Notice2023-14313
National School Lunch, Special Milk, and School Breakfast Programs, National Average Payments/Maximum Reimbursement Rates
Primary source
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Published
July 7, 2023
Effective
July 1, 2023
Issuing agencies
Agriculture DepartmentFood and Nutrition Service
Abstract
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, Guam, Hawaii, Puerto Rico, and Virgin Islands. The payments and rates are prescribed on an annual basis each July.
Full Text
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<title>Federal Register, Volume 88 Issue 129 (Friday, July 7, 2023)</title>
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[Federal Register Volume 88, Number 129 (Friday, July 7, 2023)]
[Notices]
[Pages 43266-43270]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14313]
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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, Guam, Hawaii, Puerto Rico, and Virgin Islands. The payments and
[[Page 43267]]
rates are prescribed on an annual basis each July.
DATES: These rates are effective from July 1, 2023 through June 30,
2024.
FOR FURTHER INFORMATION CONTACT: Penny Burke, Branch Chief, Program
Monitoring and Operational Support Division, Child Nutrition Programs,
FNS USDA, 1320 Braddock Place, Suite 401, Alexandria, VA 22314, 303-
844-0357.
SUPPLEMENTARY INFORMATION:
Special Note
This Notice reflects the June 30, 2023 expiration of the temporary
reimbursement rates provided under the Keep Kids Fed Act of 2022 (Pub.
L. 117-158), which included an additional 40 cents per school lunch and
15 cents per school breakfast meal reimbursement. The reimbursement
rates in this Notice reflect an adjustment to the base rate from School
Year (SY) 2022-2023.\1\
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\1\ <a href="https://www.govinfo.gov/content/pkg/FR-2022-07-26/pdf/2022-15892.pdf">https://www.govinfo.gov/content/pkg/FR-2022-07-26/pdf/2022-15892.pdf</a>--Reference Page--44335.
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While the 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 temporarily increasing the
reimbursement rates for the child nutrition programs in Guam, Hawaii,
Puerto Rico, and the Virgin Islands to 30 percent above CONUS rates
beginning July 1, 2023. This adjusted rate will be applied beginning on
July 1, 2023, until further notice.
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 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.
Performance-Based Reimbursement--In addition to the funding
mentioned above, school food authorities 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 eight cents per lunch
available beginning July 1, 2023, 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.
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, 2023 through June 30, 2024. Due to a higher cost of
living, the average payments and maximum reimbursements for Alaska,
Guam, Hawaii, Puerto Rico, and Virgin Islands are higher than those for
all other States. The District of Columbia uses 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, 2023 through June 30, 2024, 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
26.25 cents. This change is based on the 3.46 percent decrease in the
Producer Price Index for Fluid Milk Products from May 2022 to May 2023.
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
[[Page 43268]]
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 saw an 8.27 percent increase in the national
average payment rates for schools and residential child care
institutions for the period July 1, 2023 through June 30, 2024 in the
Consumer Price Index for All Urban Consumers for the Food Away From
Home series during the 12-month period May 2022 to May 2023 (from a
level of 325.952 in May 2022, as previously published in the Federal
Register to 352.892 in May 2023).
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) 2021-2022,\2\ the payments for meals served
are: Contiguous States--paid rate--40 cents (3 cents increase from the
2022-2023 base rate \3\), free and reduced price rate--40 cents (3
cents increase), maximum rate--48 cents (3 cents increase); Alaska--
paid rate--66 cents (5 cents increase), free and reduced price rate--66
cents (5 cents increase), maximum rate--76 cents (5 cents increase);
Guam, Hawaii, Puerto Rico, and Virgin Islands--paid rate--53 cents (9
cents increase), free and reduced price rate--53 cents (9 cents
increase), maximum rate--61 cents (9 cents increase).
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\2\ Clarification on determining 60 percent free and reduced can
be found in policy memo SP 02-2023 Determining Eligibility for
Severe Need Reimbursement for the School Breakfast Program (SBP) and
the Two Cent Differential Reimbursement for the National School
Lunch Program (NSLP) in School Year (SY) 2023-24. <a href="https://www.fns.usda.gov/cn/sp-02-2023">https://www.fns.usda.gov/cn/sp-02-2023</a>.
\3\ Rates reflect adjustment to the SY 2022-2023 base rate and
does not include the decrease from the expiration of the temporary
rates included in Keep Kids Fed Act of 2022 (Pub. L. 117-158).
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In school food authorities that served 60 percent or more free and
reduced price lunches in School Year 2021-2022, payments are:
Contiguous States--paid rate--42 cents (3 cents increase), free and
reduced price rate--42 cents (3 cents increase), maximum rate--48 cents
(3 cents increase); Alaska--paid rate--68 cents (5 cents increase),
free and reduced price rate--68 cents (5 cents increase), maximum
rate--76 cents (5 cents increase); Guam, Hawaii, Puerto Rico and Virgin
Islands--paid rate--55 cents (9 cents increase), free and reduced price
rate--55 cents (9 cents increase), maximum rate--61 cents (9 cents
increase).
School food authorities certified to receive the performance-based
cash assistance will receive an additional 8 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 85 cents (29 cents increase from the SY 2022-
2023 base rate), reduced price lunch--3 dollars and 45 cents (29 cents
increase); Alaska--free lunch--6 dollars and 24 cents (48 cents
increase), reduced price lunch--5 dollars and 84 cents (48 cents
increase); Guam, Hawaii, Puerto Rico and Virgin Islands--free lunch--5
dollars and 1 cent (85 cents increase), reduced price lunch--4 dollars
and 61 cents (85 cents increase).
Afterschool Snacks in Afterschool Care Programs--The payments are:
Contiguous States--free snack--1 dollar and 17 cents (9 cents increase
from the SY 2022-2023 base rate), reduced price snack--58 cents (4
cents increase), paid snack--10 cents (1 cent increase); Alaska--free
snack-1 dollar and 89 cents (14 cent increase), reduced price snack--94
cents (7 cents increase), paid snack--17 cents (1 cent increase); Guam,
Hawaii, Puerto Rico and Virgin Islands--free snack--1 dollar and 52
cents (26 cents increase), reduced price snack--76 cents (13 cents
increase), paid snack--13 cents (2 cents increase)
School Breakfast Program Payments
Overall, payments for the National School Breakfast Program saw an
8.27 percent increase in the national average payment rates for schools
and residential child care institutions for the period July 1, 2023
through June 30, 2024 in the Consumer Price Index for All Urban
Consumers in the Food Away from Home series during the 12-month period
May 2022 to May 2023 (from a level of 325.952 in May 2022, as
previously published in the Federal Register to 352.892 in May 2023).
These changes are reflected below.
For schools ``not in severe need'' the payments are: Contiguous
States--free breakfast--2 dollars and 28 cents (17 cents increase from
the SY 2022-2023 base rate), reduced price breakfast--1 dollar and 98
cents (17 cents increase), paid breakfast--38 cents (3 cents increase);
Alaska free breakfast--3 dollars and 66 cents (28 cents increase),
reduced price breakfast--3 dollars and 36 cents (28 cents increase),
paid breakfast--58 cents (4 cents increase); Guam, Hawaii, Puerto Rico
and Virgin Islands--free breakfast--2 dollars and 95 cents (49 cents
increase), reduced price breakfast--2 dollars and 65 cents (49 cents
increase), paid breakfast--47 cents (7 cents increase).
For schools in ``severe need'' the payments are: Contiguous States
free breakfast--2 dollars and 73 cents (21 cents increase from the SY
2022-2023 base rate), reduced price breakfast--2 dollars and 43 cents
(21 cents increase), paid breakfast--38 cents (3 cents increase);
Alaska--free breakfast--4 dollars and 39 cents (33 cents increase),
reduced price breakfast--4 dollars and 9 cents (33 cents increase),
paid breakfast--58 cents (4 cents increase); Guam, Hawaii, Puerto Rico
and Virgin Islands--free breakfast--3 dollars and 53 cents (59 cents
increase), reduced price breakfast--3 dollars and 23 cents (59 cents
increase), paid breakfast--47 cents (7 cents 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 are those specified for the
contiguous States.
BILLING CODE 3410-30-P
[[Page 43269]]
[GRAPHIC] [TIFF OMITTED] TN07JY23.001
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.
[[Page 43270]]
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.
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)).
Cynthia Long,
Administrator, Food and Nutrition Service.
[FR Doc. 2023-14313 Filed 7-6-23; 8:45 am]
BILLING CODE 3410-30-C
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</html>Indexed from Federal Register on July 7, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.