### §1757. State disbursement to schools

#### (a) Disbursement by State educational agency

Funds paid to any State during any fiscal year pursuant to section 1753 of this title shall be disbursed by the State educational agency, in accordance with such agreements approved by the Secretary, as may be entered into by such State agency and the schools in the State, to those schools in the State which the State educational agency, taking into account need and attendance, determines are eligible to participate in the school lunch program.

#### (b) Permanent, amendable agreements

The agreements described in subsection (a) shall be permanent agreements that may be amended as necessary.

#### (c) Suspension or termination of agreements

The State educational agency may suspend or terminate any such agreement in accordance with regulations prescribed by the Secretary.

#### (d) Use of funds

Use of funds paid to States may include, in addition to the purchase price of agricultural commodities and other foods, the cost of processing, distributing, transporting, storing or handling thereof.

#### (e) Limitation

In no event shall such disbursement for food to any school for any fiscal year exceed an amount determined by multiplying the number of lunches served in the school in the school lunch program under this chapter during such year by the maximum per meal reimbursement rate for the State, for the type of lunch served, as prescribed by the Secretary.

#### (f) Increase in meal reimbursement

In any fiscal year in which the national average payment per lunch determined under section 1753 of this title is increased above the amount prescribed in the previous fiscal year, the maximum per meal reimbursement rate, for the type of lunch served, shall be increased by a like amount.

#### (g) In advance or as reimbursement

Lunch assistance disbursements to schools under this section and under section 1759a of this title may be made in advance or by way of reimbursement in accordance with procedures prescribed by the Secretary.

(June 4, 1946, ch. 281, §8, 60 Stat. 232; Pub. L. 92–433, §8, Sept. 26, 1972, 86 Stat. 729; Pub. L. 93–150, §2(b), Nov. 7, 1973, 87 Stat. 560; Pub. L. 95–166, §3, Nov. 10, 1977, 91 Stat. 1332; Pub. L. 95–627, §10(d)(1), Nov. 10, 1978, 92 Stat. 3624; Pub. L. 97–35, title VIII, §819(d), Aug. 13, 1981, 95 Stat. 533; Pub. L. 101–147, title II, §201, title III, §§304, 312(1), Nov. 10, 1989, 103 Stat. 908, 914, 916; Pub. L. 104–193, title VII, §701(a), Aug. 22, 1996, 110 Stat. 2287.)

#### **Editorial Notes**

#### Amendments

1996—Pub. L. 104–193 designated first and second sentences as subsecs. (a) and (b), respectively, substituted "in subsection (a)" for "in the preceding sentence" in subsec. (b), designated third sentence as subsec. (c) and substituted "The State educational agency may" for "Nothing in the preceding sentence shall be construed to limit the ability of the State educational agency to", struck out fourth and fifth sentences, designated sixth sentence as subsec. (d) and substituted "Use of funds paid to States" for "Such food costs", and designated seventh to ninth sentences as subsecs. (e) to (g), respectively. Prior to amendment, fourth and fifth sentences read as follows: "Such disbursement to any school shall be made only for the purpose of assisting it to obtain agricultural commodities and other foods for consumption by children in the school lunch program. The terms 'child' and 'children' as used in this chapter shall be deemed to include individuals regardless of age who are determined by the State educational agency, in accordance with regulations prescribed by the Secretary, to have 1 or more mental or physical handicaps and who are attending any child care institution as defined in section 1766 of this title or any nonresidential public or nonprofit private school of high school grade or under for the purpose of participating in a school program established for individuals with mental or physical handicaps: Provided, That no institution that is not otherwise eligible to participate in the program under section 1766 of this title shall be deemed so eligible because of this sentence."

1989—Pub. L. 101–147, §312(1), substituted "school lunch" for "school-lunch" in three places.

Pub. L. 101–147, §304, which directed the amendment of subsec. (d) by substituting "individuals" for "persons", "to have 1 or more mental or physical handicaps" for "to be mentally or physically handicapped", and "for individuals with mental or physical handicaps" for "for mentally or physically handicapped", was executed by making the substitutions in the undesignated text before the proviso as the probable intent of Congress because the section contains no subsection designations.

Pub. L. 101–147, §201, inserted after first sentence "The agreements described in the preceding sentence shall be permanent agreements that may be amended as necessary. Nothing in the preceding sentence shall be construed to limit the ability of the State educational agency to suspend or terminate any such agreement in accordance with regulations prescribed by the Secretary."

1981—Pub. L. 97–35 substituted references to per meal reimbursement rate, for references to Federal food-cost contribution rate wherever appearing, and struck out reference to section 1754 of this title, and food service equipment assistance.

1978—Pub. L. 95–627 inserted provision relating to definition of "child" and "children".

1977—Pub. L. 95–166 substituted "food service equipment assistance" for "nonfood assistance".

1973—Pub. L. 93–150 provided that in any fiscal year in which the national average payment per lunch determined under section 1753 of this title is increased above the amount prescribed in the previous fiscal year, the maximum Federal food-cost contribution rate, for the type of lunch served, shall be increased by a like amount.

1972—Pub. L. 92–433 substituted provision that disbursement to schools be made for the purpose of assisting them to finance the costs of agricultural commodities, for provision that such disbursement be made for the purpose of reimbursing them for such costs and inserted provision that lunch assistance disbursements to schools under this section and section 1759a of this title may be made in advance or by way of reimbursement according to procedure prescribed by the Secretary.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 820(a)(4) of Pub. L. 97–35, set out as a note under section 1753 of this title.

#### Effective Date of 1978 Amendment

Amendment by Pub. L. 95–627 effective Oct. 1, 1978, see section 14 of Pub. L. 95–627, set out as a note under section 1755 of this title.