SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Access to Healthy Food for Young 
Children Act''.

SEC. 2. CHILD AND ADULT FOOD CARE PROGRAM.

    (a) In General.--Section 17 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1), by striking ``the same as'' 
                and inserting ``10 cents more than'';
                    (B) in paragraph (2), by striking ``the same as'' 
                and inserting ``10 cents more than'';
                    (C) in paragraph (3)--
                            (i) by striking ``30 cents'' and inserting 
                        ``94 cents''; and
                            (ii) by striking ``2.75 cents'' and 
                        inserting ``17 cents''; and
                    (D) by adding at the end the following:
            ``(7) Streamlining program paperwork in high poverty 
        areas.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible child care center.--The term 
                        `eligible child care center' means a child care 
                        center with at least 50 percent or more of 
                        children in care qualifying for free or reduced 
                        price meals or categorical eligibility.
                            ``(ii) Nonpricing program.--The term 
                        `nonpricing program' means a program under 
                        which an eligible child center serves to all 
                        children in care at the center meals and 
                        supplements under this section without charge.
                    ``(B) Election of special payments.--
                            ``(i) In general.--An eligible child care 
                        center may elect to receive special payments 
                        under this paragraph in lieu of payments 
                        otherwise made available under this section 
                        based on applications for free and reduced 
                        price meals and supplements if--
                                    ``(I) subject to clause (ii), 
                                during the 4 consecutive fiscal years 
                                beginning after the date of the 
                                election, the eligible child care 
                                center elects to operate as a 
                                nonpricing program;
                                    ``(II) the eligible child care 
                                center pays, from sources other than 
                                funds made available to carry out the 
                                program under this section, the costs 
                                of serving the meals and supplements 
                                that are in excess of the value of 
                                assistance received under this Act; and
                                    ``(III) during the fiscal year in 
                                which the election under this clause is 
                                made, the eligible child care center 
                                had a percentage of enrolled children 
                                that meets or exceeds the threshold 
                                described in subparagraph (A)(i).
                            ``(ii) Election to stop receiving 
                        payments.--An eligible child care center may 
                        elect to stop receiving special payments under 
                        this paragraph for the following fiscal year by 
                        notifying the State agency not later than June 
                        30 of the current fiscal year of the intention 
                        to stop receiving the special payments.
                    ``(C) First year of option.--
                            ``(i) In general.--For each month of the 
                        first fiscal year of the 4-year period during 
                        which an eligible child care center elects to 
                        receive special payments under this paragraph, 
                        special payments at the rate for free meals 
                        shall be made under this subparagraph for all 
                        reimbursable meals served at the eligible child 
                        care center.
                            ``(ii) Calculation.--Special payments under 
                        clause (i) shall be calculated using a blended 
                        per-meal rate based on a formula that 
                        multiplies national average payment rates by 
                        claiming percentages for free, reduced price, 
                        and paid meals.
                    ``(D) Second, third, and fourth years of option.--
                            ``(i) In general.--For each month of the 
                        second, third, and fourth fiscal years of the 
                        4-year period during which an eligible child 
                        care center elects to receive special payments 
                        under this paragraph, special payments at the 
                        blended rate established in the first year of 
                        the option under subparagraph (C) shall be made 
                        under this subparagraph for all reimbursable 
                        meals served at the eligible child care center.
                            ``(ii) Calculation.--Special payments under 
                        clause (i) shall be equal to the product 
                        obtained by multiplying--
                                    ``(I) the applicable blended per-
                                meal rate; by
                                    ``(II) the number of meals and 
                                snacks served.'';
            (2) in subsection (f)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2)(A) Subject to 
                        subparagraph (B) of this paragraph'' and 
                        inserting the following:
            ``(2) Disbursements.--
                    ``(A) In general.--Subject to subparagraph (B)'';
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Limitation.--No reimbursement may be made to 
                any institution under this paragraph, or to family or 
                group day care home sponsoring organizations under 
                paragraph (3), for more than--
                            ``(i) 2 meals and 1 supplement per day per 
                        child;
                            ``(ii) 1 meal and 2 supplements per day per 
                        child; or
                            ``(iii) 3 meals and 1 supplement per day 
                        per child, for each child that is maintained in 
                        a child care setting for 8 or more hours per 
                        day.''; and
                            (iii) in subparagraph (C), by adding at the 
                        end the following:
                            ``(iii) Carryover funds.--The Secretary 
                        shall develop procedures under which not more 
                        than 10 percent of the amount reserved by 
                        sponsoring organizations under clause (i) for 
                        administrative expenses for a fiscal year may 
                        remain available for obligation or expenditure 
                        in the succeeding fiscal year.''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in clause (ii)--
                                            (aa) in subclause (I), by 
                                        striking ``50 percent'' each 
                                        place it appears in items (aa) 
                                        and (bb) and inserting ``40 
                                        percent''; and
                                            (bb) in subclause (III)--

                                                    (AA) by striking 
                                                ``Except as provided in 
                                                subclause (IV),'' and 
                                                inserting the 
                                                following:

                                            ``(aa) In general.--Except 
                                        as provided in item (bb) and 
                                        subclause (IV),''; and

                                                    (BB) by adding at 
                                                the end the following:

                                            ``(bb) Additional 
                                        reimbursement.--Effective July 
                                        1, 2016, the reimbursement 
                                        factor for each meal and 
                                        supplement under this 
                                        subparagraph shall be increased 
                                        by 10 cents per child 
                                        served.''; and
                                    (II) in clause (iii)(I)(aa), by 
                                striking ``the reimbursement factors 
                                shall be'' and all that follows through 
                                ``supplements'' and inserting ``the 
                                reimbursement factors shall be $1.05 
                                for meals other than breakfast, 37 
                                cents for breakfasts, and 23 cents for 
                                supplements''; and
                            (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by redesignating 
                                        subclauses (I) and (II) as 
                                        items (aa) and (bb), 
                                        respectively, and indenting 
                                        appropriately;
                                            (bb) by striking ``(i) In 
                                        general.--In addition'' and 
                                        inserting the following:
                            ``(i) Reimbursement amount.--
                                    ``(I) In general.--Subject to 
                                subclause (II), in addition''; and
                                            (cc) by adding at the end 
                                        the following:
                                    ``(II) Additional reimbursement.--
                                Effective July 1, 2016, the 
                                reimbursement factor for administrative 
                                expenses as calculated under subclause 
                                (I) shall be increased by $5.00 per 
                                month for each family or group day care 
                                home of the sponsoring organization.''; 
                                and
                                    (II) in clause (ii), by inserting 
                                before the period at the end ``, except 
                                that no negative adjustments shall be 
                                made''; and
            (3) in subsection (n)--
                    (A) by striking ``(n) There are hereby'' and 
                inserting the following:
    ``(n) Funding.--
            ``(1) In general.--There are''; and
                    (B) by adding at the end the following:
            ``(2) Implementation funding.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary shall make funds available to State 
                agencies administering the child and adult food care 
                program for State and sponsoring organization 
                activities relating to training, technical assistance, 
                and oversight activities for the implementation of the 
                revised child and adult care food program meal pattern 
                pursuant to subsection (g)(2)(B) and activities to 
                increase participation in the child and adult care food 
                program.
                    ``(B) Provision of funds.--The Secretary shall 
                provide funds described in subparagraph (A) to State 
                agencies administering the program under this section 
                in a manner proportional to the administrative expense 
                allocation of each State agency during the preceding 
                fiscal year.
                    ``(C) Distribution.--Subject to subparagraphs (A) 
                and (B), each State agency administering the program 
                under this section shall distribute not less than \1/2\ 
                of the funds received under this paragraph to 
                sponsoring organizations in the State.
                    ``(D) Funding.--
                            ``(i) In general.--For each of the fiscal 
                        year during which the implementing regulations 
                        for the revised child and adult care food 
                        program meal pattern pursuant to subsection 
                        (g)(2)(B) become final regulations, and the 
                        subsequent fiscal year, the Secretary shall use 
                        $50,000,000 of funds made available under 
                        section 3 to make payments to States as 
                        described in subparagraph (A).
                            ``(ii) Reservation.--In providing funds to 
                        States under clause (i), the Secretary may 
                        reserve not more than $3,000,000 per fiscal 
                        year to support Federal administrative 
                        activities to carry out this paragraph.
            ``(3) Revised meal pattern funding.--
                    ``(A) In general.--On October 1, 2015, and October 
                1, 2016, out of any funds in the Treasury not otherwise 
                appropriated, the Secretary of the Treasury shall 
                transfer to the Secretary $10,000,000, to remain 
                available until expended--
                            ``(i) to provide training, technical 
                        assistance, and oversight for the 
                        implementation of the revised child and adult 
                        care food program meal pattern pursuant to 
                        subsection (g)(2)(B);
                            ``(ii) to promote health and wellness 
                        through activities conducted pursuant to 
                        subsection (u); and
                            ``(iii) to increase participation in the 
                        program under this section.''.
    (b) Study on Nutrition and Wellness Quality of Child Care 
Settings.--Section 223(c)(1) of the Healthy, Hunger-Free Kids Act of 
2010 (Public Law 111-296; 124 Stat. 3229) is amended by inserting ``and 
October 1, 2016,'' after ``2010,''.
    (c) Reducing Paperwork and Improving Program Administration.--
            (1) Definition of program.--In this subsection, the term 
        ``program'' means the child and adult care food program 
        established under section 17 of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1766).
            (2) Establishment.--The Secretary, in conjunction with 
        States and participating institutions, shall continue to 
        examine the feasibility of reducing unnecessary or duplicative 
        paperwork resulting from regulations and recordkeeping 
        requirements for State agencies, institutions, family and group 
        day care homes, and sponsored centers participating in the 
        program.
            (3) Duties.--At a minimum, the examination shall include--
                    (A) review and evaluation of the recommendations, 
                guidance, and regulatory priorities developed and 
                issued to comply with section 336 of the Healthy, 
                Hunger-Free Kids Act of 2010 (42 U.S.C. 1766 note; 
                Public Law 111-296);
                    (B) examination of additional paperwork and 
                administrative requirements that have been established 
                since January 1, 2016; and
                    (C) examination of the additional paperwork and 
                administrative burdens that could be reduced by the 
                effective use of technology.
            (4) Additional duties.--The Secretary, in conjunction with 
        States and institutions participating in the program, may also 
        examine any aspect of administration of the program.
            (5) Report.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall submit to Congress a 
        report that describes the actions that have been taken to carry 
        out this section, including--
                    (A) actions taken to address administrative and 
                paperwork burdens identified;
                    (B) additional steps that the Secretary is taking 
                or plans to take to address any administrative and 
                paperwork burdens identified under paragraph (3), 
                including--
                            (i) new or updated regulations, policy, 
                        guidance, or technical assistance; and
                            (ii) a timeframe for the completion of 
                        those steps; and
                    (C) recommendations to Congress for modifications 
                to existing statutory authorities needed to address 
                identified administrative and paperwork burdens.
Access to Healthy Food for Young Children Act This bill amends the Richard B. Russell National School Lunch Act to modify the food program for child and adult care institutions and family or group day care homes. The bill increases the payment rate for program meals relative to the national average payment rate for meals served in schools. However, an eligible child care center operating a free-of-charge program in a high-poverty area may elect to instead receive special payments calculated using a blended per-meal rate. Additionally, the bill: (1) increases the reimbursement factor for meals and supplements served by a family or group day care home; (2) raises the per-child limit on the number of meals and supplements for which such a home may receive reimbursement; and (3) reduces the percentage of area children who must come from low-income households in order for a day care home in that area to be excused from specified documentation requirements. With respect to administrative expenses, the bill increases the reimbursement factor for each day care home and prohibits negative adjustments to reimbursement levels. The Department of Agriculture (USDA) must develop procedures under which up a specified percentage of funds reserved by the sponsoring organization of a day care home for administrative expenses may remain available in the succeeding fiscal year. USDA must also: (1) provide state agencies with funding to implement the revised food program, as specified by the bill; and (2) complete a study on reducing paperwork and improving program administration. 
Access to Healthy Food for Young Children Act