[Federal Register Volume 67, Number 39 (Wednesday, February 27, 2002)]
[Notices]
[Pages 8933-8934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4589]


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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, 2002 through June 30, 2003. These guidelines are used by schools, 
institutions, and facilities participating in the National School Lunch 
Program (and Commodity School Program), School Breakfast Program, 
Special Milk Program for Children, Child and Adult Care Food Program 
and Summer Food Service 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, 2002.

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, No. 10.558 and No. 
10.559 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 for the 
National School Lunch Program (7 CFR part 210), the Commodity School 
Program (7 CFR part 210), School Breakfast Program (7 CFR part 220), 
Summer Food Service Program (7 CFR part 225) and Child and Adult Care 
Food Program (7 CFR part 226) 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 guidelines are used to determine 
eligibility for free and reduced price meals and free milk in 
accordance with applicable program rules.

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 includes the 
following: (1) Monetary compensation 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 that 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 that are 
excluded from consideration as income by any legislative 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, 2002 through June 30, 2003. The Department's guidelines 
for free meals and milk and reduced price meals were obtained by 
multiplying the year 2002 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. The numbers reflected in this notice for a family of four 
represent an increase of 2.55 % over the July 2001 numbers for a family 
of the same size.

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

    Dated: February 19, 2002.
George A. Braley,
Acting Administrator.
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[FR Doc. 02-4589 Filed 2-26-02; 8:45 am]
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