[Federal Register Volume 89, Number 13 (Friday, January 19, 2024)]
[Notices]
[Pages 3631-3633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01009]


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 Notices
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 89, No. 13 / Friday, January 19, 2024 / 
Notices  

[[Page 3631]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Summer Food Service Program; 2024 Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice informs the public of the annual adjustments to 
the reimbursement rates for meals served in the Summer Food Service 
Program. These adjustments address changes in the Consumer Price Index, 
as required under the Richard B. Russell National School Lunch Act. The 
2024 reimbursement rates are presented as a combined set of rates to 
highlight simplified cost accounting procedures. The 2024 rates are 
also presented individually, as separate operating and administrative 
rates of reimbursement, to show the effect of the Consumer Price Index 
adjustment on each rate. On average, the 2024 rates adjustment 
represents a 5.3 percent increase in the rates from last year.

DATES: This adjustment is applicable January 1, 2024.

FOR FURTHER INFORMATION CONTACT: Penny Burke, Program Monitoring and 
Operational Support Division, Child Nutrition Programs, Food and 
Nutrition Service, United States Department of Agriculture, 1320 
Braddock Place, Suite 401, Alexandria, Virginia 22314, (303) 844-0357.

SUPPLEMENTARY INFORMATION: The Summer Food Service Program (SFSP) is 
listed in the Catalog of Federal Domestic Assistance under No. 10.559 
and is subject to the provisions of Executive Order 12372, which 
requires intergovernmental consultation with State and local officials. 
(See 2 CFR, 415 and final rule-related notice published at 48 FR 29114, 
June 24, 1983.)
    In accordance with the Paperwork Reduction Act of 1995, 44 U.S.C. 
3501-3520, no new recordkeeping or reporting requirements have been 
included that are subject to approval from the Office of Management and 
Budget.
    This notice 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. Additionally, this notice has been determined to be exempt from 
formal review by the Office of Management and Budget under Executive 
Order 12866.
    Special Note: While the United States Department of Agriculture 
(USDA) Food and Nutrition Service (FNS) does not have the authority to 
adjust reimbursement rates above inflation in the contiguous United 
States (CONUS), pursuant to section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760), USDA may make adjustments 
to reimbursement rates in the outlying areas to reflect differences 
between the cost of providing meals and supplements in those areas and 
the costs of providing meals and supplements in all other States. 
Therefore, FNS is increasing the reimbursement rates for the child 
nutrition programs in Guam, Hawaii, Puerto Rico, and the Virgin Islands 
to 30 percent above CONUS rates. This adjustment to the Summer Food 
Service Program rates will be applied beginning on January 1, 2024, 
until further notice.

Definitions

    The terms used in this notice have the meaning ascribed to them 
under 7 CFR part 225 of the SFSP regulations.

Background

    This notice informs the public of the annual adjustments to the 
reimbursement rates for meals served in SFSP. In accordance with 
sections 12(f) and 13, 42 U.S.C. 1760(f) and 1761 of the Richard B. 
Russell National School Lunch Act (NSLA) and SFSP regulations under 7 
CFR part 225, the USDA announces the adjustments in SFSP payments for 
meals served to participating children during calendar year 2024.
    The 2024 reimbursement rates are presented as a combined set of 
rates to highlight simplified cost accounting procedures. Reimbursement 
is based solely on a ``meals times rates'' calculation, without 
comparison to actual or budgeted costs.
    Sponsors receive reimbursement that is determined by the number of 
reimbursable meals served, multiplied by the combined rates for food 
service operations and administration. However, the combined rate is 
based on separate operating and administrative rates of reimbursement, 
each of which is adjusted differently for inflation.

Calculation of Rates

    The combined rates are constructed from individually authorized 
operating and administrative reimbursements. Simplified procedures 
provide flexibility, enabling sponsors to manage their reimbursements 
to pay for any allowable cost, regardless of the cost category. 
Sponsors remain responsible, however, for ensuring proper 
administration of the Program, while providing the best possible 
nutrition benefit to children.
    The operating and administrative rates are calculated separately. 
However, the calculations of adjustments for both cost categories are 
based on the same set of 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 United States Department of Labor. 
They represent a 5.3 percent increase in this series for the 12-month 
period, from November 2022 through November 2023 (from 342.266 in 
November 2022 to 360.383 in November 2023).

Table of 2024 Reimbursement Rates

    Presentation of the 2024 maximum per meal rates for meals served to 
children in SFSP combines the results from the calculations of 
operational and administrative payments, which are further explained in 
this notice. The total amount of payments to State agencies for 
disbursement to SFSP sponsors will be based upon these adjusted 
combined rates and the number of meals of each type served. These 
adjusted rates will be in effect from January 1, 2024, through December 
31, 2024.
    These changes are reflected below.
    All States except Alaska and Hawaii--Rural or Self-prep Sites--
Breakfast--2 dollars and 97.75 cents (15.25 cent increase from the 2023 
reimbursement rate), Lunch or Supper--5 dollars and 21.25 cents (26.25 
cent increase), Snack--1 dollar and 23.50 cents (6.75 cent increase); 
All Other

[[Page 3632]]

Types of Sites--Breakfast--2 dollars and 92.25 cents (15 cent 
increase), Lunch or Supper--5 dollars and 13 cents (26 cent increase), 
Snack--1 dollar and 20.50 cents (6.50 cent increase).
    Alaska--Rural or Self-prep Sites--Breakfast--4 dollars and 82.50 
cents (24.25 cent increase), Lunch or Supper--8 dollars and 45 cents 
(42 cent increase), Snack--1 dollar and 99.75 cents (10 cent increase); 
All Other Types of Sites--Breakfast--4 dollars and 73.50 cents (23.75 
cent increase), Lunch or Supper--8 dollars and 31.25 cents (41.25 cent 
increase), Snack--1 dollar and 95.25 cents (10 cent increase).
    Guam, Hawaii, Puerto Rico, and Virgin Islands \1\--Rural or Self-
prep Sites--Breakfast--3 dollars and 87 cents (56.25 cent increase), 
Lunch or Supper--6 dollars and 78.25 cents (98.50 cent increase), 
Snack--1 dollar and 60.50 cents (23.50 cent increase); All Other Types 
of Sites--Breakfast--3 dollars and 79.50 cents (55 cent increase), 
Lunch or Supper--6 dollars and 67.25 cent (96.75 cent increase), 
Snack--1 dollar and 56.75 cents (23 cent increase).
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    \1\ Starting January 1, 2024, Guam, Puerto Rico, and Virgin 
Islands receive the same reimbursement rates as Hawaii for Summer 
Food Service Program.

                                                           2024 Reimbursement Rates (Combined)
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Per meal rates in whole or fractions of U.S. dollars      All states      All states        Alaska          Alaska       Guam, Hawaii,   Guam, Hawaii,
---------------------------------------------------------  except Alaska   except Alaska --------------------------------  Puerto Rico,    Puerto Rico,
                                                            and Hawaii      and Hawaii                                      and Virgin      and Virgin
                                                         --------------------------------                                     Islands         Islands
                       Site types                                                         Rural or self-     All other   -------------------------------
                                                          Rural or self-     All other      prep sites    types of sites  Rural or self-     All other
                                                            prep sites    types of sites                                    prep sites    types of sites
--------------------------------------------------------------------------------------------------------------------------------------------------------
Breakfast...............................................          2.9775          2.9225          4.8250          4.7350          3.8700          3.7950
Lunch or Supper.........................................          5.2125          5.1300          8.4500          8.3125          6.7825          6.6725
Snack...................................................          1.2350          1.2050          1.9975          1.9525          1.6050          1.5675
--------------------------------------------------------------------------------------------------------------------------------------------------------

Operating Rates

    The portion of the SFSP rates for operating costs is based on 
payment amounts set in section 13(b)(1) of the NSLA, 42 U.S.C. 
1761(b)(1). They are rounded down to the nearest whole cent, as 
required by section 11(a)(3)(B)(iii) of the NSLA, 42 U.S.C. 
1759a(a)(3)(B)(iii).
    These changes are reflected below.
    All States except Alaska and Hawaii--Breakfast--2 dollars and 71 
cents (14 cents increase from the 2023 reimbursement rate), Lunch or 
Supper--4 dollars and 72 cents (24 cents increase), Snack--1 dollar and 
10 cents (6 cents increase).
    Alaska--Breakfast--4 dollars and 39 cents (22 cents increase), 
Lunch or Supper--7 dollars and 65 cents (38 cents increase), Snack--1 
dollar and 78 cents (9 cents increase).
    Guam, Hawaii, Puerto Rico, and Virgin Islands--Breakfast--3 dollars 
and 52 cents (51 cents increase), Lunch or Supper--6 dollars and 14 
cents (89 cents increase), Snack--1 dollar and 43 cents (21 cents 
increase).

                                 Operating Component of 2024 Reimbursement Rates
----------------------------------------------------------------------------------------------------------------
                                                                                                  Guam, Hawaii,
 Operating rates in U.S. dollars, rounded down to the nearest     All states                       Puerto Rico,
                          whole cent                            except Alaska        Alaska         and Virgin
                                                                  and Hawaii                         Islands
----------------------------------------------------------------------------------------------------------------
Breakfast....................................................             2.71             4.39             3.52
Lunch or Supper..............................................             4.72             7.65             6.14
Snack........................................................             1.10             1.78             1.43
----------------------------------------------------------------------------------------------------------------

Administrative Rates

    The administrative cost component of the reimbursement is 
authorized under section 13(b)(3) of the NSLA, 42 U.S.C. 1761(b)(3). 
Rates are higher for sponsors of sites located in rural areas and for 
``self-prep'' sponsors that prepare their own meals at the SFSP site or 
at a central facility instead of purchasing them from vendors. The 
administrative portion of SFSP rates are adjusted, either up or down, 
to the nearest quarter-cent.
    These changes are reflected below.
    All States except Alaska and Hawaii--Rural or Self-prep Sites--
Breakfast--26.75 cents (1.25 cent increase from the 2023 reimbursement 
rate), Lunch or Supper--49.25 cents (2.25 cent increase), Snack--13.50 
cents (0.75 cent increase); All Other Types of Sites--Breakfast--21.25 
cents (1 cent increase), Lunch or Supper--41 cents (2 cent increase), 
Snack 10.50 cents (0.50 cent increase).
    Alaska--Rural or Self-prep Sites--Breakfast--43.50 cents (2.25 cent 
increase), Lunch or Supper--80 cents (4 cent increase), Snack--21.75 
cents (1 cent increase); All Other Types of Sites--Breakfast--34.50 
cents (1.75 cent increase), Lunch or Supper--66.25 cents (3.25 cent 
increase), Snack--17.25 cents (1 cent increase).
    Guam, Hawaii, Puerto Rico, and Virgin Islands--Rural or Self-prep 
Sites--Breakfast--35 cents (5.25 cent increase), Lunch or Supper--64.25 
cents (9.50 cents increase), Snack--17.50 cents (2.50 cent increase); 
All Other Types of Sites--Breakfast--27.50 cents (4 cent increase), 
Lunch or Supper--53.25 cents (7.75 cent increase), Snack--13.75 cents 
(2 cent increase).

[[Page 3633]]



                                                  Administrative Component of 2024 Reimbursement Rates
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 Administrative rates in U.S. dollars,  adjusted, up or     All states      All states        Alaska          Alaska       Guam, Hawaii,   Guam, Hawaii,
           down, to the nearest  quarter-cent              except Alaska   except Alaska --------------------------------  Puerto Rico,    Puerto Rico,
---------------------------------------------------------   and Hawaii      and Hawaii                                      and Virgin      and Virgin
                                                         --------------------------------                                     Islands         Islands
                                                                                          Rural or self-     All other   -------------------------------
                       Site types                         Rural or self-     All other      prep sites    types of sites  Rural or self-     All other
                                                            prep sites    types of sites                                    prep sites    types of sites
--------------------------------------------------------------------------------------------------------------------------------------------------------
Breakfast...............................................          0.2675          0.2125          0.4350          0.3450          0.3500          0.2750
Lunch or Supper.........................................          0.4925          0.4100          0.8000          0.6625          0.6425          0.5325
Snack...................................................          0.1350          0.1050          0.2175          0.1725          0.1750          0.1375
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Authority: Sections 9, 13, and 14, Richard B. Russell National 
School Lunch Act, 42 U.S.C. 1758, 1761, and 1762a, respectively.

Cynthia Long,
Administrator, Food and Nutrition Service.
[FR Doc. 2024-01009 Filed 1-18-24; 8:45 am]
BILLING CODE 3410-30-P