[Federal Register Volume 84, Number 152 (Wednesday, August 7, 2019)]
[Notices]
[Pages 38590-38594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16903]
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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 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. Further adjustments are
made to these rates to reflect higher costs of providing meals in
Alaska, Hawaii and Puerto Rico. The payments and rates are prescribed
on an annual basis each July.
Overall, reimbursement rates this year for the National School
Lunch, Breakfast Programs and the Special Milk Program either remained
the same or increased compared to last year. Of note, the performance-
based reimbursement for lunches certified as meeting the meal pattern
increased from 6 cents to 7 cents.
DATES: These rates are effective from July 1, 2019 through June 30,
2020.
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.
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.
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
[[Page 38591]]
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.
Performanced-based Reimbursement--In addition to the funding
mentioned above, school food authorized certified as meeting the meal
pattern and nutrition standard requirements set forth in 7 CFR parts
210 and 220 are eligible to receive performance-based cash assistance
for each reimbursable lunch served (an additional seven cents per lunch
available beginning July 1, 2019, increased by inflation from six cents
to seven cents, and will continue to be adjusted and rounded down to
the nearest whole cent).
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.
Adjusted 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, 2019 through June 30, 2020. 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. These rates do not include the
value of USDA Foods or cash-in-lieu of USDA Foods which schools receive
as additional assistance for each meal 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.
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.
Special Milk Program Payments
For the period July 1, 2019 through June 30, 2020, 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
21.50 cents reflecting an increase of 1 cent from the School Year (SY)
2018-2019 level. This change is based on the 3.92 percent increase in
the Producer Price Index for Fluid Milk Products from May 2018 to May
2019.
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 Program Payments
Overall, payments for the National School Lunch Program and the
Afterschool Snack Program either remained the same or increased from
last years payments due to a 2.94 percent increase in the national
average payment rates for schools and residential child care
institutions for the period July 1, 2019 through June 30, 2020 in the
Consumer Price Index for All Urban Consumers for the food away from
home series during the 12-month period May 2018 to May 2019 (from a
level of 275.307 in May 2017, as previously published in the Federal
Register to 283.394 in May 2019).
These changes are reflected below.
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) 2017-2018, the payments for meals served
are: Contiguous States: Paid rate--32 cents (1 cent increase from the
SY 2018-2019 level), free and reduced price rate--32 cents (1 cent
increase), maximum rate--40 cents (1 cent increase); Alaska: Paid
rate--53 cents (2 cents increase), free and reduced price rate--53
cents (2 cents increase), maximum rate--63 cents (2 cents increase);
Hawaii and Puerto Rico: Paid rate--38 cents (1 cent increase), free and
reduced price rate--38 cents (1 cent increase), maximum rate--46 cents
(1 cent increase).
In school food authorities that served 60 percent or more free and
reduced price lunches in School Year 2017-2018, payments are:
Contiguous States: Paid rate--34 cents (1 cent increase from the SY
2018-2019 level), free and reduced price rate--34 cents (1 cent
increase), maximum rate--40 cents (1 cent increase); Alaska: Paid
rate--55 cents (2 cents increase), free and reduced price rate--55
cents (2 cents increase), maximum rate--63 cents (2 cents increase);
Hawaii and Puerto Rico: Paid rate--40 cents (1 cent increase), free and
reduced price rate--40 cents (1 cent increase), maximum rate--46 cents
(1 cent increase).
Beginning this year, School food authorities certified to receive
the performance-based cash assistance will receive an additional 7
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--3 dollars and 9 cents (9 cents increase from the SY 2018-
2019 level), reduced price lunch--2 dollars and 69 cents (9 cents
increase); Alaska: Free lunch--5 dollars and 1 cent (14 cents
increase), reduced price lunch--4 dollars and 61 cents (14 cents
increase); Hawaii and Puerto Rico: Free lunch--3 dollars and 62 cents
(11 cents increase), reduced price lunch--3 dollars and 22 cents (11
cents increase).
Afterschool Snacks in Afterschool Care Programs--The payments are:
Contiguous States: Free snack--94 cents (3 cents increase from the SY
2018-2019 level), reduced price snack--47 cents (2 cents increase),
paid snack--8 cents (no change); Alaska: Free snack--1 dollar and 52
cents (4 cents increase), reduced price snack--76 cents (2 cents
increase), paid snack--13 cents (no change); Hawaii and Puerto Rico:
Free snack--1 dollar and 10 cents (4 cents increase), reduced price
snack--55 cents (2 cent increase), paid snack--10 cents (1 cent
increase).
School Breakfast Program Payments
Overall, payments for the National School Breakfast Program either
remained the same or increased from last years payments due to a 2.94
percent increase in the national average payment rates for schools and
residential child care institutions for the period July 1, 2019 through
June 30, 2020 in the Consumer Price Index for
[[Page 38592]]
All Urban Consumers in the Food Away from Home series during the 12-
month period May 2018 to May 2019 (from a level of 275.307 in May 2018,
as previously published in the Federal Register to 283.394 in May
2019).
These changes are reflected below.
For schools ``not in severe need'' the payments are: Contiguous
States: Free breakfast--1 dollar and 84 cents (5 cents increase from
the SY 2018-2019 level), reduced price breakfast--1 dollar and 54 cents
(5 cents increase), paid breakfast--31 cents (no change); Alaska: Free
breakfast--2 dollars and 95 cents (8 cents increase), reduced price
breakfast--2 dollars and 65 cents (8 cents increase), paid breakfast--
47 cents (1 cent increase); Hawaii and Puerto Rico: Free breakfast--2
dollars and 15 cents (6 cents increase), reduced price breakfast--1
dollar and 85 cents (6 cents increase), paid breakfast--36 cents (1
cent increase).
For schools in ``severe need'' the payments are: Contiguous States:
Free breakfast--2 dollars and 20 cents (6 cents increase from the SY
2018-2019 level), reduced price breakfast--1 dollar and 90 cents (6
cents increase), paid breakfast--31 cents (no change); Alaska: Free
breakfast--3 dollars and 53 cents (10 cents increase), reduced price
breakfast--3 dollars and 23 cents (10 cents increase), paid breakfast--
47 cents (1 cent increase); Hawaii and Puerto Rico: Free breakfast--2
dollars and 57 cents (7 cents increase), reduced price breakfast--2
dollars and 27 cents (7 cents increase), paid breakfast--36 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.
BILLING CODE 3410-30-P
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[GRAPHIC] [TIFF OMITTED] TN07AU19.002
BILLING CODE 3410-30-C
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 38594]]
no new recordkeeping or reporting requirements have been included that
are subject to approval from the Office of Management and Budget.
This rule has been determined to be not significant by the Office
of Management and Budget in conformance with Executive Order 12866.
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the
Office of Information and Regulatory Affairs designated this rule as
not a major rule, as defined by 5 U.S.C. 804(2).
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. (See 2
CFR 415.3-415.6).
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: August 1, 2019.
Brandon Lipps,
Administrator, Food and Nutrition Service.
[FR Doc. 2019-16903 Filed 8-6-19; 8:45 am]
BILLING CODE 3410-30-P