[Federal Register Volume 82, Number 144 (Friday, July 28, 2017)]
[Notices]
[Pages 35175-35178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15956]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


National School Lunch, Special Milk, and School Breakfast 
Programs, National Average Payments/Maximum Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA

ACTION: Notice.

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SUMMARY: This Notice announces the annual adjustments to the ``national 
average payments,'' the amount of money the Federal Government provides 
States for lunches, afterschool snacks, and breakfasts served to 
children participating in the National School Lunch and School 
Breakfast Programs; to the ``maximum reimbursement rates,'' the maximum 
per lunch rate from Federal funds that a State can provide a school 
food authority for lunches served to children participating in the 
National School Lunch Program; and to the rate of reimbursement for a 
half-pint of milk served to non-needy children in a school or 
institution that participates in the Special Milk Program for Children. 
The payments and rates are prescribed on an annual basis each July. The 
annual payments and rates adjustments for the National School Lunch and 
School Breakfast Programs reflect changes in the Food Away From Home 
series of the Consumer Price Index for All Urban Consumers. The annual 
rate adjustment for the Special Milk Program reflects changes in the 
Producer Price Index for Fluid Milk Products.

DATES: These rates are effective from July 1, 2017 through June 30, 
2018.

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, VA 22302-1594.

SUPPLEMENTARY INFORMATION: 

Background

    Special Milk Program for Children--Pursuant to section 3 of the 
Child Nutrition Act of 1966, as amended (42 U.S.C. 1772), the 
Department announces the rate of reimbursement for a half-pint of milk 
served to non-needy children in a school or institution that 
participates in the Special Milk Program for Children. This rate is 
adjusted annually to reflect changes in the Producer Price Index for 
Fluid Milk Products, published by the Bureau of Labor Statistics of the 
Department of Labor.
    For the period July 1, 2017 through June 30, 2018, the rate of 
reimbursement for a half-pint of milk served to a non-needy child in a 
school or institution that participates in the Special Milk Program is 
20.75 cents. This reflects an increase of 1 cent from the School Year 
(SY) 2016-17 level, based on the 4.21 percent increase in the Producer 
Price Index for Fluid Milk Products from May 2016 to May 2017 (from a 
level of 216.1 in May 2016, as previously published in the Federal 
Register to 225.2 in May 2017).
    As a reminder, schools or institutions with pricing programs that 
elect to serve milk free to eligible children continue to receive the 
average cost of a half-pint of milk (the total cost of all milk 
purchased during the claim period divided by the total number of 
purchased half-pints) for each half-pint served to an eligible child.
    National School Lunch and School Breakfast Programs--Pursuant to 
sections 11 and 17A of the Richard B. Russell National School Lunch 
Act, (42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773), the Department annually announces the 
adjustments to the National Average Payment Factors and to the maximum 
Federal reimbursement rates for lunches and afterschool snacks served 
to children participating in the National School Lunch Program and 
breakfasts served to children participating in the School Breakfast 
Program. Adjustments are prescribed each July 1, based on changes in 
the Food Away From Home series of the Consumer Price Index for All 
Urban Consumers, published by the Bureau of Labor Statistics of the 
Department of Labor. The changes in the national average payment rates 
for schools and residential child care institutions for the period July 
1, 2017 through June 30, 2018 reflect a 2.31 percent increase in the 
Consumer Price Index for All Urban Consumers during the 12-month period 
May 2016 to May 2017 (from a level of 262.074 in May 2016, as 
previously published in the Federal Register to 268.128 in May 2017). 
Adjustments to the national average payment rates for all lunches 
served under the National School Lunch Program, breakfasts served under 
the School Breakfast Program, and afterschool snacks served under the 
National School Lunch Program are rounded down to the nearest whole 
cent.
    Lunch Payment Levels--Section 4 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1753) provides general cash for food 
assistance payments to States to assist schools in purchasing food. The 
Richard B. Russell National School Lunch Act provides two different 
section 4 payment levels for lunches served under the National School 
Lunch Program. The lower payment level applies to lunches served by 
school food authorities in which less than 60 percent of the lunches 
served in the school lunch program during the second preceding school 
year were served free or at a reduced price. The higher payment level 
applies to lunches served by school food authorities in which 60 
percent or more of the lunches served during the second preceding 
school year were served free or at a reduced price.
    To supplement these section 4 payments, section 11 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1759(a)) provides 
special cash assistance payments to aid schools in providing free and 
reduced price lunches. The section 11 National Average Payment Factor 
for each reduced price lunch served is set at 40 cents less than the 
factor for each free lunch.
    As authorized under sections 8 and 11 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1757 and 1759a), maximum 
reimbursement rates for each type of lunch are prescribed by the 
Department in this Notice. These maximum rates are to ensure equitable 
disbursement of Federal funds to school food authorities.
    Section 201 of the Healthy, Hunger-Free Kids Act of 2010--Section 
201 of the Healthy, Hunger-Free Kids Act of 2010 made significant 
changes to the Richard B. Russell National School Lunch Act. On January 
3, 2014, the final rule entitled, ``Certification of Compliance With 
Meal Requirements for the National School Lunch Program

[[Page 35176]]

Under the Healthy, Hunger-Free Kids Act of 2010'' (79 FR 325), was 
published and provides eligible school food authorities with 
performance-based cash reimbursement in addition to the general and 
special cash assistance described above. The final rule requires that 
school food authorities be certified by the State agency as being in 
compliance with the updated meal pattern and nutrition standard 
requirements set forth in amendments to 7 CFR parts 210 and 220 on 
January 26, 2012, in the final rule entitled ``Nutrition Standards in 
the National School Lunch and School Breakfast Programs'' (77 FR 4088). 
Certified school food authorities are eligible to receive performance-
based cash assistance for each reimbursable lunch served (an additional 
six cents per lunch available beginning October 1, 2012, and adjusted 
annually thereafter).
    Afterschool Snack Payments in Afterschool Care Programs--Section 
17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1766a) establishes National Average Payments for free, reduced price 
and paid afterschool snacks as part of the National School Lunch 
Program.
    Breakfast Payment Factors--Section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773) establishes National Average Payment Factors for 
free, reduced price, and paid breakfasts served under the School 
Breakfast Program and additional payments for free and reduced price 
breakfasts served in schools determined to be in ``severe need'' 
because they serve a high percentage of needy children.

Revised Payments

    The following specific section 4, section 11, and section 17A 
National Average Payment Factors and maximum reimbursement rates for 
lunch, the afterschool snack rates, and the breakfast rates are in 
effect from July 1, 2017 through June 30, 2018. Due to a higher cost of 
living, the average payments and maximum reimbursements for Alaska, 
Puerto Rico and Hawaii are higher than those for all other States. The 
District of Columbia, Virgin Islands, and Guam use the figures 
specified for the contiguous States.

National School Lunch Program Payments

    Section 4 National Average Payment Factors--In school food 
authorities that served less than 60 percent free and reduced price 
lunches in School Year (SY) 2015-16, the payments for meals served are: 
Contiguous States--paid rate--31 cents (1 cent increase from the SY 
2016-17 level), free and reduced price rate--31 cents (1 cent 
increase), maximum rate--39 cents (1 cent increase); Alaska--paid 
rate--50 cents (1 cent increase), free and reduced price rate--50 cents 
(1 cent increase), maximum rate--61 cents (1 cent increase); Hawaii and 
Puerto Rico--paid rate--36 cents (1 cent increase), free and reduced 
price rate--36 cents (1 cent increase), maximum rate--45 cents (1 cent 
increase).
    In school food authorities that served 60 percent or more free and 
reduced price lunches in School Year 2015-16, payments are: Contiguous 
States--paid rate--33 cents (1 cent increase from the SY 2016-17 
level), free and reduced price rate--33 cents (1 cent increase), 
maximum rate--39 cents (1 cent increase); Alaska--paid rate--52 cents 
(1 cent increase), free and reduced price rate--52 cents (1 cent 
increase), maximum rate--61 cents (1 cent increase); Hawaii and Puerto 
Rico--paid rate--38 cents (1 cent increase), free and reduced price 
rate--38 cents (1 cent increase), maximum rate--45 cents (1 cent 
increase).
    School food authorities certified to receive the performance-based 
cash assistance will receive an additional 6 cents (adjusted annually) 
added to the above amounts as part of their section 4 payments.
    Section 11 National Average Payment Factors--Contiguous States--
free lunch--292 cents (6 cents increase from the SY 2016-2017 level), 
reduced price lunch--252 cents (6 cents increase); Alaska--free lunch--
474 cents (11 cents increase), reduced price lunch--434 cents (11 cents 
increase); Hawaii and Puerto Rico--free lunch--342 cents (8 cents 
increase), reduced price lunch--302 cents (8 cents increase).
    Afterschool Snacks in Afterschool Care Programs--The payments are: 
Contiguous States--free snack--88 cents (2 cents increase from the SY 
2016-2017 level), reduced price snack--44 cents (1 cent increase), paid 
snack--8 cents (1 cent increase); Alaska--free snack--144 cents (4 
cents increase), reduced price snack--72 cents (2 cents increase), paid 
snack--13 cents (1 cent increase); Hawaii and Puerto Rico--free snack--
104 cents (3 cents increase), reduced price snack--52 cents (2 cents 
increase), paid snack--9 cents (no change).

School Breakfast Program Payments

    For schools ``not in severe need'' the payments are: Contiguous 
States--free breakfast--175 cents (4 cents increase from the SY 2016-
2017 level), reduced price breakfast--145 cents (4 cents increase), 
paid breakfast--30 cents (1 cent increase); Alaska--free breakfast--279 
cents (6 cents increase), reduced price breakfast--249 cents (6 cents 
increase), paid breakfast--45 cents (1 cent increase); Hawaii and 
Puerto Rico--free breakfast--203 cents (4 cents increase), reduced 
price breakfast--173 cents (4 cents increase), paid breakfast--34 cents 
(1 cent increase).
    For schools in ``severe need'' the payments are: Contiguous 
States--free breakfast--209 cents (5 cents increase from the SY 2016-
2017 level), reduced price breakfast--179 cents (5 cents increase), 
paid breakfast--30 cents (1 cent increase); Alaska--free breakfast--335 
cents (8 cents increase), reduced price breakfast--305 cents (8 cents 
increase), paid breakfast--45 cents (1 cent increase); Hawaii and 
Puerto Rico--free breakfast--243 cents (5 cents increase), reduced 
price breakfast--213 cents (5 cents increase), paid breakfast--34 cents 
(1 cent increase).

Payment Chart

    The following chart illustrates the lunch National Average Payment 
Factors with the sections 4 and 11 already combined to indicate the per 
lunch amount; the maximum lunch reimbursement rates; the reimbursement 
rates for afterschool snacks served in afterschool care programs; the 
breakfast National Average Payment Factors including ``severe need'' 
schools; and the milk reimbursement rate. All amounts are expressed in 
dollars or fractions thereof. The payment factors and reimbursement 
rates used for the District of Columbia, Virgin Islands, and Guam are 
those specified for the contiguous States.

[[Page 35177]]

[GRAPHIC] [TIFF OMITTED] TN28JY17.013

    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),

[[Page 35178]]

no new recordkeeping or reporting requirements have been included that 
are subject to approval from the Office of Management and Budget.
    This notice has been determined to be not significant and was not 
reviewed by the Office of Management and Budget in conformance with 
Executive Order 12866.
    National School Lunch, School Breakfast, and Special Milk Programs 
are listed in the Catalog of Federal Domestic Assistance under No. 
10.555, No. 10.553, and No. 10.556, respectively, and are subject to 
the provisions of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

    Authority: Sections 4, 8, 11, and 17A of the Richard B. Russell 
National School Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 
1766a) and sections 3 and 4(b) of the Child Nutrition Act, as 
amended, (42 U.S.C. 1772 and 42 U.S.C. 1773(b)).

    Dated: July 13, 2017.
Jessica Shahin,
Acting Administrator, Food and Nutrition Service.
[FR Doc. 2017-15956 Filed 7-27-17; 8:45 am]
BILLING CODE 3410-30-P