[Federal Register Volume 81, Number 151 (Friday, August 5, 2016)]
[Notices]
[Pages 51840-51842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18646]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Child and Adult Care Food Program: National Average Payment 
Rates, Day Care Home Food Service Payment Rates, and Administrative 
Reimbursement Rates for Sponsoring Organizations of Day Care Homes for 
the Period, July 1, 2016 Through June 30, 2017

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the annual adjustments to the national 
average payment rates for meals and snacks served in child care 
centers, outside-school-hours care centers, at-risk afterschool care 
centers, and adult day care centers; the food service payment rates for 
meals and snacks served in day care homes; and the administrative 
reimbursement rates for sponsoring organizations of day care homes, to 
reflect changes in the Consumer Price Index. Further adjustments are 
made to these rates to reflect the higher costs of providing meals in 
the States of Alaska and Hawaii. The adjustments contained in this 
notice are made on an annual basis each July, as required by the laws 
and regulations governing the Child and Adult Care Food Program.

DATES: These rates are effective from July 1, 2016 through June 30, 
2017.

FOR FURTHER INFORMATION CONTACT: Jessica Saracino, Branch Chief, 
Program Monitoring and Operational Support Division, Child Nutrition 
Programs, Food and Nutrition Service, U.S. Department of Agriculture, 
3101 Park Center Drive, Room 640, Alexandria, Virginia 22302-1594; 
phone 703-457-7743.

SUPPLEMENTARY INFORMATION:

Definitions

    The terms used in this notice have the meanings ascribed to them in 
the Child and Adult Care Food Program regulations, 7 CFR part 226.

Background

    Pursuant to sections 4, 11, and 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1753, 1759a and 1766), section 4 
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) and 7 CFR 226.4, 
226.12 and 226.13 of the Program regulations, notice is hereby given of 
the new payment rates for institutions participating in the Child and 
Adult Care Food Program (CACFP). These rates are in effect during the 
period, July 1, 2016 through June 30, 2017.
    As provided for under the law, all rates in the CACFP must be 
revised annually, on July 1, to reflect changes in the Consumer Price 
Index (CPI), published by the Bureau of Labor Statistics of the United 
States Department of Labor, for the most recent 12-month period. In 
accordance with this mandate, the United States Department of 
Agriculture (USDA) last published the adjusted national average payment 
rates for centers, the food service payment rates for day care homes, 
and the administrative reimbursement rates for sponsoring organizations 
of day care homes, for the period from July 1, 2015 through June 30, 
2016, on July 17, 2015, in the Federal Register at 80 FR 42474.

Adjusted Payments

    The following national average payment factors and food service 
payment rates for meals and snacks are in effect from July 1, 2016 
through June 30, 2017. All amounts are expressed in dollars or 
fractions thereof. Due to a higher cost of living, the reimbursements 
for Alaska and Hawaii are higher than those for all other States. The 
District of Columbia, Virgin Islands, Puerto Rico, and Guam use the 
figures specified for the contiguous States. These rates do not include 
the value of USDA Foods or cash-in-lieu of USDA Foods which 
institutions receive as additional assistance for each lunch or supper 
served to participants under the Program. A notice announcing the value 
of USDA Foods and cash-in-lieu of USDA Foods is published separately in 
the Federal Register.

National Average Payment Rates for Centers

    Payments for breakfasts served are: Contiguous States--paid rate--
29 cents (no change from 2015-2016 annual level), reduced price rate--
141 cents (5 cents increase), free rate--171 cents (5 cents increase); 
Alaska--paid rate--44 cents (1 cent increase), reduced price rate--243 
cents (7 cents increase), free rate--273 cents (7 cents increase); 
Hawaii--paid rate--33 cents (no change), reduced price rate--169 cents

[[Page 51841]]

(5 cents increase), free rate--199 cents (5 cents increase).
    Payments for lunch or supper served are: Contiguous States--paid 
rate--30 cents (1 cent increase from 2015-2016 annual level), reduced 
price rate--276 cents (9 cents increase), free rate--316 cents (9 cents 
increase); Alaska--paid rate--49 cents (1 cent increase), reduced price 
rate--472 cents (13 cents increase), free rate--512 cents (13 cents 
increase); Hawaii--paid rate--35 cents (1 cent increase), reduced price 
rate--329 cents (9 cents increase), free rate--369 cents (9 cents 
increase).
    Payments for snack served are: Contiguous States--paid rate--7 
cents (no change from 2015-2016 annual level), reduced price rate--43 
cents (1 cent increase), free rate--86 cents (2 cents increase); 
Alaska--paid rate--12 cents (no change), reduced price rate--70 cents 
(2 cents increase), free rate--140 cents (3 cents increase); Hawaii--
paid rate--9 cents (no change), reduced price rate--50 cents (1 cent 
increase), free rate--101 cents (2 cents increase).

Food Service Payment Rates for Day Care Homes

    Payments for breakfast served are: Contiguous States--tier I--131 
cents (1 cent decrease from 2015-2016 annual level) and tier II--48 
cents (no change); Alaska--tier I--209 cents (2 cents decrease) and 
tier II--74 cents (1 cent decrease); Hawaii--tier I--153 cents (1 cent 
decrease) and tier II--55 cents (no change).
    Payments for lunch and supper served are: Contiguous States--tier 
I--246 cents (2 cent decrease from 2015-2016 annual level) and tier 
II--149 cents (1 cent decrease); Alaska--tier I--399 cents (3 cents 
decrease) and tier II--241 cents (2 cents decrease); Hawaii--tier I--
288 cents (2 cents decrease) and tier II--174 cents (1 cent decrease).
    Payments for snack served are: Contiguous States--tier I--73 cents 
(1 cent decrease from 2015-2016 annual level) and tier II--20 cents (no 
change); Alaska--tier I--119 cents (1 cent decrease) and tier II--33 
cents (no change); Hawaii--tier I--86 cents (no change) and tier II--23 
cents (1 cent decrease).

Administrative Reimbursement Rates for Sponsoring Organizations of Day 
Care Homes

    Monthly administrative payments to sponsors for each sponsored day 
care home are: Contiguous States--initial 50 homes--112 dollars (1 
dollar increase from 2015-2016 annual level), next 150 homes--86 
dollars (1 dollar increase), next 800 homes--67 dollars (1 dollar 
increase), each additional home--59 dollars (1 dollar increase); 
Alaska--initial 50 homes--182 dollars (2 dollar increase), next 150 
homes--139 dollars (2 dollar increase), next 800 homes--108 dollars (1 
dollar increase), each additional home--95 dollars (1 dollar increase); 
Hawaii--initial 50 homes--131 dollars (1 dollar increase), next 150 
homes--100 dollars (1 dollar increase), next 800 homes--78 dollars (1 
dollar increase), each additional home--69 dollars (1 dollar increase).

Payment Chart

    The following chart illustrates the national average payment 
factors and food service payment rates for meals and snacks in effect 
from July 1, 2016, through June 30, 2017.

                                    Child and Adult Care Food Program (CACFP)
        [Per meal rates in whole or fractions of U.S. dollars effective from July 1, 2016-June 30, 2017]
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                                                                                     Lunch and
                             Centers                                 Breakfast      supper \1\      Supplement
----------------------------------------------------------------------------------------------------------------
Contiguous States:
    Paid........................................................            0.29            0.30            0.07
    Reduced Price...............................................            1.41            2.76            0.43
    Free........................................................            1.71            3.16            0.86
Alaska:
    Paid........................................................            0.44            0.49            0.12
    Reduced Price...............................................            2.43            4.72            0.70
    Free........................................................            2.73            5.12            1.40
Hawaii:
    Paid........................................................            0.33            0.35            0.09
    Reduced Price...............................................            1.69            3.29            0.50
    Free........................................................            1.99            3.69            1.01
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\1\ These rates do not include the value of USDA Foods or cash-in-lieu of USDA Foods which institutions receive
  as additional assistance for each CACFP lunch or supper served to participants. A notice announcing the value
  of USDA Foods and cash-in-lieu of USDA Foods is published separately in the Federal Register.


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                                                                     Breakfast                   Lunch and supper                   Supplement
                     Day care homes                      -----------------------------------------------------------------------------------------------
                                                              Tier I          Tier II         Tier I          Tier II         Tier I          Tier II
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contiguous States.......................................            1.31            0.48            2.46            1.49            0.73            0.20
Alaska..................................................            2.09            0.74            3.99            2.41            1.19            0.33
Hawaii..................................................            1.53            0.55            2.88            1.74            0.86            0.23
--------------------------------------------------------------------------------------------------------------------------------------------------------


                Administrative Reimbursement Rates for Sponsoring Organizations of Day Care Homes
                                   [Per home/per month rates in U.S. dollars]
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                                                                                                       Each
                                                    Initial 50       Next 150        Next 800       additional
----------------------------------------------------------------------------------------------------------------
Contiguous States...............................             112              86              67              59
Alaska..........................................             182             139             108              95
Hawaii..........................................             131             100              78              69
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[[Page 51842]]

    The changes in the national average payment rates for centers 
reflect a 2.64 percent increase during the 12-month period, May 2015 to 
May 2016, (from 255.322 in May 2015, as previously published in the 
Federal Register, to 262.074 in May 2016) in the food away from home 
series of the CPI for All Urban Consumers.
    The changes in the food service payment rates for day care homes 
reflect a 0.69 percent decrease during the 12-month period, May 2014 to 
May 2015, (from 241.019 in May 2015, as previously published in the 
Federal Register, to 239.354 in May 2016) in the food at home series of 
the CPI for All Urban Consumers.
    The changes in the administrative reimbursement rates for 
sponsoring organizations of day care homes reflect a 1.02 percent 
increase during the 12-month period, May 2015 to May 2016 (from 237.805 
in May 2015, as previously published in the Federal Register, to 
240.236 in May 2016) in the series for all items of the CPI for All 
Urban Consumers.
    The total amount of payments available to each State agency for 
distribution to institutions participating in CACFP is based on the 
rates contained in this notice.
    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. This notice has been determined to be exempt under Executive Order 
12866.
    CACFP is listed in the Catalog of Federal Domestic Assistance under 
No. 10.558 and is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 2 CFR 415.3-415.6).
    This notice has been determined to be not significant and was 
reviewed by the Office of Management and Budget (OMB) in conformance 
with Executive Order 12866.
    This notice imposes no new reporting or recordkeeping provisions 
that are subject to OMB review in accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3518).

    Authority: Sections 4(b)(2), 11, 17(c) and 17(f)(3)(B) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1753(b)(2), 
1759a, 1766(f)(3)(B)) and section 4(b)(1)(B) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773(b)(1)(B)).

    Dated: August 2, 2016.
Yvette S. Jackson,
Acting Administrator, Food and Nutrition Service.
[FR Doc. 2016-18646 Filed 8-4-16; 8:45 am]
 BILLING CODE 3410-30-P