula procurement online source 
                of information.--
                          (I) In general.--Not later than 180 
                        days after the date of enactment of 
                        this clause, the Secretary shall make 
                        available to the public on a website of 
                        the Department of Agriculture the 
                        information described in items (aa) 
                        through (dd) of subclause (II) relating 
                        to bid solicitations of State agencies 
                        for infant formula under the program.
                          (II) State agencies.--In soliciting 
                        bids for infant formula under the 
                        program, a State agency shall submit to 
                        the Secretary, not later than 5 
                        business days after the date of the bid 
                        solicitation, a description of the bid 
                        solicitation, including--
                                  (aa) the title of the bid 
                                solicitation and the State 
                                agency administering the bid 
                                solicitation;
                                  (bb) the website hyperlink 
                                and other information needed 
                                for the purpose of submitting a 
                                bid in response to the bid 
                                solicitation;
                                  (cc) the contact information 
                                and website hyperlink for the 
                                State agency administering the 
                                bid solicitation, for the 
                                purpose of gathering additional 
                                information relating to the bid 
                                solicitation; and
                                  (dd) the period during which 
                                bids are accepted or the due 
                                date for bids, as applicable, 
                                under the bid solicitation.
                          (III) Publication.--Not later than 5 
                        business days after receiving a 
                        description of a bid solicitation under 
                        subclause (II), the Secretary shall 
                        publish the information described in 
                        subclause (I).
  (B)(i) The Secretary shall waive the requirement of 
subparagraph (A) in the case of any State that demonstrates to 
the Secretary that--
          (I) compliance with subparagraph (A) would be 
        inconsistent with efficient or effective operation of 
        the program operated by such State under this section; 
        or
          (II) the amount by which the savings yielded by an 
        alternative cost containment system would be less than 
        the savings yielded by a competitive bidding system is 
        sufficiently minimal that the difference is not 
        significant.
  (ii) The Secretary shall prescribe criteria under which a 
waiver may be granted pursuant to clause (i).
  (iii) The Secretary shall provide information on a timely 
basis to the Committee on Education and Labor of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on waivers that have been granted 
under clause (i).
  (C)(i) The Secretary shall provide technical assistance to 
small Indian State agencies carrying out this paragraph in 
order to assist such agencies to achieve the maximum cost 
containment savings feasible.
  (ii) The Secretary shall also provide technical assistance, 
on request, to State agencies that desire to consider a cost 
containment system that covers more than 1 State agency.
  (iii) The Secretary may waive the requirement of subparagraph 
(A) in the case of any Indian State agency that has not more 
than 1,000 participants.
  (D) No State may enter into a cost containment contract (in 
this subparagraph referred to as the original contract'') that 
prescribes conditions that would void, reduce the savings 
under, or otherwise limit the original contract if the State 
solicited or secured bids for, or entered into, a subsequent 
cost containment contract to take effect after the expiration 
of the original contract.
  (E) The Secretary shall offer to solicit bids on behalf of 
State agencies regarding cost-containment contracts to be 
entered into by infant formula manufacturers and State 
agencies. The Secretary shall make the offer to State agencies 
once every 12 months. Each such bid solicitation shall only 
take place if two or more State agencies request the Secretary 
to perform the solicitation. For such State agencies, the 
Secretary shall solicit bids and select the winning bidder for 
a cost containment contract to be entered into by State 
agencies and infant formula manufacturers or suppliers.
  (F) In soliciting bids for contracts for infant formula for 
the program authorized by this section, the Secretary shall 
solicit bids from infant formula manufacturers under procedures 
in which bids for rebates or discounts are solicited for milk-
based and soy-based infant formula, separately, except where 
the Secretary determines that such solicitation procedures are 
not in the best interest of the program.
  (G) To reduce the costs of any supplemental foods, the 
Secretary may make available additional funds to State agencies 
out of the funds otherwise available under paragraph (1)(A) for 
nutrition services and administration in an amount not 
exceeding one half of 1 percent of the amounts to help defray 
reasonable anticipated expenses associated with innovations in 
cost containment or associated with procedures that tend to 
enhance competition.
  (H)(i) Any person, company, corporation, or other legal 
entity that submits a bid to supply infant formula to carry out 
the program authorized by this section and announces or 
otherwise discloses the amount of the bid, or the rebate or 
discount practices of such entities, in advance of the time the 
bids are opened by the Secretary or the State agency, or any 
person, company, corporation, or other legal entity that makes 
a statement (prior to the opening of bids) relating to levels 
of rebates or discounts, for the purpose of influencing a bid 
submitted by any other person, shall be ineligible to submit 
bids to supply infant formula to the program for the bidding in 
progress for up to 2 years from the date the bids are opened 
and shall be subject to a civil penalty of up to $100,000,000, 
as determined by the Secretary to provide restitution to the 
program for harm done to the program. The Secretary shall issue 
regulations providing such person, company, corporation, or 
other legal entity appropriate notice, and an opportunity to be 
heard and to respond to charges.
  (ii) The Secretary shall determine the length of the 
disqualification, and the amount of the civil penalty referred 
to in clause (i) based on such factors as the Secretary by 
regulation determines appropriate.
  (iii) Any person, company, corporation, or other legal entity 
disqualified under clause (i) shall remain obligated to perform 
any requirements under any contract to supply infant formula 
existing at the time of the disqualification and until each 
such contract expires by its terms.
  (I) Not later than the expiration of the 180-day period 
beginning on the date of enactment of this subparagraph, the 
Secretary shall prescribe regulations to carry out this 
paragraph.
  (J) A State shall not incur any interest liability to the 
Federal Government on rebate funds for infant formula and other 
foods if all interest earned by the State on the funds is used 
for program purposes.
          (K) Reporting.--Effective beginning October 1, 2011, 
        each State agency shall report rebate payments received 
        from manufacturers in the month in which the payments 
        are received, rather than in the month in which the 
        payments were earned.
          (L) Infant formula cost containment contract 
        requirement.--
                  (i) In general.--The Secretary shall require 
                that each infant formula cost containment 
                contract renewed or entered into on or after 
                the date of the enactment of the Access to Baby 
                Formula Act of 2022 includes remedies in the 
                event of an infant formula recall, including 
                how an infant formula manufacturer would 
                protect against disruption to program 
                participants in the State.
                  (ii) Rebates.--In the case of an infant 
                formula recall, an infant formula manufacturer 
                contracted to provide infant formula under this 
                section shall comply with the contract 
                requirements under clause (i).
          (M) Memorandum of understanding.--Not later than 30 
        days after the date of the enactment of the Access to 
        Baby Formula Act of 2022, the Secretary shall ensure 
        there is a memorandum of understanding between the 
        Secretary and the Secretary of Health and Human 
        Services that includes procedures to promote 
        coordination and information sharing between the 
        Department of Agriculture and the Department of Health 
        and Human Services regarding any supply chain 
        disruption, including a supplemental food recall.
          (9) Cost containment measure.--
                  (A) Definition of cost containment measure.--
                In this subsection, the term ``cost containment 
                measure'' means a competitive bidding, rebate, 
                direct distribution, or home delivery system 
                implemented by a State agency as described in 
                the approved State plan of operation and 
                administration of the State agency.
                  (B) Solicitation and rebate billing 
                requirements.--Any State agency instituting a 
                cost containment measure for any authorized 
                food, including infant formula, shall--
                          (i) in the bid solicitation--
                                  (I) identify the composition 
                                of State alliances for the 
                                purposes of a cost containment 
                                measure; and
                                  (II) verify that no 
                                additional States shall be 
                                added to the State alliance 
                                between the date of the bid 
                                solicitation and the end of the 
                                contract;
                          (ii) have a system to ensure that 
                        rebate invoices under competitive 
                        bidding provide a reasonable estimate 
                        or an actual count of the number of 
                        units sold to participants in the 
                        program under this section;
                          (iii) open and read aloud all bids at 
                        a public proceeding on the day on which 
                        the bids are due; and
                          (iv) unless otherwise exempted by the 
                        Secretary, provide a minimum of 30 days 
                        between the publication of the 
                        solicitation and the date on which the 
                        bids are due.
                  (C) State alliances for authorized foods 
                other than infant formula.--Program 
                requirements relating to the size of State 
                alliances under paragraph (8)(A)(iv) shall 
                apply to cost containment measures established 
                for any authorized food under this section.
          (10) Funds for infrastructure, management information 
        systems, and special nutrition education.--
                  (A) In general.--For each of fiscal years 
                [2010 through 2015] 2023 through 2028, the 
                Secretary shall use for the purposes specified 
                in subparagraph (B) [$139,000,000] $324,000,000 
                (as adjusted annually for inflation by the same 
                factor used to determine the national average 
                per participant grant for nutrition services 
                and administration for the fiscal year under 
                paragraph (1)(B)).
                  (B) Purposes.--Subject to subparagraph (C), 
                of the amount made available under subparagraph 
                (A) for a fiscal year--
                          (i) $14,000,000 shall be used for--
                                  (I) infrastructure for the 
                                program under this section;
                                  (II) special projects to 
                                promote breastfeeding, 
                                including projects to assess 
                                the effectiveness of particular 
                                breastfeeding promotion 
                                strategies; and
                                  (III) special State projects 
                                of regional or national 
                                significance to improve the 
                                services of the program;
                          [(ii) $35,000,000 shall be used to 
                        establish, improve, or administer 
                        management information systems for the 
                        program, including changes necessary to 
                        meet new legislative or regulatory 
                        requirements of the program, of which 
                        up to $5,000,000 may be used for 
                        Federal administrative costs; and
                          [(iii) $90,000,000 shall be used for 
                        special nutrition education (such as 
                        breastfeeding peer counselors and other 
                        related activities), of which not more 
                        than $10,000,000 of any funding 
                        provided in excess of $50,000,000 shall 
                        be used to make performance bonus 
                        payments under paragraph (4)(C).]
                          (ii)(I) $90,000,000 shall be used 
                        to--
                                  (aa) establish, develop, 
                                improve, replace, or administer 
                                technology platforms, including 
                                management information systems, 
                                that enhance the services of, 
                                access to, or redemption of 
                                benefits under the program;
                                  (bb) establish, develop, 
                                improve, replace, or administer 
                                a system that allows for secure 
                                communication of information 
                                between health care providers 
                                and program clinics in order to 
                                facilitate sharing of 
                                information necessary for 
                                certification, establishing 
                                nutrition risk, or for the 
                                provision of health care 
                                services; and
                                  (cc) carry out paragraph 
                                (15); and
                          (II) of which up to $8,000,000 may be 
                        used for Federal administrative costs; 
                        and
                          (iii) $180,000,000 shall be used to--
                                  (I) establish State agency 
                                Breastfeeding Peer Counseling 
                                programs, which shall be 
                                administered as determined by 
                                the Secretary;
                                  (II) provide performance 
                                bonus payments under paragraph 
                                (4)(C); and
                                  (III) establish State and 
                                local partnerships to provide 
                                such education at locations--
                                          (aa) outside of the 
                                        clinic, such as 
                                        hospitals or 
                                        physicians' offices; or
                                          (bb) in partnership 
                                        with eligible entities 
                                        that deliver services 
                                        under early childhood 
                                        home visitation 
                                        programs pursuant to a 
                                        grant under section 511 
                                        of the Social Security 
                                        Act (42 U.S.C. 711).
                          (iv) $40,000,000 shall be used by 
                        State or local agencies to enhance 
                        vendor partnerships and streamline the 
                        shopping experience of participants, 
                        including by establishing and 
                        administering vendor liaison programs 
                        to support participants and vendor 
                        staff at retail grocery locations.
                  (C) Adjustment.--Each of the amounts referred 
                to in clauses (i), (ii), and (iii) of 
                subparagraph (B) shall be adjusted annually for 
                inflation by the same factor used to determine 
                the national average per participant grant for 
                nutrition services and administration for the 
                fiscal year under paragraph (1)(B).
                  (D) Proportional distribution.--The Secretary 
                shall distribute funds made available under 
                subparagraph (A) in accordance with the 
                proportional distribution described in 
                subparagraphs (B) and (C).
          (11) Vendor cost containment.--
                  (A) Peer groups.--
                          (i) In general.--The State agency 
                        shall--
                                  (I) establish a vendor peer 
                                group system;
                                  (II) in accordance with 
                                subparagraphs (B) and (C), 
                                establish competitive price 
                                criteria and allowable 
                                reimbursement levels for each 
                                vendor peer group; and
                                  (III) if the State agency 
                                elects to authorize any types 
                                of vendors described in 
                                subparagraph (D)(ii)(I)--
                                          (aa) distinguish 
                                        between vendors 
                                        described in 
                                        subparagraph (D)(ii)(I) 
                                        and other vendors by 
                                        establishing--
                                                  (AA) separate 
                                                peer groups for 
                                                vendors 
                                                described in 
                                                subparagraph 
                                                (D)(ii)(I);or
                                                  (BB) distinct 
                                                competitive 
                                                price criteria 
                                                and allowable 
                                                reimbursement 
                                                levels for 
                                                vendors 
                                                described in 
                                                subparagraph 
                                                (D)(ii)(I) 
                                                within a peer 
                                                group that 
                                                contains both 
                                                vendors 
                                                described in 
                                                subparagraph 
                                                (D)(ii)(I) and 
                                                other vendors; 
                                                and
                                          (bb) establish 
                                        competitive price 
                                        criteria and allowable 
                                        reimbursement levels 
                                        that comply with 
                                        subparagraphs (B) and 
                                        (C), respectively, and 
                                        that do not result in 
                                        higher food costs if 
                                        program participants 
                                        redeem supplemental 
                                        food vouchers at 
                                        vendors described in 
                                        subparagraph (D)(ii)(I) 
                                        rather than at vendors 
                                        other than vendors 
                                        described in 
                                        subparagraph 
                                        (D)(ii)(I).
        Nothing in this paragraph shall be construed to compel 
        a State agency to achieve lower food costs if program 
        participants redeem supplemental food vouchers at 
        vendors described in subparagraph (D)(ii)(I) rather 
        than at vendors other than vendors described in 
        subparagraph (D)(ii)(I).
                  
                          (ii) Exemptions.--The Secretary may 
                        exempt from the requirements of clause 
                        (i)--
                                  (I) a State agency that 
                                elects not to authorize any 
                                types of vendors described in 
                                subparagraph (D)(ii)(I) and 
                                that demonstrates to the 
                                Secretary that--
                                          (aa) compliance with 
                                        clause (i) would be 
                                        inconsistent with 
                                        efficient and effective 
                                        operation of the 
                                        program administered by 
                                        the State under this 
                                        section; or
                                          (bb) an alternative 
                                        cost-containment system 
                                        would be as effective 
                                        as a vendor peer group 
                                        system; or
                                  (II) a State agency--
                                          (aa) in which the 
                                        sale of supplemental 
                                        foods that are obtained 
                                        with food instruments 
                                        from vendors described 
                                        in subparagraph 
                                        (D)(ii)(I) constituted 
                                        less than 5 percent of 
                                        total sales of 
                                        supplemental foods that 
                                        were obtained with food 
                                        instruments in the 
                                        State in the year 
                                        preceding a year in 
                                        which the exemption is 
                                        effective; and
                                          (bb) that 
                                        demonstrates to the 
                                        Secretary that an 
                                        alternative cost-
                                        containment system 
                                        would be as effective 
                                        as the vendor peer 
                                        group system and would 
                                        not result in higher 
                                        food costs if program 
                                        participants redeem 
                                        supplemental food 
                                        vouchers at vendors 
                                        described in 
                                        subparagraph (D)(ii)(I) 
                                        rather than at vendors 
                                        other than vendors 
                                        described in 
                                        subparagraph 
                                        (D)(ii)(I).
                  (B) Competitive pricing.--
                          (i) In general.--The State agency 
                        shall establish competitive price 
                        criteria for each peer group for the 
                        selection of vendors for participation 
                        in the program that--
                                  (I) ensure that the retail 
                                prices charged by vendor 
                                applicants for the program are 
                                competitive with the prices 
                                charged by other vendors; and
                                  (II) consider--
                                          (aa) [the shelf 
                                        prices of the vendor 
                                        for all buyers] the 
                                        prices the vendor 
                                        charges other 
                                        customers; or
                                          (bb) the prices that 
                                        the vendor bid for 
                                        supplemental foods, 
                                        which shall not exceed 
                                        the shelf prices of the 
                                        vendor for all buyers.
                          (ii) Participant access.--In 
                        establishing competitive price 
                        criteria, the State agency shall 
                        consider participant access by 
                        geographic area.
                          (iii) Subsequent price increases.--
                        The State agency shall establish 
                        procedures to ensure that a retail 
                        store selected for participation in the 
                        program does not, subsequent to 
                        selection, increase prices to levels 
                        that would make the store ineligible 
                        for selection to participate in the 
                        program.
                  (C) Allowable reimbursement levels.--
                          (i) In general.--The State agency 
                        shall establish allowable reimbursement 
                        levels for supplemental foods for each 
                        vendor peer group that ensure--
                                  (I) that payments to vendors 
                                in the vendor peer group 
                                reflect competitive retail 
                                prices; and
                                  (II) that the State agency 
                                does not reimburse a vendor for 
                                supplemental foods at a level 
                                that would make the vendor 
                                ineligible for authorization 
                                under the criteria established 
                                under subparagraph (B).
                          (ii) Price fluctuations.--The 
                        allowable reimbursement levels may 
                        include a factor to reflect 
                        fluctuations in wholesale prices.
                          (iii) Participant access.--In 
                        establishing allowable reimbursement 
                        levels, the State agency shall consider 
                        participant access in a geographic 
                        area.
                  (D) Exemptions.--The State agency may exempt 
                from competitive price criteria and allowable 
                reimbursement levels established under this 
                paragraph--
                          (i) pharmacy vendors that supply only 
                        exempt infant formula or medical foods 
                        that are eligible under the program; 
                        and
                          (ii) vendors--
                                  (I)(aa) for which more than 
                                50 percent of the annual 
                                revenue of the vendor from the 
                                sale of food items consists of 
                                revenue from the sale of 
                                supplemental foods that are 
                                obtained with food instruments; 
                                or
                                  (bb) who are new applicants 
                                likely to meet the criteria of 
                                item (aa) under criteria 
                                approved by the Secretary; and
                                  (II) that are nonprofit.
                  (E) Cost containment.--If a State agency 
                elects to authorize any types of vendors 
                described in subparagraph (D)(ii)(I), the State 
                agency shall demonstrate to the Secretary, and 
                the Secretary shall certify, that the 
                competitive price criteria and allowable 
                reimbursement levels established under this 
                paragraph for vendors described in subparagraph 
                (D)(ii)(I) do not result in average payments 
                per voucher to vendors described in 
                subparagraph (D)(ii)(I) that are more than 5 
                percent higher than average payments per 
                voucher to comparable vendors other than 
                vendors described in subparagraph (D)(ii)(I).
                  (F) Limitation on private rights of action.--
                Nothing in this paragraph may be construed as 
                creating a private right of action.
                  (G) Implementation.--A State agency shall 
                comply with this paragraph not later than 18 
                months after the date of enactment of this 
                paragraph.
          (12) Electronic benefit transfer.--
                  (A) Definitions.--In this paragraph:
                          (i) Electronic benefit transfer.--The 
                        term ``electronic benefit transfer'' 
                        means a [food delivery system that 
                        provides benefits using a card or other 
                        access device] benefit delivery method 
                        approved by the Secretary that permits 
                        electronic access to program benefits.
                          (ii) Program.--The term ``program'' 
                        means the special supplemental 
                        nutrition program established by this 
                        section.
                  (B) Requirements.--
                          (i) In general.--Not later than 
                        October 1, 2020, each State agency 
                        shall be required to implement 
                        electronic benefit transfer systems 
                        throughout the State, unless the 
                        Secretary grants an exemption under 
                        [subparagraph (C)] subparagraph (C)(i) 
                        for a State agency that is facing 
                        unusual barriers to implement an 
                        electronic benefit transfer system.
                          (ii) Responsibility.--The State 
                        agency shall be responsible for the 
                        coordination and management of the 
                        electronic benefit transfer system of 
                        the agency.
                          (iii) Vendor requirements.--Except in 
                        the case of an exemption granted with 
                        respect to a State agency under 
                        subparagraph (C)(iii), not later than 
                        October 1, 2025, each State agency 
                        shall authorize at least three vendors 
                        to process online payments under the 
                        electronic benefit systems in the 
                        State.
                  (C) Exemptions.--
                          (i) In general.--To be eligible for 
                        an exemption from the statewide 
                        implementation requirements of 
                        subparagraph (B)(i), a State agency 
                        shall demonstrate to the satisfaction 
                        of the Secretary 1 or more of the 
                        following:
                                  (I) There are unusual 
                                technological barriers to 
                                implementation.
                                  (II) Operational costs are 
                                not affordable within the 
                                nutrition services and 
                                administration grant of the 
                                State agency.
                                  (III) It is in the best 
                                interest of the program to 
                                grant the exemption.
                          (ii) Specific date.--A State agency 
                        requesting an exemption under clause 
                        (i) shall specify a date by which the 
                        State agency anticipates statewide 
                        implementation described in 
                        subparagraph (B)(i).
                          (iii) Vendor requirements 
                        exemption.--To be eligible for an 
                        exemption from the vendor requirements 
                        of subparagraph (B)(iii), a State 
                        agency shall demonstrate to the 
                        satisfaction of the Secretary that the 
                        State agency is facing unusual barriers 
                        to implementing additional changes to 
                        the electronic benefit transfer system.
                  (D) Reporting.--
                          (i) In general.--Each State agency 
                        shall submit to the Secretary 
                        electronic benefit transfer project 
                        status reports to demonstrate the 
                        progress of the State toward statewide 
                        implementation.
                          (ii) Consultation.--If a State agency 
                        plans to incorporate additional 
                        programs in the electronic benefit 
                        transfer system of the State, the State 
                        agency shall consult with the State 
                        agency officials responsible for 
                        administering the programs prior to 
                        submitting the planning documents to 
                        the Secretary for approval.
                          (iii) Requirements.--At a minimum, a 
                        status report submitted under clause 
                        (i) shall contain--
                                  (I) an annual outline of the 
                                electronic benefit transfer 
                                implementation goals and 
                                objectives of the State;
                                  (II) appropriate updates in 
                                accordance with approval 
                                requirements for active 
                                electronic benefit transfer 
                                State agencies; and
                                  (III) such other information 
                                as the Secretary may require.
                  (E) Imposition of costs on vendors.--
                          (i) Cost prohibition.--Except as 
                        otherwise provided in this paragraph, 
                        the Secretary may not impose, or allow 
                        a State agency to impose, the costs of 
                        any equipment or system required for 
                        electronic benefit transfers on any 
                        authorized vendor in order to transact 
                        electronic benefit transfers if the 
                        vendor equipment or system is used 
                        solely to support the program.
                          (ii) Cost-sharing.--The Secretary 
                        shall establish criteria for cost-
                        sharing by State agencies and vendors 
                        of costs associated with any equipment 
                        or system that is not solely dedicated 
                        to transacting electronic benefit 
                        transfers for the program.
                          (iii) Fees.--
                                  (I) In general.--A vendor 
                                that elects to accept 
                                electronic benefit transfers 
                                using multifunction equipment 
                                shall pay commercial 
                                transaction processing costs 
                                and fees imposed by a third-
                                party processor that the vendor 
                                elects to use to connect to the 
                                electronic benefit transfer 
                                system of the State.
                                  (II) Interchange fees.--No 
                                interchange fees shall apply to 
                                electronic benefit transfer 
                                transactions under this 
                                paragraph.
                          (iv) Statewide operations.--After 
                        completion of statewide expansion of a 
                        system for transaction of electronic 
                        benefit transfers--
                                  (I) a State agency may not be 
                                required to incur ongoing 
                                maintenance costs for vendors 
                                using multifunction systems and 
                                equipment to support electronic 
                                benefit transfers; and
                                  (II) any retail store in the 
                                State that applies for 
                                authorization to become a 
                                program vendor shall be 
                                required to demonstrate the 
                                capability to accept program 
                                benefits electronically prior 
                                to authorization, unless the 
                                State agency determines that 
                                the vendor is necessary for 
                                participant access.
                  (F) Minimum lane coverage.--
                          (i) In general.--The Secretary shall 
                        establish minimum lane coverage 
                        guidelines for vendor equipment and 
                        systems used to support electronic 
                        benefit transfers.
                          (ii) Provision of equipment.--If a 
                        vendor does not elect to accept 
                        electronic benefit transfers using its 
                        own multifunction equipment, the State 
                        agency shall provide such equipment as 
                        is necessary to solely support the 
                        program to meet the established minimum 
                        lane coverage guidelines.
                  (G) Technical standards.--The Secretary 
                shall--
                          (i) establish technical standards and 
                        operating rules for electronic benefit 
                        transfer systems; and
                          (ii) require each State agency, 
                        contractor, and authorized vendor 
                        participating in the program to 
                        demonstrate compliance with the 
                        technical standards and operating 
                        rules.
                  (H) Equitable access for wic shoppers.--To 
                facilitate the use of online payments under an 
                electronic benefit transfer system, a State 
                agency shall--
                          (i) with respect to such electronic 
                        benefit transfer system, allow--
                                  (I) transactions to be 
                                conducted without the presence 
                                of a cashier;
                                  (II) additional methods of 
                                authentication other than 
                                signature or entry of a 
                                personal identification number 
                                to be used; and
                                  (III) participants to receive 
                                supplemental foods after an 
                                electronic benefit transfer 
                                transaction has been processed;
                          (ii) ensure that no interchange or 
                        related transaction fees are collected 
                        from vendors;
                          (iii) issue program benefits remotely 
                        without receiving a participant 
                        signature;
                          (iv) authorize vendors that do not 
                        have a single, fixed location; and
                          (v) authorize vendors for a period 
                        not to exceed 5 years.
          [(13) Universal product codes database.--
                  [(A) In general.--Not later than 2 years 
                after the date of enactment of the Healthy, 
                Hunger-Free Kids Act of 2010, the Secretary 
                shall establish a national universal product 
                code database to be used by all State agencies 
                in carrying out the requirements of paragraph 
                (12).
                  [(B) Funding.--
                          [(i) In general.--On October 1, 2010, 
                        and on 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 paragraph 
                        $1,000,000, 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 paragraph the funds 
                        transferred under clause (i), without 
                        further appropriation.
                          [(iii) Use of funds.--The Secretary 
                        shall use the funds provided under 
                        clause (i) for development, hosting, 
                        hardware and software configuration, 
                        and support of the database required 
                        under subparagraph (A).]
          (14) Incentive items.--A State agency shall not 
        authorize or make payments to a vendor described in 
        paragraph (11)(D)(ii)(I) that provides incentive items 
        or other free merchandise, except [food or merchandise] 
        food, merchandise, or food delivery of nominal value 
        (as determined by the Secretary), to program 
        participants unless the vendor provides to the State 
        agency proof that the vendor obtained the incentive 
        items or merchandise at no cost.
          (15) State efforts to enhance cross-enrollment with 
        medicaid and the supplemental nutrition assistance 
        program.--
                  (A) Participation data.--The Secretary shall 
                annually collect data from State agencies and 
                make publicly available on the website of the 
                Department State-level estimates of the 
                percentage of pregnant women, postpartum women, 
                infants, and children under age five--
                          (i) who are enrolled in the program 
                        under this section and the supplemental 
                        nutrition assistance program under the 
                        Food and Nutrition Act of 2008 (7 
                        U.S.C. 2011 et seq.); and
                          (ii) who are--
                                  (I) enrolled in the program 
                                under this section and the 
                                Medicaid program established 
                                under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et 
                                seq.); and
                                  (II) a member of a family 
                                described in subsection 
                                (d)(2)(A)(i).
                  (B) Best practices.--The Secretary shall--
                          (i) in addition to the information 
                        made available under subparagraph (A), 
                        also publish on the website of the 
                        Department best practices for 
                        increasing the percentages described in 
                        such subparagraph; and
                          (ii) evaluate the number and types of 
                        referrals to the program under this 
                        section made by--
                                  (I) administrators of the 
                                supplemental nutrition 
                                assistance program under the 
                                Food and Nutrition Act of 2008 
                                (7 U.S.C. 2011 et seq.); and
                                  (II) administrators of the 
                                Medicaid program established 
                                under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et 
                                seq.).
                  (C) Cross-enrollment plan.--Not later than 1 
                year after the date of the enactment of this 
                paragraph and annually thereafter, each State 
                shall--
                          (i) submit to the Secretary an annual 
                        cross-enrollment plan that--
                                  (I) is developed across the 
                                programs described in 
                                subparagraph (A) that includes 
                                goals, specific measures, and a 
                                timeline for increasing the 
                                percentages described in such 
                                subparagraph; and
                                  (II) includes policies to 
                                refer to the program under this 
                                section participants in the 
                                programs described in such 
                                subparagraph who are not 
                                certified for the program under 
                                this section; and
                          (ii) if such plan is approved by the 
                        Secretary, implement such plan.
                  (D) Grant program.--The Secretary shall 
                provide technical assistance and award 
                competitive grants to State agencies to--
                          (i) increase the percentages 
                        described in subparagraph (A); and
                          (ii) implement measures pursuant to 
                        an annual cross-enrollment plan under 
                        subparagraph (C), including--
                                  (I) improving technology;
                                  (II) establishing more robust 
                                referral systems;
                                  (III) conducting targeted 
                                outreach to potential 
                                participants in the program 
                                under this section;
                                  (IV) enhancing State capacity 
                                to share and analyze data 
                                across the programs described 
                                in subparagraph (A); and
                                  (V) providing training or 
                                technical assistance to local 
                                agencies.
                  (E) Limitation on data.--Any data collected 
                under this paragraph shall be--
                          (i) used only for the purposes of 
                        certifying eligible persons for the 
                        program under this section; and
                          (ii) subject to the confidentiality 
                        provisions described in section 
                        246.26(d) of title 7, Code of Federal 
                        Regulations (or successor regulations).
  (i)(1) By the beginning of each fiscal year, the Secretary 
shall divide, among the State agencies, the amounts made 
available for food benefits under subsection (h)(1)(C) on the 
basis of a formula determined by the Secretary.
  (2) Each State agency's allocation, as so determined, shall 
constitute the State agency's authorized operational level for 
that year, except that the Secretary shall reallocate funds 
periodically if the Secretary determines that a State agency is 
unable to spend its allocation.
  (3)(A) Notwithstanding paragraph (2) and subject to 
subparagraph (B)--
          (i)(I) not more than [1 percent (except as provided 
        in subparagraph (C))] 10 percent of the amount of funds 
        allocated to a State agency under this section for 
        supplemental foods for a fiscal year may be expended by 
        the State agency for allowable expenses incurred under 
        this section for supplemental foods during the 
        preceding fiscal year; and
          (II) not more than [1 percent] 10 percent of the 
        amount of funds allocated to a State agency under this 
        section for nutrition services and administration for a 
        fiscal year may be expended by the State agency for 
        allowable expenses incurred under this section for 
        supplemental foods and nutrition services and 
        administration during the preceding fiscal year; and
          (ii)(I) for each fiscal year, of the amounts 
        allocated to a State agency for nutrition services and 
        administration, an amount equal to not more than [3 
        percent] 10 percent of the amount allocated to the 
        State agency for nutrition services and administration 
        under this section for the fiscal year may be expended 
        by the State agency for allowable expenses incurred 
        under this section for nutrition services and 
        administration during the subsequent fiscal year; and
          (II) for each fiscal year, of the amounts allocated 
        to a State agency [for nutrition services and 
        administration] to carry out this section, an amount 
        equal to [not more than \1/2\ of 1 percent] not more 
        than 3 percent of the amount allocated to the State 
        agency under this section for the fiscal year may be 
        expended by the State agency, with the prior approval 
        of the Secretary, for [the development of a management 
        information system, including an electronic benefit 
        transfer system] purposes related to food delivery, 
        including breastfeeding services and supplies, 
        electronic benefit transfer systems, and other 
        technologies, during the subsequent fiscal year.
  (B) Any funds made available to a State agency in accordance 
with subparagraph (A)(ii) for a fiscal year shall not affect 
the amount of funds allocated to the State agency for such 
year.
  [(C) The Secretary may authorize a State agency to expend not 
more than 3 percent of the amount of funds allocated to a State 
under this section for supplemental foods for a fiscal year for 
expenses incurred under this section for supplemental foods 
during the preceding fiscal year, if the Secretary determines 
that there has been a significant reduction in infant formula 
cost containment savings provided to the State agency that 
would affect the ability of the State agency to at least 
maintain the level of participation by eligible participants 
served by the State agency.]
  (4) For purposes of the formula, if Indians are served by the 
health department of a State, the formula shall be based on the 
State population inclusive of the Indians within the State 
boundaries.
  (5) If Indians residing in the State are served by a State 
agency other than the health department of the State, the 
population of the tribes within the jurisdiction of the State 
being so served shall not be included in the formula for such 
State, and shall instead be included in the formula for the 
State agency serving the Indians.
  (6) Notwithstanding any other provision of this section, the 
Secretary may use a portion of a State agency's allocation to 
purchase supplemental foods for donation to the State agency 
under this section.
  (7) In addition to any amounts expended under paragraph 
(3)(A)(i), any State agency using cost containment measures as 
defined in subsection (h)(9) may temporarily use amounts made 
available to such agency for the first quarter of a fiscal year 
to defray expenses for costs incurred during the final quarter 
of the preceding fiscal year. In any fiscal year, any State 
agency that uses amounts made available for a succeeding fiscal 
year under the authority of the preceding sentence shall 
restore or reimburse such amounts when such agency receives 
payment as a result of its cost containment measures for such 
expenses.
          (8) Temporary spending authority.--During each of 
        fiscal years 2012 and 2013, the Secretary may authorize 
        a State agency to expend more than the amount otherwise 
        authorized under paragraph (3)(C) for expenses incurred 
        under this section for supplemental foods during the 
        preceding fiscal year, if the Secretary determines 
        that--
                  (A) there has been a significant reduction in 
                reported infant formula cost containment 
                savings for the preceding fiscal year due to 
                the implementation of subsection (h)(8)(K); and
                  (B) the reduction would affect the ability of 
                the State agency to serve all eligible 
                participants.
  (j)(1) The Secretary and the Secretary of Health and Human 
Services (referred to in this subsection as the 
``Secretaries'') shall jointly establish and carry out an 
initiative for the purpose of providing both supplemental 
foods, nutrition education, and breastfeeding support and 
promotion under the special supplemental nutrition program and 
health care services to low-income pregnant, postpartum, and 
breastfeeding women, infants, and children at substantially 
more community health centers and migrant health centers.
  (2) The initiative shall also include--
          (A) activities to improve the coordination of the 
        provision of supplemental foods, nutrition education, 
        and breastfeeding support and promotion under the 
        special supplemental nutrition program and health care 
        services at facilities funded by the Indian Health 
        Service; and
          (B) the development and implementation of strategies 
        to ensure that, to the maximum extent feasible, new 
        community health centers, migrant health centers, and 
        other federally supported health care facilities 
        established in medically underserved areas provide 
        supplemental foods, nutrition education, and 
        breastfeeding support and promotion under the special 
        supplemental nutrition program.
  (3) The initiative may include--
          (A) outreach and technical assistance for State and 
        local agencies and the facilities described in 
        paragraph (2)(A) and the health centers and facilities 
        described in paragraph (2)(B);
          (B) demonstration projects in selected State or local 
        areas; and
          (C) such other activities as the Secretaries find are 
        appropriate.
  (4) As used in this subsection:
          (A) The term ``community health center'' has the 
        meaning given the term in section 330(a) of the Public 
        Health Service Act (42 U.S.C. 254c(a)).
          (B) The term ``migrant health center'' has the 
        meaning given the term in section 329(a)(1) of such Act 
        (42 U.S.C. 254b(a)(1)).
  [(k)(1) There is hereby established a National Advisory 
Council on Maternal, Infant, and Fetal Nutrition (referred to 
in this subsection as the ``Council'') composed of 24 members 
appointed by the Secretary. One member shall be a State 
director of a program under this section; one member shall be a 
State official responsible for a commodity supplemental food 
program under section 1304 of the Food and Agriculture Act of 
1977; one member shall be a State fiscal officer of a program 
under this section (or the equivalent thereof); one member 
shall be a State health officer (or the equivalent thereof); 
one member shall be a local agency director of a program under 
this section in an urban area; one member shall be a local 
agency director of a program under this section in a rural 
area; one member shall be a project director of a commodity 
supplemental food program; one member shall be a State public 
health nutrition director (or the equivalent thereof); one 
member shall be a representative of an organization serving 
migrants; one member shall be an official from a State agency 
predominantly serving Indians; three members shall be parent 
participants of a program under this section or of a commodity 
supplemental food program; one member shall be a pediatrician; 
one member shall be an obstetrician; one member shall be a 
representative of a nonprofit public interest organization that 
has experience with and knowledge of the special supplemental 
nutrition program; one member shall be a person involved at the 
retail sales level of food in the special supplemental 
nutrition program; two members shall be officials of the 
Department of Health and Human Services appointed by the 
Secretary of Health and Human Services; two members shall be 
officials of the Department of Agriculture appointed by the 
Secretary; 1 member shall be an expert in the promotion of 
breast feeding; one member shall be an expert in drug abuse 
education and prevention; and one member shall be an expert in 
alcohol abuse education and prevention.
  [(2) Members of the Council appointed from outside the 
Department of Agriculture and the Department of Health and 
Human Services shall be appointed for terms not exceeding three 
years. State and local officials shall serve only during their 
official tenure, and the tenure of parent participants shall 
not exceed two years. Persons appointed to complete an 
unexpired term shall serve only for the remainder of such term.
  [(3) The Council shall elect a Chairman and a Vice Chairman. 
The Council shall meet at the call of the Chairman, but shall 
meet at least once a year. Eleven members shall constitute a 
quorum.
  [(4) The Secretary shall provide the Council with such 
technical and other assistance, including secretarial and 
clerical assistance, as may be required to carry out its 
functions.
  [(5) Members of the Council shall serve without compensation 
but shall be reimbursed for necessary travel and subsistence 
expenses incurred by them in the performance of the duties of 
the Council. Parent participant members of the Council, in 
addition to reimbursement for necessary travel and subsistence, 
shall, at the discretion of the Secretary, be compensated in 
advance for other personal expenses related to participation on 
the Council, such as child care expenses and lost wages during 
scheduled Council meetings.]
  (l) Foods available under section 416 of the Agriculture Act 
of 1949, including, but not limited to, dry milk, or purchased 
under section 32 of the Act of August 24, 1935 may be donated 
by the Secretary, at the request of a State agency, for 
distribution to programs conducted under this section. The 
Secretary may purchase and distribute, at the request of a 
State agency, supplemental foods for donation to programs 
conducted under this section, with appropriated funds, 
including funds appropriated under this section.
  (m)(1) Subject to the availability of funds appropriated for 
the purposes of this subsection, and as specified in this 
subsection, the Secretary shall award grants to States that 
submit State plans that are approved for the establishment or 
maintenance of programs designed to provide recipients of 
assistance under subsection (c), or those who are on the 
waiting list to receive the assistance, with coupons that may 
be exchanged for fresh, nutritious, unprepared foods at 
farmers' markets and (at the option of a State) roadside stands 
and community supported agriculture programs, as defined in the 
State plans submitted under this subsection.
  (2) A grant provided to any State under this subsection shall 
be provided to the chief executive officer of the State, who 
shall--
          (A) designate the appropriate State agency or 
        agencies to administer the program in conjunction with 
        the appropriate nonprofit organizations; and
          (B) ensure coordination of the program among the 
        appropriate agencies and organizations.
  [(3) The Secretary shall not make a grant to any State under 
this subsection unless the State agrees to provide State, 
local, or private funds for the program in an amount that is 
equal to not less than 30 percent of the administrative cost of 
the program, which may be satisfied from program income or 
State contributions that are made for similar programs. The 
Secretary may negotiate with an Indian State agency a lower 
percentage of matching funds than is required under the 
preceding sentence, but not lower than 10 percent of the 
administrative cost of the program, if the Indian State agency 
demonstrates to the Secretary financial hardship for the 
affected Indian tribe, band, group, or council.]
  [(4)] (3) Subject to [paragraph (6)] paragraph (5), the 
Secretary shall establish a formula for determining the amount 
of the grant to be awarded under this subsection to each State 
for which a State plan is approved under [paragraph (6)] 
paragraph (5), according to the number of recipients proposed 
to participate as specified in the State plan. In determining 
the amount to be awarded to new States, the Secretary shall 
rank order the State plans according to the criteria of 
operation set forth in this subsection, and award grants 
accordingly. The Secretary shall take into consideration the 
minimum amount needed to fund each approved State plan, and 
need not award grants to each State that submits a State plan.
  [(5)] (4) Each State that receives a grant under this 
subsection shall ensure that the program for which the grant is 
received complies with the following requirements:
          (A) Individuals who are eligible to receive Federal 
        benefits under the program shall only be individuals 
        who are receiving assistance under subsection (c), or 
        who are on the waiting list to receive the assistance.
          (B) Construction or operation of a farmers' market 
        may not be carried out [using funds--]
                  [(i) provided under the grant; or]
                  [(ii) required to be provided by the State 
                under paragraph (3).] using funds provided 
                under the grant.
          (C) The value of the Federal share of the benefits 
        received by any recipient under the program [may not 
        be--]
                  [(i) less than $10 per year; or]
                  [(ii) more than $30 per year.] may not be 
                less than $20 per year or more than $100 per 
                year.
          (D) The coupon issuance process under the program 
        shall be designed to ensure that coupons are targeted 
        to areas with--
                  (i) the highest concentration of eligible 
                individuals;
                  (ii) the greatest access to farmers' markets; 
                and
                  (iii) certain characteristics, in addition to 
                those described in clauses (i) and (ii), that 
                are determined to be relevant by the Secretary 
                and that maximize the availability of benefits 
                to eligible individuals.
          [(E) The coupon redemption process under the program 
        shall be designed to ensure that the coupons may be--
                  [(i) redeemed only by producers authorized by 
                the State to participate in the program; and
                  [(ii) redeemed only to purchase fresh 
                nutritious unprepared food for human 
                consumption.]
          (E) The coupon redemption process under the program 
        shall be designed to ensure that the coupon may be 
        redeemed--
                  (i) either--
                          (I) by producers authorized by the 
                        State to participate in the program; or
                          (II) through a central point of sale 
                        at a farmers' market authorized by the 
                        State to participate in the program; 
                        and
                  (ii) only to purchase fresh nutritious 
                unprepared food for human consumption.
          (F)(i) Except as provided in [clauses (ii) and (iii)] 
        clause (ii), the State may use for administration of 
        the program in any fiscal year not more than 17 percent 
        of the total amount of program funds.
          (ii) During any fiscal year for which a State 
        receives assistance under this subsection, the 
        Secretary shall permit the State to use not more than 
        [2 percent] 3 percent of total program funds for market 
        development or technical assistance to farmers' markets 
        if the Secretary determines that such market 
        development or technical assistance will advance State 
        efforts to develop efficient and appropriate electronic 
        benefits systems or the State intends to promote the 
        development of farmers' markets in socially or 
        economically disadvantaged areas, or remote rural 
        areas, where individuals eligible for participation in 
        the program have limited access to locally grown fruits 
        and vegetables.
          [(iii) The provisions of clauses (i) and (ii) with 
        respect to the use of program funds shall not apply to 
        any funds that a State may contribute in excess of the 
        funds used by the State to meet the requirements of 
        paragraph (3).]
          (G) The State shall ensure that no State or local 
        taxes are collected within the State on purchases of 
        food with coupons distributed under the program.
  [(6)] (5)(A) The Secretary shall give the same preference for 
funding under this subsection to eligible States that 
participated in the program under this subsection in a prior 
fiscal year as to States that participated in the program in 
the most recent fiscal year. The Secretary shall inform each 
State of the award of funds as prescribed by [subparagraph (G)] 
paragraph (8) by February 15 of each year.
  (B)(i) Subject to the availability of appropriations, [if a 
State provides the amount of matching funds required under 
paragraph (3),] the State shall receive assistance under this 
subsection in an amount that is not less than the amount of 
such assistance that the State received in the most recent 
fiscal year in which it received such assistance.
  (ii) If amounts appropriated for any fiscal year pursuant to 
the authorization contained in [paragraph (10)] paragraph (8) 
for grants under this subsection are not sufficient to pay to 
each State for which a State plan is approved under [paragraph 
(6)] paragraph (5) the amount that the Secretary determines 
each such State is entitled to under this subsection, each 
State's grant shall be ratably reduced, except that (if 
sufficient funds are available) each State shall receive at 
least $75,000 or the amount that the State received for the 
prior fiscal year if that amount is less than $75,000.
  (C) In providing funds to a State that received assistance 
under this subsection in the previous fiscal year, the 
Secretary shall consider--
          (i) the availability of any such assistance not spent 
        by the State during the program year for which the 
        assistance was received;
          (ii) documentation that demonstrates that--
                  (I) there is a need for an increase in funds; 
                and
                  (II) the use of the increased funding will be 
                consistent with serving nutritionally at-risk 
                persons and expanding the awareness and use of 
                farmers' markets;
          (iii) demonstrated ability to satisfactorily operate 
        the existing program; and
          (iv) whether, in the case of a State that intends to 
        use any funding provided under [subparagraph (G)(i)] 
        paragraph (8) to increase the value of the Federal 
        share of the benefits received by a recipient, the 
        funding provided under [subparagraph (G)(i)] paragraph 
        (8) will increase the rate of coupon redemption.
  (D)(i) A State that desires to receive a grant under this 
subsection shall submit, for each fiscal year, a State plan to 
the Secretary by November 15 of each year.
  (ii) Each State plan submitted under this paragraph shall 
contain--
          (I) the estimated cost of the program and the 
        estimated number of individuals to be served by the 
        program;
          (II) a description of the State plan for complying 
        with the requirements established in [paragraph (5)] 
        paragraph (4); and
          (III) criteria developed by the State with respect to 
        authorization of producers to participate in the 
        program.
  (iii) The criteria developed by the State as required by 
clause (ii)(III) shall require any authorized producer to sell 
fresh nutritious unprepared foods (such as fruits and 
vegetables) to recipients, in exchange for coupons distributed 
under the program.
  (E) The Secretary shall establish objective criteria for the 
approval and ranking of State plans submitted under this 
paragraph.
  (F)(i) An amount equal to 75 percent of the funds available 
after satisfying the requirements of subparagraph (B) shall be 
made available to States participating in the program whose 
State plan is approved by the Secretary. If this amount is 
greater than that necessary to satisfy the approved State 
plans, the unallocated amount shall be applied toward 
satisfying any unmet need of States that have not participated 
in the program in the prior fiscal year, and whose State plans 
have been approved.
  (ii) An amount equal to 25 percent of the funds available 
after satisfying the requirements of subparagraph (B) shall be 
made available to States that have not participated in the 
program in the prior fiscal year, and whose State plans have 
been approved by the Secretary. If this amount is greater than 
that necessary to satisfy the approved State plans for new 
States, the unallocated amount shall be applied toward 
satisfying any unmet need of States whose State plans have been 
approved.
  (iii) In any fiscal year, any funds that remain unallocated 
after satisfying the requirements of clauses (i) and (ii) shall 
be reallocated in the following fiscal year according to 
procedures established pursuant to [paragraph (10)(B)(ii)] 
paragraph (8)(B)(ii).
  [(7)] (6)(A) The value of the benefit received by any 
recipient under any program for which a grant is received under 
this subsection may not affect the eligibility or benefit 
levels for assistance under other Federal or State programs.
  (B) Any programs for which a grant is received under this 
subsection shall be supplementary to the supplemental nutrition 
assistance program carried out under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.) and to any other Federal or 
State program under which foods are distributed to needy 
families in lieu of supplemental nutrition assistance program 
benefits.
  [(8)] (7) For each fiscal year, the Secretary shall collect 
from each State that receives a grant under this subsection 
information relating to--
          (A) the number and type of recipients served by both 
        Federal and non-Federal benefits under the program for 
        which the grant is received;
          (B) the rate of redemption of coupons distributed 
        under the program;
          (C) the average amount distributed in coupons to each 
        recipient;
          [(D) the change in consumption of fresh fruits and 
        vegetables by recipients, if the information is 
        available;]
          [(E)] (D) the effects of the program on farmers' 
        markets, if the information is available; and
          [(F)] (E) any other information determined to be 
        necessary by the Secretary.
          [(9)] (8) Funding.--
                  (A) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this subsection such sums as are necessary for 
                each of fiscal years [2010 through 2015] 2023 
                through 2028.
  (B)(i)(I) Each State shall return to the Secretary any funds 
made available to the State that are unobligated at the end of 
the fiscal year for which the funds were originally allocated. 
The unexpended funds shall be returned to the Secretary by 
February 1st of the following fiscal year.
  (II) Notwithstanding any other provision of this subsection, 
a total of not more than [5 percent] 10 percent of funds made 
available to a State for any fiscal year may be expended by the 
State to reimburse expenses incurred for a program assisted 
under this subsection during the preceding fiscal year.
  (ii) The Secretary shall establish procedures to reallocate 
funds that are returned under clause (i).
  [(10)] (9) For purposes of this subsection:
          (A) The term ``coupon'' means a coupon, voucher, [or 
        other negotiable financial instrument] token, 
        electronic benefit transfer card, mobile benefit 
        delivery system, or other forms or technologies as 
        determined by the Secretary by which benefits under 
        this section are transferred.
          (B) The term ``program'' means--
                  (i) the State farmers' market coupon 
                nutrition program authorized by this subsection 
                (as it existed on September 30, 1991); or
                  (ii) the farmers' market nutrition program 
                authorized by this subsection.
          (C) The term ``recipient'' means a person or 
        household, as determined by the State, who is chosen by 
        a State to receive benefits under this subsection, or 
        who is on a waiting list to receive such benefits.
          (D) The term ``State agency'' has the meaning 
        provided in subsection (b)(13), except that the term 
        also includes the agriculture department of each State 
        and any other agency approved by the chief executive 
        officer of the State.
  (n) Disqualification of Vendors Who Are Disqualified Under 
the Supplemental Nutrition Assistance Program.--
          (1) In general.--The Secretary shall issue 
        regulations providing criteria for the disqualification 
        under this section of an approved vendor that is 
        disqualified from accepting benefits under the 
        supplemental nutrition assistance program established 
        under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 
        et seq.).
          (2) Terms.--A disqualification under paragraph (1)--
                  (A) shall be for the same period as the 
                disqualification from the program referred to 
                in paragraph (1);
                  (B) may begin at a later date than the 
                disqualification from the program referred to 
                in paragraph (1); and
                  (C) shall not be subject to judicial or 
                administrative review.
  (o) Disqualification of Vendors Convicted of Trafficking or 
Illegal Sales.--
          (1) In general.--Except as provided in paragraph (4), 
        a State agency shall permanently disqualify from 
        participation in the program authorized under this 
        section a vendor convicted of--
                  (A) trafficking in food instruments 
                (including any voucher, draft, check, or access 
                device (including an electronic benefit 
                transfer card or personal identification 
                number) issued in lieu of a food instrument 
                under this section); or
                  (B) selling firearms, ammunition, explosives, 
                or controlled substances (as defined in section 
                102 of the Controlled Substances Act (21 U.S.C. 
                802)) in exchange for food instruments 
                (including any item described in subparagraph 
                (A) issued in lieu of a food instrument under 
                this section).
          (2) Notice of disqualification.--The State agency 
        shall--
                  (A) provide the vendor with notification of 
                the disqualification; and
                  (B) make the disqualification effective on 
                the date of receipt of the notice of 
                disqualification.
          (3) Prohibition of receipt of lost revenues.--A 
        vendor shall not be entitled to receive any 
        compensation for revenues lost as a result of 
        disqualification under this subsection.
          (4) Exceptions in lieu of disqualification.--
                  (A) In general.--A State agency may permit a 
                vendor that, but for this paragraph, would be 
                disqualified under paragraph (1), to continue 
                to participate in the program if the State 
                agency determines, in its sole discretion 
                according to criteria established by the 
                Secretary, that--
                          (i) disqualification of the vendor 
                        would cause hardship to participants in 
                        the program authorized under this 
                        section; or
                          (ii)(I) the vendor had, at the time 
                        of the violation under paragraph (1), 
                        an effective policy and program in 
                        effect to prevent violations described 
                        in paragraph (1); and
                          (II) the ownership of the vendor was 
                        not aware of, did not approve of, and 
                        was not involved in the conduct of the 
                        violation.
                  (B) Civil penalty.--If a State agency under 
                subparagraph (A) permits a vendor to continue 
                to participate in the program in lieu of 
                disqualification, the State agency shall assess 
                the vendor a civil penalty in an amount 
                determined by the State agency, in accordance 
                with criteria established by the Secretary, 
                except that--
                          (i) the amount of the civil penalty 
                        shall not exceed $10,000 for each 
                        violation; and
                          (ii) the amount of civil penalties 
                        imposed for violations investigated as 
                        part of a single investigation may not 
                        exceed $40,000.
  (p) Criminal Forfeiture.--
          (1) In general.--Notwithstanding any provision of 
        State law and in addition to any other penalty 
        authorized by law, a court may order a person that is 
        convicted of a violation of a provision of law 
        described in paragraph (2), with respect to food 
        instruments (including any item described in subsection 
        (o)(1)(A) issued in lieu of a food instrument under 
        this section), funds, assets, or property that have a 
        value of $100 or more and that are the subject of a 
        grant or other form of assistance under this section, 
        to forfeit to the United States all property described 
        in paragraph (3).
          (2) Applicable laws.--A provision of law described in 
        this paragraph is--
                  (A) section 12(g) of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1760(g)); 
                and
                  (B) any other Federal law imposing a penalty 
                for embezzlement, willful misapplication, 
                stealing, obtaining by fraud, or trafficking in 
                food instruments (including any item described 
                in subsection (o)(1)(A) issued in lieu of a 
                food instrument under this section), funds, 
                assets, or property.
          (3) Property subject to forfeiture.--The following 
        property shall be subject to forfeiture under paragraph 
        (1):
                  (A) All property, real and personal, used in 
                a transaction or attempted transaction, to 
                commit, or to facilitate the commission of, a 
                violation described in paragraph (1).
                  (B) All property, real and personal, 
                constituting, derived from, or traceable to any 
                proceeds a person obtained directly or 
                indirectly as a result of a violation described 
                in paragraph (1).
          (4) Procedures; interest of owner.--Except as 
        provided in paragraph (5), all property subject to 
        forfeiture under this subsection, any seizure or 
        disposition of the property, and any proceeding 
        relating to the forfeiture, seizure, or disposition 
        shall be subject to section 413 of the Comprehensive 
        Drug Abuse Prevention and Control Act of 1970 (21 
        U.S.C. 853), other than subsection (d) of that section.
          (5) Proceeds.--The proceeds from any sale of 
        forfeited property and any amounts forfeited under this 
        subsection shall be used--
                  (A) first, to reimburse the Department of 
                Justice, the Department of the Treasury, and 
                the United States Postal Service for the costs 
                incurred by the Departments or Service to 
                initiate and complete the forfeiture 
                proceeding;
                  (B) second, to reimburse the Office of 
                Inspector General of the Department of 
                Agriculture for any costs incurred by the 
                Office in the law enforcement effort resulting 
                in the forfeiture;
                  (C) third, to reimburse any Federal, State, 
                or local law enforcement agency for any costs 
                incurred in the law enforcement effort 
                resulting in the forfeiture; and
                  (D) fourth, by the State agency to carry out 
                approval, reauthorization, and compliance 
                investigations of vendors.
  (q) The Secretary of Agriculture shall provide technical 
assistance to the Secretary of Defense, if so requested by the 
Secretary of Defense, for the purpose of carrying out the 
overseas special supplemental food program established under 
section 1060a(a) of title 10, United States Code.
  (r) Emergencies and Disasters.--
          (1) In general.--Notwithstanding any other provision 
        of law, during an emergency period, the Secretary may 
        modify or waive any qualified administrative 
        requirement for one or more State agencies if--
                  (A) the qualified administrative requirement 
                cannot be met by State agencies during any 
                portion of the emergency period under the 
                conditions which prompted the emergency period; 
                and
                  (B) the modification or waiver of such a 
                requirement--
                          (i) is necessary to provide 
                        assistance under this section; and
                          (ii) does not substantially weaken 
                        the nutritional quality of supplemental 
                        foods provided under this section.
          (2) Duration.--A waiver established under this 
        subsection may be available for a period of not greater 
        than the emergency period and the 60 days after the end 
        of such emergency period.
          (3) Definitions.--In this subsection:
                  (A) Emergency period.--The term ``emergency 
                period'' means a period during which there 
                exists--
                          (i) a public health emergency 
                        declared by the Secretary of Health and 
                        Human Services under section 319 of the 
                        Public Health Service Act (42 U.S.C. 
                        247d);
                          (ii) any renewal of such a public 
                        health emergency pursuant to such 
                        section 319;
                          (iii) a presidentially declared major 
                        disaster as defined under section 102 
                        of the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 
                        U.S.C. 5121 et seq.); or
                          (iv) a presidentially declared 
                        emergency as defined under section 102 
                        of the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 
                        U.S.C. 5121 et seq.).
                  (B) Qualified administrative requirement.--
                The term ``qualified administrative 
                requirement'' means a requirement under this 
                section or a regulatory requirement issued 
                pursuant to this section.
  (s) Supply Chain Disruptions.--
          (1) In general.--Notwithstanding any other provision 
        of law, during a supply chain disruption, including a 
        supplemental food product recall, the Secretary may 
        modify or waive any qualified administrative 
        requirement for one or more State agencies if--
                  (A) the qualified administrative requirement 
                cannot be met by State agencies during any 
                portion of the supply chain disruption, 
                including a supplemental food product recall, 
                under the conditions which prompted such 
                disruption or recall; and
                  (B) the modification or waiver of such a 
                requirement--
                          (i) is necessary to provide 
                        assistance under this section; and
                          (ii) does not substantially weaken 
                        the nutritional quality of supplemental 
                        foods provided under this section.
          (2) Waiver authority.--The Secretary may, under a 
        waiver or modification under paragraph (1)--
                  (A) permit authorized vendors to exchange or 
                substitute authorized supplemental foods 
                obtained with food instruments beyond exchanges 
                for an identical (exact brand and size) food 
                item;
                  (B) waive any requirement with respect to 
                medical documentation for the issuance of 
                noncontract brand infant formula, except for 
                the requirements for participants receiving 
                Food Package III (as defined in section 
                246.10(e)(3) of title 7, Code of Federal 
                Regulations (as in effect on the date of the 
                enactment of this subsection));
                  (C) waive the maximum monthly allowance for 
                infant formula; and
                  (D) waive any additional qualified 
                administrative requirement to address a supply 
                chain disruption, including a supplemental food 
                product recall.
          (3) Duration.--A waiver or modification established 
        under this subsection--
                  (A) may be--
                          (i) available for a period of not 
                        more than 45 days, to begin on a date 
                        determined by the Secretary; and
                          (ii) renewed so long as the Secretary 
                        provides notice at least 15 days before 
                        such renewal; and
                  (B) shall not be available after the date 
                that is 60 days after the supply chain 
                disruption for which such waiver is established 
                ceases to exist.
          (4) Transparency.--
                  (A) In general.--If the Secretary determines 
                that a supply chain disruption exists and 
                issues a waiver or modification under this 
                subsection, the Secretary shall notify each 
                State agency affected by such disruption and 
                include with such notification an explanation 
                of such determination.
                  (B) Publication.--The Secretary shall make 
                each determination described in subparagraph 
                (A) publicly available on the website of the 
                Department.
                  (C) State agency requirements.--In the case 
                of a waiver or modification under this 
                subsection related to infant formula, a State 
                agency notified under subparagraph (A) shall 
                notify each infant formula manufacturer that 
                has a contract with such State agency with 
                respect to such notification.
          (5) Qualified administrative requirement defined.--
        For purposes of this subsection, the term ``qualified 
        administrative requirement'' has the meaning given the 
        term in subsection (r).
  (t) Activities to Support Wic-Eligible Individuals Impacted 
by Substance Use Disorder.--
          (1) In general.--The Secretary shall--
                  (A) develop and disseminate nutrition 
                education materials for individuals eligible 
                for the program; and
                  (B) conduct outreach to individuals who are 
                potentially eligible for the program and who 
                are impacted by a substance use disorder.
          (2) Purpose.--The purpose of this subsection is to 
        ensure that individuals participating in the program 
        who are impacted by a substance use disorder receive 
        accurate nutrition education from trained staff in an 
        effective and unbiased manner.
          (3) Nutrition education materials.--The Secretary 
        shall collaborate with the Secretary of Health and 
        Human Services to develop appropriate evidence-based 
        nutrition education materials for individuals impacted 
        by a substance use disorder, including--
                  (A) nutrition education materials for 
                individuals with substance use disorder during 
                pregnancy and in the postpartum period; and
                  (B) nutrition education materials for infants 
                impacted by prenatal substance exposure and 
                neonatal abstinence syndrome.
          (4) Nutrition education clearinghouse.--The Secretary 
        shall make available to all State agencies through an 
        online clearinghouse any nutrition education and 
        training materials related to nutrition for individuals 
        impacted by a substance use disorder or neonatal 
        abstinence syndrome that have been produced by the 
        Secretary or the Secretary of Health and Human Services 
        (or produced by a State agency and approved by the 
        Secretary), including educational materials developed 
        under paragraph (15) of section 515(b) of the Public 
        Health Service Act (42 U.S.C. 290bb-21(b)) and guidance 
        issued under section 1005 of the SUPPORT for Patients 
        and Communities Act (42 U.S.C. 1396a note).
          (5) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $1,000,000 for fiscal year 2024, to remain 
        available until expended.

SEC. 19. TEAM NUTRITION NETWORK.

  (a) Purposes.--The purposes of the team nutrition network 
are--
          (1) to establish State systems to promote the 
        nutritional health of school children of the United 
        States through nutrition education and the use of team 
        nutrition messages and material developed by the 
        Secretary, and to encourage regular physical activity 
        and other activities that support healthy lifestyles 
        for children, including those based on 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);
          (2) to provide assistance to States for the 
        development of comprehensive and integrated nutrition 
        education and active living programs in schools and 
        facilities that participate in child nutrition 
        programs;
          (3) to provide training, including training on 
        scratch cooking, and technical assistance and 
        disseminate team nutrition messages to States, school 
        and community nutrition programs, and child nutrition 
        food service professionals;
          (4) to coordinate and collaborate with other 
        nutrition education and active living programs that 
        share similar goals and purposes; and
          (5) to identify and share innovative programs with 
        demonstrated effectiveness in [helping children to 
        maintain a healthy weight by] enhancing student 
        understanding of healthful eating patterns and the 
        importance of regular physical activity.
  (b) Definition of Team Nutrition Network.--In this section, 
the term ``team nutrition network'' means a statewide 
multidisciplinary program for children to promote healthy 
eating and physical activity based on scientifically valid 
information and sound educational, social, and marketing 
principles.
  (c) Grants.--
          (1) In general.--Subject to the availability of funds 
        for use in carrying out this section, in addition to 
        any other funds made available to the Secretary for 
        team nutrition purposes, the Secretary, in consultation 
        with the Secretary of Education, may make grants to 
        State agencies for each fiscal year, in accordance with 
        this section, to establish team nutrition networks to 
        promote nutrition education through--
                  (A) the use of team nutrition network 
                messages and other scientifically based 
                information; and
                  (B) the promotion of active lifestyles.
          (2) Form.--A portion of the grants provided under 
        this subsection may be in the form of competitive 
        grants.
          (3) Funds from nongovernmental sources.--In carrying 
        out this subsection, the Secretary may accept cash 
        contributions from nongovernmental organizations made 
        expressly to further the purposes of this section, to 
        be managed by the Food and Nutrition Service, for use 
        by the Secretary and the States in carrying out this 
        section.
  (d) Allocation.--Subject to the availability of funds for use 
in carrying out this section, the total amount of funds made 
available for a fiscal year for grants under this section shall 
equal not more than the sum of--
          (1) the product obtained by multiplying \1/2\ cent by 
        the number of lunches reimbursed through food service 
        programs under the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1751 et seq.) during the second 
        preceding fiscal year in schools, institutions, and 
        service institutions that participate in the food 
        service programs; and
          (2) the total value of funds received by the 
        Secretary in support of this section from 
        nongovernmental sources.
  (e) Requirements for State Participation.--To be eligible to 
receive a grant under this section, a State agency shall submit 
to the Secretary a plan that--
          (1) is subject to approval by the Secretary; and
          (2) is submitted at such time and in such manner, and 
        that contains such information, as the Secretary may 
        require, including--
                  (A) a description of the goals and proposed 
                State plan for addressing the health and other 
                consequences of children who are at risk of 
                becoming overweight or obese;
                  (B) an analysis of the means by which the 
                State agency will use and disseminate the team 
                nutrition messages and material developed by 
                the Secretary;
                  (C) an explanation of the ways in which the 
                State agency will use the funds from the grant 
                to work toward the goals required under 
                subparagraph (A), and to promote healthy eating 
                and physical activity and fitness in schools 
                throughout the State;
                  (D) a description of the ways in which the 
                State team nutrition network messages and 
                activities will be coordinated at the State 
                level with other health promotion and education 
                activities;
                  (E) a description of the consultative process 
                that the State agency employed in the 
                development of the model nutrition and physical 
                activity programs, including consultations with 
                individuals and organizations with expertise in 
                promoting public health, nutrition, or physical 
                activity;
                  (F) a description of how the State agency 
                will evaluate the effectiveness of each program 
                developed by the State agency;
                  (G) an annual summary of the team nutrition 
                network activities;
                  (H) a description of the ways in which the 
                total school environment will support healthy 
                eating and physical activity; and
                  (I) a description of how all communications 
                to parents and legal guardians of students who 
                are members of a household receiving or 
                applying for assistance under the program shall 
                be in an understandable and uniform format and, 
                to the maximum extent practicable, in a 
                language that parents and legal guardians can 
                understand.
  (f) State Coordinator.--Each State that receives a grant 
under this section shall appoint a team nutrition network 
coordinator who shall--
          (1) administer and coordinate the team nutrition 
        network within and across schools, school food 
        authorities, and other child nutrition program 
        providers in the State; and
          (2) coordinate activities of the Secretary, acting 
        through the Food and Nutrition Service, and State 
        agencies responsible for other children's health, 
        education, and wellness programs to implement a 
        comprehensive, coordinated team nutrition network 
        program.
  (g) Authorized Activities.--A State agency that receives a 
grant under this section may use funds from the grant--
          (1)(A) to collect, analyze, and disseminate data 
        regarding the extent to which children and youths in 
        the State are overweight, physically inactive, or 
        otherwise suffering from nutrition-related deficiencies 
        or disease conditions; and
          (B) to identify the programs and services available 
        to meet those needs;
          (2) to implement model elementary and secondary 
        education curricula using team nutrition network 
        messages and material developed by the Secretary to 
        create a comprehensive, coordinated nutrition and 
        physical fitness awareness and obesity prevention 
        program;
          (3) to implement pilot projects in schools to promote 
        physical activity and to enhance the nutritional status 
        of students;
          (4) to improve access to local foods through farm-to-
        cafeteria activities that may include the acquisition 
        of food and the provision of training and education;
          (5) to implement State guidelines in health 
        (including nutrition education and physical education 
        guidelines) and to emphasize regular physical activity 
        during school hours;
          (6) to establish healthy eating and lifestyle 
        policies in schools;
          (7) to provide training and technical assistance to 
        teachers and school food service professionals 
        consistent with the purposes of this section;
          (8) to collaborate with public and private 
        organizations, including community-based organizations, 
        State medical associations, and public health groups, 
        to develop and implement nutrition and physical 
        education programs targeting lower income children, 
        ethnic minorities, and youth at a greater risk for 
        obesity.
  (h) Local Nutrition and Physical Activity Grants.--
          (1) In general.--Subject to the availability of funds 
        to carry out this subsection, the Secretary, in 
        consultation with the Secretary of Education, shall 
        provide assistance to selected local educational 
        agencies to create healthy school nutrition 
        environments, promote healthy eating habits, and 
        increase physical activity, consistent with 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), among elementary and 
        secondary education students.
          (2) Selection of schools.--In selecting local 
        educational agencies for grants under this subsection, 
        the Secretary shall--
                  (A) provide for the equitable distribution of 
                grants among--
                          (i) urban, suburban, and rural 
                        schools; and
                          (ii) schools with varying family 
                        income levels;
                  (B) consider factors that affect need, 
                including local educational agencies with 
                significant minority or low-income student 
                populations; and
                  (C) establish a process that allows the 
                Secretary to conduct an evaluation of how funds 
                were used.
          (3) Requirement for participation.--To be eligible to 
        receive assistance under this subsection, a local 
        educational agency shall, in consultation with 
        individuals who possess education or experience 
        appropriate for representing the general field of 
        public health, including nutrition and fitness 
        professionals, submit to the Secretary an application 
        that shall include--
                  (A) a description of the need of the local 
                educational agency for a nutrition and physical 
                activity program, including an assessment of 
                the nutritional environment of the school;
                  (B) a description of how the proposed project 
                will improve health and nutrition through 
                education and increased access to physical 
                activity;
                  (C) a description of how the proposed project 
                will be aligned with the local wellness policy 
                required under section 204 of the Child 
                Nutrition and WIC Reauthorization Act of 2004;
                  (D) a description of how funds under this 
                subsection will be coordinated with other 
                programs under this Act, the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et 
                seq.), or other Acts, as appropriate, to 
                improve student health and nutrition;
                  (E) a statement of the measurable goals of 
                the local educational agency for nutrition and 
                physical education programs and promotion;
                  (F) a description of the procedures the 
                agency will use to assess and publicly report 
                progress toward meeting those goals; and
                  (G) a description of how communications to 
                parents and guardians of participating students 
                regarding the activities under this subsection 
                shall be in an understandable and uniform 
                format, and, to the extent maximum practicable, 
                in a language that parents can understand.
          (4) Duration.--Subject to the availability of funds 
        made available to carry out this subsection, a local 
        educational agency receiving assistance under this 
        subsection shall conduct the project during a period of 
        3 successive school years beginning with the initial 
        fiscal year for which the local educational agency 
        receives funds.
          (5) Authorized activities.--An eligible applicant 
        that receives assistance under this subsection--
                  (A) shall use funds provided to--
                          (i) promote healthy eating through 
                        the development and implementation of 
                        nutrition education programs and 
                        curricula based on 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); 
                        and
                          (ii) increase opportunities for 
                        physical activity through after school 
                        programs, athletics, intramural 
                        activities, and recess; and
                  (B) may use funds provided to--
                          (i) [educate] conduct evidence-based 
                        nutrition education for parents and 
                        students about the relationship [of a 
                        poor diet and inactivity to obesity and 
                        other health problems] between diet, 
                        activity, and health;
                          (ii) develop and implement physical 
                        education programs that promote fitness 
                        and lifelong activity;
                          (iii) provide training and technical 
                        assistance to food service 
                        professionals to develop more 
                        appealing, nutritious menus and 
                        recipes;
                          (iv) incorporate nutrition education 
                        into physical education, health 
                        education, other classroom education, 
                        and after school programs, including 
                        athletics;
                          (v) involve parents, nutrition 
                        professionals, food service staff, 
                        educators, community leaders, and other 
                        interested parties in assessing the 
                        food options in the school environment 
                        and developing and implementing an 
                        action plan to promote a balanced and 
                        healthy diet;
                          (vi) provide nutrient content or 
                        nutrition information on meals served 
                        through the school lunch program 
                        established under the Richard B. 
                        Russell National School Lunch Act (42 
                        U.S.C. 1751 et seq.) and the school 
                        breakfast program established by 
                        section 4 of this Act and items sold a 
                        la carte during meal times;
                          (vii) encourage the increased 
                        consumption of a variety of healthy 
                        foods, including fruits, vegetables, 
                        whole grains, and low-fat dairy 
                        products, through new initiatives to 
                        creatively market healthful foods, such 
                        as salad bars and fruit bars;
                          (viii) offer healthy food choices 
                        outside program meals, including by 
                        making low-fat and nutrient dense 
                        options available in vending machines, 
                        school stores, and other venues; [and]
                          (ix) provide nutrition education, 
                        including sports nutrition education, 
                        for teachers, coaches, food service 
                        staff, athletic trainers, and school 
                        nurses[.]; and
                          (x) conduct projects that--
                                  (I) hire qualified food and 
                                nutrition educators to carry 
                                out programs in schools; and
                                  (II) have the goal of 
                                improving student health and 
                                nutrition through such 
                                programs.
          [(6) Report.--Not later than 18 months after 
        completion of the projects and evaluations under this 
        subsection, the Secretary shall--
                  [(A) submit to the Committee on Education and 
                the Workforce of the House of Representatives 
                and the Committee on Health, Education, Labor, 
                and Pensions and the Committee on Agriculture, 
                Nutrition and Forestry of the Senate a report 
                describing the results of the evaluation under 
                this subsection; and
                  [(B) make the report available to the public, 
                including through the Internet.]
  (i) Nutrition Education Support.--In carrying out the purpose 
of this section to support nutrition education, the Secretary 
may provide for technical assistance and grants to improve the 
quality of school meals and access to local foods in schools 
and institutions.
  (j) Limitation.--Material prepared under this section 
regarding agricultural commodities, food, or beverages, must be 
factual and without bias.
  [(k) Team Nutrition Network Independent Evaluation.--
          [(1) In general.--Subject to the availability of 
        funds to carry out this subsection, the Secretary shall 
        offer to enter into an agreement with an independent, 
        nonpartisan, science-based research organization--
                  [(A) to conduct a comprehensive independent 
                evaluation of the effectiveness of the team 
                nutrition initiative and the team nutrition 
                network under this section; and
                  [(B) to identify best practices by schools 
                in--
                          [(i) improving student understanding 
                        of healthful eating patterns;
                          [(ii) engaging students in regular 
                        physical activity and improving 
                        physical fitness;
                          [(iii) reducing diabetes and obesity 
                        rates in school children;
                          [(iv) improving student nutrition 
                        behaviors on the school campus, 
                        including by increasing healthier meal 
                        choices by students, as evidenced by 
                        greater inclusion of fruits, 
                        vegetables, whole grains, and lean 
                        dairy and protein in meal and snack 
                        selections;
                          [(v) providing training and technical 
                        assistance for food service 
                        professionals resulting in the 
                        availability of healthy meals that 
                        appeal to ethnic and cultural taste 
                        preferences;
                          [(vi) linking meals programs to 
                        nutrition education activities;
                          [(vii) successfully involving 
                        parents, school administrators, the 
                        private sector, public health agencies, 
                        nonprofit organizations, and other 
                        community partners;
                          [(viii) ensuring the adequacy of time 
                        to eat during school meal periods; and
                          [(ix) successfully generating revenue 
                        through the sale of food items, while 
                        providing healthy options to students 
                        through vending, student stores, and 
                        other venues.
          [(2) Report.--Not later than 3 years after funds are 
        made available to carry out this subsection, the 
        Secretary shall submit to the Committee on Education 
        and the Workforce of the House of Representatives, the 
        Committee on Health, Education, Labor, and Pensions and 
        the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate a report describing the findings of the 
        independent evaluation.]
  [(l)] (k) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.

           *       *       *       *       *       *       *


SEC. 22. BILL EMERSON GOOD SAMARITAN FOOD DONATION ACT.

  (a) Short Title.--This section may be cited as the ``Bill 
Emerson Good Samaritan Food Donation Act''.
  (b) Definitions.--As used in this section:
          (1) Apparently fit grocery product.--The term 
        ``apparently fit grocery product'' means a grocery 
        product that meets all [quality and labeling] safety 
        and safety-related labeling standards imposed by 
        Federal, State, and local laws and regulations even 
        though the product may not be readily marketable due to 
        appearance, age, freshness, grade, size, surplus, being 
        past date label, or other conditions.
          (2) Apparently wholesome food.--The term ``apparently 
        wholesome food'' means food that meets all [quality and 
        labeling] safety and safety-related labeling standards 
        imposed by Federal, State, and local laws and 
        regulations even though the food may not be readily 
        marketable due to appearance, age, freshness, grade, 
        size, surplus, being past date label, or other 
        conditions.
          (3) Donate.--The term ``donate'' means to give 
        without requiring anything of monetary value from the 
        recipient, except that the term shall include giving by 
        a nonprofit organization to another nonprofit 
        organization, notwithstanding that the donor 
        organization has charged a nominal fee to the donee 
        organization, if the ultimate recipient or user is not 
        required to give anything of monetary value or is 
        charged a good Samaritan Reduced Price.
          (4) Emotional support animal.--The term ``emotional 
        support animal'' means an animal that is covered by the 
        exclusion specified in section 5.303 of title 24, Code 
        of Federal Regulations (or a successor regulation) and 
        that is not a service animal.
          [(4)] (5) Food.--The term ``food'' means any raw, 
        cooked, processed, or prepared edible substance, ice, 
        beverage, or ingredient used or intended for use in 
        whole or in part [for human] for--
                  (A) human consumption; or 
                  (B) pet, emotional support animal, or service 
                animal consumption.  consumption.
          [(5)] (6) Gleaner.--The term ``gleaner'' means a 
        person who harvests for free distribution to the needy, 
        or for donation to a nonprofit organization for 
        ultimate distribution to the needy, an agricultural 
        crop that has been donated by the owner.
          (7) Good samaritan reduced price.--The term ``good 
        Samaritan reduced price'' means, with respect to an 
        apparently wholesome food or an apparently fit grocery 
        product, a price that is an amount not greater than the 
        cost of handling, administering, and distributing such 
        food or grocery product.
          [(6)] (8) Grocery product.--The term ``grocery 
        product'' means a nonfood grocery product, including a 
        disposable paper or plastic product, household cleaning 
        product, pet supply, laundry detergent, cleaning 
        product, or miscellaneous household item.
          [(7)] (9) Gross negligence.--The term ``gross 
        negligence'' means voluntary and conscious conduct 
        (including a failure to act) by a person who, at the 
        time of the conduct, knew that the conduct was likely 
        to be harmful to the health or well-being of another 
        person.
          [(8)] (10) Intentional misconduct.--The term 
        ``intentional misconduct'' means conduct by a person 
        with knowledge (at the time of the conduct) that the 
        conduct is harmful to the health or well-being of 
        another person.
          [(9)] (11) Nonprofit organization.--The term 
        ``nonprofit organization'' means an incorporated or 
        unincorporated entity that--
                  (A) is operating for religious, charitable, 
                or educational purposes; and
                  (B) does not provide net earnings to, or 
                operate in any other manner that inures to the 
                benefit of, any officer, employee, or 
                shareholder of the entity.
          [(10)] (12) Person.--The term ``person'' means an 
        individual, corporation, partnership, organization, 
        association, or governmental entity, including a retail 
        grocer, wholesaler, hotel, motel, manufacturer, 
        restaurant, caterer, farmer, pet food supplier, school, 
        school food authority, and nonprofit food distributor 
        or hospital. In the case of a corporation, partnership, 
        organization, association, or governmental entity, the 
        term includes an officer, director, partner, deacon, 
        trustee, council member, or other elected or appointed 
        individual responsible for the governance of the 
        entity.
          (13) Pet.--The term ``pet'' means a domesticated 
        animal that is kept for pleasure rather than for 
        commercial purposes.
          (14) Pet supplies.--The term ``pet supplies'' means 
        tangible personal property used for the caring of pets.
          (15) Qualified direct donor.--The term ``qualified 
        direct donor'' means a retail grocer, wholesaler, 
        agricultural producer, restaurant, caterer, school food 
        authority, or institution of higher education (as 
        defined in section 101 or 102(a)(1)(B) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001; 1002(a)(1)(B))).
          (16) Service animal.--The term ``service animal'' has 
        the meaning given the term in section 36.104 of title 
        28, Code of Federal Regulations (or a successor 
        regulation).
  (c) Liability for Damages From Donated Food and Grocery 
Products.--
          (1) Liability of person or gleaner.--A person or 
        gleaner shall not be subject to civil or criminal 
        liability arising from the nature, age, packaging, or 
        condition of apparently wholesome food or an apparently 
        fit grocery product that the person or gleaner donates 
        in good faith to a nonprofit organization or State or 
        unit of local government for ultimate distribution or 
        sale at a good Samaritan reduced price to needy 
        individuals.
          (2) Liability of nonprofit organization.--A nonprofit 
        organization shall not be subject to civil or criminal 
        liability arising from the nature, age, packaging, or 
        condition of apparently wholesome food or an apparently 
        fit grocery product that the nonprofit organization 
        received as a donation in good faith from a person or 
        gleaner for ultimate distribution or sale at a good 
        Samaritan reduced price to needy individuals.
          [(3)] (6) Exception.--[Paragraphs (1) and (2)] 
        Paragraphs (1), (2), (3), (4), and (5) shall not apply 
        to an injury to or death of an ultimate user or 
        recipient of the food or grocery product that results 
        from an act or omission of the person, gleaner, 
        qualified direct donor, State or local government, or 
        nonprofit organization, as applicable, constituting 
        gross negligence or intentional misconduct.
          (3) Liability of state or unit of local government.--
        A State or unit of local government shall not be 
        subject to liability arising from the nature, age, 
        packaging, or condition of apparently wholesome food or 
        an apparently fit grocery product that the State or 
        unit of local government received as a donation in good 
        faith from a person, gleaner, or nonprofit organization 
        for ultimate distribution to needy individuals.
          (4) Direct donations to needy individuals.--A 
        qualified direct donor shall not be subject to civil or 
        criminal liability arising from the nature, age, 
        packaging, or condition of apparently wholesome food or 
        an apparently fit grocery product that the qualified 
        direct donor donates in good faith to needy 
        individuals.
          (5) Liability with respect to pets.--
                  (A) Donations made.--A person or gleaner 
                shall not be subject to civil or criminal 
                liability arising from the nature, age, 
                packaging, or condition of food described in 
                subsection (b)(4)(B) or pet supplies that the 
                person or gleaner donates in good faith to a 
                nonprofit organization or State or unit of 
                local government for direct distribution to 
                pets.
                  (B) Donations received.--A nonprofit 
                organization or State or unit of local 
                government shall not be subject to civil or 
                criminal liability arising from the nature, 
                age, packaging, or condition of food described 
                in subsection (b)(4)(B) or pet supplies that 
                the nonprofit organization or State or unit of 
                local government received as a donation in good 
                faith from a person or gleaner for direct 
                distribution to pets.
  (d) Collection or Gleaning of Donations.--A person who allows 
the collection or gleaning of donations on property owned or 
occupied by the person by gleaners, or paid or unpaid 
representatives of a nonprofit organization, for ultimate 
distribution to needy individuals shall not be subject to civil 
or criminal liability that arises due to the injury or death of 
the gleaner or representative, except that this paragraph shall 
not apply to an injury or death that results from an act or 
omission of the person constituting gross negligence or 
intentional misconduct.
  (e) Partial Compliance.--If some or all of the donated food 
and grocery products do not meet all [quality and labeling] 
safety and safety-related labeling standards imposed by 
Federal, State, and local laws and regulations, the person or 
gleaner who donates the food and grocery products shall not be 
subject to civil or criminal liability in accordance with this 
section if the nonprofit organization or State or unit of local 
government that receives the donated food or grocery products--
          (1) is informed by the donor of the distressed or 
        defective condition of the donated food or grocery 
        products;
          (2) agrees to recondition the donated food or grocery 
        products to comply with all the [quality and labeling] 
        safety and safety-related labeling standards prior to 
        distribution; and
          (3) is knowledgeable of the standards to properly 
        recondition the donated food or grocery product.
  (f) Construction.--This section shall not be construed to 
create any liability. Nothing in this section shall be 
construed to supercede State or local health regulations.

           *       *       *       *       *       *       *

                              ----------                              


                          SOCIAL SECURITY ACT

TITLE XIX--GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *


                   STATE PLANS FOR MEDICAL ASSISTANCE

  Sec. 1902. (a) A State plan for medical assistance must--
          (1) provide that it shall be in effect in all 
        political subdivisions of the State, and, if 
        administered by them, be mandatory upon them;
          (2) provide for financial participation by the State 
        equal to not less than 40 per centum of the non-Federal 
        share of the expenditures under the plan with respect 
        to which payments under section 1903 are authorized by 
        this title; and, effective July 1, 1969, provide for 
        financial participation by the State equal to all of 
        such non-Federal share or provide for distribution of 
        funds from Federal or State sources, for carrying out 
        the State plan, on an equalization or other basis which 
        will assure that the lack of adequate funds from local 
        sources will not result in lowering the amount, 
        duration, scope, or quality of care and services 
        available under the plan;
          (3) provide for granting an opportunity for a fair 
        hearing before the State agency to any individual whose 
        claim for medical assistance under the plan is denied 
        or is not acted upon with reasonable promptness;
          (4) provide (A) such methods of administration 
        (including methods relating to the establishment and 
        maintenance of personnel standards on a merit basis, 
        except that the Secretary shall exercise no authority 
        with respect to the selection, tenure of office, and 
        compensation of any individual employed in accordance 
        with such methods, including provision for utilization 
        of professional medical personnel in the administration 
        and, where administered locally, supervision of 
        administration of the plan, and, subject to section 
        1903(i), including a specification that the single 
        State agency described in paragraph (5) will ensure 
        necessary transportation for beneficiaries under the 
        State plan to and from providers and a description of 
        the methods that such agency will use to ensure such 
        transportation) as are found by the Secretary to be 
        necessary for the proper and efficient operation of the 
        plan, (B) for the training and effective use of paid 
        subprofessional staff, with particular emphasis on the 
        full-time or part-time employment of recipients and 
        other persons of low income, as community service 
        aides, in the administration of the plan and for the 
        use of nonpaid or partially paid volunteers in a social 
        service volunteer program in providing services to 
        applicants and recipients and in assisting any advisory 
        committees established by the State agency, (C) that 
        each State or local officer, employee, or independent 
        contractor who is responsible for the expenditure of 
        substantial amounts of funds under the State plan, each 
        individual who formerly was such an officer, employee, 
        or contractor, and each partner of such an officer, 
        employee, or contractor shall be prohibited from 
        committing any act, in relation to any activity under 
        the plan, the commission of which, in connection with 
        any activity concerning the United States Government, 
        by an officer or employee of the United States 
        Government, an individual who was such an officer or 
        employee, or a partner of such an officer or employee 
        is prohibited by section 207 or 208 of title 18, United 
        States Code, and (D) that each State or local officer, 
        employee, or independent contractor who is responsible 
        for selecting, awarding, or otherwise obtaining items 
        and services under the State plan shall be subject to 
        safeguards against conflicts of interest that are at 
        least as stringent as the safeguards that apply under 
        section 27 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 423) to persons described in subsection 
        (a)(2) of such section of that Act;
          (5) either provide for the establishment or 
        designation of a single State agency to administer or 
        to supervise the administration of the plan; or provide 
        for the establishment or designation of a single State 
        agency to administer or to supervise the administration 
        of the plan, except that the determination of 
        eligibility for medical assistance under the plan shall 
        be made by the State or local agency administering the 
        State plan approved under title I or XVI (insofar as it 
        relates to the aged) if the State is eligible to 
        participate in the State plan program established under 
        title XVI, or by the agency or agencies administering 
        the supplemental security income program established 
        under title XVI or the State plan approved under part A 
        of title IV if the State is not eligible to participate 
        in the State plan program established under title XVI;
          (6) provide that the State agency will make such 
        reports, in such form and containing such information, 
        as the Secretary may from time to time require, and 
        comply with such provisions as the Secretary may from 
        time to time find necessary to assure the correctness 
        and verification of such reports;
          (7) provide--
                  (A) safeguards which restrict the use or 
                disclosure of information concerning applicants 
                and recipients to purposes directly connected 
                with--
                          (i) the administration of the plan; 
                        and
                          (ii) the exchange of information 
                        necessary to certify or verify the 
                        certification of eligibility of 
                        children for free or reduced price 
                        breakfasts under the Child Nutrition 
                        Act of 1966 and free or reduced price 
                        lunches under the Richard B. Russell 
                        National School Lunch Act, in 
                        accordance with section 9(b) of that 
                        Act, using data standards and formats 
                        established by the State agency; and
                  (B) that, notwithstanding the Express Lane 
                option under subsection (e)(13), the State may 
                enter into an agreement with the State agency 
                administering the school lunch program 
                established under the Richard B. Russell 
                National School Lunch Act under which the State 
                shall establish procedures to ensure that--
                          (i) a child receiving medical 
                        assistance under the State plan under 
                        this title whose family income does not 
                        exceed 133 percent of the poverty line 
                        (as defined in section 673(2) of the 
                        Community Services Block Grant Act, 
                        including any revision required by such 
                        section), as determined without regard 
                        to any expense, block, or other income 
                        disregard, applicable to a family of 
                        the size involved, may be certified as 
                        eligible for free lunches under the 
                        Richard B. Russell National School 
                        Lunch Act and free breakfasts under the 
                        Child Nutrition Act of 1966 without 
                        further application; and
                          (ii) the State agencies responsible 
                        for administering the State plan under 
                        this title, and for carrying out the 
                        school lunch program established under 
                        the Richard B. Russell National School 
                        Lunch Act (42 U.S.C. 1751 et seq.) or 
                        the school breakfast program 
                        established by section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773), 
                        cooperate in carrying out paragraphs 
                        (3)(F) and (15) of section 9(b) of that 
                        Act;
          (8) provide that all individuals wishing to make 
        application for medical assistance under the plan shall 
        have opportunity to do so, and that such assistance 
        shall be furnished with reasonable promptness to all 
        eligible individuals;
          (9) provide--
                  (A) that the State health agency, or other 
                appropriate State medical agency (whichever is 
                utilized by the Secretary for the purpose 
                specified in the first sentence of section 
                1864(a)), shall be responsible for establishing 
                and maintaining health standards for private or 
                public institutions in which recipients of 
                medical assistance under the plan may receive 
                care or services,
                  (B) for the establishment or designation of a 
                State authority or authorities which shall be 
                responsible for establishing and maintaining 
                standards, other than those relating to health, 
                for such institutions,
                  (C) that any laboratory services paid for 
                under such plan must be provided by a 
                laboratory which meets the applicable 
                requirements of section 1861(e)(9) or 
                paragraphs (16) and (17) of section 1861(s), 
                or, in the case of a laboratory which is in a 
                rural health clinic, of section 1861(aa)(2)(G), 
                and
                  (D) that the State maintain a consumer-
                oriented website providing useful information 
                to consumers regarding all skilled nursing 
                facilities and all nursing facilities in the 
                State, including for each facility, Form 2567 
                State inspection reports (or a successor form), 
                complaint investigation reports, the facility's 
                plan of correction, and such other information 
                that the State or the Secretary considers 
                useful in assisting the public to assess the 
                quality of long term care options and the 
                quality of care provided by individual 
                facilities;
          (10) provide--
                  (A) for making medical assistance available, 
                including at least the care and services listed 
                in paragraphs (1) through (5), (17), (21), 
                (28), (29), and (30) of section 1905(a), to--
                          (i) all individuals--
                                  (I) who are receiving aid or 
                                assistance under any plan of 
                                the State approved under title 
                                I, X, XIV, or XVI, or part A or 
                                part E of title IV (including 
                                individuals eligible under this 
                                title by reason of section 
                                402(a)(37), 406(h), or 473(b), 
                                or considered by the State to 
                                be receiving such aid as 
                                authorized under section 
                                482(e)(6)),
                                  (II)(aa) with respect to whom 
                                supplemental security income 
                                benefits are being paid under 
                                title XVI (or were being paid 
                                as of the date of the enactment 
                                of section 211(a) of the 
                                Personal Responsibility and 
                                Work Opportunity Reconciliation 
                                Act of 1996 (P.L. 104-193) and 
                                would continue to be paid but 
                                for the enactment of that 
                                section), (bb) who are 
                                qualified severely impaired 
                                individuals (as defined in 
                                section 1905(q)), or (cc) who 
                                are under 21 years of age and 
                                with respect to whom 
                                supplemental security income 
                                benefits would be paid under 
                                title XVI if subparagraphs (A) 
                                and (B) of section 1611(c)(7) 
                                were applied without regard to 
                                the phrase ``the first day of 
                                the month following'',
                                  (III) who are qualified 
                                pregnant women or children as 
                                defined in section 1905(n),
                                  (IV) who are described in 
                                subparagraph (A) or (B) of 
                                subsection (l)(1) and whose 
                                family income does not exceed 
                                the minimum income level the 
                                State is required to establish 
                                under subsection (l)(2)(A) for 
                                such a family;
                                  (V) who are qualified family 
                                members as defined in section 
                                1905(m)(1),
                                  (VI) who are described in 
                                subparagraph (C) of subsection 
                                (l)(1) and whose family income 
                                does not exceed the income 
                                level the State is required to 
                                establish under subsection 
                                (l)(2)(B) for such a family,
                                  (VII) who are described in 
                                subparagraph (D) of subsection 
                                (l)(1) and whose family income 
                                does not exceed the income 
                                level the State is required to 
                                establish under subsection 
                                (l)(2)(C) for such a family;
                                  (VIII) beginning January 1, 
                                2014, who are under 65 years of 
                                age, not pregnant, not entitled 
                                to, or enrolled for, benefits 
                                under part A of title XVIII, or 
                                enrolled for benefits under 
                                part B of title XVIII, and are 
                                not described in a previous 
                                subclause of this clause, and 
                                whose income (as determined 
                                under subsection (e)(14)) does 
                                not exceed 133 percent of the 
                                poverty line (as defined in 
                                section 2110(c)(5)) applicable 
                                to a family of the size 
                                involved, subject to subsection 
                                (k); or
                                  (IX) who--
                                          (aa) are under 26 
                                        years of age;
                                          (bb) are not 
                                        described in or 
                                        enrolled under any of 
                                        subclauses (I) through 
                                        (VII) of this clause or 
                                        are described in any of 
                                        such subclauses but 
                                        have income that 
                                        exceeds the level of 
                                        income applicable under 
                                        the State plan for 
                                        eligibility to enroll 
                                        for medical assistance 
                                        under such subclause;
                                          (cc) were in foster 
                                        care under the 
                                        responsibility of the 
                                        State on the date of 
                                        attaining 18 years of 
                                        age or such higher age 
                                        as the State has 
                                        elected under section 
                                        475(8)(B)(iii); and
                                          (dd) were enrolled in 
                                        the State plan under 
                                        this title or under a 
                                        waiver of the plan 
                                        while in such foster 
                                        care;
=======================================================================


[Note: Section 1002(a)(1) of Public Law 115-271 provides for 
amendments to section 1902(a)(10)(A)(i)(IX). Paragraph (2) of 
such section provides: ``The amendments made by this subsection 
shall take effect with respect to foster youth who attain 18 
years of age on or after January 1, 2023.''. Upon such date, 
section 1902(a)(10)(A)(i)(IX) (as so amended) reads as 
follows:]

                                  (IX) who--
                                          (aa) are under 26 
                                        years of age;
                                          (bb) are not 
                                        described in and are 
                                        not enrolled under any 
                                        of subclauses (I) 
                                        through (VII) of this 
                                        clause or are described 
                                        in any of such 
                                        subclauses but have 
                                        income that exceeds the 
                                        level of income 
                                        applicable under the 
                                        State plan for 
                                        eligibility to enroll 
                                        for medical assistance 
                                        under such subclause;
                                          (cc) were in foster 
                                        care under the 
                                        responsibility of a 
                                        State on the date of 
                                        attaining 18 years of 
                                        age or such higher age 
                                        as the State has 
                                        elected under section 
                                        475(8)(B)(iii); and
                                          (dd) were enrolled in 
                                        a State plan under this 
                                        title or under a waiver 
                                        of such a plan while in 
                                        such foster care;
=======================================================================

                          (ii) at the option of the State, to 
                        any group or groups of individuals 
                        described in section 1905(a) (or, in 
                        the case of individuals described in 
                        section 1905(a)(i), to any reasonable 
                        categories of such individuals) who are 
                        not individuals described in clause (i) 
                        of this subparagraph but--
                                  (I) who meet the income and 
                                resources requirements of the 
                                appropriate State plan 
                                described in clause (i) or the 
                                supplemental security income 
                                program (as the case may be),
                                  (II) who would meet the 
                                income and resources 
                                requirements of the appropriate 
                                State plan described in clause 
                                (i) if their work-related child 
                                care costs were paid from their 
                                earnings rather than by a State 
                                agency as a service 
                                expenditure,
                                  (III) who would be eligible 
                                to receive aid under the 
                                appropriate State plan 
                                described in clause (i) if 
                                coverage under such plan was as 
                                broad as allowed under Federal 
                                law,
                                  (IV) with respect to whom 
                                there is being paid, or who are 
                                eligible, or would be eligible 
                                if they were not in a medical 
                                institution, to have paid with 
                                respect to them, aid or 
                                assistance under the 
                                appropriate State plan 
                                described in clause (i), 
                                supplemental security income 
                                benefits under title XVI, or a 
                                State supplementary payment;
                                  (V) who are in a medical 
                                institution for a period of not 
                                less than 30 consecutive days 
                                (with eligibility by reason of 
                                this subclause beginning on the 
                                first day of such period), who 
                                meet the resource requirements 
                                of the appropriate State plan 
                                described in clause (i) or the 
                                supplemental security income 
                                program, and whose income does 
                                not exceed a separate income 
                                standard established by the 
                                State which is consistent with 
                                the limit established under 
                                section 1903(f)(4)(C),
                                  (VI) who would be eligible 
                                under the State plan under this 
                                title if they were in a medical 
                                institution, with respect to 
                                whom there has been a 
                                determination that but for the 
                                provision of home or community-
                                based services described in 
                                subsection (c), (d), or (e) of 
                                section 1915 they would require 
                                the level of care provided in a 
                                hospital, nursing facility or 
                                intermediate care facility for 
                                the mentally retarded the cost 
                                of which could be reimbursed 
                                under the State plan, and who 
                                will receive home or community-
                                based services pursuant to a 
                                waiver granted by the Secretary 
                                under subsection (c), (d), or 
                                (e) of section 1915,
                                  (VII) who would be eligible 
                                under the State plan under this 
                                title if they were in a medical 
                                institution, who are terminally 
                                ill, and who will receive 
                                hospice care pursuant to a 
                                voluntary election described in 
                                section 1905(o);
                                  (VIII) who is a child 
                                described in section 
                                1905(a)(i)--
                                          (aa) for whom there 
                                        is in effect an 
                                        adoption assistance 
                                        agreement (other than 
                                        an agreement under part 
                                        E of title IV) between 
                                        the State and an 
                                        adoptive parent or 
                                        parents,
                                          (bb) who the State 
                                        agency responsible for 
                                        adoption assistance has 
                                        determined cannot be 
                                        placed with adoptive 
                                        parents without medical 
                                        assistance because such 
                                        child has special needs 
                                        for medical or 
                                        rehabilitative care, 
                                        and
                                          (cc) who was eligible 
                                        for medical assistance 
                                        under the State plan 
                                        prior to the adoption 
                                        assistance agreement 
                                        being entered into, or 
                                        who would have been 
                                        eligible for medical 
                                        assistance at such time 
                                        if the eligibility 
                                        standards and 
                                        methodologies of the 
                                        State's foster care 
                                        program under part E of 
                                        title IV were applied 
                                        rather than the 
                                        eligibility standards 
                                        and methodologies of 
                                        the State's aid to 
                                        families with dependent 
                                        children program under 
                                        part A of title IV;
                                  (IX) who are described in 
                                subsection (l)(1) and are not 
                                described in clause (i)(IV), 
                                clause (i)(VI), or clause 
                                (i)(VII);
                                  (X) who are described in 
                                subsection (m)(1);
                                  (XI) who receive only an 
                                optional State supplementary 
                                payment based on need and paid 
                                on a regular basis, equal to 
                                the difference between the 
                                individual's countable income 
                                and the income standard used to 
                                determine eligibility for such 
                                supplementary payment (with 
                                countable income being the 
                                income remaining after 
                                deductions as established by 
                                the State pursuant to standards 
                                that may be more restrictive 
                                than the standards for 
                                supplementary security income 
                                benefits under title XVI), 
                                which are available to all 
                                individuals in the State (but 
                                which may be based on different 
                                income standards by political 
                                subdivision according to cost 
                                of living differences), and 
                                which are paid by a State that 
                                does not have an agreement with 
                                the Commissioner of Social 
                                Security under section 1616 or 
                                1634;
                                  (XII) who are described in 
                                subsection (z)(1) (relating to 
                                certain TB-infected 
                                individuals);
                                  (XIII) who are in families 
                                whose income is less than 250 
                                percent of the income official 
                                poverty line (as defined by the 
                                Office of Management and 
                                Budget, and revised annually in 
                                accordance with section 673(2) 
                                of the Omnibus Budget 
                                Reconciliation Act of 1981) 
                                applicable to a family of the 
                                size involved, and who but for 
                                earnings in excess of the limit 
                                established under section 
                                1905(q)(2)(B), would be 
                                considered to be receiving 
                                supplemental security income 
                                (subject, notwithstanding 
                                section 1916, to payment of 
                                premiums or other cost-sharing 
                                charges (set on a sliding scale 
                                based on income) that the State 
                                may determine);
                                  (XIV) who are optional 
                                targeted low-income children 
                                described in section 
                                1905(u)(2)(B);
                                  (XV) who, but for earnings in 
                                excess of the limit established 
                                under section 1905(q)(2)(B), 
                                would be considered to be 
                                receiving supplemental security 
                                income, who is at least 16, but 
                                less than 65, years of age, and 
                                whose assets, resources, and 
                                earned or unearned income (or 
                                both) do not exceed such 
                                limitations (if any) as the 
                                State may establish;
                                  (XVI) who are employed 
                                individuals with a medically 
                                improved disability described 
                                in section 1905(v)(1) and whose 
                                assets, resources, and earned 
                                or unearned income (or both) do 
                                not exceed such limitations (if 
                                any) as the State may 
                                establish, but only if the 
                                State provides medical 
                                assistance to individuals 
                                described in subclause (XV);
                                  (XVII) who are independent 
                                foster care adolescents (as 
                                defined in section 1905(w)(1)), 
                                or who are within any 
                                reasonable categories of such 
                                adolescents specified by the 
                                State;
                                  (XVIII) who are described in 
                                subsection (aa) (relating to 
                                certain breast or cervical 
                                cancer patients);
                                  (XIX) who are disabled 
                                children described in 
                                subsection (cc)(1);
                                  (XX) beginning January 1, 
                                2014, who are under 65 years of 
                                age and are not described in or 
                                enrolled under a previous 
                                subclause of this clause, and 
                                whose income (as determined 
                                under subsection (e)(14)) 
                                exceeds 133 percent of the 
                                poverty line (as defined in 
                                section 2110(c)(5)) applicable 
                                to a family of the size 
                                involved but does not exceed 
                                the highest income eligibility 
                                level established under the 
                                State plan or under a waiver of 
                                the plan, subject to subsection 
                                (hh);
                                  (XXI) who are described in 
                                subsection (ii) (relating to 
                                individuals who meet certain 
                                income standards);
                                  (XXII) who are eligible for 
                                home and community-based 
                                services under needs-based 
                                criteria established under 
                                paragraph (1)(A) of section 
                                1915(i), or who are eligible 
                                for home and community-based 
                                services under paragraph (6) of 
                                such section, and who will 
                                receive home and community-
                                based services pursuant to a 
                                State plan amendment under such 
                                subsection; or
                                  (XXIII) during any portion of 
                                the emergency period defined in 
                                paragraph (1)(B) of section 
                                1135(g) beginning on or after 
                                the date of the enactment of 
                                this subclause, who are 
                                uninsured individuals (as 
                                defined in subsection (ss));
                  (B) that the medical assistance made 
                available to any individual described in 
                subparagraph (A)--
                          (i) shall not be less in amount, 
                        duration, or scope than the medical 
                        assistance made available to any other 
                        such individual, and
                          (ii) shall not be less in amount, 
                        duration, or scope than the medical 
                        assistance made available to 
                        individuals not described in 
                        subparagraph (A);
                  (C) that if medical assistance is included 
                for any group of individuals described in 
                section 1905(a) who are not described in 
                subparagraph (A) or (E), then--
                          (i) the plan must include a 
                        description of (I) the criteria for 
                        determining eligibility of individuals 
                        in the group for such medical 
                        assistance, (II) the amount, duration, 
                        and scope of medical assistance made 
                        available to individuals in the group, 
                        and (III) the single standard to be 
                        employed in determining income and 
                        resource eligibility for all such 
                        groups, and the methodology to be 
                        employed in determining such 
                        eligibility, which shall be no more 
                        restrictive than the methodology which 
                        would be employed under the 
                        supplemental security income program in 
                        the case of groups consisting of aged, 
                        blind, or disabled individuals in a 
                        State in which such program is in 
                        effect, and which shall be no more 
                        restrictive than the methodology which 
                        would be employed under the appropriate 
                        State plan (described in subparagraph 
                        (A)(i)) to which such group is most 
                        closely categorically related in the 
                        case of other groups;
                          (ii) the plan must make available 
                        medical assistance--
                                  (I) to individuals under the 
                                age of 18 who (but for income 
                                and resources) would be 
                                eligible for medical assistance 
                                as an individual described in 
                                subparagraph (A)(i), and
                                  (II) to pregnant women, 
                                during the course of their 
                                pregnancy, who (but for income 
                                and resources) would be 
                                eligible for medical assistance 
                                as an individual described in 
                                subparagraph (A);
                          (iii) such medical assistance must 
                        include (I) with respect to children 
                        under 18 and individuals entitled to 
                        institutional services, ambulatory 
                        services, and (II) with respect to 
                        pregnant women, prenatal care and 
                        delivery services; and
                          (iv) if such medical assistance 
                        includes services in institutions for 
                        mental diseases or in an intermediate 
                        care facility for the mentally retarded 
                        (or both) for any such group, it also 
                        must include for all groups covered at 
                        least the care and services listed in 
                        paragraphs (1) through (5) and (17) of 
                        section 1905(a) or the care and 
                        services listed in any 7 of the 
                        paragraphs numbered (1) through (24) of 
                        such section;
                  (D) for the inclusion of home health services 
                for any individual who, under the State plan, 
                is entitled to nursing facility services;
                  (E)(i) for making medical assistance 
                available for medicare cost-sharing (as defined 
                in section 1905(p)(3)) for qualified medicare 
                beneficiaries described in section 1905(p)(1);
                  (ii) for making medical assistance available 
                for payment of medicare cost-sharing described 
                in section 1905(p)(3)(A)(i) for qualified 
                disabled and working individuals described in 
                section 1905(s);
                  (iii) for making medical assistance available 
                for medicare cost sharing described in section 
                1905(p)(3)(A)(ii) subject to section 
                1905(p)(4), for individuals who would be 
                qualified medicare beneficiaries described in 
                section 1905(p)(1) (including such individuals 
                enrolled under section 1836(b)) but for the 
                fact that their income exceeds the income level 
                established by the State under section 
                1905(p)(2) but is less than 110 percent in 1993 
                and 1994, and 120 percent in 1995 and years 
                thereafter of the official poverty line 
                (referred to in such section) for a family of 
                the size involved; and
                  (iv) subject to sections 1933 and 1905(p)(4), 
                for making medical assistance available for 
                medicare cost-sharing described in section 
                1905(p)(3)(A)(ii) for individuals who would be 
                qualified medicare beneficiaries described in 
                section 1905(p)(1) (including such individuals 
                enrolled under section 1836(b)) but for the 
                fact that their income exceeds the income level 
                established by the State under section 
                1905(p)(2) and is at least 120 percent, but 
                less than 135 percent, of the official poverty 
                line (referred to in such section) for a family 
                of the size involved and who are not otherwise 
                eligible for medical assistance under the State 
                plan;
                  (F) at the option of a State, for making 
                medical assistance available for COBRA premiums 
                (as defined in subsection (u)(2)) for qualified 
                COBRA continuation beneficiaries described in 
                section 1902(u)(1); and
                  (G) that, in applying eligibility criteria of 
                the supplemental security income program under 
                title XVI for purposes of determining 
                eligibility for medical assistance under the 
                State plan of an individual who is not 
                receiving supplemental security income, the 
                State will disregard the provisions of 
                subsections (c) and (e) of section 1613;
        except that (I) the making available of the services 
        described in paragraph (4), (14), or (16) of section 
        1905(a) to individuals meeting the age requirements 
        prescribed therein shall not, by reason of this 
        paragraph (10), require the making available of any 
        such services, or the making available of such services 
        of the same amount, duration, and scope, to individuals 
        of any other ages, (II) the making available of 
        supplementary medical insurance benefits under part B 
        of title XVIII to individuals eligible therefor (either 
        pursuant to an agreement entered into under section 
        1843 or by reason of the payment of premiums under such 
        title by the State agency on behalf of such 
        individuals), or provision for meeting part or all of 
        the cost of deductibles, cost sharing, or similar 
        charges under part B of title XVIII for individuals 
        eligible for benefits under such part, shall not, by 
        reason of this paragraph (10), require the making 
        available of any such benefits, or the making available 
        of services of the same amount, duration, and scope, to 
        any other individuals, (III) the making available of 
        medical assistance equal in amount, duration, and scope 
        to the medical assistance made available to individuals 
        described in clause (A) to any classification of 
        individuals approved by the Secretary with respect to 
        whom there is being paid, or who are eligible, or would 
        be eligible if they were not in a medical institution, 
        to have paid with respect to them, a State 
        supplementary payment shall not, by reason of this 
        paragraph (10), require the making available of any 
        such assistance, or the making available of such 
        assistance of the same amount, duration, and scope, to 
        any other individuals not described in clause (A), (IV) 
        the imposition of a deductible, cost sharing, or 
        similar charge for any item or service furnished to an 
        individual not eligible for the exemption under section 
        1916(a)(2) or (b)(2) shall not require the imposition 
        of a deductible, cost sharing, or similar charge for 
        the same item or service furnished to an individual who 
        is eligible for such exemption, (V) the making 
        available to pregnant women covered under the plan of 
        services relating to pregnancy (including prenatal, 
        delivery, and postpartum services) or to any other 
        condition which may complicate pregnancy shall not, by 
        reason of this paragraph (10), require the making 
        available of such services, or the making available of 
        such services of the same amount, duration, and scope, 
        to any other individuals, provided such services are 
        made available (in the same amount, duration, and 
        scope) to all pregnant women covered under the State 
        plan, (VI) with respect to the making available of 
        medical assistance for hospice care to terminally ill 
        individuals who have made a voluntary election 
        described in section 1905(o) to receive hospice care 
        instead of medical assistance for certain other 
        services, such assistance may not be made available in 
        an amount, duration, or scope less than that provided 
        under title XVIII, and the making available of such 
        assistance shall not, by reason of this paragraph (10), 
        require the making available of medical assistance for 
        hospice care to other individuals or the making 
        available of medical assistance for services waived by 
        such terminally ill individuals, (VII) the medical 
        assistance made available to an individual described in 
        subsection (l)(1)(A) who is eligible for medical 
        assistance only because of subparagraph (A)(i)(IV) or 
        (A)(ii)(IX) shall be limited to medical assistance for 
        services related to pregnancy (including prenatal, 
        delivery, postpartum, and family planning services), 
        medical assistance for services related to other 
        conditions which may complicate pregnancy, and medical 
        assistance for vaccines described in section 
        1905(a)(4)(E) and the administration of such vaccines 
        during the period described in such section, (VIII) the 
        medical assistance made available to a qualified 
        medicare beneficiary described in section 1905(p)(1) 
        who is only entitled to medical assistance because the 
        individual is such a beneficiary shall be limited to 
        medical assistance for medicare cost-sharing (described 
        in section 1905(p)(3)), subject to the provisions of 
        subsection (n) and section 1916(b), (IX) the making 
        available of respiratory care services in accordance 
        with subsection (e)(9) shall not, by reason of this 
        paragraph (10), require the making available of such 
        services, or the making available of such services of 
        the same amount, duration, and scope, to any 
        individuals not included under subsection (e)(9)(A), 
        provided such services are made available (in the same 
        amount, duration, and scope) to all individuals 
        described in such subsection, (X) if the plan provides 
        for any fixed durational limit on medical assistance 
        for inpatient hospital services (whether or not such a 
        limit varies by medical condition or diagnosis), the 
        plan must establish exceptions to such a limit for 
        medically necessary inpatient hospital services 
        furnished with respect to individuals under one year of 
        age in a hospital defined under the State plan, 
        pursuant to section 1923(a)(1)(A), as a 
        disproportionate share hospital and subparagraph (B) 
        (relating to comparability) shall not be construed as 
        requiring such an exception for other individuals, 
        services, or hospitals, (XI) the making available of 
        medical assistance to cover the costs of premiums, 
        deductibles, coinsurance, and other cost-sharing 
        obligations for certain individuals for private health 
        coverage as described in section 1906 shall not, by 
        reason of paragraph (10), require the making available 
        of any such benefits or the making available of 
        services of the same amount, duration, and scope of 
        such private coverage to any other individuals, (XII) 
        the medical assistance made available to an individual 
        described in subsection (u)(1) who is eligible for 
        medical assistance only because of subparagraph (F) 
        shall be limited to medical assistance for COBRA 
        continuation premiums (as defined in subsection 
        (u)(2)), (XIII) the medical assistance made available 
        to an individual described in subsection (z)(1) who is 
        eligible for medical assistance only because of 
        subparagraph (A)(ii)(XII) shall be limited to medical 
        assistance for TB-related services (described in 
        subsection (z)(2)) and medical assistance for vaccines 
        described in section 1905(a)(4)(E) and the 
        administration of such vaccines during the period 
        described in such section, (XIV) the medical assistance 
        made available to an individual described in subsection 
        (aa) who is eligible for medical assistance only 
        because of subparagraph (A)(10)(ii)(XVIII) shall be 
        limited to medical assistance provided during the 
        period in which such an individual requires treatment 
        for breast or cervical cancer (XV) the medical 
        assistance made available to an individual described in 
        subparagraph (A)(i)(VIII) shall be limited to medical 
        assistance described in subsection (k)(1) and medical 
        assistance for vaccines described in section 
        1905(a)(4)(E) and the administration of such vaccines 
        during the period described in such section, (XVI) the 
        medical assistance made available to an individual 
        described in subsection (ii) shall be limited to family 
        planning services and supplies described in section 
        1905(a)(4)(C) including medical diagnosis and treatment 
        services that are provided pursuant to a family 
        planning service in a family planning setting and 
        medical assistance for vaccines described in section 
        1905(a)(4)(E) and the administration of such vaccines 
        during the period described in such section, (XVII) if 
        an individual is described in subclause (IX) of 
        subparagraph (A)(i) and is also described in subclause 
        (VIII) of that subparagraph, the medical assistance 
        shall be made available to the individual through 
        subclause (IX) instead of through subclause (VIII), and 
        (XVIII) the medical assistance made available to an 
        uninsured individual (as defined in subsection (ss)) 
        who is eligible for medical assistance only because of 
        subparagraph (A)(ii)(XXIII) shall be limited to medical 
        assistance for any in vitro diagnostic product 
        described in section 1905(a)(3)(B) that is administered 
        during any portion of the period at the end of the 
        emergency sentence described in such section beginning 
        on or after the date of the enactment of this subclause 
        (and the administration of such product), any service 
        described in section 1916(a)(2)(G) that is furnished 
        during any such portion, any vaccine described in 
        section 1905(a)(4)(E) (and the administration of such 
        vaccine) that is furnished during any such portion, and 
        testing and treatments for COVID-19, including 
        specialized equipment and therapies (including 
        preventive therapies), and, in the case of an 
        individual who is diagnosed with or presumed to have 
        COVID-19, during the period such individual has (or is 
        presumed to have) COVID-19, the treatment of a 
        condition that may seriously complicate the treatment 
        of COVID-19, if otherwise covered under the State plan 
        (or waiver of such plan), and (XIX) medical assistance 
        shall be made available during the period described in 
        section 1905(a)(4)(E) for vaccines described in such 
        section and the administration of such vaccines, for 
        any individual who is eligible for and receiving 
        medical assistance under the State plan or under a 
        waiver of such plan (other than an individual who is 
        eligible for medical assistance consisting only of 
        payment of premiums pursuant to subparagraph (E) or (F) 
        or section 1933), notwithstanding any provision of this 
        title or waiver under section 1115 impacting such 
        individual's eligibility for medical assistance under 
        such plan or waiver to coverage for a limited type of 
        benefits and services that would not otherwise include 
        coverage of a COVID-19 vaccine and its administration;
          (11)(A) provide for entering into cooperative 
        arrangements with the State agencies responsible for 
        administering or supervising the administration of 
        health services and vocational rehabilitation services 
        in the State looking toward maximum utilization of such 
        services in the provision of medical assistance under 
        the plan, (B) provide, to the extent prescribed by the 
        Secretary, for entering into agreements, with any 
        agency, institution, or organization receiving payments 
        under (or through an allotment under) title V, (i) 
        providing for utilizing such agency, institution, or 
        organization in furnishing care and services which are 
        available under such title or allotment and which are 
        included in the State plan approved under this section 
        (ii) making such provision as may be appropriate for 
        reimbursing such agency, institution, or organization 
        for the cost of any such care and services furnished 
        any individual for which payment would otherwise be 
        made to the State with respect to the individual under 
        section 1903, and (iii) providing for coordination of 
        information and education on pediatric vaccinations and 
        delivery of immunization services, and (C) provide for 
        coordination of the operations under this title, 
        including the provision of information and education on 
        pediatric vaccinations and the delivery of immunization 
        services, with the State's operations under the special 
        supplemental nutrition program for women, infants, and 
        children under section 17 of the Child Nutrition Act of 
        1966;
          (12) provide that, in determining whether an 
        individual is blind, there shall be an examination by a 
        physician skilled in the diseases of the eye or by an 
        optometrist, whichever the individual may select;
          (13) provide--
                  (A) for a public process for determination of 
                rates of payment under the plan for hospital 
                services, nursing facility services, and 
                services of intermediate care facilities for 
                the mentally retarded under which--
                          (i) proposed rates, the methodologies 
                        underlying the establishment of such 
                        rates, and justifications for the 
                        proposed rates are published,
                          (ii) providers, beneficiaries and 
                        their representatives, and other 
                        concerned State residents are given a 
                        reasonable opportunity for review and 
                        comment on the proposed rates, 
                        methodologies, and justifications,
                          (iii) final rates, the methodologies 
                        underlying the establishment of such 
                        rates, and justifications for such 
                        final rates are published, and
                          (iv) in the case of hospitals, such 
                        rates take into account (in a manner 
                        consistent with section 1923) the 
                        situation of hospitals which serve a 
                        disproportionate number of low-income 
                        patients with special needs;
                  (B) for payment for hospice care in amounts 
                no lower than the amounts, using the same 
                methodology, used under part A of title XVIII 
                and for payment of amounts under section 
                1905(o)(3); except that in the case of hospice 
                care which is furnished to an individual who is 
                a resident of a nursing facility or 
                intermediate care facility for the mentally 
                retarded, and who would be eligible under the 
                plan for nursing facility services or services 
                in an intermediate care facility for the 
                mentally retarded if he had not elected to 
                receive hospice care, there shall be paid an 
                additional amount, to take into account the 
                room and board furnished by the facility, equal 
                to at least 95 percent of the rate that would 
                have been paid by the State under the plan for 
                facility services in that facility for that 
                individual; and
                  (C) payment for primary care services (as 
                defined in subsection (jj)) furnished in 2013 
                and 2014 by a physician with a primary 
                specialty designation of family medicine, 
                general internal medicine, or pediatric 
                medicine at a rate not less than 100 percent of 
                the payment rate that applies to such services 
                and physician under part B of title XVIII (or, 
                if greater, the payment rate that would be 
                applicable under such part if the conversion 
                factor under section 1848(d) for the year 
                involved were the conversion factor under such 
                section for 2009);
          (14) provide that enrollment fees, premiums, or 
        similar charges, and deductions, cost sharing, or 
        similar charges, may be imposed only as provided in 
        section 1916;
          (15) provide for payment for services described in 
        clause (B) or (C) of section 1905(a)(2) under the plan 
        in accordance with subsection (bb);
          (16) provide for inclusion, to the extent required by 
        regulations prescribed by the Secretary, of provisions 
        (conforming to such regulations) with respect to the 
        furnishing of medical assistance under the plan to 
        individuals who are residents of the State but are 
        absent therefrom;
          (17) except as provided in subsections (e)(14), 
        (e)(15), (l)(3), (m)(3), and (m)(4), include reasonable 
        standards (which shall be comparable for all groups and 
        may, in accordance with standards prescribed by the 
        Secretary, differ with respect to income levels, but 
        only in the case of applicants or recipients of 
        assistance under the plan who are not receiving aid or 
        assistance under any plan of the State approved under 
        title I, X, XIV, or XVI, or part A of title IV, and 
        with respect to whom supplemental security income 
        benefits are not being paid under title XVI, based on 
        the variations between shelter costs in urban areas and 
        in rural areas) for determining eligibility for and the 
        extent of medical assistance under the plan which (A) 
        are consistent with the objectives of this title, (B) 
        provide for taking into account only such income and 
        resources as are, as determined in accordance with 
        standards prescribed by the Secretary, available to the 
        applicant or recipient and (in the case of any 
        applicant or recipient who would, except for income and 
        resources, be eligible for aid or assistance in the 
        form of money payments under any plan of the State 
        approved under title I, X, XIV, or XVI, or part A of 
        title IV, or to have paid with respect to him 
        supplemental security income benefits under title XVI) 
        as would not be disregarded (or set aside for future 
        needs) in determining his eligibility for such aid, 
        assistance, or benefits, (C) provide for reasonable 
        evaluation of any such income or resources, and (D) do 
        not take into account the financial responsibility of 
        any individual for any applicant or recipient of 
        assistance under the plan unless such applicant or 
        recipient is such individual's spouse or such 
        individual's child who is under age 21 or (with respect 
        to States eligible to participate in the State program 
        established under title XVI), is blind or permanently 
        and totally disabled, or is blind or disabled as 
        defined in section 1614 (with respect to States which 
        are not eligible to participate in such program); and 
        provide for flexibility in the application of such 
        standards with respect to income by taking into 
        account, except to the extent prescribed by the 
        Secretary, the costs (whether in the form of insurance 
        premiums, payments made to the State under section 
        1903(f)(2)(B), or otherwise and regardless of whether 
        such costs are reimbursed under another public program 
        of the State or political subdivision thereof) incurred 
        for medical care or for any other type of remedial care 
        recognized under State law;
          (18) comply with the provisions of section 1917 with 
        respect to liens, adjustments and recoveries of medical 
        assistance correctly paid, transfers of assets, and 
        treatment of certain trusts;
          (19) provide such safeguards as may be necessary to 
        assure that eligibility for care and services under the 
        plan will be determined, and such care and services 
        will be provided, in a manner consistent with 
        simplicity of administration and the best interests of 
        the recipients;
          (20) if the State plan includes medical assistance in 
        behalf of individuals 65 years of age or older who are 
        patients in institutions for mental diseases--
                  (A) provide for having in effect such 
                agreements or other arrangements with State 
                authorities concerned with mental diseases, 
                and, where appropriate, with such institutions, 
                as may be necessary for carrying out the State 
                plan, including arrangements for joint planning 
                and for development of alternate methods of 
                care, arrangements providing assurance of 
                immediate readmittance to institutions where 
                needed for individuals under alternate plans of 
                care, and arrangements providing for access to 
                patients and facilities, for furnishing 
                information, and for making reports;
                  (B) provide for an individual plan for each 
                such patient to assure that the institutional 
                care provided to him is in his best interests, 
                including, to that end, assurances that there 
                will be initial and periodic review of his 
                medical and other needs, that he will be given 
                appropriate medical treatment within the 
                institution, and that there will be a periodic 
                determination of his need for continued 
                treatment in the institution; and
                  (C) provide for the development of alternate 
                plans of care, making maximum utilization of 
                available resources, for recipients 65 years of 
                age or older who would otherwise need care in 
                such institutions, including appropriate 
                medical treatment and other aid or assistance; 
                for services referred to in section 
                3(a)(4)(A)(i) and (ii) or section 
                1603(a)(4)(A)(i) and (ii) which are appropriate 
                for such recipients and for such patients; and 
                for methods of administration necessary to 
                assure that the responsibilities of the State 
                agency under the State plan with respect to 
                such recipients and such patients will be 
                effectively carried out;
          (21) if the State plan includes medical assistance in 
        behalf of individuals 65 years of age or older who are 
        patients in public institutions for mental diseases, 
        show that the State is making satisfactory progress 
        toward developing and implementing a comprehensive 
        mental health program, including provision for 
        utilization of community mental health centers, nursing 
        facilities, and other alternatives to care in public 
        institutions for mental diseases;
          (22) include descriptions of (A) the kinds and 
        numbers of professional medical personnel and 
        supporting staff that will be used in the 
        administration of the plan and of the responsibilities 
        they will have, (B) the standards, for private or 
        public institutions in which recipients of medical 
        assistance under the plan may receive care or services, 
        that will be utilized by the State authority or 
        authorities responsible for establishing and 
        maintaining such standards, (C) the cooperative 
        arrangements with State health agencies and State 
        vocational rehabilitation agencies entered into with a 
        view to maximum utilization of and coordination of the 
        provision of medical assistance with the services 
        administered or supervised by such agencies, and (D) 
        other standards and methods that the State will use to 
        assure that medical or remedial care and services 
        provided to recipients of medical assistance are of 
        high quality;
          (23) provide that (A) any individual eligible for 
        medical assistance (including drugs) may obtain such 
        assistance from any institution, agency, community 
        pharmacy, or person, qualified to perform the service 
        or services required (including an organization which 
        provides such services, or arranges for their 
        availability, on a prepayment basis), who undertakes to 
        provide him such services, and (B) an enrollment of an 
        individual eligible for medical assistance in a primary 
        care case-management system (described in section 
        1915(b)(1)), a medicaid managed care organization, or a 
        similar entity shall not restrict the choice of the 
        qualified person from whom the individual may receive 
        services under section 1905(a)(4)(C), except as 
        provided in subsection (g) and in section 1915, except 
        that this paragraph shall not apply in the case of 
        Puerto Rico, the Virgin Islands, and Guam, and except 
        that nothing in this paragraph shall be construed as 
        requiring a State to provide medical assistance for 
        such services furnished by a person or entity convicted 
        of a felony under Federal or State law for an offense 
        which the State agency determines is inconsistent with 
        the best interests of beneficiaries under the State 
        plan or by a provider or supplier to which a moratorium 
        under subsection (kk)(4) is applied during the period 
        of such moratorium';
          (24) effective July 1, 1969, provide for consultative 
        services by health agencies and other appropriate 
        agencies of the State to hospitals, nursing facilities, 
        home health agencies, clinics, laboratories, and such 
        other institutions as the Secretary may specify in 
        order to assist them (A) to qualify for payments under 
        this Act, (B) to establish and maintain such fiscal 
        records as may be necessary for the proper and 
        efficient administration of this Act, and (C) to 
        provide information needed to determine payments due 
        under this Act on account of care and services 
        furnished to individuals;
          (25) provide--
                  (A) that the State or local agency 
                administering such plan will take all 
                reasonable measures to ascertain the legal 
                liability of third parties (including health 
                insurers, self-insured plans, group health 
                plans (as defined in section 607(1) of the 
                Employee Retirement Income Security Act of 
                1974), service benefit plans, managed care 
                organizations, pharmacy benefit managers, or 
                other parties that are, by statute, contract, 
                or agreement, legally responsible for payment 
                of a claim for a health care item or service) 
                to pay for care and services available under 
                the plan, including--
                          (i) the collection of sufficient 
                        information (as specified by the 
                        Secretary in regulations) to enable the 
                        State to pursue claims against such 
                        third parties, with such information 
                        being collected at the time of any 
                        determination or redetermination of 
                        eligibility for medical assistance, and
                          (ii) the submission to the Secretary 
                        of a plan (subject to approval by the 
                        Secretary) for pursuing claims against 
                        such third parties, which plan shall be 
                        integrated with, and be monitored as a 
                        part of the Secretary's review of, the 
                        State's mechanized claims processing 
                        and information retrieval systems 
                        required under section 1903(r);
                  (B) that in any case where such a legal 
                liability is found to exist after medical 
                assistance has been made available on behalf of 
                the individual and where the amount of 
                reimbursement the State can reasonably expect 
                to recover exceeds the costs of such recovery, 
                the State or local agency will seek 
                reimbursement for such assistance to the extent 
                of such legal liability;
                  (C) that in the case of an individual who is 
                entitled to medical assistance under the State 
                plan with respect to a service for which a 
                third party is liable for payment, the person 
                furnishing the service may not seek to collect 
                from the individual (or any financially 
                responsible relative or representative of that 
                individual) payment of an amount for that 
                service (i) if the total of the amount of the 
                liabilities of third parties for that service 
                is at least equal to the amount payable for 
                that service under the plan (disregarding 
                section 1916), or (ii) in an amount which 
                exceeds the lesser of (I) the amount which may 
                be collected under section 1916, or (II) the 
                amount by which the amount payable for that 
                service under the plan (disregarding section 
                1916) exceeds the total of the amount of the 
                liabilities of third parties for that service;
                  (D) that a person who furnishes services and 
                is participating under the plan may not refuse 
                to furnish services to an individual (who is 
                entitled to have payment made under the plan 
                for the services the person furnishes) because 
                of a third party's potential liability for 
                payment for the service;
                  (E) that in the case of preventive pediatric 
                care (including early and periodic screening 
                and diagnosis services under section 
                1905(a)(4)(B)) covered under the State plan, 
                the State shall--
                          (i) make payment for such service in 
                        accordance with the usual payment 
                        schedule under such plan for such 
                        services without regard to the 
                        liability of a third party for payment 
                        for such services; and
                          (i) make payment for such service in 
                        accordance with the usual payment 
                        schedule under such plan for such 
                        services without regard to the 
                        liability of a third party for payment 
                        for such services, except that the 
                        State may, if the State determines 
                        doing so is cost-effective and will not 
                        adversely affect access to care, only 
                        make such payment if a third party so 
                        liable has not made payment within 90 
                        days after the date the provider of 
                        such services has initially submitted a 
                        claim to such third party for payment 
                        for such services; and
                          (ii) seek reimbursement from such 
                        third party in accordance with 
                        subparagraph (B);
                  (F) that in the case of any services covered 
                under such plan which are provided to an 
                individual on whose behalf child support 
                enforcement is being carried out by the State 
                agency under part D of title IV of this Act, 
                the State shall--
                          (i) make payment for such service in 
                        accordance with the usual payment 
                        schedule under such plan for such 
                        services without regard to any third-
                        party liability for payment for such 
                        services, if such third-party liability 
                        is derived (through insurance or 
                        otherwise) from the parent whose 
                        obligation to pay support is being 
                        enforced by such agency, if payment has 
                        not been made by such third party 
                        within 30 days after such services are 
                        furnished;
                          (i) make payment for such service in 
                        accordance with the usual payment 
                        schedule under such plan for such 
                        services without regard to any third-
                        party liability for payment for such 
                        services, if such third-party liability 
                        is derived (through insurance or 
                        otherwise) from the parent whose 
                        obligation to pay support is being 
                        enforced by such agency, if payment has 
                        not been made by such third party 
                        within 100 days after the date the 
                        provider of such services has initially 
                        submitted a claim to such third party 
                        for payment for such services, except 
                        that the State may make such payment 
                        within 30 days after such date if the 
                        State determines doing so is cost-
                        effective and necessary to ensure 
                        access to care.;
                          (ii) seek reimbursement from such 
                        third party in accordance with 
                        subparagraph (B);
                  (G) that the State prohibits any health 
                insurer (including a group health plan, as 
                defined in section 607(1) of the Employee 
                Retirement Income Security Act of 1974, a self-
                insured plan, a service benefit plan, a managed 
                care organization, a pharmacy benefit manager, 
                or other party that is, by statute, contract, 
                or agreement, legally responsible for payment 
                of a claim for a health care item or service), 
                in enrolling an individual or in making any 
                payments for benefits to the individual or on 
                the individual's behalf, from taking into 
                account that the individual is eligible for or 
                is provided medical assistance under a plan 
                under this title for such State, or any other 
                State;
                  (H) that to the extent that payment has been 
                made under the State plan for medical 
                assistance in any case where a third party has 
                a legal liability to make payment for such 
                assistance, the State has in effect laws under 
                which, to the extent that payment has been made 
                under the State plan for medical assistance for 
                health care items or services furnished to an 
                individual, the State is considered to have 
                acquired the rights of such individual to 
                payment by any other party for such health care 
                items or services; and
                  (I) that the State shall provide assurances 
                satisfactory to the Secretary that the State 
                has in effect laws requiring health insurers, 
                including self-insured plans, group health 
                plans (as defined in section 607(1) of the 
                Employee Retirement Income Security Act of 
                1974), service benefit plans, managed care 
                organizations, pharmacy benefit managers, or 
                other parties that are, by statute, contract, 
                or agreement, legally responsible for payment 
                of a claim for a health care item or service, 
                as a condition of doing business in the State, 
                to--
                          (i) provide, with respect to 
                        individuals who are eligible (and, at 
                        State option, individuals who apply or 
                        whose eligibility for medical 
                        assistance is being evaluated in 
                        accordance with section 1902(e)(13)(D)) 
                        for, or are provided, medical 
                        assistance under a State plan (or under 
                        a waiver of the plan) under this title 
                        and child health assistance under title 
                        XXI, upon the request of the State, 
                        information to determine during what 
                        period the individual or their spouses 
                        or their dependents may be (or may have 
                        been) covered by a health insurer and 
                        the nature of the coverage that is or 
                        was provided by the health insurer 
                        (including the name, address, and 
                        identifying number of the plan) in a 
                        manner prescribed by the Secretary;
                          (ii)(I) accept the State's right of 
                        recovery and the assignment to the 
                        State of any right of an individual or 
                        other entity to payment from the party 
                        for an item or service for which 
                        payment has been made under the State 
                        plan (or under a waiver of such plan); 
                        and
                          (II) in the case of a responsible 
                        third party (other than the original 
                        medicare fee-for-service program under 
                        parts A and B of title XVIII, a 
                        Medicare Advantage plan offered by a 
                        Medicare Advantage organization under 
                        part C of such title, a reasonable cost 
                        reimbursement plan under section 1876, 
                        a health care prepayment plan under 
                        section 1833, or a prescription drug 
                        plan offered by a PDP sponsor under 
                        part D of such title) that requires 
                        prior authorization for an item or 
                        service furnished to an individual 
                        eligible to receive medical assistance 
                        under this title, accept authorization 
                        provided by the State that the item or 
                        service is covered under the State plan 
                        (or waiver of such plan) for such 
                        individual, as if such authorization 
                        were the prior authorization made by 
                        the third party for such item or 
                        service;
                          (iii) not later than 60 days after 
                        receiving any inquiry by the State 
                        regarding a claim for payment for any 
                        health care item or service that is 
                        submitted not later than 3 years after 
                        the date of the provision of such 
                        health care item or service, respond to 
                        such inquiry; and
                          (iv) agree not to deny a claim 
                        submitted by the State solely on the 
                        basis of the date of submission of the 
                        claim, the type or format of the claim 
                        form, a failure to present proper 
                        documentation at the point-of-sale that 
                        is the basis of the claim, or in the 
                        case of a responsible third party 
                        (other than the original medicare fee-
                        for-service program under parts A and B 
                        of title XVIII, a Medicare Advantage 
                        plan offered by a Medicare Advantage 
                        organization under part C of such 
                        title, a reasonable cost reimbursement 
                        plan under section 1876, a health care 
                        prepayment plan under section 1833, or 
                        a prescription drug plan offered by a 
                        PDP sponsor under part D of such title) 
                        a failure to obtain a prior 
                        authorization for the item or service 
                        for which the claim is being submitted, 
                        if--
                                  (I) the claim is submitted by 
                                the State within the 3-year 
                                period beginning on the date on 
                                which the item or service was 
                                furnished; and
                                  (II) any action by the State 
                                to enforce its rights with 
                                respect to such claim is 
                                commenced within 6 years of the 
                                State's submission of such 
                                claim;
          (26) if the State plan includes medical assistance 
        for inpatient mental hospital services, provide, with 
        respect to each patient receiving such services, for a 
        regular program of medical review (including medical 
        evaluation) of his need for such services, and for a 
        written plan of care;
          (27) provide for agreements with every person or 
        institution providing services under the State plan 
        under which such person or institution agrees (A) to 
        keep such records as are necessary fully to disclose 
        the extent of the services provided to individuals 
        receiving assistance under the State plan, and (B) to 
        furnish the State agency or the Secretary with such 
        information, regarding any payments claimed by such 
        person or institution for providing services under the 
        State plan, as the State agency or the Secretary may 
        from time to time request;
          (28) provide--
                  (A) that any nursing facility receiving 
                payments under such plan must satisfy all the 
                requirements of subsections (b) through (d) of 
                section 1919 as they apply to such facilities;
                  (B) for including in ``nursing facility 
                services'' at least the items and services 
                specified (or deemed to be specified) by the 
                Secretary under section 1919(f)(7) and making 
                available upon request a description of the 
                items and services so included;
                  (C) for procedures to make available to the 
                public the data and methodology used in 
                establishing payment rates for nursing 
                facilities under this title; and
                  (D) for compliance (by the date specified in 
                the respective sections) with the requirements 
                of--
                          (i) section 1919(e);
                          (ii) section 1919(g) (relating to 
                        responsibility for survey and 
                        certification of nursing facilities); 
                        and
                          (iii) sections 1919(h)(2)(B) and 
                        1919(h)(2)(D) (relating to 
                        establishment and application of 
                        remedies);
          (29) include a State program which meets the 
        requirements set forth in section 1908, for the 
        licensing of administrators of nursing homes;
          (30)(A) provide such methods and procedures relating 
        to the utilization of, and the payment for, care and 
        services available under the plan (including but not 
        limited to utilization review plans as provided for in 
        section 1903(i)(4)) as may be necessary to safeguard 
        against unnecessary utilization of such care and 
        services and to assure that payments are consistent 
        with efficiency, economy, and quality of care and are 
        sufficient to enlist enough providers so that care and 
        services are available under the plan at least to the 
        extent that such care and services are available to the 
        general population in the geographic area; and
          (B) provide, under the program described in 
        subparagraph (A), that--
                  (i) each admission to a hospital, 
                intermediate care facility for the mentally 
                retarded, or hospital for mental diseases is 
                reviewed or screened in accordance with 
                criteria established by medical and other 
                professional personnel who are not themselves 
                directly responsible for the care of the 
                patient involved, and who do not have a 
                significant financial interest in any such 
                institution and are not, except in the case of 
                a hospital, employed by the institution 
                providing the care involved, and
                  (ii) the information developed from such 
                review or screening, along with the data 
                obtained from prior reviews of the necessity 
                for admission and continued stay of patients by 
                such professional personnel, shall be used as 
                the basis for establishing the size and 
                composition of the sample of admissions to be 
                subject to review and evaluation by such 
                personnel, and any such sample may be of any 
                size up to 100 percent of all admissions and 
                must be of sufficient size to serve the purpose 
                of (I) identifying the patterns of care being 
                provided and the changes occurring over time in 
                such patterns so that the need for modification 
                may be ascertained, and (II) subjecting 
                admissions to early or more extensive review 
                where information indicates that such 
                consideration is warranted to a hospital, 
                intermediate care facility for the mentally 
                retarded, or hospital for mental diseases;
          (31) with respect to services in an intermediate care 
        facility for the mentally retarded (where the State 
        plan includes medical assistance for such services) 
        provide, with respect to each patient receiving such 
        services, for a written plan of care, prior to 
        admission to or authorization of benefits in such 
        facility, in accordance with regulations of the 
        Secretary, and for a regular program of independent 
        professional review (including medical evaluation) 
        which shall periodically review his need for such 
        services;
          (32) provide that no payment under the plan for any 
        care or service provided to an individual shall be made 
        to anyone other than such individual or the person or 
        institution providing such care or service, under an 
        assignment or power of attorney or otherwise; except 
        that--
                  (A) in the case of any care or service 
                provided by a physician, dentist, or other 
                individual practitioner, such payment may be 
                made (i) to the employer of such physician, 
                dentist, or other practitioner if such 
                physician, dentist, or practitioner is required 
                as a condition of his employment to turn over 
                his fee for such care or service to his 
                employer, or (ii) (where the care or service 
                was provided in a hospital, clinic, or other 
                facility) to the facility in which the care or 
                service was provided if there is a contractual 
                arrangement between such physician, dentist, or 
                practitioner and such facility under which such 
                facility submits the bill for such care or 
                service;
                  (B) nothing in this paragraph shall be 
                construed (i) to prevent the making of such a 
                payment in accordance with an assignment from 
                the person or institution providing the care or 
                service involved if such assignment is made to 
                a governmental agency or entity or is 
                established by or pursuant to the order of a 
                court of competent jurisdiction, or (ii) to 
                preclude an agent of such person or institution 
                from receiving any such payment if (but only 
                if) such agent does so pursuant to an agency 
                agreement under which the compensation to be 
                paid to the agent for his services for or in 
                connection with the billing or collection of 
                payments due such person or institution under 
                the plan is unrelated (directly or indirectly) 
                to the amount of such payments or the billings 
                therefor, and is not dependent upon the actual 
                collection of any such payment;
                  (C) in the case of services furnished (during 
                a period that does not exceed 14 continuous 
                days in the case of an informal reciprocal 
                arrangement or 90 continuous days (or such 
                longer period as the Secretary may provide) in 
                the case of an arrangement involving per diem 
                or other fee-for-time compensation) by, or 
                incident to the services of, one physician to 
                the patients of another physician who submits 
                the claim for such services, payment shall be 
                made to the physician submitting the claim (as 
                if the services were furnished by, or incident 
                to, the physician's services), but only if the 
                claim identifies (in a manner specified by the 
                Secretary) the physician who furnished the 
                services; and
                  (D) in the case of payment for a childhood 
                vaccine administered before October 1, 1994, to 
                individuals entitled to medical assistance 
                under the State plan, the State plan may make 
                payment directly to the manufacturer of the 
                vaccine under a voluntary replacement program 
                agreed to by the State pursuant to which the 
                manufacturer (i) supplies doses of the vaccine 
                to providers administering the vaccine, (ii) 
                periodically replaces the supply of the 
                vaccine, and (iii) charges the State the 
                manufacturer's price to the Centers for Disease 
                Control and Prevention for the vaccine so 
                administered (which price includes a reasonable 
                amount to cover shipping and the handling of 
                returns);
          (33) provide--
                  (A) that the State health agency, or other 
                appropriate State medical agency, shall be 
                responsible for establishing a plan, consistent 
                with regulations prescribed by the Secretary, 
                for the review by appropriate professional 
                health personnel of the appropriateness and 
                quality of care and services furnished to 
                recipients of medical assistance under the plan 
                in order to provide guidance with respect 
                thereto in the administration of the plan to 
                the State agency established or designated 
                pursuant to paragraph (5) and, where 
                applicable, to the State agency described in 
                the second sentence of this subsection; and
                  (B) that, except as provided in section 
                1919(g), the State or local agency utilized by 
                the Secretary for the purpose specified in the 
                first sentence of section 1864(a), or, if such 
                agency is not the State agency which is 
                responsible for licensing health institutions, 
                the State agency responsible for such 
                licensing, will perform for the State agency 
                administering or supervising the administration 
                of the plan approved under this title the 
                function of determining whether institutions 
                and agencies meet the requirements for 
                participation in the program under such plan, 
                except that, if the Secretary has cause to 
                question the adequacy of such determinations, 
                the Secretary is authorized to validate State 
                determinations and, on that basis, make 
                independent and binding determinations 
                concerning the extent to which individual 
                institutions and agencies meet the requirements 
                for participation;
          (34) provide that in the case of any individual who 
        has been determined to be eligible for medical 
        assistance under the plan, such assistance will be made 
        available to him for care and services included under 
        the plan and furnished in or after the third month 
        before the month in which he made application (or 
        application was made on his behalf in the case of a 
        deceased individual) for such assistance if such 
        individual was (or upon application would have been) 
        eligible for such assistance at the time such care and 
        services were furnished;
          (35) provide that any disclosing entity (as defined 
        in section 1124(a)(2)) receiving payments under such 
        plan complies with the requirements of section 1124;
          (36) provide that within 90 days following the 
        completion of each survey of any health care facility, 
        laboratory, agency, clinic, or organization, by the 
        appropriate State agency described in paragraph (9), 
        such agency shall (in accordance with regulations of 
        the Secretary) make public in readily available form 
        and place the pertinent findings of each such survey 
        relating to the compliance of each such health care 
        facility, laboratory, clinic, agency, or organization 
        with (A) the statutory conditions of participation 
        imposed under this title, and (B) the major additional 
        conditions which the Secretary finds necessary in the 
        interest of health and safety of individuals who are 
        furnished care or services by any such facility, 
        laboratory, clinic, agency, or organization;
          (37) provide for claims payment procedures which (A) 
        ensure that 90 per centum of claims for payment (for 
        which no further written information or substantiation 
        is required in order to make payment) made for services 
        covered under the plan and furnished by health care 
        practitioners through individual or group practices or 
        through shared health facilities are paid within 30 
        days of the date of receipt of such claims and that 99 
        per centum of such claims are paid within 90 days of 
        the date of receipt of such claims, and (B) provide for 
        procedures of prepayment and postpayment claims review, 
        including review of appropriate data with respect to 
        the recipient and provider of a service and the nature 
        of the service for which payment is claimed, to ensure 
        the proper and efficient payment of claims and 
        management of the program;
          (38) require that an entity (other than an individual 
        practitioner or a group of practitioners) that 
        furnishes, or arranges for the furnishing of, items or 
        services under the plan, shall supply (within such 
        period as may be specified in regulations by the 
        Secretary or by the single State agency which 
        administers or supervises the administration of the 
        plan) upon request specifically addressed to such 
        entity by the Secretary or such State agency, the 
        information described in section 1128(b)(9);
          (39) provide that the State agency shall exclude any 
        specified individual or entity from participation in 
        the program under the State plan for the period 
        specified by the Secretary, when required by him to do 
        so pursuant to section 1128 or section 1128A, terminate 
        the participation of any individual or entity in such 
        program if (subject to such exceptions as are permitted 
        with respect to exclusion under sections 1128(c)(3)(B) 
        and 1128(d)(3)(B)) participation of such individual or 
        entity is terminated under title XVIII, any other State 
        plan under this title (or waiver of the plan), or any 
        State child health plan under title XXI (or waiver of 
        the plan) and such termination is included by the 
        Secretary in any database or similar system developed 
        pursuant to section 6401(b)(2) of the Patient 
        Protection and Affordable Care Act, and provide that no 
        payment may be made under the plan with respect to any 
        item or service furnished by such individual or entity 
        during such period;
          (40) require each health services facility or 
        organization which receives payments under the plan and 
        of a type for which a uniform reporting system has been 
        established under section 1121(a) to make reports to 
        the Secretary of information described in such section 
        in accordance with the uniform reporting system 
        (established under such section) for that type of 
        facility or organization;
          (41) provide, in accordance with subsection (kk)(8) 
        (as applicable), that whenever a provider of services 
        or any other person is terminated, suspended, or 
        otherwise sanctioned or prohibited from participating 
        under the State plan, the State agency shall promptly 
        notify the Secretary and, in the case of a physician 
        and notwithstanding paragraph (7), the State medical 
        licensing board of such action;
          (42) provide that--
                  (A) the records of any entity participating 
                in the plan and providing services reimbursable 
                on a cost-related basis will be audited as the 
                Secretary determines to be necessary to insure 
                that proper payments are made under the plan; 
                and
                  (B) not later than December 31, 2010, the 
                State shall--
                          (i) establish a program under which 
                        the State contracts (consistent with 
                        State law and in the same manner as the 
                        Secretary enters into contracts with 
                        recovery audit contractors under 
                        section 1893(h), subject to such 
                        exceptions or requirements as the 
                        Secretary may require for purposes of 
                        this title or a particular State) with 
                        1 or more recovery audit contractors 
                        for the purpose of identifying 
                        underpayments and overpayments and 
                        recouping overpayments under the State 
                        plan and under any waiver of the State 
                        plan with respect to all services for 
                        which payment is made to any entity 
                        under such plan or waiver; and
                          (ii) provide assurances satisfactory 
                        to the Secretary that--
                                  (I) under such contracts, 
                                payment shall be made to such a 
                                contractor only from amounts 
                                recovered;
                                  (II) from such amounts 
                                recovered, payment--
                                          (aa) shall be made on 
                                        a contingent basis for 
                                        collecting 
                                        overpayments; and
                                          (bb) may be made in 
                                        such amounts as the 
                                        State may specify for 
                                        identifying 
                                        underpayments;
                                  (III) the State has an 
                                adequate process for entities 
                                to appeal any adverse 
                                determination made by such 
                                contractors; and
                                  (IV) such program is carried 
                                out in accordance with such 
                                requirements as the Secretary 
                                shall specify, including--
                                          (aa) for purposes of 
                                        section 1903(a)(7), 
                                        that amounts expended 
                                        by the State to carry 
                                        out the program shall 
                                        be considered amounts 
                                        expended as necessary 
                                        for the proper and 
                                        efficient 
                                        administration of the 
                                        State plan or a waiver 
                                        of the plan;
                                          (bb) that section 
                                        1903(d) shall apply to 
                                        amounts recovered under 
                                        the program; and
                                          (cc) that the State 
                                        and any such 
                                        contractors under 
                                        contract with the State 
                                        shall coordinate such 
                                        recovery audit efforts 
                                        with other contractors 
                                        or entities performing 
                                        audits of entities 
                                        receiving payments 
                                        under the State plan or 
                                        waiver in the State, 
                                        including efforts with 
                                        Federal and State law 
                                        enforcement with 
                                        respect to the 
                                        Department of Justice, 
                                        including the Federal 
                                        Bureau of 
                                        Investigations, the 
                                        Inspector General of 
                                        the Department of 
                                        Health and Human 
                                        Services, and the State 
                                        medicaid fraud control 
                                        unit; and
          (43) provide for--
                  (A) informing all persons in the State who 
                are under the age of 21 and who have been 
                determined to be eligible for medical 
                assistance including services described in 
                section 1905(a)(4)(B), of the availability of 
                early and periodic screening, diagnostic, and 
                treatment services as described in section 
                1905(r) and the need for age-appropriate 
                immunizations against vaccine-preventable 
                diseases,
                  (B) providing or arranging for the provision 
                of such screening services in all cases where 
                they are requested,
                  (C) arranging for (directly or through 
                referral to appropriate agencies, 
                organizations, or individuals) corrective 
                treatment the need for which is disclosed by 
                such child health screening services, and
                  (D) reporting to the Secretary (in a uniform 
                form and manner established by the Secretary, 
                by age group and by basis of eligibility for 
                medical assistance, and by not later than April 
                1 after the end of each fiscal year, beginning 
                with fiscal year 1990) the following 
                information relating to early and periodic 
                screening, diagnostic, and treatment services 
                provided under the plan during each fiscal 
                year:
                          (i) the number of children provided 
                        child health screening services,
                          (ii) the number of children referred 
                        for corrective treatment (the need for 
                        which is disclosed by such child health 
                        screening services),
                          (iii) the number of children 
                        receiving dental services, and other 
                        information relating to the provision 
                        of dental services to such children 
                        described in section 2108(e) and
                          (iv) the State's results in attaining 
                        the participation goals set for the 
                        State under section 1905(r);
          (44) in each case for which payment for inpatient 
        hospital services, services in an intermediate care 
        facility for the mentally retarded, or inpatient mental 
        hospital services is made under the State plan--
                  (A) a physician (or, in the case of skilled 
                nursing facility services or intermediate care 
                facility services, a physician, or a nurse 
                practitioner or clinical nurse specialist who 
                is not an employee of the facility but is 
                working in collaboration with a physician) 
                certifies at the time of admission, or, if 
                later, the time the individual applies for 
                medical assistance under the State plan (and a 
                physician, a physician assistant under the 
                supervision of a physician, or, in the case of 
                skilled nursing facility services or 
                intermediate care facility services, a 
                physician, or a nurse practitioner or clinical 
                nurse specialist who is not an employee of the 
                facility but is working in collaboration with a 
                physician, recertifies, where such services are 
                furnished over a period of time, in such cases, 
                at least as often as required under section 
                1903(g)(6) (or, in the case of services that 
                are services provided in an intermediate care 
                facility for the mentally retarded, every 
                year), and accompanied by such supporting 
                material, appropriate to the case involved, as 
                may be provided in regulations of the 
                Secretary), that such services are or were 
                required to be given on an inpatient basis 
                because the individual needs or needed such 
                services, and
                  (B) such services were furnished under a plan 
                established and periodically reviewed and 
                evaluated by a physician, or, in the case of 
                skilled nursing facility services or 
                intermediate care facility services, a 
                physician, or a nurse practitioner or clinical 
                nurse specialist who is not an employee of the 
                facility but is working in collaboration with a 
                physician;
          (45) provide for mandatory assignment of rights of 
        payment for medical support and other medical care owed 
        to recipients, in accordance with section 1912;
          (46)(A) provide that information is requested and 
        exchanged for purposes of income and eligibility 
        verification in accordance with a State system which 
        meets the requirements of section 1137 of this Act; and
          (B) provide, with respect to an individual declaring 
        to be a citizen or national of the United States for 
        purposes of establishing eligibility under this title, 
        that the State shall satisfy the requirements of--
                  (i) section 1903(x); or
                  (ii) subsection (ee);
          (47) provide--
                  (A) at the option of the State, for making 
                ambulatory prenatal care available to pregnant 
                women during a presumptive eligibility period 
                in accordance with section 1920 and provide for 
                making medical assistance for items and 
                services described in subsection (a) of section 
                1920A available to children during a 
                presumptive eligibility period in accordance 
                with such section and provide for making 
                medical assistance available to individuals 
                described in subsection (a) of section 1920B 
                during a presumptive eligibility period in 
                accordance with such section and provide for 
                making medical assistance available to 
                individuals described in subsection (a) of 
                section 1920C during a presumptive eligibility 
                period in accordance with such section; and
                  (B) that any hospital that is a participating 
                provider under the State plan may elect to be a 
                qualified entity for purposes of determining, 
                on the basis of preliminary information, 
                whether any individual is eligible for medical 
                assistance under the State plan or under a 
                waiver of the plan for purposes of providing 
                the individual with medical assistance during a 
                presumptive eligibility period, in the same 
                manner, and subject to the same requirements, 
                as apply to the State options with respect to 
                populations described in section 1920, 1920A, 
                1920B, or 1920C (but without regard to whether 
                the State has elected to provide for a 
                presumptive eligibility period under any such 
                sections), subject to such guidance as the 
                Secretary shall establish;
          (48) provide a method of making cards evidencing 
        eligibility for medical assistance available to an 
        eligible individual who does not reside in a permanent 
        dwelling or does not have a fixed home or mailing 
        address;
          (49) provide that the State will provide information 
        and access to certain information respecting sanctions 
        taken against health care practitioners and providers 
        by State licensing authorities in accordance with 
        section 1921;
          (50) provide, in accordance with subsection (q), for 
        a monthly personal needs allowance for certain 
        institutionalized individuals and couples;
          (51) meet the requirements of section 1924 (relating 
        to protection of community spouses);
          (52) meet the requirements of section 1925 (relating 
        to extension of eligibility for medical assistance);
          (53) provide--
                  (A) for notifying in a timely manner all 
                individuals in the State who are determined to 
                be eligible for medical assistance and who are 
                pregnant women, breastfeeding or postpartum 
                women (as defined in section 17 of the Child 
                Nutrition Act of 1966), or children [below the 
                age of 5] (as defined in such section), of the 
                availability of benefits furnished by the 
                special supplemental nutrition program under 
                such section, and
                  (B) for referring any such individual to the 
                State agency responsible for administering such 
                program;
          (54) in the case of a State plan that provides 
        medical assistance for covered outpatient drugs (as 
        defined in section 1927(k)), comply with the applicable 
        requirements of section 1927;
          (55) provide for receipt and initial processing of 
        applications of individuals for medical assistance 
        under subsection (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), 
        (a)(10)(A)(i)(VII), (a)(10)(A)(ii)(IX), or 
        (a)(10)(A)(ii)(XXIII)--
                  (A) at locations which are other than those 
                used for the receipt and processing of 
                applications for aid under part A of title IV 
                and which include facilities defined as 
                disproportionate share hospitals under section 
                1923(a)(1)(A) and Federally-qualified health 
                centers described in section 1905(1)(2)(B), and
                  (B) using applications which are other than 
                those used for applications for aid under such 
                part;
          (56) provide, in accordance with subsection (s), for 
        adjusted payments for certain inpatient hospital 
        services;
          (57) provide that each hospital, nursing facility, 
        provider of home health care or personal care services, 
        hospice program, or medicaid managed care organization 
        (as defined in section 1903(m)(1)(A)) receiving funds 
        under the plan shall comply with the requirements of 
        subsection (w);
          (58) provide that the State, acting through a State 
        agency, association, or other private nonprofit entity, 
        develop a written description of the law of the State 
        (whether statutory or as recognized by the courts of 
        the State) concerning advance directives that would be 
        distributed by providers or organizations under the 
        requirements of subsection (w);
          (59) maintain a list (updated not less often than 
        monthly, and containing each physician's unique 
        identifier provided under the system established under 
        subsection (x)) of all physicians who are certified to 
        participate under the State plan;
          (60) provide that the State agency shall provide 
        assurances satisfactory to the Secretary that the State 
        has in effect the laws relating to medical child 
        support required under section 1908A;
          (61) provide that the State must demonstrate that it 
        operates a medicaid fraud and abuse control unit 
        described in section 1903(q) that effectively carries 
        out the functions and requirements described in such 
        section, as determined in accordance with standards 
        established by the Secretary, unless the State 
        demonstrates to the satisfaction of the Secretary that 
        the effective operation of such a unit in the State 
        would not be cost-effective because minimal fraud 
        exists in connection with the provision of covered 
        services to eligible individuals under the State plan, 
        and that beneficiaries under the plan will be protected 
        from abuse and neglect in connection with the provision 
        of medical assistance under the plan without the 
        existence of such a unit;
          (62) provide for a program for the distribution of 
        pediatric vaccines to program-registered providers for 
        the immunization of vaccine-eligible children in 
        accordance with section 1928;
          (63) provide for administration and determinations of 
        eligibility with respect to individuals who are (or 
        seek to be) eligible for medical assistance based on 
        the application of section 1931;
          (64) provide, not later than 1 year after the date of 
        the enactment of this paragraph, a mechanism to receive 
        reports from beneficiaries and others and compile data 
        concerning alleged instances of waste, fraud, and abuse 
        relating to the operation of this title;
          (65) provide that the State shall issue provider 
        numbers for all suppliers of medical assistance 
        consisting of durable medical equipment, as defined in 
        section 1861(n), and the State shall not issue or renew 
        such a supplier number for any such supplier unless--
                  (A)(i) full and complete information as to 
                the identity of each person with an ownership 
                or control interest (as defined in section 
                1124(a)(3)) in the supplier or in any 
                subcontractor (as defined by the Secretary in 
                regulations) in which the supplier directly or 
                indirectly has a 5 percent or more ownership 
                interest; and
                  (ii) to the extent determined to be feasible 
                under regulations of the Secretary, the name of 
                any disclosing entity (as defined in section 
                1124(a)(2)) with respect to which a person with 
                such an ownership or control interest in the 
                supplier is a person with such an ownership or 
                control interest in the disclosing entity; and
                  (B) a surety bond in a form specified by the 
                Secretary under section 1834(a)(16)(B) and in 
                an amount that is not less than $50,000 or such 
                comparable surety bond as the Secretary may 
                permit under the second sentence of such 
                section;
          (66) provide for making eligibility determinations 
        under section 1935(a);
          (67) provide, with respect to services covered under 
        the State plan (but not under title XVIII) that are 
        furnished to a PACE program eligible individual 
        enrolled with a PACE provider by a provider 
        participating under the State plan that does not have a 
        contract or other agreement with the PACE provider that 
        establishes payment amounts for such services, that 
        such participating provider may not require the PACE 
        provider to pay the participating provider an amount 
        greater than the amount that would otherwise be payable 
        for the service to the participating provider under the 
        State plan for the State where the PACE provider is 
        located (in accordance with regulations issued by the 
        Secretary);
          (68) provide that any entity that receives or makes 
        annual payments under the State plan of at least 
        $5,000,000, as a condition of receiving such payments, 
        shall--
                  (A) establish written policies for all 
                employees of the entity (including management), 
                and of any contractor or agent of the entity, 
                that provide detailed information about the 
                False Claims Act established under sections 
                3729 through 3733 of title 31, United States 
                Code, administrative remedies for false claims 
                and statements established under chapter 38 of 
                title 31, United States Code, any State laws 
                pertaining to civil or criminal penalties for 
                false claims and statements, and whistleblower 
                protections under such laws, with respect to 
                the role of such laws in preventing and 
                detecting fraud, waste, and abuse in Federal 
                health care programs (as defined in section 
                1128B(f));
                  (B) include as part of such written policies, 
                detailed provisions regarding the entity's 
                policies and procedures for detecting and 
                preventing fraud, waste, and abuse; and
                  (C) include in any employee handbook for the 
                entity, a specific discussion of the laws 
                described in subparagraph (A), the rights of 
                employees to be protected as whistleblowers, 
                and the entity's policies and procedures for 
                detecting and preventing fraud, waste, and 
                abuse;
          (69) provide that the State must comply with any 
        requirements determined by the Secretary to be 
        necessary for carrying out the Medicaid Integrity 
        Program established under section 1936;
          (70) at the option of the State and notwithstanding 
        paragraphs (1), (10)(B), and (23), provide for the 
        establishment of a non-emergency medical transportation 
        brokerage program in order to more cost-effectively 
        provide transportation for individuals eligible for 
        medical assistance under the State plan who need access 
        to medical care or services and have no other means of 
        transportation which--
                  (A) may include a wheelchair van, taxi, 
                stretcher car, bus passes and tickets, secured 
                transportation, and such other transportation 
                as the Secretary determines appropriate; and
                  (B) may be conducted under contract with a 
                broker who--
                          (i) is selected through a competitive 
                        bidding process based on the State's 
                        evaluation of the broker's experience, 
                        performance, references, resources, 
                        qualifications, and costs;
                          (ii) has oversight procedures to 
                        monitor beneficiary access and 
                        complaints and ensure that transport 
                        personnel are licensed, qualified, 
                        competent, and courteous;
                          (iii) is subject to regular auditing 
                        and oversight by the State in order to 
                        ensure the quality of the 
                        transportation services provided and 
                        the adequacy of beneficiary access to 
                        medical care and services; and
                          (iv) complies with such requirements 
                        related to prohibitions on referrals 
                        and conflict of interest as the 
                        Secretary shall establish (based on the 
                        prohibitions on physician referrals 
                        under section 1877 and such other 
                        prohibitions and requirements as the 
                        Secretary determines to be 
                        appropriate);
          (71) provide that the State will implement an asset 
        verification program as required under section 1940;
          (72) provide that the State will not prevent a 
        Federally-qualified health center from entering into 
        contractual relationships with private practice dental 
        providers in the provision of Federally-qualified 
        health center services;
          (73) in the case of any State in which 1 or more 
        Indian Health Programs or Urban Indian Organizations 
        furnishes health care services, provide for a process 
        under which the State seeks advice on a regular, 
        ongoing basis from designees of such Indian Health 
        Programs and Urban Indian Organizations on matters 
        relating to the application of this title that are 
        likely to have a direct effect on such Indian Health 
        Programs and Urban Indian Organizations and that--
                  (A) shall include solicitation of advice 
                prior to submission of any plan amendments, 
                waiver requests, and proposals for 
                demonstration projects likely to have a direct 
                effect on Indians, Indian Health Programs, or 
                Urban Indian Organizations; and
                  (B) may include appointment of an advisory 
                committee and of a designee of such Indian 
                Health Programs and Urban Indian Organizations 
                to the medical care advisory committee advising 
                the State on its State plan under this title;
          (74) provide for maintenance of effort under the 
        State plan or under any waiver of the plan in 
        accordance with subsection (gg); and
          (75) provide that, beginning January 2015, and 
        annually thereafter, the State shall submit a report to 
        the Secretary that contains--
                  (A) the total number of enrolled and newly 
                enrolled individuals in the State plan or under 
                a waiver of the plan for the fiscal year ending 
                on September 30 of the preceding calendar year, 
                disaggregated by population, including 
                children, parents, nonpregnant childless 
                adults, disabled individuals, elderly 
                individuals, and such other categories or sub-
                categories of individuals eligible for medical 
                assistance under the State plan or under a 
                waiver of the plan as the Secretary may 
                require;
                  (B) a description, which may be specified by 
                population, of the outreach and enrollment 
                processes used by the State during such fiscal 
                year; and
                  (C) any other data reporting determined 
                necessary by the Secretary to monitor 
                enrollment and retention of individuals 
                eligible for medical assistance under the State 
                plan or under a waiver of the plan;
          (76) provide that any data collected under the State 
        plan meets the requirements of section 3101 of the 
        Public Health Service Act;
          (77) provide that the State shall comply with 
        provider and supplier screening, oversight, and 
        reporting requirements in accordance with subsection 
        (kk);
          (78) provide that, not later than January 1, 2017, in 
        the case of a State that pursuant to its State plan or 
        waiver of the plan for medical assistance pays for 
        medical assistance on a fee-for-service basis, the 
        State shall require each provider furnishing items and 
        services to, or ordering, prescribing, referring, or 
        certifying eligibility for, services for individuals 
        eligible to receive medical assistance under such plan 
        to enroll with the State agency and provide to the 
        State agency the provider's identifying information, 
        including the name, specialty, date of birth, Social 
        Security number, national provider identifier (if 
        applicable), Federal taxpayer identification number, 
        and the State license or certification number of the 
        provider (if applicable);
          (79) provide that any agent, clearinghouse, or other 
        alternate payee (as defined by the Secretary) that 
        submits claims on behalf of a health care provider must 
        register with the State and the Secretary in a form and 
        manner specified by the Secretary;
          (80) provide that the State shall not provide any 
        payments for items or services provided under the State 
        plan or under a waiver to any financial institution or 
        entity located outside of the United States;
          (81) provide for implementation of the payment models 
        specified by the Secretary under section 1115A(c) for 
        implementation on a nationwide basis unless the State 
        demonstrates to the satisfaction of the Secretary that 
        implementation would not be administratively feasible 
        or appropriate to the health care delivery system of 
        the State;
          (82) provide that the State agency responsible for 
        administering the State plan under this title provides 
        assurances to the Secretary that the State agency is in 
        compliance with subparagraphs (A), (B), and (C) of 
        section 1128K(b)(2);
          (83) provide that, not later than January 1, 2017, in 
        the case of a State plan (or waiver of the plan) that 
        provides medical assistance on a fee-for-service basis 
        or through a primary care case-management system 
        described in section 1915(b)(1) (other than a primary 
        care case management entity (as defined by the 
        Secretary)), the State shall publish (and update on at 
        least an annual basis) on the public website of the 
        State agency administering the State plan, a directory 
        of the physicians described in subsection (mm) and, at 
        State option, other providers described in such 
        subsection that--
                  (A) includes--
                          (i) with respect to each such 
                        physician or provider--
                                  (I) the name of the physician 
                                or provider;
                                  (II) the specialty of the 
                                physician or provider;
                                  (III) the address at which 
                                the physician or provider 
                                provides services; and
                                  (IV) the telephone number of 
                                the physician or provider; and
                          (ii) with respect to any such 
                        physician or provider participating in 
                        such a primary care case-management 
                        system, information regarding--
                                  (I) whether the physician or 
                                provider is accepting as new 
                                patients individuals who 
                                receive medical assistance 
                                under this title; and
                                  (II) the physician's or 
                                provider's cultural and 
                                linguistic capabilities, 
                                including the languages spoken 
                                by the physician or provider or 
                                by the skilled medical 
                                interpreter providing 
                                interpretation services at the 
                                physician's or provider's 
                                office; and
                  (B) may include, at State option, with 
                respect to each such physician or provider--
                          (i) the Internet website of such 
                        physician or provider; or
                          (ii) whether the physician or 
                        provider is accepting as new patients 
                        individuals who receive medical 
                        assistance under this title;
          (84) provide that--
                  (A) the State shall not terminate eligibility 
                for medical assistance under the State plan for 
                an individual who is an eligible juvenile (as 
                defined in subsection (nn)(2)) because the 
                juvenile is an inmate of a public institution 
                (as defined in subsection (nn)(3)), but may 
                suspend coverage during the period the juvenile 
                is such an inmate;
                  (B) in the case of an individual who is an 
                eligible juvenile described in paragraph (2)(A) 
                of subsection (nn), the State shall, prior to 
                the individual's release from such a public 
                institution, conduct a redetermination of 
                eligibility for such individual with respect to 
                such medical assistance (without requiring a 
                new application from the individual) and, if 
                the State determines pursuant to such 
                redetermination that the individual continues 
                to meet the eligibility requirements for such 
                medical assistance, the State shall restore 
                coverage for such medical assistance to such an 
                individual upon the individual's release from 
                such public institution; and
                  (C) in the case of an individual who is an 
                eligible juvenile described in paragraph (2)(B) 
                of subsection (nn), the State shall process any 
                application for medical assistance submitted 
                by, or on behalf of, such individual such that 
                the State makes a determination of eligibility 
                for such individual with respect to such 
                medical assistance upon release of such 
                individual from such public institution;
          (85) provide that the State is in compliance with the 
        drug review and utilization requirements under 
        subsection (oo)(1);
          (86) provide, at the option of the State, for making 
        medical assistance available on an inpatient or 
        outpatient basis at a residential pediatric recovery 
        center (as defined in subsection (pp)) to infants with 
        neonatal abstinence syndrome; and
          (87) provide for a mechanism, which may include 
        attestation, that ensures that, with respect to any 
        provider (including a transportation network company) 
        or individual driver of nonemergency transportation to 
        medically necessary services receiving payments under 
        such plan (but excluding any public transit authority), 
        at a minimum--
                  (A) each such provider and individual driver 
                is not excluded from participation in any 
                Federal health care program (as defined in 
                section 1128B(f)) and is not listed on the 
                exclusion list of the Inspector General of the 
                Department of Health and Human Services;
                  (B) each such individual driver has a valid 
                driver's license;
                  (C) each such provider has in place a process 
                to address any violation of a State drug law; 
                and
                  (D) each such provider has in place a process 
                to disclose to the State Medicaid program the 
                driving history, including any traffic 
                violations, of each such individual driver 
                employed by such provider, including any 
                traffic violations.
Notwithstanding paragraph (5), if on January 1, 1965, and on 
the date on which a State submits its plan for approval under 
this title, the State agency which administered or supervised 
the administration of the plan of such State approved under 
title X (or title XVI, insofar as it relates to the blind) was 
different from the State agency which administered or 
supervised the administration of the State plan approved under 
title I (or title XVI, insofar as it relates to the aged), the 
State agency which administered or supervised the 
administration of such plan approved under title X (or title 
XVI, insofar as it relates to the blind) may be designated to 
administer or supervise the administration of the portion of 
the State plan for medical assistance which relates to blind 
individuals and a different State agency may be established or 
designated to administer or supervise the administration of the 
rest of the State plan for medical assistance; and in such case 
the part of the plan which each such agency administers, or the 
administration of which each such agency supervises, shall be 
regarded as a separate plan for purposes of this title (except 
for purposes of paragraph (10)). The provisions of paragraphs 
(9)(A), (31), and (33) and of section 1903(i)(4) shall not 
apply to a religious nonmedical health care institution (as 
defined in section 1861(ss)(1)).
For purposes of paragraph (10) any individual who, for the 
month of August 1972, was eligible for or receiving aid or 
assistance under a State plan approved under title I, X, XIV, 
or XVI, or part A of title IV and who for such month was 
entitled to monthly insurance benefits under title II shall for 
purposes of this title only be deemed to be eligible for 
financial aid or assistance for any month thereafter if such 
individual would have been eligible for financial aid or 
assistance for such month had the increase in monthly insurance 
benefits under title II resulting from enactment of Public Law 
92-336 not been applicable to such individual.
The requirement of clause (A) of paragraph (37) with respect to 
a State plan may be waived by the Secretary if he finds that 
the State has exercised good faith in trying to meet such 
requirement. For purposes of this title, any child who meets 
the requirements of paragraph (1) or (2) of section 473(b) 
shall be deemed to be a dependent child as defined in section 
406 and shall be deemed to be a recipient of aid to families 
with dependent children under part A of title IV in the State 
where such child resides. Notwithstanding paragraph (10)(B) or 
any other provision of this subsection, a State plan shall 
provide medical assistance with respect to an alien who is not 
lawfully admitted for permanent residence or otherwise 
permanently residing in the United States under color of law 
only in accordance with section 1903(v).
  (b) The Secretary shall approve any plan which fulfills the 
conditions specified in subsection (a) of this section, except 
that he shall not approve any plan which imposes, as a 
condition of eligibility for medical assistance under the 
plan--
          (1) an age requirement of more than 65 years; or
          (2) any residence requirement which excludes any 
        individual who resides in the State, regardless of 
        whether or not the residence is maintained permanently 
        or at a fixed address; or
          (3) any citizenship requirement which excludes any 
        citizen of the United States.
  (c) Notwithstanding subsection (b), the Secretary shall not 
approve any State plan for medical assistance if the State 
requires individuals described in subsection (l)(1) to apply 
for assistance under the State program funded under part A of 
title IV as a condition of applying for or receiving medical 
assistance under this title.
  (d) If a State contracts with an entity which meets the 
requirements of section 1152, as determined by the Secretary, 
or a utilization and quality control peer review organization 
having a contract with the Secretary under part B of title XI 
for the performance of medical or utilization review functions 
(including quality review functions described in subsection 
(a)(30)(C)) required under this title of a State plan with 
respect to specific services or providers (or services or 
providers in a geographic area of the State), such requirements 
shall be deemed to be met for those services or providers (or 
services or providers in that area) by delegation to such an 
entity or organization under the contract of the State's 
authority to conduct such review activities if the contract 
provides for the performance of activities not inconsistent 
with part B of title XI and provides for such assurances of 
satisfactory performance by such an entity or organization as 
the Secretary may prescribe.
  (e)(1) Beginning April 1, 1990, for provisions relating to 
the extension of eligibility for medical assistance for certain 
families who have received aid pursuant to a State plan 
approved under part A of title IV and have earned income, see 
section 1925.
  (2)(A) In the case of an individual who is enrolled with a 
medicaid managed care organization (as defined in section 
1903(m)(1)(A)), with a primary care case manager (as defined in 
section 1905(t)), or with an eligible organization with a 
contract under section 1876 and who would (but for this 
paragraph) lose eligibility for benefits under this title 
before the end of the minimum enrollment period (defined in 
subparagraph (B)), the State plan may provide, notwithstanding 
any other provision of this title, that the individual shall be 
deemed to continue to be eligible for such benefits until the 
end of such minimum period, but, except for benefits furnished 
under section 1905(a)(4)(C), only with respect to such benefits 
provided to the individual as an enrollee of such organization 
or entity or by or through the case manager.
  (B) For purposes of subparagraph (A), the term ``minimum 
enrollment period'' means, with respect to an individual's 
enrollment with an organization or entity under a State plan, a 
period, established by the State, of not more than six months 
beginning on the date the individual's enrollment with the 
organization or entity becomes effective.
  (3) At the option of the State, any individual who--
          (A) is 18 years of age or younger and qualifies as a 
        disabled individual under section 1614(a);
          (B) with respect to whom there has been a 
        determination by the State that--
                  (i) the individual requires a level of care 
                provided in a hospital, nursing facility, or 
                intermediate care facility for the mentally 
                retarded,
                  (ii) it is appropriate to provide such care 
                for the individual outside such an institution, 
                and
                  (iii) the estimated amount which would be 
                expended for medical assistance for the 
                individual for such care outside an institution 
                is not greater than the estimated amount which 
                would otherwise be expended for medical 
                assistance for the individual within an 
                appropriate institution; and
          (C) if the individual were in a medical institution, 
        would be eligible for medical assistance under the 
        State plan under this title,
        shall be deemed, for purposes of this title only, to be 
        an individual with respect to whom a supplemental 
        security income payment, or State supplemental payment, 
        respectively, is being paid under title XVI.
  (4) A child born to a woman eligible for and receiving 
medical assistance under a State plan on the date of the 
child's birth shall be deemed to have applied for medical 
assistance and to have been found eligible for such assistance 
under such plan on the date of such birth and to remain 
eligible for such assistance for a period of one year. During 
the period in which a child is deemed under the preceding 
sentence to be eligible for medical assistance, the medical 
assistance eligibility identification number of the mother 
shall also serve as the identification number of the child, and 
all claims shall be submitted and paid under such number 
(unless the State issues a separate identification number for 
the child before such period expires). Notwithstanding the 
preceding sentence, in the case of a child who is born in the 
United States to an alien mother for whom medical assistance 
for the delivery of the child is made available pursuant to 
section 1903(v), the State immediately shall issue a separate 
identification number for the child upon notification by the 
facility at which such delivery occurred of the child's birth.
  (5) A woman who, while pregnant, is eligible for, has applied 
for, and has received medical assistance under the State plan, 
shall continue to be eligible under the plan, as though she 
were pregnant, for all pregnancy-related and postpartum medical 
assistance under the plan, through the end of the month in 
which the 60-day period (beginning on the last day of her 
pregnancy) ends.
  (6) In the case of a pregnant woman described in subsection 
(a)(10) who, because of a change in income of the family of 
which she is a member, would not otherwise continue to be 
described in such subsection, the woman shall be deemed to 
continue to be an individual described in subsection 
(a)(10)(A)(i)(IV) and subsection (l)(1)(A) without regard to 
such change of income through the end of the month in which the 
60-day period (beginning on the last day of her pregnancy) 
ends. The preceding sentence shall not apply in the case of a 
woman who has been provided ambulatory prenatal care pursuant 
to section 1920 during a presumptive eligibility period and is 
then, in accordance with such section, determined to be 
ineligible for medical assistance under the State plan.
  (7) In the case of an infant or child described in 
subparagraph (B), (C), or (D) of subsection (l)(1) or paragraph 
(2) of section 1905(n)--
          (A) who is receiving inpatient services for which 
        medical assistance is provided on the date the infant 
        or child attains the maximum age with respect to which 
        coverage is provided under the State plan for such 
        individuals, and
          (B) who, but for attaining such age, would remain 
        eligible for medical assistance under such subsection,
the infant or child shall continue to be treated as an 
individual described in such respective provision until the end 
of the stay for which the inpatient services are furnished.
  (8) If an individual is determined to be a qualified medicare 
beneficiary (as defined in section 1905(p)(1)), such 
determination shall apply to services furnished after the end 
of the month in which the determination first occurs. For 
purposes of payment to a State under section 1903(a), such 
determination shall be considered to be valid for an individual 
for a period of 12 months, except that a State may provide for 
such determinations more frequently, but not more frequently 
than once every 6 months for an individual.
  (9)(A) At the option of the State, the plan may include as 
medical assistance respiratory care services for any individual 
who--
          (i) is medically dependent on a ventilator for life 
        support at least six hours per day;
          (ii) has been so dependent for at least 30 
        consecutive days (or the maximum number of days 
        authorized under the State plan, whichever is less) as 
        an inpatient;
          (iii) but for the availability of respiratory care 
        services, would require respiratory care as an 
        inpatient in a hospital, nursing facility, or 
        intermediate care facility for the mentally retarded 
        and would be eligible to have payment made for such 
        inpatient care under the State plan;
          (iv) has adequate social support services to be cared 
        for at home; and
          (v) wishes to be cared for at home.
  (B) The requirements of subparagraph (A)(ii) may be satisfied 
by a continuous stay in one or more hospitals, nursing 
facilities, or intermediate care facilities for the mentally 
retarded.
  (C) For purposes of this paragraph, respiratory care services 
means services provided on a part-time basis in the home of the 
individual by a respiratory therapist or other health care 
professional trained in respiratory therapy (as determined by 
the State), payment for which is not otherwise included within 
other items and services furnished to such individual as 
medical assistance under the plan.
  (10)(A) The fact that an individual, child, or pregnant woman 
may be denied aid under part A of title IV pursuant to section 
402(a)(43) shall not be construed as denying (or permitting a 
State to deny) medical assistance under this title to such 
individual, child, or woman who is eligible for assistance 
under this title on a basis other than the receipt of aid under 
such part.
  (B) If an individual, child, or pregnant woman is receiving 
aid under part A of title IV and such aid is terminated 
pursuant to section 402(a)(43), the State may not discontinue 
medical assistance under this title for the individual, child, 
or woman until the State has determined that the individual, 
child, or woman is not eligible for assistance under this title 
on a basis other than the receipt of aid under such part.
  (11)(A) In the case of an individual who is enrolled with a 
group health plan under section 1906 and who would (but for 
this paragraph) lose eligibility for benefits under this title 
before the end of the minimum enrollment period (defined in 
subparagraph (B)), the State plan may provide, notwithstanding 
any other provision of this title, that the individual shall be 
deemed to continue to be eligible for such benefits until the 
end of such minimum period, but only with respect to such 
benefits provided to the individual as an enrollee of such 
plan.
  (B) For purposes of subparagraph (A), the term ``minimum 
enrollment period'' means, with respect to an individual's 
enrollment with a group health plan, a period established by 
the State, of not more than 6 months beginning on the date the 
individual's enrollment under the plan becomes effective.
  (12) At the option of the State, the plan may provide that an 
individual who is under an age specified by the State (not to 
exceed 19 years of age) and who is determined to be eligible 
for benefits under a State plan approved under this title under 
subsection (a)(10)(A) shall remain eligible for those benefits 
until the earlier of--
          (A) the end of a period (not to exceed 12 months) 
        following the determination; or
          (B) the time that the individual exceeds that age.
  (13) Express Lane Option.--
          (A) In general.--
                  (i) Option to use a finding from an express 
                lane agency.--At the option of the State, the 
                State plan may provide that in determining 
                eligibility under this title for a child (as 
                defined in subparagraph (G)), the State may 
                rely on a finding made within a reasonable 
                period (as determined by the State) from an 
                Express Lane agency (as defined in subparagraph 
                (F)) when it determines whether a child 
                satisfies one or more components of eligibility 
                for medical assistance under this title. The 
                State may rely on a finding from an Express 
                Lane agency notwithstanding sections 
                1902(a)(46)(B) and 1137(d) or any differences 
                in budget unit, disregard, deeming or other 
                methodology, if the following requirements are 
                met:
                          (I) Prohibition on determining 
                        children ineligible for coverage.--If a 
                        finding from an Express Lane agency 
                        would result in a determination that a 
                        child does not satisfy an eligibility 
                        requirement for medical assistance 
                        under this title and for child health 
                        assistance under title XXI, the State 
                        shall determine eligibility for 
                        assistance using its regular 
                        procedures.
                          (II) Notice requirement.--For any 
                        child who is found eligible for medical 
                        assistance under the State plan under 
                        this title or child health assistance 
                        under title XXI and who is subject to 
                        premiums based on an Express Lane 
                        agency's finding of such child's income 
                        level, the State shall provide notice 
                        that the child may qualify for lower 
                        premium payments if evaluated by the 
                        State using its regular policies and of 
                        the procedures for requesting such an 
                        evaluation.
                          (III) Compliance with screen and 
                        enroll requirement.--The State shall 
                        satisfy the requirements under 
                        subparagraphs (A) and (B) of section 
                        2102(b)(3) (relating to screen and 
                        enroll) before enrolling a child in 
                        child health assistance under title 
                        XXI. At its option, the State may 
                        fulfill such requirements in accordance 
                        with either option provided under 
                        subparagraph (C) of this paragraph.
                          (IV) Verification of citizenship or 
                        nationality status.--The State shall 
                        satisfy the requirements of section 
                        1902(a)(46)(B) or 2105(c)(9), as 
                        applicable for verifications of 
                        citizenship or nationality status.
                          (V) Coding.--The State meets the 
                        requirements of subparagraph (E).
                  (ii) Option to apply to renewals and 
                redeterminations.--The State may apply the 
                provisions of this paragraph when conducting 
                initial determinations of eligibility, 
                redeterminations of eligibility, or both, as 
                described in the State plan.
          (B) Rules of construction.--Nothing in this paragraph 
        shall be construed--
                  (i) to limit or prohibit a State from taking 
                any actions otherwise permitted under this 
                title or title XXI in determining eligibility 
                for or enrolling children into medical 
                assistance under this title or child health 
                assistance under title XXI; or
                  (ii) to modify the limitations in section 
                1902(a)(5) concerning the agencies that may 
                make a determination of eligibility for medical 
                assistance under this title.
          (C) Options for satisfying the screen and enroll 
        requirement.--
                  (i) In general.--With respect to a child 
                whose eligibility for medical assistance under 
                this title or for child health assistance under 
                title XXI has been evaluated by a State agency 
                using an income finding from an Express Lane 
                agency, a State may carry out its duties under 
                subparagraphs (A) and (B) of section 2102(b)(3) 
                (relating to screen and enroll) in accordance 
                with either clause (ii) or clause (iii).
                  (ii) Establishing a screening threshold.--
                          (I) In general.--Under this clause, 
                        the State establishes a screening 
                        threshold set as a percentage of the 
                        Federal poverty level that exceeds the 
                        highest income threshold applicable 
                        under this title to the child by a 
                        minimum of 30 percentage points or, at 
                        State option, a higher number of 
                        percentage points that reflects the 
                        value (as determined by the State and 
                        described in the State plan) of any 
                        differences between income 
                        methodologies used by the program 
                        administered by the Express Lane agency 
                        and the methodologies used by the State 
                        in determining eligibility for medical 
                        assistance under this title.
                          (II) Children with income not above 
                        threshold.--If the income of a child 
                        does not exceed the screening 
                        threshold, the child is deemed to 
                        satisfy the income eligibility criteria 
                        for medical assistance under this title 
                        regardless of whether such child would 
                        otherwise satisfy such criteria.
                          (III) Children with income above 
                        threshold.--If the income of a child 
                        exceeds the screening threshold, the 
                        child shall be considered to have an 
                        income above the Medicaid applicable 
                        income level described in section 
                        2110(b)(4) and to satisfy the 
                        requirement under section 2110(b)(1)(C) 
                        (relating to the requirement that CHIP 
                        matching funds be used only for 
                        children not eligible for Medicaid). If 
                        such a child is enrolled in child 
                        health assistance under title XXI, the 
                        State shall provide the parent, 
                        guardian, or custodial relative with 
                        the following:
                                  (aa) Notice that the child 
                                may be eligible to receive 
                                medical assistance under the 
                                State plan under this title if 
                                evaluated for such assistance 
                                under the State's regular 
                                procedures and notice of the 
                                process through which a parent, 
                                guardian, or custodial relative 
                                can request that the State 
                                evaluate the child's 
                                eligibility for medical 
                                assistance under this title 
                                using such regular procedures.
                                  (bb) A description of 
                                differences between the medical 
                                assistance provided under this 
                                title and child health 
                                assistance under title XXI, 
                                including differences in cost-
                                sharing requirements and 
                                covered benefits.
                  (iii) Temporary enrollment in chip pending 
                screen and enroll.--
                          (I) In general.--Under this clause, a 
                        State enrolls a child in child health 
                        assistance under title XXI for a 
                        temporary period if the child appears 
                        eligible for such assistance based on 
                        an income finding by an Express Lane 
                        agency.
                          (II) Determination of eligibility.--
                        During such temporary enrollment 
                        period, the State shall determine the 
                        child's eligibility for child health 
                        assistance under title XXI or for 
                        medical assistance under this title in 
                        accordance with this clause.
                          (III) Prompt follow up.--In making 
                        such a determination, the State shall 
                        take prompt action to determine whether 
                        the child should be enrolled in medical 
                        assistance under this title or child 
                        health assistance under title XXI 
                        pursuant to subparagraphs (A) and (B) 
                        of section 2102(b)(3) (relating to 
                        screen and enroll).
                          (IV) Requirement for simplified 
                        determination.--In making such a 
                        determination, the State shall use 
                        procedures that, to the maximum 
                        feasible extent, reduce the burden 
                        imposed on the individual of such 
                        determination. Such procedures may not 
                        require the child's parent, guardian, 
                        or custodial relative to provide or 
                        verify information that already has 
                        been provided to the State agency by an 
                        Express Lane agency or another source 
                        of information unless the State agency 
                        has reason to believe the information 
                        is erroneous.
                          (V) Availability of chip matching 
                        funds during temporary enrollment 
                        period.--Medical assistance for items 
                        and services that are provided to a 
                        child enrolled in title XXI during a 
                        temporary enrollment period under this 
                        clause shall be treated as child health 
                        assistance under such title.
          (D) Option for automatic enrollment.--
                  (i) In general.--The State may initiate and 
                determine eligibility for medical assistance 
                under the State Medicaid plan or for child 
                health assistance under the State CHIP plan 
                without a program application from, or on 
                behalf of, the child based on data obtained 
                from sources other than the child (or the 
                child's family), but a child can only be 
                automatically enrolled in the State Medicaid 
                plan or the State CHIP plan if the child or the 
                family affirmatively consents to being enrolled 
                through affirmation in writing, by telephone, 
                orally, through electronic signature, or 
                through any other means specified by the 
                Secretary or by signature on an Express Lane 
                agency application, if the requirement of 
                clause (ii) is met.
                  (ii) Information requirement.--The 
                requirement of this clause is that the State 
                informs the parent, guardian, or custodial 
                relative of the child of the services that will 
                be covered, appropriate methods for using such 
                services, premium or other cost sharing charges 
                (if any) that apply, medical support 
                obligations (under section 1912(a)) created by 
                enrollment (if applicable), and the actions the 
                parent, guardian, or relative must take to 
                maintain enrollment and renew coverage.
          (E) Coding; application to enrollment error rates.--
                  (i) In general.--For purposes of subparagraph 
                (A)(iv), the requirement of this subparagraph 
                for a State is that the State agrees to--
                          (I) assign such codes as the 
                        Secretary shall require to the children 
                        who are enrolled in the State Medicaid 
                        plan or the State CHIP plan through 
                        reliance on a finding made by an 
                        Express Lane agency for the duration of 
                        the State's election under this 
                        paragraph;
                          (II) annually provide the Secretary 
                        with a statistically valid sample (that 
                        is approved by Secretary) of the 
                        children enrolled in such plans through 
                        reliance on such a finding by 
                        conducting a full Medicaid eligibility 
                        review of the children identified for 
                        such sample for purposes of determining 
                        an eligibility error rate (as described 
                        in clause (iv)) with respect to the 
                        enrollment of such children (and shall 
                        not include such children in any data 
                        or samples used for purposes of 
                        complying with a Medicaid Eligibility 
                        Quality Control (MEQC) review or a 
                        payment error rate measurement (PERM) 
                        requirement);
                          (III) submit the error rate 
                        determined under subclause (II) to the 
                        Secretary;
                          (IV) if such error rate exceeds 3 
                        percent for either of the first 2 
                        fiscal years in which the State elects 
                        to apply this paragraph, demonstrate to 
                        the satisfaction of the Secretary the 
                        specific corrective actions implemented 
                        by the State to improve upon such error 
                        rate; and
                          (V) if such error rate exceeds 3 
                        percent for any fiscal year in which 
                        the State elects to apply this 
                        paragraph, a reduction in the amount 
                        otherwise payable to the State under 
                        section 1903(a) for quarters for that 
                        fiscal year, equal to the total amount 
                        of erroneous excess payments determined 
                        for the fiscal year only with respect 
                        to the children included in the sample 
                        for the fiscal year that are in excess 
                        of a 3 percent error rate with respect 
                        to such children.
                  (ii) No punitive action based on error 
                rate.--The Secretary shall not apply the error 
                rate derived from the sample under clause (i) 
                to the entire population of children enrolled 
                in the State Medicaid plan or the State CHIP 
                plan through reliance on a finding made by an 
                Express Lane agency, or to the population of 
                children enrolled in such plans on the basis of 
                the State's regular procedures for determining 
                eligibility, or penalize the State on the basis 
                of such error rate in any manner other than the 
                reduction of payments provided for under clause 
                (i)(V).
                  (iii) Rule of construction.--Nothing in this 
                paragraph shall be construed as relieving a 
                State that elects to apply this paragraph from 
                being subject to a penalty under section 
                1903(u), for payments made under the State 
                Medicaid plan with respect to ineligible 
                individuals and families that are determined to 
                exceed the error rate permitted under that 
                section (as determined without regard to the 
                error rate determined under clause (i)(II)).
                  (iv) Error rate defined.--In this 
                subparagraph, the term ``error rate'' means the 
                rate of erroneous excess payments for medical 
                assistance (as defined in section 
                1903(u)(1)(D)) for the period involved, except 
                that such payments shall be limited to 
                individuals for which eligibility 
                determinations are made under this paragraph 
                and except that in applying this paragraph 
                under title XXI, there shall be substituted for 
                references to provisions of this title 
                corresponding provisions within title XXI.
          (F) Express lane agency.--
                  (i) In general.--In this paragraph, the term 
                ``Express Lane agency'' means a public agency 
                that--
                          (I) is determined by the State 
                        Medicaid agency or the State CHIP 
                        agency (as applicable) to be capable of 
                        making the determinations of one or 
                        more eligibility requirements described 
                        in subparagraph (A)(i);
                          (II) is identified in the State 
                        Medicaid plan or the State CHIP plan; 
                        and
                          (III) notifies the child's family--
                                  (aa) of the information which 
                                shall be disclosed in 
                                accordance with this paragraph;
                                  (bb) that the information 
                                disclosed will be used solely 
                                for purposes of determining 
                                eligibility for medical 
                                assistance under the State 
                                Medicaid plan or for child 
                                health assistance under the 
                                State CHIP plan; and
                                  (cc) that the family may 
                                elect to not have the 
                                information disclosed for such 
                                purposes; and
                          (IV) enters into, or is subject to, 
                        an interagency agreement to limit the 
                        disclosure and use of the information 
                        disclosed.
                  (ii) Inclusion of specific public agencies 
                and indian tribes and tribal organizations.--
                Such term includes the following:
                          (I) A public agency that determines 
                        eligibility for assistance under any of 
                        the following:
                                  (aa) The temporary assistance 
                                for needy families program 
                                funded under part A of title 
                                IV.
                                  (bb) A State program funded 
                                under part D of title IV.
                                  (cc) The State Medicaid plan.
                                  (dd) The State CHIP plan.
                                  (ee) The Food and Nutrition 
                                Act of 2008 (7 U.S.C. 2011 et 
                                seq.).
                                  (ff) The Head Start Act (42 
                                U.S.C. 9801 et seq.).
                                  (gg) The Richard B. Russell 
                                National School Lunch Act (42 
                                U.S.C. 1751 et seq.).
                                  (hh) The Child Nutrition Act 
                                of 1966 (42 U.S.C. 1771 et 
                                seq.).
                                  (ii) The Child Care and 
                                Development Block Grant Act of 
                                1990 (42 U.S.C. 9858 et seq.).
                                  (jj) The Stewart B. McKinney 
                                Homeless Assistance Act (42 
                                U.S.C. 11301 et seq.).
                                  (kk) The United States 
                                Housing Act of 1937 (42 U.S.C. 
                                1437 et seq.).
                                  (ll) The Native American 
                                Housing Assistance and Self-
                                Determination Act of 1996 (25 
                                U.S.C. 4101 et seq.).
                          (II) A State-specified governmental 
                        agency that has fiscal liability or 
                        legal responsibility for the accuracy 
                        of the eligibility determination 
                        findings relied on by the State.
                          (III) A public agency that is subject 
                        to an interagency agreement limiting 
                        the disclosure and use of the 
                        information disclosed for purposes of 
                        determining eligibility under the State 
                        Medicaid plan or the State CHIP plan.
                          (IV) The Indian Health Service, an 
                        Indian Tribe, Tribal Organization, or 
                        Urban Indian Organization (as defined 
                        in section 1139(c)).
                  (iii) Exclusions.--Such term does not include 
                an agency that determines eligibility for a 
                program established under the Social Services 
                Block Grant established under title XX or a 
                private, for-profit organization.
                  (iv) Rules of construction.--Nothing in this 
                paragraph shall be construed as--
                          (I) exempting a State Medicaid agency 
                        from complying with the requirements of 
                        section 1902(a)(4) relating to merit-
                        based personnel standards for employees 
                        of the State Medicaid agency and 
                        safeguards against conflicts of 
                        interest); or
                          (II) authorizing a State Medicaid 
                        agency that elects to use Express Lane 
                        agencies under this subparagraph to use 
                        the Express Lane option to avoid 
                        complying with such requirements for 
                        purposes of making eligibility 
                        determinations under the State Medicaid 
                        plan.
                  (v) Additional definitions.--In this 
                paragraph:
                          (I) State.--The term ``State'' means 
                        1 of the 50 States or the District of 
                        Columbia.
                          (II) State chip agency.--The term 
                        ``State CHIP agency'' means the State 
                        agency responsible for administering 
                        the State CHIP plan.
                          (III) State chip plan.--The term 
                        ``State CHIP plan'' means the State 
                        child health plan established under 
                        title XXI and includes any waiver of 
                        such plan.
                          (IV) State medicaid agency.--The term 
                        ``State Medicaid agency'' means the 
                        State agency responsible for 
                        administering the State Medicaid plan.
                          (V) State medicaid plan.--The term 
                        ``State Medicaid plan'' means the State 
                        plan established under title XIX and 
                        includes any waiver of such plan.
          (G) Child defined.--For purposes of this paragraph, 
        the term ``child'' means an individual under 19 years 
        of age, or, at the option of a State, such higher age, 
        not to exceed 21 years of age, as the State may elect.
          (H) State option to rely on state income tax data or 
        return.--At the option of the State, a finding from an 
        Express Lane agency may include gross income or 
        adjusted gross income shown by State income tax records 
        or returns.
          (I) Application.--This paragraph shall not apply with 
        respect to eligibility determinations made after 
        September 30, 2027.
          (14) Income determined using modified adjusted gross 
        income.--
                  (A) In general.--Notwithstanding subsection 
                (r) or any other provision of this title, 
                except as provided in subparagraph (D), for 
                purposes of determining income eligibility for 
                medical assistance under the State plan or 
                under any waiver of such plan and for any other 
                purpose applicable under the plan or waiver for 
                which a determination of income is required, 
                including with respect to the imposition of 
                premiums and cost-sharing, a State shall use 
                the modified adjusted gross income of an 
                individual and, in the case of an individual in 
                a family greater than 1, the household income 
                of such family. A State shall establish income 
                eligibility thresholds for populations to be 
                eligible for medical assistance under the State 
                plan or a waiver of the plan using modified 
                adjusted gross income and household income that 
                are not less than the effective income 
                eligibility levels that applied under the State 
                plan or waiver on the date of enactment of the 
                Patient Protection and Affordable Care Act. For 
                purposes of complying with the maintenance of 
                effort requirements under subsection (gg) 
                during the transition to modified adjusted 
                gross income and household income, a State 
                shall, working with the Secretary, establish an 
                equivalent income test that ensures individuals 
                eligible for medical assistance under the State 
                plan or under a waiver of the plan on the date 
                of enactment of the Patient Protection and 
                Affordable Care Act, do not lose coverage under 
                the State plan or under a waiver of the plan. 
                The Secretary may waive such provisions of this 
                title and title XXI as are necessary to ensure 
                that States establish income and eligibility 
                determination systems that protect 
                beneficiaries.
                  (B) No income or expense disregards.--Subject 
                to subparagraph (I), no type of expense, block, 
                or other income disregard shall be applied by a 
                State to determine income eligibility for 
                medical assistance under the State plan or 
                under any waiver of such plan or for any other 
                purpose applicable under the plan or waiver for 
                which a determination of income is required.
                  (C) No assets test.--A State shall not apply 
                any assets or resources test for purposes of 
                determining eligibility for medical assistance 
                under the State plan or under a waiver of the 
                plan.
                  (D) Exceptions.--
                          (i) Individuals eligible because of 
                        other aid or assistance, elderly 
                        individuals, medically needy 
                        individuals, and individuals eligible 
                        for medicare cost-sharing.--
                        Subparagraphs (A), (B), and (C) shall 
                        not apply to the determination of 
                        eligibility under the State plan or 
                        under a waiver for medical assistance 
                        for the following:
                                  (I) Individuals who are 
                                eligible for medical assistance 
                                under the State plan or under a 
                                waiver of the plan on a basis 
                                that does not require a 
                                determination of income by the 
                                State agency administering the 
                                State plan or waiver, including 
                                as a result of eligibility for, 
                                or receipt of, other Federal or 
                                State aid or assistance, 
                                individuals who are eligible on 
                                the basis of receiving (or 
                                being treated as if receiving) 
                                supplemental security income 
                                benefits under title XVI, and 
                                individuals who are eligible as 
                                a result of being or being 
                                deemed to be a child in foster 
                                care under the responsibility 
                                of the State.
                                  (II) Individuals who have 
                                attained age 65.
                                  (III) Individuals who qualify 
                                for medical assistance under 
                                the State plan or under any 
                                waiver of such plan on the 
                                basis of being blind or 
                                disabled (or being treated as 
                                being blind or disabled) 
                                without regard to whether the 
                                individual is eligible for 
                                supplemental security income 
                                benefits under title XVI on the 
                                basis of being blind or 
                                disabled and including an 
                                individual who is eligible for 
                                medical assistance on the basis 
                                of section 1902(e)(3).
                                  (IV) Individuals described in 
                                subsection (a)(10)(C).
                                  (V) Individuals described in 
                                any clause of subsection 
                                (a)(10)(E).
                          (ii) Express lane agency findings.--
                        In the case of a State that elects the 
                        Express Lane option under paragraph 
                        (13), notwithstanding subparagraphs 
                        (A), (B), and (C), the State may rely 
                        on a finding made by an Express Lane 
                        agency in accordance with that 
                        paragraph relating to the income of an 
                        individual for purposes of determining 
                        the individual's eligibility for 
                        medical assistance under the State plan 
                        or under a waiver of the plan.
                          (iii) Medicare prescription drug 
                        subsidies determinations.--
                        Subparagraphs (A), (B), and (C) shall 
                        not apply to any determinations of 
                        eligibility for premium and cost-
                        sharing subsidies under and in 
                        accordance with section 1860D-14 made 
                        by the State pursuant to section 
                        1935(a)(2).
                          (iv) Long-term care.--Subparagraphs 
                        (A), (B), and (C) shall not apply to 
                        any determinations of eligibility of 
                        individuals for purposes of medical 
                        assistance for nursing facility 
                        services, a level of care in any 
                        institution equivalent to that of 
                        nursing facility services, home or 
                        community-based services furnished 
                        under a waiver or State plan amendment 
                        under section 1915 or a waiver under 
                        section 1115, and services described in 
                        section 1917(c)(1)(C)(ii).
                          (v) Grandfather of current enrollees 
                        until date of next regular 
                        redetermination.--An individual who, on 
                        January 1, 2014, is enrolled in the 
                        State plan or under a waiver of the 
                        plan and who would be determined 
                        ineligible for medical assistance 
                        solely because of the application of 
                        the modified adjusted gross income or 
                        household income standard described in 
                        subparagraph (A), shall remain eligible 
                        for medical assistance under the State 
                        plan or waiver (and subject to the same 
                        premiums and cost-sharing as applied to 
                        the individual on that date) through 
                        March 31, 2014, or the date on which 
                        the individual's next regularly 
                        scheduled redetermination of 
                        eligibility is to occur, whichever is 
                        later.
                  (E) Transition planning and oversight.--Each 
                State shall submit to the Secretary for the 
                Secretary's approval the income eligibility 
                thresholds proposed to be established using 
                modified adjusted gross income and household 
                income, the methodologies and procedures to be 
                used to determine income eligibility using 
                modified adjusted gross income and household 
                income and, if applicable, a State plan 
                amendment establishing an optional eligibility 
                category under subsection (a)(10)(A)(ii)(XX). 
                To the extent practicable, the State shall use 
                the same methodologies and procedures for 
                purposes of making such determinations as the 
                State used on the date of enactment of the 
                Patient Protection and Affordable Care Act. The 
                Secretary shall ensure that the income 
                eligibility thresholds proposed to be 
                established using modified adjusted gross 
                income and household income, including under 
                the eligibility category established under 
                subsection (a)(10)(A)(ii)(XX), and the 
                methodologies and procedures proposed to be 
                used to determine income eligibility, will not 
                result in children who would have been eligible 
                for medical assistance under the State plan or 
                under a waiver of the plan on the date of 
                enactment of the Patient Protection and 
                Affordable Care Act no longer being eligible 
                for such assistance.
                  (F) Limitation on secretarial authority.--The 
                Secretary shall not waive compliance with the 
                requirements of this paragraph except to the 
                extent necessary to permit a State to 
                coordinate eligibility requirements for dual 
                eligible individuals (as defined in section 
                1915(h)(2)(B)) under the State plan or under a 
                waiver of the plan and under title XVIII and 
                individuals who require the level of care 
                provided in a hospital, a nursing facility, or 
                an intermediate care facility for the mentally 
                retarded.
                  (G) Definitions of modified adjusted gross 
                income and household income.--In this 
                paragraph, the terms ``modified adjusted gross 
                income'' and ``household income'' have the 
                meanings given such terms in section 36B(d)(2) 
                of the Internal Revenue Code of 1986.
                  (H) Continued application of medicaid rules 
                regarding point-in-time income and sources of 
                income.--The requirement under this paragraph 
                for States to use modified adjusted gross 
                income and household income to determine income 
                eligibility for medical assistance under the 
                State plan or under any waiver of such plan and 
                for any other purpose applicable under the plan 
                or waiver for which a determination of income 
                is required shall not be construed as affecting 
                or limiting the application of--
                          (i) the requirement under this title 
                        and under the State plan or a waiver of 
                        the plan to determine an individual's 
                        income as of the point in time at which 
                        an application for medical assistance 
                        under the State plan or a waiver of the 
                        plan is processed; or
                          (ii) any rules established under this 
                        title or under the State plan or a 
                        waiver of the plan regarding sources of 
                        countable income.
                  (I) Treatment of portion of modified adjusted 
                gross income.--For purposes of determining the 
                income eligibility of an individual for medical 
                assistance whose eligibility is determined 
                based on the application of modified adjusted 
                gross income under subparagraph (A), the State 
                shall--
                          (i) determine the dollar equivalent 
                        of the difference between the upper 
                        income limit on eligibility for such an 
                        individual (expressed as a percentage 
                        of the poverty line) and such upper 
                        income limit increased by 5 percentage 
                        points; and
                          (ii) notwithstanding the requirement 
                        in subparagraph (A) with respect to use 
                        of modified adjusted gross income, 
                        utilize as the applicable income of 
                        such individual, in determining such 
                        income eligibility, an amount equal to 
                        the modified adjusted gross income 
                        applicable to such individual reduced 
                        by such dollar equivalent amount.
                  (J) Exclusion of parent mentor compensation 
                from income determination.--Any nominal amount 
                received by an individual as compensation, 
                including a stipend, for participation as a 
                parent mentor (as defined in paragraph (5) of 
                section 2113(f)) in an activity or program 
                funded through a grant under such section shall 
                be disregarded for purposes of determining the 
                income eligibility of such individual for 
                medical assistance under the State plan or any 
                waiver of such plan.
                  (K) Treatment of certain lottery winnings and 
                income received as a lump sum.--
                          (i) In general.--In the case of an 
                        individual who is the recipient of 
                        qualified lottery winnings (pursuant to 
                        lotteries occurring on or after January 
                        1, 2018) or qualified lump sum income 
                        (received on or after such date) and 
                        whose eligibility for medical 
                        assistance is determined based on the 
                        application of modified adjusted gross 
                        income under subparagraph (A), a State 
                        shall, in determining such eligibility, 
                        include such winnings or income (as 
                        applicable) as income received--
                                  (I) in the month in which 
                                such winnings or income (as 
                                applicable) is received if the 
                                amount of such winnings or 
                                income is less than $80,000;
                                  (II) over a period of 2 
                                months if the amount of such 
                                winnings or income (as 
                                applicable) is greater than or 
                                equal to $80,000 but less than 
                                $90,000;
                                  (III) over a period of 3 
                                months if the amount of such 
                                winnings or income (as 
                                applicable) is greater than or 
                                equal to $90,000 but less than 
                                $100,000; and
                                  (IV) over a period of 3 
                                months plus 1 additional month 
                                for each increment of $10,000 
                                of such winnings or income (as 
                                applicable) received, not to 
                                exceed a period of 120 months 
                                (for winnings or income of 
                                $1,260,000 or more), if the 
                                amount of such winnings or 
                                income is greater than or equal 
                                to $100,000.
                          (ii) Counting in equal 
                        installments.--For purposes of 
                        subclauses (II), (III), and (IV) of 
                        clause (i), winnings or income to which 
                        such subclause applies shall be counted 
                        in equal monthly installments over the 
                        period of months specified under such 
                        subclause.
                          (iii) Hardship exemption.--An 
                        individual whose income, by application 
                        of clause (i), exceeds the applicable 
                        eligibility threshold established by 
                        the State, shall continue to be 
                        eligible for medical assistance to the 
                        extent that the State determines, under 
                        procedures established by the State (in 
                        accordance with standards specified by 
                        the Secretary), that the denial of 
                        eligibility of the individual would 
                        cause an undue medical or financial 
                        hardship as determined on the basis of 
                        criteria established by the Secretary.
                          (iv) Notifications and assistance 
                        required in case of loss of 
                        eligibility.--A State shall, with 
                        respect to an individual who loses 
                        eligibility for medical assistance 
                        under the State plan (or a waiver of 
                        such plan) by reason of clause (i)--
                                  (I) before the date on which 
                                the individual loses such 
                                eligibility, inform the 
                                individual--
                                          (aa) of the 
                                        individual's 
                                        opportunity to enroll 
                                        in a qualified health 
                                        plan offered through an 
                                        Exchange established 
                                        under title I of the 
                                        Patient Protection and 
                                        Affordable Care Act 
                                        during the special 
                                        enrollment period 
                                        specified in section 
                                        9801(f)(3) of the 
                                        Internal Revenue Code 
                                        of 1986 (relating to 
                                        loss of Medicaid or 
                                        CHIP coverage); and
                                          (bb) of the date on 
                                        which the individual 
                                        would no longer be 
                                        considered ineligible 
                                        by reason of clause (i) 
                                        to receive medical 
                                        assistance under the 
                                        State plan or under any 
                                        waiver of such plan and 
                                        be eligible to reapply 
                                        to receive such medical 
                                        assistance; and
                                  (II) provide technical 
                                assistance to the individual 
                                seeking to enroll in such a 
                                qualified health plan.
                          (v) Qualified lottery winnings 
                        defined.--In this subparagraph, the 
                        term ``qualified lottery winnings'' 
                        means winnings from a sweepstakes, 
                        lottery, or pool described in paragraph 
                        (3) of section 4402 of the Internal 
                        Revenue Code of 1986 or a lottery 
                        operated by a multistate or 
                        multijurisdictional lottery 
                        association, including amounts awarded 
                        as a lump sum payment.
                          (vi) Qualified lump sum income 
                        defined.--In this subparagraph, the 
                        term ``qualified lump sum income'' 
                        means income that is received as a lump 
                        sum from monetary winnings from 
                        gambling (as defined by the Secretary 
                        and including gambling activities 
                        described in section 1955(b)(4) of 
                        title 18, United States Code).
          (15) Exclusion of compensation for participation in a 
        clinical trial for testing of treatments for a rare 
        disease or condition.--The first $2,000 received by an 
        individual (who has attained 19 years of age) as 
        compensation for participation in a clinical trial 
        meeting the requirements of section 1612(b)(26) shall 
        be disregarded for purposes of determining the income 
        eligibility of such individual for medical assistance 
        under the State plan or any waiver of such plan.
          (16) Extending certain coverage for pregnant and 
        postpartum women.--
                  (A) In general.--At the option of the State, 
                the State plan (or waiver of such State plan) 
                may provide, that an individual who, while 
                pregnant, is eligible for and has received 
                medical assistance under the State plan 
                approved under this title (or a waiver of such 
                plan) (including during a period of retroactive 
                eligibility under subsection (a)(34)) shall, in 
                addition to remaining eligible under paragraph 
                (5) for all pregnancy-related and postpartum 
                medical assistance available under the State 
                plan (or waiver) through the last day of the 
                month in which the 60-day period (beginning on 
                the last day of her pregnancy) ends, remain 
                eligible under the State plan (or waiver) for 
                medical assistance for the period beginning on 
                the first day occurring after the end of such 
                60-day period and ending on the last day of the 
                month in which the 12-month period (beginning 
                on the last day of her pregnancy) ends.
                  (B) Full benefits during pregnancy and 
                throughout the 12-month postpartum period.--The 
                medical assistance provided for a pregnant or 
                postpartum individual by a State making an 
                election under this paragraph, without regard 
                to the basis on which the individual is 
                eligible for medical assistance under the State 
                plan (or waiver), shall--
                          (i) include all items and services 
                        covered under the State plan (or 
                        waiver) that are not less in amount, 
                        duration, or scope, or are determined 
                        by the Secretary to be substantially 
                        equivalent, to the medical assistance 
                        available for an individual described 
                        in subsection (a)(10)(A)(i); and
                          (ii) be provided for the individual 
                        while pregnant and during the 12-month 
                        period that begins on the last day of 
                        the individual's pregnancy and ends on 
                        the last day of the month in which such 
                        12-month period ends.
                  (C) Coverage under chip.--A State making an 
                election under this paragraph that covers under 
                title XXI child health assistance for targeted 
                low-income children who are pregnant or 
                targeted low-income pregnant women, as 
                applicable, shall also make the election under 
                section 2107(e)(1)(J) of such title.
  (f) Notwithstanding any other provision of this title, except 
as provided in subsection (e) and section 1619(b)(3) and 
section 1924, except with respect to qualified disabled and 
working individuals (described in section 1905(s)), and except 
with respect to qualified medicare beneficiaries, qualified 
severely impaired individuals, and individuals described in 
subsection (m)(1), no State not eligible to participate in the 
State plan program established under title XVI shall be 
required to provide medical assistance to any aged, blind, or 
disabled individual (within the meaning of title XVI) for any 
month unless such State would be (or would have been) required 
to provide medical assistance to such individual for such month 
had its plan for medical assistance approved under this title 
and in effect on January 1, 1972, been in effect in such month, 
except that for this purpose any such individual shall be 
deemed eligible for medical assistance under such State plan if 
(in addition to meeting such other requirements as are or may 
be imposed under the State plan) the income of any such 
individual as determined in accordance with section 1903(f) 
(after deducting any supplemental security income payment and 
State supplementary payment made with respect to such 
individual, and incurred expenses for medical care as 
recognized under State law regardless of whether such expenses 
are reimbursed under another public program of the State or 
political subdivision thereof) is not in excess of the standard 
for medical assistance established under the State plan as in 
effect on January 1, 1972. In States which provide medical 
assistance to individuals pursuant to paragraph (10)(C) of 
subsection (a) of this section, an individual who is eligible 
for medical assistance by reason of the requirements of this 
section concerning the deduction of incurred medical expenses 
from income shall be considered an individual eligible for 
medical assistance under paragraph (10)(A) of that subsection 
if that individual is, or is eligible to be (1) an individual 
with respect to whom there is payable a State supplementary 
payment on the basis of which similarly situated individuals 
are eligible to receive medical assistance equal in amount, 
duration, and scope to that provided to individuals eligible 
under paragraph (10)(A), or (2) an eligible individual or 
eligible spouse, as defined in title XVI, with respect to whom 
supplemental security income benefits are payable; otherwise 
that individual shall be considered to be an individual 
eligible for medical assistance under paragraph (10)(C) of that 
subsection. In States which do not provide medical assistance 
to individuals pursuant to paragraph (10)(C) of that 
subsection, an individual who is eligible for medical 
assistance by reason of the requirements of this section 
concerning the deduction of incurred medical expenses from 
income shall be considered an individual eligible for medical 
assistance under paragraph (10)(A) of that subsection.
  (g) In addition to any other sanction available to a State, a 
State may provide for a reduction of any payment amount 
otherwise due with respect to a person who furnishes services 
under the plan in an amount equal to up to three times the 
amount of any payment sought to be collected by that person in 
violation of subsection (a)(25)(C).
  (h)(1) Nothing in this title (including subsections (a)(13) 
and (a)(30) of this section) shall be construed as authorizing 
the Secretary to limit the amount of payment that may be made 
under a plan under this title for home and community care, home 
and community-based services provided under subsection (c), 
(d), or (i) of section 1915 or under a waiver or demonstration 
project under section 1115, self-directed personal assistance 
services provided pursuant to a written plan of care under 
section 1915(j), and home and community-based attendant 
services and supports under section 1915(k).
  (2) Nothing in this title, title XVIII, or title XI shall be 
construed as prohibiting receipt of any care or services 
specified in paragraph (1) in an acute care hospital that are--
          (A) identified in an individual's person-centered 
        service plan (or comparable plan of care);
          (B) provided to meet needs of the individual that are 
        not met through the provision of hospital services;
          (C) not a substitute for services that the hospital 
        is obligated to provide through its conditions of 
        participation or under Federal or State law, or under 
        another applicable requirement; and
          (D) designed to ensure smooth transitions between 
        acute care settings and home and community-based 
        settings, and to preserve the individual's functional 
        abilities.
  (i)(1) In addition to any other authority under State law, 
where a State determines that a intermediate care facility for 
the mentally retarded which is certified for participation 
under its plan no longer substantially meets the requirements 
for such a facility under this title and further determines 
that the facility's deficiencies--
          (A) immediately jeopardize the health and safety of 
        its patients, the State shall provide for the 
        termination of the facility's certification for 
        participation under the plan and may provide, or
          (B) do not immediately jeopardize the health and 
        safety of its patients, the State may, in lieu of 
        providing for terminating the facility's certification 
        for participation under the plan, establish alternative 
        remedies if the State demonstrates to the Secretary's 
        satisfaction that the alternative remedies are 
        effective in deterring noncompliance and correcting 
        deficiencies, and may provide
that no payment will be made under the State plan with respect 
to any individual admitted to such facility after a date 
specified by the State.
  (2) The State shall not make such a decision with respect to 
a facility until the facility has had a reasonable opportunity, 
following the initial determination that it no longer 
substantially meets the requirements for such a facility under 
this title, to correct its deficiencies, and, following this 
period, has been given reasonable notice and opportunity for a 
hearing.
  (3) The State's decision to deny payment may be made 
effective only after such notice to the public and to the 
facility as may be provided for by the State, and its 
effectiveness shall terminate (A) when the State finds that the 
facility is in substantial compliance (or is making good faith 
efforts to achieve substantial compliance) with the 
requirements for such a facility under this title, or (B) in 
the case described in paragraph (1)(B), with the end of the 
eleventh month following the month such decision is made 
effective, whichever occurs first. If a facility to which 
clause (B) of the previous sentence applies still fails to 
substantially meet the provisions of the respective section on 
the date specified in such clause, the State shall terminate 
such facility's certification for participation under the plan 
effective with the first day of the first month following the 
month specified in such clause.
  (j) Notwithstanding any other requirement of this title, the 
Secretary may waive or modify any requirement of this title 
with respect to the medical assistance program in American 
Samoa and the Northern Mariana Islands, other than a waiver of 
the Federal medical assistance percentage, the limitation in 
section 1108(f),, the requirement that payment may be made for 
medical assistance only with respect to amounts expended by 
American Samoa or the Northern Mariana Islands for care and 
services described in a numbered paragraph of section 1905(a), 
or the requirement under subsection (qq)(1) (relating to data 
reporting).
  (k)(1) The medical assistance provided to an individual 
described in subclause (VIII) of subsection (a)(10)(A)(i) shall 
consist of benchmark coverage described in section 1937(b)(1) 
or benchmark equivalent coverage described in section 
1937(b)(2). Such medical assistance shall be provided subject 
to the requirements of section 1937, without regard to whether 
a State otherwise has elected the option to provide medical 
assistance through coverage under that section, unless an 
individual described in subclause (VIII) of subsection 
(a)(10)(A)(i) is also an individual for whom, under 
subparagraph (B) of section 1937(a)(2), the State may not 
require enrollment in benchmark coverage described in 
subsection (b)(1) of section 1937 or benchmark equivalent 
coverage described in subsection (b)(2) of that section.
  (2) Beginning with the first day of any fiscal year quarter 
that begins on or after April 1, 2010, and before January 1, 
2014, a State may elect through a State plan amendment to 
provide medical assistance to individuals who would be 
described in subclause (VIII) of subsection (a)(10)(A)(i) if 
that subclause were effective before January 1, 2014. A State 
may elect to phase-in the extension of eligibility for medical 
assistance to such individuals based on income, so long as the 
State does not extend such eligibility to individuals described 
in such subclause with higher income before making individuals 
described in such subclause with lower income eligible for 
medical assistance.
  (3) If an individual described in subclause (VIII) of 
subsection (a)(10)(A)(i) is the parent of a child who is under 
19 years of age (or such higher age as the State may have 
elected) who is eligible for medical assistance under the State 
plan or under a waiver of such plan (under that subclause or 
under a State plan amendment under paragraph (2), the 
individual may not be enrolled under the State plan unless the 
individual's child is enrolled under the State plan or under a 
waiver of the plan or is enrolled in other health insurance 
coverage. For purposes of the preceding sentence, the term 
``parent'' includes an individual treated as a caretaker 
relative for purposes of carrying out section 1931.
  (l)(1) Individuals described in this paragraph are--
          (A) women during pregnancy (and during the 60-day 
        period beginning on the last day of the pregnancy),
          (B) infants under one year of age,
          (C) children who have attained one year of age but 
        have not attained 6 years of age, and
          (D) children born after September 30, 1983 (or, at 
        the option of a State, after any earlier date), who 
        have attained 6 years of age but have not attained 19 
        years of age,
who are not described in any of subclauses (I) through (III) of 
subsection (a)(10)(A)(i) and whose family income does not 
exceed the income level established by the State under 
paragraph (2) for a family size equal to the size of the 
family, including the woman, infant, or child.
  (2)(A)(i) For purposes of paragraph (1) with respect to 
individuals described in subparagraph (A) or (B) of that 
paragraph, the State shall establish an income level which is a 
percentage (not less than the percentage provided under clause 
(ii) and not more than 185 percent) of the income official 
poverty line (as defined by the Office of Management and 
Budget, and revised annually in accordance with section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981) applicable to 
a family of the size involved.
  (ii) The percentage provided under this clause, with respect 
to eligibility for medical assistance on or after--
          (I) July 1, 1989, is 75 percent, or, if greater, the 
        percentage provided under clause (iii), and
          (II) April 1, 1990, 133 percent, or, if greater, the 
        percentage provided under clause (iv).
  (iii) In the case of a State which, as of the date of the 
enactment of this clause, has elected to provide, and provides, 
medical assistance to individuals described in this subsection 
or has enacted legislation authorizing, or appropriating funds, 
to provide such assistance to such individuals before July 1, 
1989, the percentage provided under clause (ii)(I) shall not be 
less than--
          (I) the percentage specified by the State in an 
        amendment to its State plan (whether approved or not) 
        as of the date of the enactment of this clause, or
          (II) if no such percentage is specified as of the 
        date of the enactment of this clause, the percentage 
        established under the State's authorizing legislation 
        or provided for under the State's appropriations;
but in no case shall this clause require the percentage 
provided under clause (ii)(I) to exceed 100 percent.
  (iv) In the case of a State which, as of the date of the 
enactment of this clause, has established under clause (i), or 
has enacted legislation authorizing, or appropriating funds, to 
provide for, a percentage (of the income official poverty line) 
that is greater than 133 percent, the percentage provided under 
clause (ii) for medical assistance on or after April 1, 1990, 
shall not be less than--
          (I) the percentage specified by the State in an 
        amendment to its State plan (whether approved or not) 
        as of the date of the enactment of this clause, or
          (II) if no such percentage is specified as of the 
        date of the enactment of this clause, the percentage 
        established under the State's authorizing legislation 
        or provided for under the State's appropriations.
  (B) For purposes of paragraph (1) with respect to individuals 
described in subparagraph (C) of such paragraph, the State 
shall establish an income level which is equal to 133 percent 
of the income official poverty line described in subparagraph 
(A) applicable to a family of the size involved.
  (C) For purposes of paragraph (1) with respect to individuals 
described in subparagraph (D) of that paragraph, the State 
shall establish an income level which is equal to 100 percent 
(or, beginning January 1, 2014, 133 percent) of the income 
official poverty line described in subparagraph (A) applicable 
to a family of the size involved.
  (3) Notwithstanding subsection (a)(17), for individuals who 
are eligible for medical assistance because of subsection 
(a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), (a)(10)(A)(i)(VII), or 
(a)(10)(A)(ii)(IX)--
          (A) application of a resource standard shall be at 
        the option of the State;
          (B) any resource standard or methodology that is 
        applied with respect to an individual described in 
        subparagraph (A) of paragraph (1) may not be more 
        restrictive than the resource standard or methodology 
        that is applied under title XVI;
          (C) any resource standard or methodology that is 
        applied with respect to an individual described in 
        subparagraph (B), (C), or (D) of paragraph (1) may not 
        be more restrictive than the corresponding methodology 
        that is applied under the State plan under part A of 
        title IV;
          (D) the income standard to be applied is the 
        appropriate income standard established under paragraph 
        (2); and
          (E) family income shall be determined in accordance 
        with the methodology employed under the State plan 
        under part A or E of title IV (except to the extent 
        such methodology is inconsistent with clause (D) of 
        subsection (a)(17)), and costs incurred for medical 
        care or for any other type of remedial care shall not 
        be taken into account.
Any different treatment provided under this paragraph for such 
individuals shall not, because of subsection (a)(17), require 
or permit such treatment for other individuals.
  (4)(A) In the case of any State which is providing medical 
assistance to its residents under a waiver granted under 
section 1115, the Secretary shall require the State to provide 
medical assistance for pregnant women and infants under age 1 
described in subsection (a)(10)(A)(i)(IV) and for children 
described in subsection (a)(10)(A)(i)(VI) or subsection 
(a)(10)(A)(i)(VII) in the same manner as the State would be 
required to provide such assistance for such individuals if the 
State had in effect a plan approved under this title.
  (B) In the case of a State which is not one of the 50 States 
or the District of Columbia, the State need not meet the 
requirement of subsection (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), 
or (a)(10)(A)(i)(VII) and, for purposes of paragraph (2)(A), 
the State may substitute for the percentage provided under 
clause (ii) of such paragraph any percentage.
  (m)(1) Individuals described in this paragraph are 
individuals--
          (A) who are 65 years of age or older or are disabled 
        individuals (as determined under section 1614(a)(3)),
          (B) whose income (as determined under section 1612 
        for purposes of the supplemental security income 
        program, except as provided in paragraph (2)(C)) does 
        not exceed an income level established by the State 
        consistent with paragraph (2)(A), and
          (C) whose resources (as determined under section 1613 
        for purposes of the supplemental security income 
        program) do not exceed (except as provided in paragraph 
        (2)(B)) the maximum amount of resources that an 
        individual may have and obtain benefits under that 
        program.
  (2)(A) The income level established under paragraph (1)(B) 
may not exceed a percentage (not more than 100 percent) of the 
official poverty line (as defined by the Office of Management 
and Budget, and revised annually in accordance with section 
673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved.
  (B) In the case of a State that provides medical assistance 
to individuals not described in subsection (a)(10)(A) and at 
the State's option, the State may use under paragraph (1)(C) 
such resource level (which is higher than the level described 
in that paragraph) as may be applicable with respect to 
individuals described in paragraph (1)(A) who are not described 
in subsection (a)(10)(A).
  (C) The provisions of section 1905(p)(2)(D) shall apply to 
determinations of income under this subsection in the same 
manner as they apply to determinations of income under section 
1905(p).
  (3) Notwithstanding subsection (a)(17), for individuals 
described in paragraph (1) who are covered under the State plan 
by virtue of subsection (a)(10)(A)(ii)(X)--
          (A) the income standard to be applied is the income 
        standard described in paragraph (1)(B), and
          (B) except as provided in section 1612(b)(4)(B)(ii), 
        costs incurred for medical care or for any other type 
        of remedial care shall not be taken into account in 
        determining income.
Any different treatment provided under this paragraph for such 
individuals shall not, because of subsection (a)(17), require 
or permit such treatment for other individuals.
  (4) Notwithstanding subsection (a)(17), for qualified 
medicare beneficiaries described in section 1905(p)(1)--
          (A) the income standard to be applied is the income 
        standard described in section 1905(p)(1)(B), and
          (B) except as provided in section 1612(b)(4)(B)(ii), 
        costs incurred for medical care or for any other type 
        of remedial care shall not be taken into account in 
        determining income.
Any different treatment provided under this paragraph for such 
individuals shall not, because of subsection (a)(17), require 
or permit such treatment for other individuals.
  (n)(1) In the case of medical assistance furnished under this 
title for medicare cost-sharing respecting the furnishing of a 
service or item to a qualified medicare beneficiary, the State 
plan may provide payment in an amount with respect to the 
service or item that results in the sum of such payment amount 
and any amount of payment made under title XVIII with respect 
to the service or item exceeding the amount that is otherwise 
payable under the State plan for the item or service for 
eligible individuals who are not qualified medicare 
beneficiaries.
  (2) In carrying out paragraph (1), a State is not required to 
provide any payment for any expenses incurred relating to 
payment for deductibles, coinsurance, or copayments for 
medicare cost-sharing to the extent that payment under title 
XVIII for the service would exceed the payment amount that 
otherwise would be made under the State plan under this title 
for such service if provided to an eligible recipient other 
than a medicare beneficiary.
  (3) In the case in which a State's payment for medicare cost-
sharing for a qualified medicare beneficiary with respect to an 
item or service is reduced or eliminated through the 
application of paragraph (2)--
          (A) for purposes of applying any limitation under 
        title XVIII on the amount that the beneficiary may be 
        billed or charged for the service, the amount of 
        payment made under title XVIII plus the amount of 
        payment (if any) under the State plan shall be 
        considered to be payment in full for the service;
          (B) the beneficiary shall not have any legal 
        liability to make payment to a provider or to an 
        organization described in section 1903(m)(1)(A) for the 
        service; and
          (C) any lawful sanction that may be imposed upon a 
        provider or such an organization for excess charges 
        under this title or title XVIII shall apply to the 
        imposition of any charge imposed upon the individual in 
        such case.
This paragraph shall not be construed as preventing payment of 
any medicare cost-sharing by a medicare supplemental policy or 
an employer retiree health plan on behalf of an individual.
  (o) Notwithstanding any provision of subsection (a) to the 
contrary, a State plan under this title shall provide that any 
supplemental security income benefits paid by reason of 
subparagraph (E) or (G) of section 1611(e)(1) to an individual 
who--
          (1) is eligible for medical assistance under the 
        plan, and
          (2) is in a hospital, skilled nursing facility, or 
        intermediate care facility at the time such benefits 
        are paid,
will be disregarded for purposes of determining the amount of 
any post-eligibility contribution by the individual to the cost 
of the care and services provided by the hospital, skilled 
nursing facility, or intermediate care facility.
  (p)(1) In addition to any other authority, a State may 
exclude any individual or entity for purposes of participating 
under the State plan under this title for any reason for which 
the Secretary could exclude the individual or entity from 
participation in a program under title XVIII under section 
1128, 1128A, or 1866(b)(2).
  (2) In order for a State to receive payments for medical 
assistance under section 1903(a), with respect to payments the 
State makes to a medicaid managed care organization (as defined 
in section 1903(m)) or to an entity furnishing services under a 
waiver approved under section 1915(b)(1), the State must 
provide that it will exclude from participation, as such an 
organization or entity, any organization or entity that--
          (A) could be excluded under section 1128(b)(8) 
        (relating to owners and managing employees who have 
        been convicted of certain crimes or received other 
        sanctions),
          (B) has, directly or indirectly, a substantial 
        contractual relationship (as defined by the Secretary) 
        with an individual or entity that is described in 
        section 1128(b)(8)(B), or
          (C) employs or contracts with any individual or 
        entity that is excluded from participation under this 
        title under section 1128 or 1128A for the provision of 
        health care, utilization review, medical social work, 
        or administrative services or employs or contracts with 
        any entity for the provision (directly or indirectly) 
        through such an excluded individual or entity of such 
        services.
  (3) As used in this subsection, the term ``exclude'' includes 
the refusal to enter into or renew a participation agreement or 
the termination of such an agreement.
  (q)(1)(A) In order to meet the requirement of subsection 
(a)(50), the State plan must provide that, in the case of an 
institutionalized individual or couple described in 
subparagraph (B), in determining the amount of the individual's 
or couple's income to be applied monthly to payment for the 
cost of care in an institution, there shall be deducted from 
the monthly income (in addition to other allowances otherwise 
provided under the State plan) a monthly personal needs 
allowance--
          (i) which is reasonable in amount for clothing and 
        other personal needs of the individual (or couple) 
        while in an institution, and
          (ii) which is not less (and may be greater) than the 
        minimum monthly personal needs allowance described in 
        paragraph (2).
  (B) In this subsection, the term ``institutionalized 
individual or couple'' means an individual or married couple--
          (i) who is an inpatient (or who are inpatients) in a 
        medical institution or nursing facility for which 
        payments are made under this title throughout a month, 
        and
          (ii) who is or are determined to be eligible for 
        medical assistance under the State plan.
  (2) The minimum monthly personal needs allowance described in 
this paragraph is $30 for an institutionalized individual and 
$60 for an institutionalized couple (if both are aged, blind, 
or disabled, and their incomes are considered available to each 
other in determining eligibility).
  (r)(1)(A) For purposes of sections 1902(a)(17) and 
1924(d)(1)(D) and for purposes of a waiver under section 1915, 
with respect to the post-eligibility treatment of income of 
individuals who are institutionalized or receiving home or 
community-based services under such a waiver, the treatment 
described in subparagraph (B) shall apply, there shall be 
disregarded reparation payments made by the Federal Republic of 
Germany, and there shall be taken into account amounts for 
incurred expenses for medical or remedial care that are not 
subject to payment by a third party, including--
          (i) medicare and other health insurance premiums, 
        deductibles, or coinsurance, and
          (ii) necessary medical or remedial care recognized 
        under State law but not covered under the State plan 
        under this title, subject to reasonable limits the 
        State may establish on the amount of these expenses.
  (B)(i) In the case of a veteran who does not have a spouse or 
a child, if the veteran--
          (I) receives, after the veteran has been determined 
        to be eligible for medical assistance under the State 
        plan under this title, a veteran's pension in excess of 
        $90 per month, and
          (II) resides in a State veterans home with respect to 
        which the Secretary of Veterans Affairs makes per diem 
        payments for nursing home care pursuant to section 
        1741(a) of title 38, United States Code,
any such pension payment, including any payment made due to the 
need for aid and attendance, or for unreimbursed medical 
expenses, that is in excess of $90 per month shall be counted 
as income only for the purpose of applying such excess payment 
to the State veterans home's cost of providing nursing home 
care to the veteran.
  (ii) The provisions of clause (i) shall apply with respect to 
a surviving spouse of a veteran who does not have a child in 
the same manner as they apply to a veteran described in such 
clause.
  (2)(A) The methodology to be employed in determining income 
and resource eligibility for individuals under subsection 
(a)(10)(A)(i)(III), (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI), 
(a)(10)(A)(i)(VII), (a)(10)(A)(ii), (a)(10)(C)(i)(III), or (f) 
or under section 1905(p) may be less restrictive, and shall be 
no more restrictive, than the methodology--
          (i) in the case of groups consisting of aged, blind, 
        or disabled individuals, under the supplemental 
        security income program under title XVI, or
          (ii) in the case of other groups, under the State 
        plan most closely categorically related.
  (B) For purposes of this subsection and subsection (a)(10), 
methodology is considered to be ``no more restrictive'' if, 
using the methodology, additional individuals may be eligible 
for medical assistance and no individuals who are otherwise 
eligible are made ineligible for such assistance.
  (s) In order to meet the requirements of subsection (a)(55), 
the State plan must provide that payments to hospitals under 
the plan for inpatient hospital services furnished to infants 
who have not attained the age of 1 year, and to children who 
have not attained the age of 6 years and who receive such 
services in a disproportionate share hospital described in 
section 1923(b)(1), shall--
          (1) if made on a prospective basis (whether per diem, 
        per case, or otherwise) provide for an outlier 
        adjustment in payment amounts for medically necessary 
        inpatient hospital services involving exceptionally 
        high costs or exceptionally long lengths of stay,
          (2) not be limited by the imposition of day limits 
        with respect to the delivery of such services to such 
        individuals, and
          (3) not be limited by the imposition of dollar limits 
        (other than such limits resulting from prospective 
        payments as adjusted pursuant to paragraph (1)) with 
        respect to the delivery of such services to any such 
        individual who has not attained their first birthday 
        (or in the case of such an individual who is an 
        inpatient on his first birthday until such individual 
        is discharged).
  (t) Nothing in this title (including sections 1903(a) and 
1905(a)) shall be construed as authorizing the Secretary to 
deny or limit payments to a State for expenditures, for medical 
assistance for items or services, attributable to taxes of 
general applicability imposed with respect to the provision of 
such items or services.
  (u)(1) Individuals described in this paragraph are 
individuals--
          (A) who are entitled to elect COBRA continuation 
        coverage (as defined in paragraph (3)),
          (B) whose income (as determined under section 1612 
        for purposes of the supplemental security income 
        program) does not exceed 100 percent of the official 
        poverty line (as defined by the Office of Management 
        and Budget, and revised annually in accordance with 
        section 673(2) of the Omnibus Budget Reconciliation Act 
        of 1981) applicable to a family of the size involved,
          (C) whose resources (as determined under section 1613 
        for purposes of the supplemental security income 
        program) do not exceed twice the maximum amount of 
        resources that an individual may have and obtain 
        benefits under that program, and
          (D) with respect to whose enrollment for COBRA 
        continuation coverage the State has determined that the 
        savings in expenditures under this title resulting from 
        such enrollment is likely to exceed the amount of 
        payments for COBRA premiums made.
  (2) For purposes of subsection (a)(10)(F) and this 
subsection, the term ``COBRA premiums'' means the applicable 
premium imposed with respect to COBRA continuation coverage.
  (3) In this subsection, the term ``COBRA continuation 
coverage'' means coverage under a group health plan provided by 
an employer with 75 or more employees provided pursuant to 
title XXII of the Public Health Service Act, section 4980B of 
the Internal Revenue Code of 1986, or title VI of the Employee 
Retirement Income Security Act of 1974.
  (4) Notwithstanding subsection (a)(17), for individuals 
described in paragraph (1) who are covered under the State plan 
by virtue of subsection (a)(10)(A)(ii)(XI)--
          (A) the income standard to be applied is the income 
        standard described in paragraph (1)(B), and
          (B) except as provided in section 1612(b)(4)(B)(ii), 
        costs incurred for medical care or for any other type 
        of remedial care shall not be taken into account in 
        determining income.
Any different treatment provided under this paragraph for such 
individuals shall not, because of subsection (a)(10)(B) or 
(a)(17), require or permit such treatment for other 
individuals.
  (v) A State plan may provide for the making of determinations 
of disability or blindness for the purpose of determining 
eligibility for medical assistance under the State plan by the 
single State agency or its designee, and make medical 
assistance available to individuals whom it finds to be blind 
or disabled and who are determined otherwise eligible for such 
assistance during the period of time prior to which a final 
determination of disability or blindness is made by the Social 
Security Administration with respect to such an individual. In 
making such determinations, the State must apply the 
definitions of disability and blindness found in section 
1614(a) of the Social Security Act.
  (w)(1) For purposes of subsection (a)(57) and sections 
1903(m)(1)(A) and 1919(c)(2)(E), the requirement of this 
subsection is that a provider or organization (as the case may 
be) maintain written policies and procedures with respect to 
all adult individuals receiving medical care by or through the 
provider or organization--
          (A) to provide written information to each such 
        individual concerning--
                  (i) an individual's rights under State law 
                (whether statutory or as recognized by the 
                courts of the State) to make decisions 
                concerning such medical care, including the 
                right to accept or refuse medical or surgical 
                treatment and the right to formulate advance 
                directives (as defined in paragraph (3)), and
                  (ii) the provider's or organization's written 
                policies respecting the implementation of such 
                rights;
          (B) to document in the individual's medical record 
        whether or not the individual has executed an advance 
        directive;
          (C) not to condition the provision of care or 
        otherwise discriminate against an individual based on 
        whether or not the individual has executed an advance 
        directive;
          (D) to ensure compliance with requirements of State 
        law (whether statutory or as recognized by the courts 
        of the State) respecting advance directives; and
          (E) to provide (individually or with others) for 
        education for staff and the community on issues 
        concerning advance directives.
Subparagraph (C) shall not be construed as requiring the 
provision of care which conflicts with an advance directive.
  (2) The written information described in paragraph (1)(A) 
shall be provided to an adult individual--
          (A) in the case of a hospital, at the time of the 
        individual's admission as an inpatient,
          (B) in the case of a nursing facility, at the time of 
        the individual's admission as a resident,
          (C) in the case of a provider of home health care or 
        personal care services, in advance of the individual 
        coming under the care of the provider,
          (D) in the case of a hospice program, at the time of 
        initial receipt of hospice care by the individual from 
        the program, and
          (E) in the case of a medicaid managed care 
        organization, at the time of enrollment of the 
        individual with the organization.
  (3) Nothing in this section shall be construed to prohibit 
the application of a State law which allows for an objection on 
the basis of conscience for any health care provider or any 
agent of such provider which as a matter of conscience cannot 
implement an advance directive.
  (4) In this subsection, the term ``advance directive'' means 
a written instruction, such as a living will or durable power 
of attorney for health care, recognized under State law 
(whether statutory or as recognized by the courts of the State) 
and relating to the provision of such care when the individual 
is incapacitated.
  (5) For construction relating to this subsection, see section 
7 of the Assisted Suicide Funding Restriction Act of 1997 
(relating to clarification respecting assisted suicide, 
euthanasia, and mercy killing).
  (x) The Secretary shall establish a system, for 
implementation by not later than July 1, 1991, which provides 
for a unique identifier for each physician who furnishes 
services for which payment may be made under a State plan 
approved under this title.
  (y)(1) In addition to any other authority under State law, 
where a State determines that a psychiatric hospital which is 
certified for participation under its plan no longer meets the 
requirements for a psychiatric hospital (referred to in section 
1905(h)) and further finds that the hospital's deficiencies--
          (A) immediately jeopardize the health and safety of 
        its patients, the State shall terminate the hospital's 
        participation under the State plan; or
          (B) do not immediately jeopardize the health and 
        safety of its patients, the State may terminate the 
        hospital's participation under the State plan, or 
        provide that no payment will be made under the State 
        plan with respect to any individual admitted to such 
        hospital after the effective date of the finding, or 
        both.
  (2) Except as provided in paragraph (3), if a psychiatric 
hospital described in paragraph (1)(B) has not complied with 
the requirements for a psychiatric hospital under this title--
          (A) within 3 months after the date the hospital is 
        found to be out of compliance with such requirements, 
        the State shall provide that no payment will be made 
        under the State plan with respect to any individual 
        admitted to such hospital after the end of such 3-month 
        period, or
          (B) within 6 months after the date the hospital is 
        found to be out of compliance with such requirements, 
        no Federal financial participation shall be provided 
        under section 1903(a) with respect to further services 
        provided in the hospital until the State finds that the 
        hospital is in compliance with the requirements of this 
        title.
  (3) The Secretary may continue payments, over a period of not 
longer than 6 months from the date the hospital is found to be 
out of compliance with such requirements, if--
          (A) the State finds that it is more appropriate to 
        take alternative action to assure compliance of the 
        hospital with the requirements than to terminate the 
        certification of the hospital,
          (B) the State has submitted a plan and timetable for 
        corrective action to the Secretary for approval and the 
        Secretary approves the plan of corrective action, and
          (C) the State agrees to repay to the Federal 
        Government payments received under this paragraph if 
        the corrective action is not taken in accordance with 
        the approved plan and timetable.
  (z)(1) Individuals described in this paragraph are 
individuals not described in subsection (a)(10)(A)(i)--
          (A) who are infected with tuberculosis;
          (B) whose income (as determined under the State plan 
        under this title with respect to disabled individuals) 
        does not exceed the maximum amount of income a disabled 
        individual described in subsection (a)(10)(A)(i) may 
        have and obtain medical assistance under the plan; and
          (C) whose resources (as determined under the State 
        plan under this title with respect to disabled 
        individuals) do not exceed the maximum amount of 
        resources a disabled individual described in subsection 
        (a)(10)(A)(i) may have and obtain medical assistance 
        under the plan.
  (2) For purposes of subsection (a)(10), the term ``TB-related 
services'' means each of the following services relating to 
treatment of infection with tuberculosis:
          (A) Prescribed drugs.
          (B) Physicians' services and services described in 
        section 1905(a)(2).
          (C) Laboratory and X-ray services (including services 
        to confirm the presence of infection).
          (D) Clinic services and Federally-qualified health 
        center services.
          (E) Case management services (as defined in section 
        1915(g)(2)).
          (F) Services (other than room and board) designed to 
        encourage completion of regimens of prescribed drugs by 
        outpatients, including services to observe directly the 
        intake of prescribed drugs.
  (aa) Individuals described in this subsection are individuals 
who--
          (1) are not described in subsection (a)(10)(A)(i);
          (2) have not attained age 65;
          (3) have been screened for breast and cervical cancer 
        under the Centers for Disease Control and Prevention 
        breast and cervical cancer early detection program 
        established under title XV of the Public Health Service 
        Act (42 U.S.C. 300k et seq.) in accordance with the 
        requirements of section 1504 of that Act (42 U.S.C. 
        300n) and need treatment for breast or cervical cancer; 
        and
          (4) are not otherwise covered under creditable 
        coverage, as defined in section 2701(c) of the Public 
        Health Service Act (42 U.S.C. 300gg(c)), but applied 
        without regard to paragraph (1)(F) of such section.
  (bb) Payment for Services Provided by Federally-Qualified 
Health Centers and Rural Health Clinics.--
          (1) In general.--Beginning with fiscal year 2001 with 
        respect to services furnished on or after January 1, 
        2001, and each succeeding fiscal year, the State plan 
        shall provide for payment for services described in 
        section 1905(a)(2)(C) furnished by a Federally-
        qualified health center and services described in 
        section 1905(a)(2)(B) furnished by a rural health 
        clinic in accordance with the provisions of this 
        subsection.
          (2) Fiscal year 2001.--Subject to paragraph (4), for 
        services furnished on and after January 1, 2001, during 
        fiscal year 2001, the State plan shall provide for 
        payment for such services in an amount (calculated on a 
        per visit basis) that is equal to 100 percent of the 
        average of the costs of the center or clinic of 
        furnishing such services during fiscal years 1999 and 
        2000 which are reasonable and related to the cost of 
        furnishing such services, or based on such other tests 
        of reasonableness as the Secretary prescribes in 
        regulations under section 1833(a)(3), or, in the case 
        of services to which such regulations do not apply, the 
        same methodology used under section 1833(a)(3), 
        adjusted to take into account any increase or decrease 
        in the scope of such services furnished by the center 
        or clinic during fiscal year 2001.
          (3) Fiscal year 2002 and succeeding fiscal years.--
        Subject to paragraph (4), for services furnished during 
        fiscal year 2002 or a succeeding fiscal year, the State 
        plan shall provide for payment for such services in an 
        amount (calculated on a per visit basis) that is equal 
        to the amount calculated for such services under this 
        subsection for the preceding fiscal year--
                  (A) increased by the percentage increase in 
                the MEI (as defined in section 1842(i)(3)) 
                applicable to primary care services (as defined 
                in section 1842(i)(4)) for that fiscal year; 
                and
                  (B) adjusted to take into account any 
                increase or decrease in the scope of such 
                services furnished by the center or clinic 
                during that fiscal year.
          (4) Establishment of initial year payment amount for 
        new centers or clinics.--In any case in which an entity 
        first qualifies as a Federally-qualified health center 
        or rural health clinic after fiscal year 2000, the 
        State plan shall provide for payment for services 
        described in section 1905(a)(2)(C) furnished by the 
        center or services described in section 1905(a)(2)(B) 
        furnished by the clinic in the first fiscal year in 
        which the center or clinic so qualifies in an amount 
        (calculated on a per visit basis) that is equal to 100 
        percent of the costs of furnishing such services during 
        such fiscal year based on the rates established under 
        this subsection for the fiscal year for other such 
        centers or clinics located in the same or adjacent area 
        with a similar case load or, in the absence of such a 
        center or clinic, in accordance with the regulations 
        and methodology referred to in paragraph (2) or based 
        on such other tests of reasonableness as the Secretary 
        may specify. For each fiscal year following the fiscal 
        year in which the entity first qualifies as a 
        Federally-qualified health center or rural health 
        clinic, the State plan shall provide for the payment 
        amount to be calculated in accordance with paragraph 
        (3).
          (5) Administration in the case of managed care.--
                  (A) In general.--In the case of services 
                furnished by a Federally-qualified health 
                center or rural health clinic pursuant to a 
                contract between the center or clinic and a 
                managed care entity (as defined in section 
                1932(a)(1)(B)), the State plan shall provide 
                for payment to the center or clinic by the 
                State of a supplemental payment equal to the 
                amount (if any) by which the amount determined 
                under paragraphs (2), (3), and (4) of this 
                subsection exceeds the amount of the payments 
                provided under the contract.
                  (B) Payment schedule.--The supplemental 
                payment required under subparagraph (A) shall 
                be made pursuant to a payment schedule agreed 
                to by the State and the Federally-qualified 
                health center or rural health clinic, but in no 
                case less frequently than every 4 months.
          (6) Alternative payment methodologies.--
        Notwithstanding any other provision of this section, 
        the State plan may provide for payment in any fiscal 
        year to a Federally-qualified health center for 
        services described in section 1905(a)(2)(C) or to a 
        rural health clinic for services described in section 
        1905(a)(2)(B) in an amount which is determined under an 
        alternative payment methodology that--
                  (A) is agreed to by the State and the center 
                or clinic; and
                  (B) results in payment to the center or 
                clinic of an amount which is at least equal to 
                the amount otherwise required to be paid to the 
                center or clinic under this section.
  (cc)(1) Individuals described in this paragraph are 
individuals--
          (A) who are children who have not attained 19 years 
        of age and are born--
                  (i) on or after January 1, 2001 (or, at the 
                option of a State, on or after an earlier 
                date), in the case of the second, third, and 
                fourth quarters of fiscal year 2007;
                  (ii) on or after October 1, 1995 (or, at the 
                option of a State, on or after an earlier 
                date), in the case of each quarter of fiscal 
                year 2008; and
                  (iii) after October 1, 1989, in the case of 
                each quarter of fiscal year 2009 and each 
                quarter of any fiscal year thereafter;
          (B) who would be considered disabled under section 
        1614(a)(3)(C) (as determined under title XVI for 
        children but without regard to any income or asset 
        eligibility requirements that apply under such title 
        with respect to children); and
          (C) whose family income does not exceed such income 
        level as the State establishes and does not exceed--
                  (i) 300 percent of the poverty line (as 
                defined in section 2110(c)(5)) applicable to a 
                family of the size involved; or
                  (ii) such higher percent of such poverty line 
                as a State may establish, except that--
                          (I) any medical assistance provided 
                        to an individual whose family income 
                        exceeds 300 percent of such poverty 
                        line may only be provided with State 
                        funds; and
                          (II) no Federal financial 
                        participation shall be provided under 
                        section 1903(a) for any medical 
                        assistance provided to such an 
                        individual.
  (2)(A) If an employer of a parent of an individual described 
in paragraph (1) offers family coverage under a group health 
plan (as defined in section 2791(a) of the Public Health 
Service Act), the State shall--
          (i) notwithstanding section 1906, require such parent 
        to apply for, enroll in, and pay premiums for such 
        coverage as a condition of such parent's child being or 
        remaining eligible for medical assistance under 
        subsection (a)(10)(A)(ii)(XIX) if the parent is 
        determined eligible for such coverage and the employer 
        contributes at least 50 percent of the total cost of 
        annual premiums for such coverage; and
          (ii) if such coverage is obtained--
                  (I) subject to paragraph (2) of section 
                1916(h), reduce the premium imposed by the 
                State under that section in an amount that 
                reasonably reflects the premium contribution 
                made by the parent for private coverage on 
                behalf of a child with a disability; and
                  (II) treat such coverage as a third party 
                liability under subsection (a)(25).
  (B) In the case of a parent to which subparagraph (A) 
applies, a State, notwithstanding section 1906 but subject to 
paragraph (1)(C)(ii), may provide for payment of any portion of 
the annual premium for such family coverage that the parent is 
required to pay. Any payments made by the State under this 
subparagraph shall be considered, for purposes of section 
1903(a), to be payments for medical assistance.
  (dd) Electronic Transmission of Information.--If the State 
agency determining eligibility for medical assistance under 
this title or child health assistance under title XXI verifies 
an element of eligibility based on information from an Express 
Lane Agency (as defined in subsection (e)(13)(F)), or from 
another public agency, then the applicant's signature under 
penalty of perjury shall not be required as to such element. 
Any signature requirement for an application for medical 
assistance may be satisfied through an electronic signature, as 
defined in section 1710(1) of the Government Paperwork 
Elimination Act (44 U.S.C. 3504 note). The requirements of 
subparagraphs (A) and (B) of section 1137(d)(2) may be met 
through evidence in digital or electronic form.
  (ee)(1) For purposes of subsection (a)(46)(B)(ii), the 
requirements of this subsection with respect to an individual 
declaring to be a citizen or national of the United States for 
purposes of establishing eligibility under this title, are, in 
lieu of requiring the individual to present satisfactory 
documentary evidence of citizenship or nationality under 
section 1903(x) (if the individual is not described in 
paragraph (2) of that section), as follows:
          (A) The State submits the name and social security 
        number of the individual to the Commissioner of Social 
        Security as part of the program established under 
        paragraph (2).
          (B) If the State receives notice from the 
        Commissioner of Social Security that the name or social 
        security number, or the declaration of citizenship or 
        nationality, of the individual is inconsistent with 
        information in the records maintained by the 
        Commissioner--
                  (i) the State makes a reasonable effort to 
                identify and address the causes of such 
                inconsistency, including through typographical 
                or other clerical errors, by contacting the 
                individual to confirm the accuracy of the name 
                or social security number submitted or 
                declaration of citizenship or nationality and 
                by taking such additional actions as the 
                Secretary, through regulation or other 
                guidance, or the State may identify, and 
                continues to provide the individual with 
                medical assistance while making such effort; 
                and
                  (ii) in the case such inconsistency is not 
                resolved under clause (i), the State--
                          (I) notifies the individual of such 
                        fact;
                          (II) provides the individual with a 
                        period of 90 days from the date on 
                        which the notice required under 
                        subclause (I) is received by the 
                        individual to either present 
                        satisfactory documentary evidence of 
                        citizenship or nationality (as defined 
                        in section 1903(x)(3)) or resolve the 
                        inconsistency with the Commissioner of 
                        Social Security (and continues to 
                        provide the individual with medical 
                        assistance during such 90-day period); 
                        and
                          (III) disenrolls the individual from 
                        the State plan under this title within 
                        30 days after the end of such 90-day 
                        period if no such documentary evidence 
                        is presented or if such inconsistency 
                        is not resolved.
  (2)(A) Each State electing to satisfy the requirements of 
this subsection for purposes of section 1902(a)(46)(B) shall 
establish a program under which the State submits at least 
monthly to the Commissioner of Social Security for comparison 
of the name and social security number, of each individual 
newly enrolled in the State plan under this title that month 
who is not described in section 1903(x)(2) and who declares to 
be a United States citizen or national, with information in 
records maintained by the Commissioner.
  (B) In establishing the State program under this paragraph, 
the State may enter into an agreement with the Commissioner of 
Social Security--
          (i) to provide, through an on-line system or 
        otherwise, for the electronic submission of, and 
        response to, the information submitted under 
        subparagraph (A) for an individual enrolled in the 
        State plan under this title who declares to be citizen 
        or national on at least a monthly basis; or
          (ii) to provide for a determination of the 
        consistency of the information submitted with the 
        information maintained in the records of the 
        Commissioner through such other method as agreed to by 
        the State and the Commissioner and approved by the 
        Secretary, provided that such method is no more 
        burdensome for individuals to comply with than any 
        burdens that may apply under a method described in 
        clause (i).
  (C) The program established under this paragraph shall 
provide that, in the case of any individual who is required to 
submit a social security number to the State under subparagraph 
(A) and who is unable to provide the State with such number, 
shall be provided with at least the reasonable opportunity to 
present satisfactory documentary evidence of citizenship or 
nationality (as defined in section 1903(x)(3)) as is provided 
under clauses (i) and (ii) of section 1137(d)(4)(A) to an 
individual for the submittal to the State of evidence 
indicating a satisfactory immigration status.
  (3)(A) The State agency implementing the plan approved under 
this title shall, at such times and in such form as the 
Secretary may specify, provide information on the percentage 
each month that the inconsistent submissions bears to the total 
submissions made for comparison for such month. For purposes of 
this subparagraph, a name, social security number, or 
declaration of citizenship or nationality of an individual 
shall be treated as inconsistent and included in the 
determination of such percentage only if--
          (i) the information submitted by the individual is 
        not consistent with information in records maintained 
        by the Commissioner of Social Security;
          (ii) the inconsistency is not resolved by the State;
          (iii) the individual was provided with a reasonable 
        period of time to resolve the inconsistency with the 
        Commissioner of Social Security or provide satisfactory 
        documentation of citizenship status and did not 
        successfully resolve such inconsistency; and
          (iv) payment has been made for an item or service 
        furnished to the individual under this title.
  (B) If, for any fiscal year, the average monthly percentage 
determined under subparagraph (A) is greater than 3 percent--
          (i) the State shall develop and adopt a corrective 
        plan to review its procedures for verifying the 
        identities of individuals seeking to enroll in the 
        State plan under this title and to identify and 
        implement changes in such procedures to improve their 
        accuracy; and
          (ii) pay to the Secretary an amount equal to the 
        amount which bears the same ratio to the total payments 
        under the State plan for the fiscal year for providing 
        medical assistance to individuals who provided 
        inconsistent information as the number of individuals 
        with inconsistent information in excess of 3 percent of 
        such total submitted bears to the total number of 
        individuals with inconsistent information.
  (C) The Secretary may waive, in certain limited cases, all or 
part of the payment under subparagraph (B)(ii) if the State is 
unable to reach the allowable error rate despite a good faith 
effort by such State.
  (D) Subparagraphs (A) and (B) shall not apply to a State for 
a fiscal year if there is an agreement described in paragraph 
(2)(B) in effect as of the close of the fiscal year that 
provides for the submission on a real-time basis of the 
information described in such paragraph.
  (4) Nothing in this subsection shall affect the rights of any 
individual under this title to appeal any disenrollment from a 
State plan.
  (ff) Notwithstanding any other requirement of this title or 
any other provision of Federal or State law, a State shall 
disregard the following property from resources for purposes of 
determining the eligibility of an individual who is an Indian 
for medical assistance under this title:
          (1) Property, including real property and 
        improvements, that is held in trust, subject to Federal 
        restrictions, or otherwise under the supervision of the 
        Secretary of the Interior, located on a reservation, 
        including any federally recognized Indian Tribe's 
        reservation, pueblo, or colony, including former 
        reservations in Oklahoma, Alaska Native regions 
        established by the Alaska Native Claims Settlement Act, 
        and Indian allotments on or near a reservation as 
        designated and approved by the Bureau of Indian Affairs 
        of the Department of the Interior.
          (2) For any federally recognized Tribe not described 
        in paragraph (1), property located within the most 
        recent boundaries of a prior Federal reservation.
          (3) Ownership interests in rents, leases, royalties, 
        or usage rights related to natural resources (including 
        extraction of natural resources or harvesting of 
        timber, other plants and plant products, animals, fish, 
        and shellfish) resulting from the exercise of federally 
        protected rights.
          (4) Ownership interests in or usage rights to items 
        not covered by paragraphs (1) through (3) that have 
        unique religious, spiritual, traditional, or cultural 
        significance or rights that support subsistence or a 
        traditional lifestyle according to applicable tribal 
        law or custom.
  (gg) Maintenance of Effort.--
          (1) General requirement to maintain eligibility 
        standards until state exchange is fully operational.--
        Subject to the succeeding paragraphs of this 
        subsection, during the period that begins on the date 
        of enactment of the Patient Protection and Affordable 
        Care Act and ends on the date on which the Secretary 
        determines that an Exchange established by the State 
        under section 1311 of the Patient Protection and 
        Affordable Care Act is fully operational, as a 
        condition for receiving any Federal payments under 
        section 1903(a) for calendar quarters occurring during 
        such period, a State shall not have in effect 
        eligibility standards, methodologies, or procedures 
        under the State plan under this title or under any 
        waiver of such plan that is in effect during that 
        period, that are more restrictive than the eligibility 
        standards, methodologies, or procedures, respectively, 
        under the plan or waiver that are in effect on the date 
        of enactment of the Patient Protection and Affordable 
        Care Act.
          (2) Continuation of eligibility standards for 
        children through september 30, 2027.--The requirement 
        under paragraph (1) shall continue to apply to a State 
        through September 30, 2027 (but during the period that 
        begins on October 1, 2019, and ends on September 30, 
        2027 only with respect to children in families whose 
        income does not exceed 300 percent of the poverty line 
        (as defined in section 2110(c)(5)) applicable to a 
        family of the size involved) with respect to the 
        eligibility standards, methodologies, and procedures 
        under the State plan under this title or under any 
        waiver of such plan that are applicable to determining 
        the eligibility for medical assistance of any child who 
        is under 19 years of age (or such higher age as the 
        State may have elected).
          (3) Nonapplication.--During the period that begins on 
        January 1, 2011, and ends on December 31, 2013, the 
        requirement under paragraph (1) shall not apply to a 
        State with respect to nonpregnant, nondisabled adults 
        who are eligible for medical assistance under the State 
        plan or under a waiver of the plan at the option of the 
        State and whose income exceeds 133 percent of the 
        poverty line (as defined in section 2110(c)(5)) 
        applicable to a family of the size involved if, on or 
        after December 31, 2010, the State certifies to the 
        Secretary that, with respect to the State fiscal year 
        during which the certification is made, the State has a 
        budget deficit, or with respect to the succeeding State 
        fiscal year, the State is projected to have a budget 
        deficit. Upon submission of such a certification to the 
        Secretary, the requirement under paragraph (1) shall 
        not apply to the State with respect to any remaining 
        portion of the period described in the preceding 
        sentence.
          (4) Determination of compliance.--
                  (A) States shall apply modified adjusted 
                gross income.--A State's determination of 
                income in accordance with subsection (e)(14) 
                shall not be considered to be eligibility 
                standards, methodologies, or procedures that 
                are more restrictive than the standards, 
                methodologies, or procedures in effect under 
                the State plan or under a waiver of the plan on 
                the date of enactment of the Patient Protection 
                and Affordable Care Act for purposes of 
                determining compliance with the requirements of 
                paragraph (1), (2), or (3).
                  (B) States may expand eligibility or move 
                waivered populations into coverage under the 
                state plan.--With respect to any period 
                applicable under paragraph (1), (2), or (3), a 
                State that applies eligibility standards, 
                methodologies, or procedures under the State 
                plan under this title or under any waiver of 
                the plan that are less restrictive than the 
                eligibility standards, methodologies, or 
                procedures, applied under the State plan or 
                under a waiver of the plan on the date of 
                enactment of the Patient Protection and 
                Affordable Care Act, or that makes individuals 
                who, on such date of enactment, are eligible 
                for medical assistance under a waiver of the 
                State plan, after such date of enactment 
                eligible for medical assistance through a State 
                plan amendment with an income eligibility level 
                that is not less than the income eligibility 
                level that applied under the waiver, or as a 
                result of the application of subclause (VIII) 
                of section 1902(a)(10)(A)(i), shall not be 
                considered to have in effect eligibility 
                standards, methodologies, or procedures that 
                are more restrictive than the standards, 
                methodologies, or procedures in effect under 
                the State plan or under a waiver of the plan on 
                the date of enactment of the Patient Protection 
                and Affordable Care Act for purposes of 
                determining compliance with the requirements of 
                paragraph (1), (2), or (3).
  (hh)(1) A State may elect to phase-in the extension of 
eligibility for medical assistance to individuals described in 
subclause (XX) of subsection (a)(10)(A)(ii) based on the 
categorical group (including nonpregnant childless adults) or 
income, so long as the State does not extend such eligibility 
to individuals described in such subclause with higher income 
before making individuals described in such subclause with 
lower income eligible for medical assistance.
  (2) If an individual described in subclause (XX) of 
subsection (a)(10)(A)(ii) is the parent of a child who is under 
19 years of age (or such higher age as the State may have 
elected) who is eligible for medical assistance under the State 
plan or under a waiver of such plan, the individual may not be 
enrolled under the State plan unless the individual's child is 
enrolled under the State plan or under a waiver of the plan or 
is enrolled in other health insurance coverage. For purposes of 
the preceding sentence, the term ``parent'' includes an 
individual treated as a caretaker relative for purposes of 
carrying out section 1931.
  (ii)(1) Individuals described in this subsection are 
individuals--
                  (A) whose income does not exceed an income 
                eligibility level established by the State that 
                does not exceed the highest income eligibility 
                level established under the State plan under 
                this title (or under its State child health 
                plan under title XXI) for pregnant women; and
                  (B) who are not pregnant.
          (2) At the option of a State, individuals described 
        in this subsection may include individuals who, had 
        individuals applied on or before January 1, 2007, would 
        have been made eligible pursuant to the standards and 
        processes imposed by that State for benefits described 
        in clause (XVI) of the matter following subparagraph 
        (G) of section subsection (a)(10) pursuant to a waiver 
        granted under section 1115.
          (3) At the option of a State, for purposes of 
        subsection (a)(17)(B), in determining eligibility for 
        services under this subsection, the State may consider 
        only the income of the applicant or recipient.
  (jj) Primary Care Services Defined.--For purposes of 
subsection (a)(13)(C), the term ``primary care services'' 
means--
          (1) evaluation and management services that are 
        procedure codes (for services covered under title 
        XVIII) for services in the category designated 
        Evaluation and Management in the Healthcare Common 
        Procedure Coding System (established by the Secretary 
        under section 1848(c)(5) as of December 31, 2009, and 
        as subsequently modified); and
          (2) services related to immunization administration 
        for vaccines and toxoids for which CPT codes 90465, 
        90466, 90467, 90468, 90471, 90472, 90473, or 90474 (as 
        subsequently modified) apply under such System.
  (kk) Provider and Supplier Screening, Oversight, and 
Reporting Requirements.--For purposes of subsection (a)(77), 
the requirements of this subsection are the following:
          (1) Screening.--The State complies with the process 
        for screening providers and suppliers under this title, 
        as established by the Secretary under section 
        1866(j)(2).
          (2) Provisional period of enhanced oversight for new 
        providers and suppliers.--The State complies with 
        procedures to provide for a provisional period of 
        enhanced oversight for new providers and suppliers 
        under this title, as established by the Secretary under 
        section 1866(j)(3).
          (3) Disclosure requirements.--The State requires 
        providers and suppliers under the State plan or under a 
        waiver of the plan to comply with the disclosure 
        requirements established by the Secretary under section 
        1866(j)(5).
          (4) Temporary moratorium on enrollment of new 
        providers or suppliers.--
                  (A) Temporary moratorium imposed by the 
                secretary.--
                          (i) In general.--Subject to clause 
                        (ii), the State complies with any 
                        temporary moratorium on the enrollment 
                        of new providers or suppliers imposed 
                        by the Secretary under section 
                        1866(j)(7).
                          (ii) Exceptions.--
                                  (I) Compliance with 
                                moratorium.--A State shall not 
                                be required to comply with a 
                                temporary moratorium described 
                                in clause (i) if the State 
                                determines that the imposition 
                                of such temporary moratorium 
                                would adversely impact 
                                beneficiaries' access to 
                                medical assistance.
                                  (II) FFP available.--
                                Notwithstanding section 
                                1903(i)(2)(E), payment may be 
                                made to a State under this 
                                title with respect to amounts 
                                expended for items and services 
                                described in such section if 
                                the Secretary, in consultation 
                                with the State agency 
                                administering the State plan 
                                under this title (or a waiver 
                                of the plan), determines that 
                                denying payment to the State 
                                pursuant to such section would 
                                adversely impact beneficiaries' 
                                access to medical assistance. 
                          (iii) Limitation on charges to 
                        beneficiaries.--With respect to any 
                        amount expended for items or services 
                        furnished during calendar quarters 
                        beginning on or after October 1, 2017, 
                        the State prohibits, during the period 
                        of a temporary moratorium described in 
                        clause (i), a provider meeting the 
                        requirements specified in subparagraph 
                        (C)(iii) of section 1866(j)(7) from 
                        charging an individual or other person 
                        eligible to receive medical assistance 
                        under the State plan under this title 
                        (or a waiver of the plan) for an item 
                        or service described in section 
                        1903(i)(2)(E) furnished to such an 
                        individual.
                  (B) Moratorium on enrollment of providers and 
                suppliers.--At the option of the State, the 
                State imposes, for purposes of entering into 
                participation agreements with providers or 
                suppliers under the State plan or under a 
                waiver of the plan, periods of enrollment 
                moratoria, or numerical caps or other limits, 
                for providers or suppliers identified by the 
                Secretary as being at high-risk for fraud, 
                waste, or abuse as necessary to combat fraud, 
                waste, or abuse, but only if the State 
                determines that the imposition of any such 
                period, cap, or other limits would not 
                adversely impact beneficiaries' access to 
                medical assistance.
          (5) Compliance programs.--The State requires 
        providers and suppliers under the State plan or under a 
        waiver of the plan to establish, in accordance with the 
        requirements of section 1866(j)(7), a compliance 
        program that contains the core elements established 
        under subparagraph (B) of that section 1866(j)(7) for 
        providers or suppliers within a particular industry or 
        category.
          (6) Reporting of adverse provider actions.--The State 
        complies with the national system for reporting 
        criminal and civil convictions, sanctions, negative 
        licensure actions, and other adverse provider actions 
        to the Secretary, through the Administrator of the 
        Centers for Medicare & Medicaid Services, in accordance 
        with regulations of the Secretary.
          (7) Enrollment and npi of ordering or referring 
        providers.--The State requires--
                  (A) all ordering or referring physicians or 
                other professionals to be enrolled under the 
                State plan or under a waiver of the plan as a 
                participating provider; and
                  (B) the national provider identifier of any 
                ordering or referring physician or other 
                professional to be specified on any claim for 
                payment that is based on an order or referral 
                of the physician or other professional.
          (8) Provider terminations.--
                  (A) In general.--Beginning on July 1, 2018, 
                in the case of a notification under subsection 
                (a)(41) with respect to a termination for a 
                reason specified in section 455.101 of title 
                42, Code of Federal Regulations (as in effect 
                on November 1, 2015) or for any other reason 
                specified by the Secretary, of the 
                participation of a provider of services or any 
                other person under the State plan (or under a 
                waiver of the plan), the State, not later than 
                30 days after the effective date of such 
                termination, submits to the Secretary with 
                respect to any such provider or person, as 
                appropriate--
                          (i) the name of such provider or 
                        person;
                          (ii) the provider type of such 
                        provider or person;
                          (iii) the specialty of such 
                        provider's or person's practice;
                          (iv) the date of birth, Social 
                        Security number, national provider 
                        identifier (if applicable), Federal 
                        taxpayer identification number, and the 
                        State license or certification number 
                        of such provider or person (if 
                        applicable);
                          (v) the reason for the termination;
                          (vi) a copy of the notice of 
                        termination sent to the provider or 
                        person;
                          (vii) the date on which such 
                        termination is effective, as specified 
                        in the notice; and
                          (viii) any other information required 
                        by the Secretary.
                  (B) Effective date defined.--For purposes of 
                this paragraph, the term ``effective date'' 
                means, with respect to a termination described 
                in subparagraph (A), the later of--
                          (i) the date on which such 
                        termination is effective, as specified 
                        in the notice of such termination; or
                          (ii) the date on which all appeal 
                        rights applicable to such termination 
                        have been exhausted or the timeline for 
                        any such appeal has expired.
          (9) Other state oversight.--Nothing in this 
        subsection shall be interpreted to preclude or limit 
        the ability of a State to engage in provider and 
        supplier screening or enhanced provider and supplier 
        oversight activities beyond those required by the 
        Secretary.
  (ll) Termination Notification Database.--In the case of a 
provider of services or any other person whose participation 
under this title or title XXI is terminated (as described in 
subsection (kk)(8)), the Secretary shall, not later than 30 
days after the date on which the Secretary is notified of such 
termination under subsection (a)(41) (as applicable), review 
such termination and, if the Secretary determines appropriate, 
include such termination in any database or similar system 
developed pursuant to section 6401(b)(2) of the Patient 
Protection and Affordable Care Act (42 U.S.C. 1395cc note; 
Public Law 111-148).
  (mm) Directory Physician or Provider Described.--A physician 
or provider described in this subsection is--
          (1) in the case of a physician or provider of a 
        provider type for which the State agency, as a 
        condition on receiving payment for items and services 
        furnished by the physician or provider to individuals 
        eligible to receive medical assistance under the State 
        plan, requires the enrollment of the physician or 
        provider with the State agency, a physician or a 
        provider that--
                  (A) is enrolled with the agency as of the 
                date on which the directory is published or 
                updated (as applicable) under subsection 
                (a)(83); and
                  (B) received payment under the State plan in 
                the 12-month period preceding such date; and
          (2) in the case of a physician or provider of a 
        provider type for which the State agency does not 
        require such enrollment, a physician or provider that 
        received payment under the State plan (or a waiver of 
        the plan) in the 12-month period preceding the date on 
        which the directory is published or updated (as 
        applicable) under subsection (a)(83).
  (nn) Juvenile; Eligible Juvenile; Public Institution.--For 
purposes of subsection (a)(84) and this subsection:
          (1) Juvenile.--The term ``juvenile'' means an 
        individual who is--
                  (A) under 21 years of age; or
                  (B) described in subsection 
                (a)(10)(A)(i)(IX).
          (2) Eligible juvenile.--The term ``eligible 
        juvenile'' means a juvenile who is an inmate of a 
        public institution and who--
                  (A) was determined eligible for medical 
                assistance under the State plan immediately 
                before becoming an inmate of such a public 
                institution; or
                  (B) is determined eligible for such medical 
                assistance while an inmate of a public 
                institution.
          (3) Inmate of a public institution.--The term 
        ``inmate of a public institution'' has the meaning 
        given such term for purposes of applying the 
        subdivision (A) following paragraph (30) of section 
        1905(a), taking into account the exception in such 
        subdivision for a patient of a medical institution.
  (oo) Drug Review and Utilization Requirements.--
          (1) In general.--For purposes of subsection (a)(85), 
        the drug review and utilization requirements under this 
        subsection are, subject to paragraph (3) and beginning 
        October 1, 2019, the following:
                  (A) Claims review limitations.--
                          (i) In general.--The State has in 
                        place--
                                  (I) safety edits (as 
                                specified by the State) for 
                                subsequent fills for opioids 
                                and a claims review automated 
                                process (as designed and 
                                implemented by the State) that 
                                indicates when an individual 
                                enrolled under the State plan 
                                (or under a waiver of the State 
                                plan) is prescribed a 
                                subsequent fill of opioids in 
                                excess of any limitation that 
                                may be identified by the State;
                                  (II) safety edits (as 
                                specified by the State) on the 
                                maximum daily morphine 
                                equivalent that can be 
                                prescribed to an individual 
                                enrolled under the State plan 
                                (or under a waiver of the State 
                                plan) for treatment of chronic 
                                pain and a claims review 
                                automated process (as designed 
                                and implemented by the State) 
                                that indicates when an 
                                individual enrolled under the 
                                plan (or waiver) is prescribed 
                                the morphine equivalent for 
                                such treatment in excess of any 
                                limitation that may be 
                                identified by the State; and
                                  (III) a claims review 
                                automated process (as designed 
                                and implemented by the State) 
                                that monitors when an 
                                individual enrolled under the 
                                State plan (or under a waiver 
                                of the State plan) is 
                                concurrently prescribed opioids 
                                and--
                                          (aa) benzodiazepines; 
                                        or
                                          (bb) antipsychotics.
                          (ii) Managed care entities.--The 
                        State requires each managed care entity 
                        (as defined in section 1932(a)(1)(B)) 
                        with respect to which the State has a 
                        contract under section 1903(m) or under 
                        section 1905(t)(3) to have in place, 
                        subject to paragraph (3), with respect 
                        to individuals who are eligible for 
                        medical assistance under the State plan 
                        (or under a waiver of the State plan) 
                        and who are enrolled with the entity, 
                        the limitations described in subclauses 
                        (I) and (II) of clause (i) and a claims 
                        review automated process described in 
                        subclause (III) of such clause.
                          (iii) Rules of construction.--Nothing 
                        in this subparagraph may be construed 
                        as prohibiting a State or managed care 
                        entity from designing and implementing 
                        a claims review automated process under 
                        this subparagraph that provides for 
                        prospective or retrospective reviews of 
                        claims. Nothing in this subparagraph 
                        shall be understood as prohibiting the 
                        exercise of clinical judgment from a 
                        provider enrolled as a participating 
                        provider in a State plan (or waiver of 
                        the State plan) or contracting with a 
                        managed care entity regarding the best 
                        items and services for an individual 
                        enrolled under such State plan (or 
                        waiver).
                  (B) Program to monitor antipsychotic 
                medications by children.--The State has in 
                place a program (as designed and implemented by 
                the State) to monitor and manage the 
                appropriate use of antipsychotic medications by 
                children enrolled under the State plan (or 
                under a waiver of the State plan) and submits 
                annually to the Secretary such information as 
                the Secretary may require on activities carried 
                out under such program for individuals not more 
                than the age of 18 years generally and children 
                in foster care specifically.
                  (C) Fraud and abuse identification.--The 
                State has in place a process (as designed and 
                implemented by the State) that identifies 
                potential fraud or abuse of controlled 
                substances by individuals enrolled under the 
                State plan (or under a waiver of the State 
                plan), health care providers prescribing drugs 
                to individuals so enrolled, and pharmacies 
                dispensing drugs to individuals so enrolled.
                  (D) Reports.--The State shall include in the 
                annual report submitted to the Secretary under 
                section 1927(g)(3)(D) information on the 
                limitations, requirement, program, and 
                processes applied by the State under 
                subparagraphs (A) through (C) in accordance 
                with such manner and time as specified by the 
                Secretary.
                  (E) Clarification.--Nothing shall prevent a 
                State from satisfying the requirement--
                          (i) described in subparagraph (A) by 
                        having safety edits or a claims review 
                        automated process described in such 
                        subparagraph that was in place before 
                        October 1, 2019;
                          (ii) described in subparagraph (B) by 
                        having a program described in such 
                        subparagraph that was in place before 
                        such date; or
                          (iii) described in subparagraph (C) 
                        by having a process described in such 
                        subparagraph that was in place before 
                        such date.
          (2) Annual report by secretary.--For each fiscal year 
        beginning with fiscal year 2020, the Secretary shall 
        submit to Congress a report on the most recent 
        information submitted by States under paragraph (1)(D).
          (3) Exceptions.--
                  (A) Certain individuals exempted.--The drug 
                review and utilization requirements under this 
                subsection shall not apply with respect to an 
                individual who--
                          (i) is receiving--
                                  (I) hospice or palliative 
                                care; or
                                  (II) treatment for cancer;
                          (ii) is a resident of a long-term 
                        care facility, of a facility described 
                        in section 1905(d), or of another 
                        facility for which frequently abused 
                        drugs are dispensed for residents 
                        through a contract with a single 
                        pharmacy; or
                          (iii) the State elects to treat as 
                        exempted from such requirements.
                  (B)  Exception relating to ensuring access.--
                In order to ensure reasonable access to health 
                care, the Secretary shall waive the drug review 
                and utilization requirements under this 
                subsection, with respect to a State, in the 
                case of natural disasters and similar 
                situations, and in the case of the provision of 
                emergency services (as defined for purposes of 
                section 1860D-4(c)(5)(D)(ii)(II)).
  (pp) Residential Pediatric Recovery Center Defined.--
          (1) In general.--For purposes of section 1902(a)(86), 
        the term ``residential pediatric recovery center'' 
        means a center or facility that furnishes items and 
        services for which medical assistance is available 
        under the State plan to infants with the diagnosis of 
        neonatal abstinence syndrome without any other 
        significant medical risk factors.
          (2) Counseling and services.--A residential pediatric 
        recovery center may offer counseling and other services 
        to mothers (and other appropriate family members and 
        caretakers) of infants receiving treatment at such 
        centers if such services are otherwise covered under 
        the State plan under this title or under a waiver of 
        such plan. Such other services may include the 
        following:
                  (A) Counseling or referrals for services.
                  (B) Activities to encourage caregiver-infant 
                bonding.
                  (C) Training on caring for such infants.
  (qq) Application of Certain Data Reporting and Program 
Integrity Requirements to Northern Mariana Islands, American 
Samoa, and Guam.--
          (1) In general.--Not later than October 1, 2021, the 
        Northern Mariana Islands, American Samoa, and Guam 
        shall--
                  (A) demonstrate progress in implementing 
                methods, satisfactory to the Secretary, for the 
                collection and reporting of reliable data to 
                the Transformed Medicaid Statistical 
                Information System (T-MSIS) (or a successor 
                system); and
                  (B) demonstrate progress in establishing a 
                State medicaid fraud control unit described in 
                section 1903(q).
          (2) Determination of progress.--For purposes of 
        paragraph (1), the Secretary shall deem that a 
        territory described in such paragraph has demonstrated 
        satisfactory progress in implementing methods for the 
        collection and reporting of reliable data or 
        establishing a State medicaid fraud control unit if the 
        territory has made a good faith effort to implement 
        such methods or establish such a unit, given the 
        circumstances of the territory.
  (rr) Program Integrity Requirements for Puerto Rico.--
          (1) System for tracking federal medicaid funding 
        provided to puerto rico.--
                  (A) In general.--Puerto Rico shall establish 
                and maintain a system, which may include the 
                use of a quarterly Form CMS-64, for tracking 
                any amounts paid by the Federal Government to 
                Puerto Rico with respect to the State plan of 
                Puerto Rico (or a waiver of such plan). Under 
                such system, Puerto Rico shall ensure that 
                information is available, with respect to each 
                quarter in a fiscal year (beginning with the 
                first quarter beginning on or after the date 
                that is 1 year after the date of the enactment 
                of this subsection), on the following:
                          (i) In the case of a quarter other 
                        than the first quarter of such fiscal 
                        year--
                                  (I) the total amount expended 
                                by Puerto Rico during any 
                                previous quarter of such fiscal 
                                year under the State plan of 
                                Puerto Rico (or a waiver of 
                                such plan); and
                                  (II) a description of how 
                                such amount was so expended.
                          (ii) The total amount that Puerto 
                        Rico expects to expend during the 
                        quarter under the State plan of Puerto 
                        Rico (or a waiver of such plan), and a 
                        description of how Puerto Rico expects 
                        to expend such amount.
                  (B) Report to cms.--For each quarter with 
                respect to which Puerto Rico is required under 
                subparagraph (A) to ensure that information 
                described in such subparagraph is available, 
                Puerto Rico shall submit to the Administrator 
                of the Centers for Medicare & Medicaid Services 
                a report on such information for such quarter, 
                which may include the submission of a quarterly 
                Form CMS-37.
          (2) Submission of documentation on contracts upon 
        request.--Puerto Rico shall, upon request, submit to 
        the Administrator of the Centers for Medicare & 
        Medicaid Services all documentation requested with 
        respect to contracts awarded under the State plan of 
        Puerto Rico (or a waiver of such plan).
          (3) Reporting on medicaid and chip scorecard 
        measures.--Beginning 12 months after the date of 
        enactment of this subsection, Puerto Rico shall begin 
        to report to the Administrator of the Centers for 
        Medicare & Medicaid Services on selected measures 
        included in the Medicaid and CHIP Scorecard developed 
        by the Centers for Medicare & Medicaid Services.
  (ss) Uninsured Individual Defined.--For purposes of this 
section, the term ``uninsured individual'' means, 
notwithstanding any other provision of this title, any 
individual who is--
          (1) not described in subsection (a)(10)(A)(i) 
        (excluding subclause (VIII) of such subsection if the 
        individual is a resident of a State which does not 
        furnish medical assistance to individuals described in 
        such subclause); and
          (2) not enrolled in a Federal health care program (as 
        defined in section 1128B(f)), a group health plan, 
        group or individual health insurance coverage offered 
        by a health insurance issuer (as such terms are defined 
        in section 2791 of the Public Health Service Act), or a 
        health plan offered under chapter 89 of title 5, United 
        States Code, except that individuals who are eligible 
        for medical assistance under subsection 
        (a)(10)(A)(ii)(XII), subsection (a)(10)(A)(ii)(XVIII), 
        subsection (a)(10)(A)(ii)(XXI), or subsection 
        (a)(10)(C) (but only to the extent such an individual 
        is considered to not have minimum essential coverage 
        under section 5000A(f)(1) of the Internal Revenue Code 
        of 1986), or who are described in subsection (l)(1)(A) 
        and are eligible for medical assistance only because of 
        subsection (a)(10)(A)(i)(IV) or (a)(10)(A)(ii)(IX) and 
        whose eligibility for such assistance is limited by the 
        State under clause (VII) in the matter following 
        subsection (a)(10)(G), shall not be treated as enrolled 
        in a Federal health care program for purposes of this 
        paragraph.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

                              INTRODUCTION

    Nutrition programs for children were very important during 
the pandemic as providers utilized flexibilities to serve 
students in unique ways. While the pandemic is over, child 
nutrition programs are just beginning to return to operating in 
accordance with the law. It is irresponsible to discuss 
significant reforms to the underlying child nutrition laws 
while schools and other program operators are still working on 
getting the programs back to normal operation. Worse, the 
Democrats' recent spending splurge has left every taxpayer 
dealing with significant inflation. Increasing spending by tens 
of billions of dollars on these programs is reckless and 
demonstrates a lack of economic understanding.

                          SUMMARY OF CONCERNS

    Republicans did not offer a substitute amendment because 
this is the wrong time to reauthorize these programs. The 
waivers allowed during the pandemic are still in place for some 
issues, such as mealtime changes, monitoring flexibility, and 
parent pick-up when a child is sick due to COVID. Other waivers 
have just ended, such as allowing area eligibility for all 
regions for the summer program and allowing schools to 
participate in the summer program. Because those waivers remain 
in place, operators have not had time to learn what changes may 
be needed to improve these programs for the future. The 
Democrats' bill largely legislates by looking backwards and 
grants the policy wishes of their members; it is not a bill 
that actually improves the situation on the ground for students 
and schools. Congress already acted to help schools deal with 
inflation and return to regular operation; this legislation 
complicates that process for schools and other program 
operators.
    This bill dramatically increases costs and burdens by 
unnecessarily expanding existing programs. The Committee did 
not have a cost estimate for the bill prior to the markup, but 
it is anticipated to add tens of billions of dollars to 
taxpayers' debt. One program which the bill expands is 
Community Eligibility. This expansion will increase costs for 
taxpayers by providing more free meals to those families that 
can afford to pay their fair share. Additionally, the bill 
significantly expands the summer food service program by 
expanding the Summer Electronic Benefits Transfer program. This 
change is not accompanied by any additional cuts or changes to 
the current summer program, creating significant integrity 
concerns by potentially providing duplicate meals for many 
children. These changes are all made without any offsets within 
the program.
    The bill also expands the authority of the federal 
government unnecessarily. The bill first does this by wildly 
overstepping the appropriate limits of the federal government 
by requiring the Secretary of the U.S. Department of 
Agriculture (USDA) to issue guidance on the school day 
schedule, specifically the length of lunch. Scheduling the 
school day is a hyper-local issue, not the concern of the 
Secretary of USDA. The bill also creates a new advisory 
committee on unpaid meal debt. While unpaid debt certainly 
harms both schools and students, a task force in D.C. is not 
going to solve the problem.
    The Democrats' bill also requires another review of the Buy 
American requirement. This issue is another example of why 
moving this bill now is inappropriate. Before beginning a 
complicated process to address concerns with the Buy American 
requirements, schools need a chance to understand the market 
and the challenges that remain in implementing those 
requirements. The provision adding an additional Buy American 
review in H.R. 8450 will likely result in the status quo 
remaining in place--after significant paperwork burden is added 
to schools and states.
    Finally, while it is premature to consider this bill now, 
the Democrats' bill misses opportunities which could in fact be 
addressed at this time. First, the bill fails to simplify child 
nutrition programs, but instead requires additional and 
overlapping regulations that will increase program costs and 
complexity. Requiring new regulations on additives and ``other 
potentially harmful substances'' increases complexity and 
costs, and it leaves schools and other program providers unsure 
about what foods are allowable in the program. Second, the bill 
fails to address significant administrative issues long known 
in the programs. This includes limiting unnecessary 
administrative reviews, preventing the challenges created by 
the last school meal programs' regulations, and removing 
onerous requirements like paid meal equity.
Republican Amendments
    While Republicans did not offer a comprehensive substitute, 
there were several amendments offered that would improve the 
bill and the program overall if enacted. Those include the 
following:
    Rep. McClain and Rep. Fulcher offered--and withdrew--an 
amendment to ensure potatoes remain allowable as vegetable 
under the programs.
    Rep. McClain offered an amendment to prohibit all new 
changes from being enacted unless an independent study is 
conducted to ensure the program won't increase inflation or the 
changes can be implemented once inflation drops to 2 percent. 
This amendment was defeated in a roll call vote.
    Rep. Thompson, along with Rep. Stefanik, Rep. Fulcher, and 
Rep. Keller, offered an amendment to address whole milk and 
chocolate milk in school meals and allow greater choice of milk 
in the Women, Infant and Children (WIC) program. This amendment 
was defeated by a voice vote.
    Rep. Stefanik offered an amendment that would address the 
infant formula contracting requirements in WIC by requiring two 
manufacturers per state or state consortia. While it received 
bipartisan support, the amendment failed by roll call vote.
    Rep. Good and Rep. Miller offered--and withdrew--an 
amendment to require nutrition regulations promulgated under 
the bill to make grain-based desserts eligible for 
reimbursement.
    Rep. Walberg offered an amendment to ensure food 
substitutions for religious needs are allowed. This amendment 
was adopted.
    Rep. Miller and Rep. Good offered an amendment to eliminate 
the change the Democrats made to the definition of woman and 
therefore to re-define pregnant woman, breastfeeding woman, and 
postpartum woman as a woman. This amendment was defeated on a 
party line vote.
    Rep. Grothman and Rep. Harshbarger offered an amendment to 
prohibit enforcement of the May 5, 2022, memo on Title IX 
enforcement as it relates to child nutrition programs. This 
amendment was defeated on a partisan vote.
    Rep. Harshbarger offered an amendment to require a 
feasibility study before issuing new regulations. This study 
would determine the cost increase these potential standards 
would impose, the timeline for availability of food meeting 
these standards, and the increase to plate waste these 
standards might cause. This amendment was also defeated on a 
party line vote.

                               CONCLUSION

    Nutrition programs for children are critical for those in 
need. Proper nutrition supports strong development and helps 
students learn and thrive in school. Instead of fixing problems 
in the program and ensuring the programs are back to operating 
as intended, the Democrats' bill adds layers of bureaucracy 
through new programs and significantly expands failing 
programs. When inflation is at a forty year high, Congress 
should rein in reckless spending and target programs to those 
who need support the most. This bill misses the mark on 
integrity, misses the mark on improving existing programs, and 
misses the mark on protecting taxpayers.

                                   Virginia Foxx,
                                             Ranking Member.
                                   Joe Wilson.
                                   Glenn ``GT'' Thompson.
                                   Tim Walberg.
                                   Glenn Grothman.
                                   Rick W. Allen.
                                   Jim Banks.
                                   James Comer.
                                   Russ Fulcher
                                   Fred Keller
                                   Mariannette Miller Meeks, M.D.
                                   Burgess Owens.
                                   Bob Good.
                                   Lisa C. McClain.
                                   Mary E. Miller.
                                   Scott Fitzgerald.
                                   Chris Jacobs.
                                   Joe Sempolinski.

                                  [all]