[Federal Register Volume 63, Number 50 (Monday, March 16, 1998)]
[Notices]
[Pages 12719-12722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6615]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Child Nutrition Programs--Income Eligibility Guidelines

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the Department's annual adjustments to 
the Income Eligibility Guidelines to be used in determining eligibility 
for free and reduced price meals or free milk for the period from July 
1, 1998 through June 30, 1999. These guidelines are used by schools, 
institutions, and centers participating in the National School Lunch 
Program, School Breakfast Program, Special Milk Program for Children, 
Child and Adult Care Food Program and Commodity School Program. The 
annual adjustments are required by section 9 of the National School 
Lunch Act. The guidelines are intended to direct benefits to those 
children most in need and are revised annually to account for changes 
in the Consumer Price Index.

EFFECTIVE DATE: July 1, 1998.

FOR FURTHER INFORMATION CONTACT: Mr. Robert M. Eadie, Chief, Policy and 
Program Development Branch, Child Nutrition Division, FNS, USDA, 
Alexandria, Virginia 22302, or by phone at (703) 305-2620.

SUPPLEMENTARY INFORMATION: This action is not a rule as defined by the 
Regulatory Flexibility Act (5 U.S.C. 601-612) and thus is exempt from 
the provisions of that Act.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507) no new recordkeeping or reporting requirements have been included 
that are subject to approval from the Office of Management and Budget.
    This action is exempted from review by the Office of Management and 
Budget under Executive Order 12866.
    These programs are listed in the Catalog of Federal Domestic 
Assistance under No. 10.553, No. 10.555, No. 10.556 and No. 10.558 and 
are subject to the provisions of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials. (See 7 
CFR Part 3015, Subpart V, and the final rule related notice published 
at 48 FR 29114, June 24, 1983.)

Background

    Pursuant to sections 9(b)(1) and 17(c)(4) of the National School 
Lunch Act (42 U.S.C. 1758(b)(1) and 42 U.S.C. 1766(c)(4)), and sections 
3(a)(6) and 4(e)(1)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1772(a)(6) and 1773(e)(1)(A)), the Department annually issues the 
Income Eligibility Guidelines for free and reduced price meals in the 
National School Lunch Program (7 CFR Part 210), School Breakfast 
Program (7 CFR Part 220), Child and Adult Care Food Program (7 CFR Part 
226), and Commodity School Program (7 CFR Part

[[Page 12720]]

210), and the guidelines for free milk in the Special Milk Program for 
Children (7 CFR Part 215). These eligibility guidelines are based on 
the Federal income poverty guidelines and are stated by household size.
    The Department requires schools and institutions which charge for 
meals separately from other fees to serve free meals to all children 
from any household with income at or below 130 percent of the poverty 
guidelines. The Department also requires such schools and institutions 
to serve reduced price meals to all children from any household with 
income higher than 130 percent of the poverty guidelines, but at or 
below 185 percent of the poverty guidelines. Schools and institutions 
participating in the Special Milk Program for Children may, at local 
option, serve free milk to all children from any household with income 
at or below 130 percent of the poverty guidelines.

Definition of Income

    ``Income,'' as the term is used in this Notice, means income before 
any deductions such as income taxes, Social Security taxes, insurance 
premiums, charitable contributions and bonds. It concludes the 
following: (1) monetary compensations for services, including wages, 
salary, commissions or fees; (2) net income from nonfarm self-
employment; (3) net income from farm self-employment; (4) Social 
Security; (5) dividends or interest on savings or bonds or income from 
estates or trusts; (6) net rental income; (7) public assistance or 
welfare payments (8) unemployment compensation; (9) government civilian 
employee or military retirement, or pensions or veterans payments; (10) 
private pensions or annuities; (11) alimony or child support payments; 
(12) regular contributions from persons not living in the household; 
(13) net royalties; and (14) other cash income. Other cash income would 
include cash amounts received or withdrawn from any source including 
savings, investments, trust accounts and other resources which would be 
available to pay the price of a child's meal.
    ``Income,'' as the term is used in this Notice, does not include 
any income or benefits received under any Federal programs which are 
excluded from consideration as income by any legislature prohibition. 
Furthermore, the value of meals or milk to children shall not be 
considered as income to their households for other benefit programs in 
accordance with the prohibitions in section 12(e) of the National 
School Lunch Act and section 11(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1760(e) and 1780(b)).

The Income Eligibility Guidelines

    The following are the Income Eligibility Guidelines to be effective 
from July 1, 1998 through June 30, 1999. The Department's guidelines 
for free meals and milk and reduced price meals were obtained by 
multiplying the 1998 Federal income poverty guidelines by 1.30 and 
1.85, respectively, and by rounding the result upward to the next whole 
dollar. Weekly and monthly guidelines were computed by dividing annual 
income by 52 and 12, respectively, and by rounding upward to the next 
whole dollar.

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    Authority: (42 U.S.C. 1758(b)(1)).

    Dated: March 9, 1998.
Yvette S. Jackson,
Administrator.

[FR Doc. 98-6615 Filed 3-13-98; 8:45 am]
BILLING CODE 3410-30-C