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[Senate Report 111-178]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 363
111th Congress                                                   Report
  2d Session                  SENATE                            111-178

=======================================================================
 
                 HEALTHY, HUNGER-FREE KIDS ACT OF 2010 

                                _______
                                

                  May 5, 2010.--Ordered to be printed

                                _______
                                

    Mrs. Lincoln, from the Committee on Agriculture, Nutrition, and 
                   Forestry, submitted the following

                              R E P O R T

                             together with

                   ADDITIONAL AND SUPPLEMENTAL VIEWS

                         [To accompany S. 3307]

    The Committee on Agriculture, Nutrition, and Forestry, 
having considered an original bill (S. 3307) to reauthorize 
child nutrition programs, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of the Legislation.......................................     1
Background and Need..............................................     2
Summary of Major Provisions......................................     5
Legislative History..............................................    10
Roll Call Vote...................................................    13
Estimated Costs and Unfunded Mandates............................    13
Congressionally-Directed Spending................................    30
Regulatory Impact................................................    30
Section-by-Section Summary.......................................    31
Additional Views.................................................    54
Changes in Existing Law..........................................    56

                       Purpose of the Legislation

    The purpose of this legislation is to extend and improve 
the nation's policies and programs pertaining to child 
nutrition. Congress most recently addressed these programs 
comprehensively in the Child Nutrition and WIC Reauthorization 
Act of 2004 (P.L. 108-134). The programs that must be 
reauthorized include: (1) The Special Supplemental Nutrition 
Program for Women, Infants, and Children (WIC); (2) the Summer 
Food Service Program; (3) the State Administrative Expense 
Program; and (4) the WIC Farmers' Market Nutrition Program. The 
National School Lunch Program (NSLP), School Breakfast Program, 
and the Child and Adult Care Food Program (CACFP) are permanent 
law. However, this legislation provides Congress with an 
opportunity to revise and improve those programs as well.
    In brief, the objectives of this bill are to expand access 
to the child nutrition programs to reduce childhood hunger, 
improve the nutritional quality of meals to promote health and 
address childhood obesity, and to simplify program management 
while strengthening program integrity. The Healthy, Hunger-Free 
Kids Act of 2010 reauthorizes and improves Federal programs 
contained in the Richard B. Russell National School Lunch Act 
and the Child Nutrition Act of 1966 through fiscal year 2015.

                          Background and Need

    The National School Lunch Program, established in 1946, is 
the largest of the child nutrition programs administered by the 
U.S. Department of Agriculture (USDA). The National School 
Lunch Program provides nutritionally balanced lunches to more 
than 31 million children each school day in over 101,000 public 
and private nonprofit schools and residential child care 
institutions. Participating schools receive cash reimbursement 
and a commodity entitlement for USDA purchased foods for each 
lunch served that meets the program's nutrition requirements. 
In fiscal year 2009, approximately 5.18 billion lunches were 
served through the National School Lunch Program at a total 
federal cost of $9 billion. Of the total lunches served, more 
than 62 percent were served to children free or at a reduced 
price. The program also reimburses schools for snacks served to 
children in after-school educational or enrichment programs.
    The School Breakfast Program, which was created as a pilot 
project in 1966 and permanently authorized in 1975, provides 
nutritionally balanced breakfasts to 11 million children in 
more than 88,000 public and private nonprofit schools and 
residential child care institutions. Participating schools 
receive cash reimbursement for each breakfast served that meets 
the program's nutritional requirements. In fiscal year 2009, 
the School Breakfast Program provided approximately 1.86 
billion breakfasts to 11 million children at a federal cost of 
$2.6 billion. Of the 1.86 billion breakfasts served, 82 percent 
were served free or at a reduced price to children from low-
income households.
    The Child and Adult Care Food Program, which was created as 
a pilot program in 1968 and permanently authorized in 1975, 
plays a critical role in providing nutrition to young children 
in preschool settings such as child care centers and home-based 
day care, as well as to children participating in afterschool 
programs. In fiscal year 2009, the Child and Adult Care Food 
Program provided approximately 1.9 billion meals to over 3.3 
million participating children and adults at a federal cost of 
$2.5 billion. Of those 1.9 billion meals served, 1.2 billion 
were served in child care centers, 600 million were served in 
child care homes, and 70 million were served in adult day care 
centers. Over 80 percent of the meals served through the Child 
and Adult Care Food Program are served free or at reduced 
price.
    The Summer Food Service Program provides nutritious meals 
and snacks to children in low-income areas during the summer 
months and long vacation periods for schools on year-round 
schedules when children do not have access to school lunch or 
breakfast. The Summer Food Service Program was created as a 
pilot program in 1968 and permanently authorized in 1975. 
Participating sponsors, including schools, local government 
agencies, residential and non-residential camps, and private 
nonprofit organizations, receive cash reimbursement for up to 
two meals per day served to children age 18 and under at 
eligible sites. In fiscal year 2009, the Summer Food Service 
Program provided 133.1 million meals to over 2.2 million 
children at more than 34,000 sites at a federal cost of $356 
million. Almost 60 percent of meals served were lunches, 
approximately 25 percent were breakfasts, and the remaining 15 
percent were snacks. All meals are served free through the 
Summer Food Service Program.
    The Special Supplemental Nutrition Program for Women, 
Infants and Children (WIC) provides nutritious supplemental 
foods, nutrition education, breastfeeding support, and health 
and social services referrals at no charge to low-income 
pregnant, postpartum, and breastfeeding women, and infants and 
children up to the age of five. WIC, which was created in 1972 
as a pilot program and has operated as a permanent program 
since 1974, is operated by all 50 States, 6 U.S. Territories, 
and 34 Indian tribal organizations through 2,200 local agencies 
and 9,000 clinic sites. WIC provides participants in most 
States with monthly checks or vouchers to buy specific foods 
designed to supplement their diet with particular nutrients. In 
fiscal year 2009, 9.1 million people participated in WIC at a 
total federal cost of $6.9 billion. All WIC participants are 
from households with incomes at or below 185 percent of 
poverty.
    Despite advances made in strengthening Federal child 
nutrition programs, significant challenges remain for the low-
income children and families who benefit from those programs as 
well as for the schools and community-based institutions that 
actually provide food to those children.
    First, and most importantly, the need for Federal food 
assistance has increased dramatically in recent years. 
According to USDA's November 2009 report, Household Food 
Security in the United States, 14.6 percent of U.S. households 
(17 million households representing 49.1 million people, 
including 16.7 million children) were food insecure at least 
some time during the year. Of that number, 6.7 million 
households were classified as having very low food security, 
meaning that the food intake of one or more household members 
was reduced and their eating patterns were disrupted at times 
during the year because the household lacked money and other 
resources for food.
    These statistics represent significant increases from prior 
years, and were the highest recorded since 1995, when the first 
national food security survey was conducted. For low-income 
households, households with children that were headed by single 
women or single men, and black and Hispanic households, rates 
of food insecurity were substantially higher than the national 
average. Most notably, 55 percent of all food-insecure 
households participated in one or more of the three largest 
Federal nutrition programs (Supplemental Nutrition Assistance 
Program, National School Lunch Program, and the WIC Program), 
underscoring the important role that these programs play in 
providing individuals with critical nutrition benefits.
    The recent increases in food insecurity are consistent with 
larger socioeconomic trends related to poverty and household 
income. In December 2007, the United States economy fell into a 
recession, as indicated by the National Bureau of Economic 
Research. During this time period, real median incomes fell, 
and both the percentage and aggregate number of Americans 
living in poverty increased. According to the U.S. Census 
Bureau, real median household income fell by 3.6 percent 
between 2007 and 2008, from $52,163 to $50,303, offsetting the 
gain in income experienced over the past three years. 
Additionally, between 2007 and 2008 the official poverty rate 
increased from 12.5 percent (37.3 million persons) to 13.2 
percent (39.8 million persons), the first statistically 
significant annual increase in the poverty rate since 2004 and 
the highest poverty rate since 1997. For children under 18 
years of age, the poverty rate was higher than the national 
average, increasing from 18 percent in 2007 to 19 percent in 
2008.
    In addition to their importance in addressing food 
insecurity, Federal child nutrition programs play a critical 
role in providing nutritious, balanced meals to children and 
promoting healthy lifestyles. Major strides have been made in 
recent years to improve the quality of meals served to children 
through child nutrition programs. According to the third USDA 
School Nutrition Dietary Assessment (SNDA III), in school year 
2004-2005, over 95 percent of NSLP lunches offered and served 
by most schools met USDA goals for cholesterol over a typical 
week and were lower in saturated fat than meals served in 
school year 1998-1999, when the last SNDA was conducted. Larger 
proportions of elementary schools met the standards for total 
fat and saturated fat, and a larger proportion of secondary 
schools met the standard for saturated fat.
    Despite this significant progress, however, considerable 
work remains to be done to improve children's diets and to 
bring Federally-subsidized meals in line with USDA nutritional 
guidelines. According to USDA, roughly 99 percent of lunches 
included amounts of sodium above the recommended levels. And, 
only 26 percent and 34 percent of schools served lunches that 
met USDA guidelines for total fat and saturated fat, 
respectively. Additionally, available research has consistently 
shown that the diets of U.S. children do not meet current 
national dietary recommendations for nutrition and health. 
Overall, children today have diets that are low in fruits, 
vegetables, whole grains, and dairy foods, and high in sodium, 
fat and added sugars. The 2005 Dietary Guidelines recommend 
that Americans consume half of their grains as whole grains, 
but according to the U.S. Department of Health and Human 
Services report, Healthy People 2010, only 7 percent of 
children ages two to 19 years currently meet this 
recommendation.
    Statistics on the nutritional profile of school meals and 
the diets of Americans are often set against broader 
information about the overall health of American adults and 
children. The Department of Health and Human Services notes 
that 18.2 million Americans have diabetes, with nearly one-
third of those unaware that they have the disease, and more 
than 64 percent of the U.S. adult population is overweight or 
obese. Additionally, childhood obesity has increased steadily 
in recent years, especially during the past two decades. 
According to the Institute of Medicine report, Progress in 
Preventing Childhood Obesity, ``Obesity rates among American 
children and youth have increased dramatically. Between 1963 
and 2004, obesity rates quadrupled for older children, those 
ages 6 to 11 years (from 4 to 19 percent), and tripled for 
adolescents, those ages 12 to 19 years (from 5 to 17 percent). 
Between 1971 and 2004, obesity rates increased from 5 to 14 
percent in 2- to 5-year olds.''
    Available health research shows a strong association 
between obesity and other chronic diseases, including 
cardiovascular disease, hypertension, and diabetes. 
Cardiovascular disease is the leading cause of death in 
America, resulting in 500,000 annual deaths. Risk factors for 
cardiovascular disease occur with much greater frequency among 
obese children than they do among normal weight children. One 
quarter of children ages five to 10 show early warning signs 
for heart disease, such as elevated blood pressure or high 
cholesterol.
    In summary, it is evident that tremendous needs exist to 
reduce childhood hunger and food insecurity, as well as to 
improve the diets and overall health of American children more 
generally. The purpose of this bill is to address those needs 
in order that fewer low-income children have to go without 
food, and to ensure that more children from all income levels 
adopt the kind of healthful eating habits and lifestyles that 
will enable them to live longer, more productive lives.

                      Summary of Major Provisions

Direct certification for children receiving medicaid benefits

    Under current law, local educational agencies are required 
to directly certify children in households receiving benefits 
under the Supplemental Nutrition Assistance Program (SNAP) for 
free school meals. At the discretion of the local educational 
agency, direct certification may also be conducted based on 
receipt of cash assistance under the Temporary Assistance for 
Needy Families (TANF) program or receipt of benefits under the 
Food Distribution Program on Indian Reservations.
    Prior to 2004, direct certification of Supplemental 
Nutrition Assistance Program participants was a state option. 
In the 2004 reauthorization legislation, Congress required the 
use of direct certification based on receipt of Supplemental 
Nutrition Assistance Program benefits. The requirement was 
phased in based on the size of the school district and took 
effect nationwide beginning with the 2008-2009 school year.
    Research has consistently shown that direct certification 
is highly accurate and reduces paperwork for families and 
school districts. This provision will expand the use of direct 
certification to include the Medicaid program. Direct 
certification will be conducted in areas selected by the USDA 
based on optional applications submitted by interested states. 
The size of the pool of eligible local educational agencies 
will increase gradually each year, going from local educational 
agencies that collectively represent 2.5 percent of the 
students currently certified for free or reduced price school 
meals nationwide during the 2012-2013 school year, to 5 percent 
during the 2013-2014 school year, and finally to 10 percent 
during the 2014-2015 school year and subsequent years. 
Participating local educational agencies will use the income 
information collected by the Medicaid program to directly 
certify eligible children for free school meals. The 
Congressional Budget Office estimates that, by 2015, 
approximately 115,000 additional students will be certified for 
free school meals through this provision.

Eliminating individual applications through community eligibility

    Under current law, school districts located in high poverty 
areas which participate in the National School Lunch Program 
may elect to serve all meals free to students and receive 
federal reimbursement through alternative counting and claiming 
options, commonly known as Provision 2 and Provision 3. Under 
these alternative counting and claiming options, schools 
establish a base year using paper applications and direct 
certification, and count meals by category to determine the 
percentage of meals served free or at a reduced price. The data 
from the base year is used to establish claiming percentages 
for federal reimbursements in subsequent years. After a four or 
five year period, schools must establish another base year or 
produce socioeconomic data which shows minimal change in the 
school's income demographic. Participating schools often 
struggle to collect paper applications and adequately document 
individual student eligibility in communities and schools that 
have not done so for several years, which can negatively affect 
their future federal reimbursement. Of the more than 101,000 
schools in the National School Lunch Program, only about 3,000 
(less than 3 percent) are Provision 2 or Provision 3 schools.
    This provision establishes two new options by which schools 
or local educational agencies with very high proportions of 
low-income children can receive federal reimbursement without 
collecting individual paper applications from households and 
tracking student eligibility in the cafeteria. Reimbursement 
for these low-income schools will instead be based on other 
sources of available data, including the results of direct 
certification and the U.S. Census Bureau's American Community 
Survey. There are more than 10,000 schools in which more than 
80 percent of the students are certified for free or reduced 
price meals. These schools serve more than 5 million children, 
who represent more than one in ten students nationwide. Under 
either of these new options, such schools will benefit from 
reduced paperwork, parents will not have to fill out 
duplicative forms, and low-income children will not face stigma 
in the cafeteria. In exchange, schools participating under 
either of these two options would agree to serve all meals free 
of charge, essentially creating a ``hunger free zone.'' The 
Committee expects the Secretary and State agencies to promote 
these new options and provide outreach and technical assistance 
to schools that qualify to make it as easy as possible for them 
to offer all meals free of charge.

Expansion of afterschool meals for at-risk children

    In the vast majority of states throughout the country, the 
Child and Adult Care Food Program At-Risk Afterschool Snack 
Program provides reimbursement to eligible institutions for a 
snack served to children participating in an afterschool 
program. For the past several years, appropriations bills have 
modified the program to permit several states to receive 
reimbursement for a full meal in addition to a snack. For the 
2009-2010 school year, the free reimbursement level for a snack 
is $0.74, compared with $2.68 for a meal. Currently, only the 
District of Columbia, Connecticut, Delaware, Illinois, 
Maryland, Michigan, Missouri, Nevada, New York, Oregon, 
Pennsylvania, Vermont, West Virginia, and Wisconsin are 
permitted to receive reimbursement for a meal. Participating 
institutions in all other states may only receive reimbursement 
for a snack.
    This provision will expand reimbursement for a meal in 
afterschool programs to all 50 states, which will ensure that 
more low-income children have access to a nutritious meal 
during after school hours.

Performance-based reimbursement rate increase for new meal patterns

    The National Academy of Sciences' Institute of Medicine 
(IOM) released recommendations in October 2009 for updating the 
meal patterns for the National School Lunch and School 
Breakfast Programs to make them consistent with the 2005 
Dietary Guidelines for Americans. Implementing IOM's 
recommendations and raising the quality of school meals will 
mean significant changes for virtually all schools in the 
program. Schools will be required to serve increased portions 
of fruits and vegetables, which may come in a variety of forms, 
including from food products derived out of pulse crops such as 
dry beans, dry peas, lentils, and chick peas, which are 
important food crops that play an important role in a balanced 
diet due to their low fat content, and high protein and fiber 
content. In addition to more fruits and vegetables, increased 
servings of whole grains, and low-fat or non-fat dairy products 
will be required, all of which the IOM estimates will increase 
the food cost per lunch.
    This provision requires the Department of Agriculture to 
issue regulations to update the meal patterns based on the IOM 
recommendations, and provides an increase in the federal 
reimbursement to help schools meet the new meal patterns, which 
the IOM estimates will increase food costs between four and 
nine percent for participating schools. Once interim or final 
regulations are promulgated, the Secretary of Agriculture will 
provide an additional 6 cents per lunch, adjusted annually for 
inflation, in reimbursement for local educational agencies that 
the State agency certifies are in compliance with the new meal 
patterns. The Congressional Budget Office estimates that nearly 
all schools would be able to comply with the new requirements 
and receive the higher reimbursement rate.

Local school wellness policy implementation

    One of the initiatives included in the Child Nutrition and 
WIC Reauthorization Act of 2004 (Public Law 108-265) required 
each local educational agency participating in the National 
School Lunch Program to establish a local wellness policy. The 
2004 initiative was designed to encourage local school 
districts to come up with their own plans to promote, among 
other things, sound nutrition and physical activity at the 
local level.
    This section continues and updates the requirements of the 
local wellness policy included in the 2004 reauthorization by 
requiring that all local wellness policies include, at a 
minimum, goals for nutrition education, physical activity, and 
other school-based policies that promote student wellness; 
nutrition guidelines for all foods available on school campuses 
during the school day; participation by the local community in 
the development and periodic review of the wellness policy; 
public notification; and periodic assessment and reporting.

Nutrition standards for all foods sold in schools

    Reimbursable school meals must meet nutrition standards 
(which include limits on fat, saturated fat and content 
requirements for protein, vitamins, and minerals) in order for 
a school district to claim reimbursement through the National 
School Lunch or School Breakfast Program. In contrast, foods 
sold individually outside of these programs, such as through 
vending machines, snack bars and a la carte lines are not 
required to meet comparable nutrition standards. The Department 
of Agriculture has very limited authority to set nutrition 
standards for these foods--limited to just the time and the 
place of meal service. Existing regulations stemming from this 
authority are very narrow and have not been updated in 30 
years, despite major changes in nutritional science, changes in 
food consumption patterns, and rapid growth in childhood 
obesity, overweight, and diet-related chronic diseases.
    Foods served outside of school meal programs are widely 
available in American schools. According to the Government 
Accountability Office, 99 percent of high schools, 97 percent 
of middle schools, and 83 percent of elementary schools have 
vending machines, snack bars, a la carte lines, and the like. 
Numerous scientific studies show that foods offered through 
these outlets are low in nutritional quality. In addition, 
research shows that when children gain access to such foods in 
schools, the quality of their diets decreases significantly. 
The widespread availability of unhealthy foods in our schools 
not only undermines children's health, but also undermines 
annual taxpayer investments of over $15.5 billion in the 
National School Lunch and School Breakfast Programs.
    To promote healthful eating and to protect taxpayer 
investments in school meals, this provision requires the 
Secretary of Agriculture to establish science-based nutrition 
standards for all foods sold in schools other than foods 
currently reimbursed through the school lunch or breakfast 
programs. Such standards will apply on the entire school campus 
until the end of the school day. In establishing nutrition 
standards, the Secretary is directed to adopt measures that are 
consistent with the Dietary Guidelines for Americans, consider 
authoritative scientific research and the practical application 
of nutrition standards, as well as existing voluntary 
agreements, and provide for exemptions for school sponsored 
fundraisers if they are sanctioned by the school. The Secretary 
is also required to update the standards, as practicable and 
necessary, following the publication of new editions of the 
Dietary Guidelines for Americans.

Nutrition and wellness goals for meals served through the Child and 
        Adult Care Food Program

    Child care facilities are a natural setting in which to lay 
the foundation for good nutrition and wellness in children. 
According to the National Center for Education Statistics, in 
2005 9.1 million pre-school aged children participated in some 
form of child care. At the federal level, one opportunity to 
promote better health in child care settings is USDA's Child 
and Adult Care Food Program. The program serves approximately 3 
million children each day and represents a tremendous 
opportunity to promote healthy lifestyles to children across 
the country.
    This provision makes several changes to the nutritional 
requirements of the Child and Adult Care Food Program. It will 
require that CACFP meal patterns be based on the most recent 
Dietary Guidelines, similar to what is currently required for 
school lunches and breakfasts. The provision also requires that 
child care providers serve only low-fat or fat-free milk to 
children age two and up, consistent with recommendations of the 
Dietary Guidelines and the American Academy of Pediatrics, and 
to make fresh, safe drinking water available to children 
throughout the day to ensure proper hydration and develop 
positive attitudes toward water as a healthy, acceptable fluid 
for consumption.
    In addition to encouraging the adoption of certain 
nutrition practices, this provision requires the Department of 
Agriculture and the Department of Health and Human Services to 
encourage physical activity and to limit sedentary activity, 
both of which are recommended by public health organizations 
and the Dietary Guidelines. Further, it requires the Department 
to provide training and technical assistance for states, 
sponsors and providers so that they have the tools they need to 
help children learn healthy nutrition and wellness habits.

Support for breastfeeding in the WIC Program

    Though the promotion of breastfeeding among WIC 
participants has long been an objective of the WIC Program, 
rates of breastfeeding among WIC participants continue to be 
significantly lower than for the population as a whole. In 
2003, only 54 percent of women participating in the WIC Program 
initiated breastfeeding compared to 76 percent of non-WIC 
participants. Rates of breastfeeding at six months of age 
similarly lag behind the general population, with 43 percent of 
non-WIC participants continuing to breastfeed their infants at 
6 months of age, compared to just 21 percent of WIC 
participants. In recent years, WIC has accelerated its effort 
to promote breastfeeding in the WIC Program, notably through 
increasing funding for breastfeeding peer counselors and by 
changing WIC food packages to increase the attractiveness of 
breastfeeding and decrease the attractiveness of infant 
formula.
    This provision seeks to reward excellence at both the local 
agency and local clinic level, as well as at the state agency 
level. For local clinics and local agencies, this provision 
would require the Secretary of Agriculture to create a program 
to recognize exemplary breastfeeding support practices. For 
state agencies, this provision would establish a set of high 
performance bonuses to state agencies that have demonstrated 
either the highest proportion of breastfed infants or the 
greatest improvement in the proportion of breastfed infants, 
with an emphasis on fully breastfed infants. In addition, this 
provision would expand the collection of WIC program data on 
breastfeeding rates by requiring the WIC Program to collect and 
publish breastfeeding data annually, rather than biannually, 
and also to publish rates of breastfeeding not just at the 
state agency level, but for local agencies as well.

Nationwide implementation of Electronic Benefit Transfer (EBT) 
        technology in the WIC program

    One of the major success stories in the Supplemental 
Nutrition Assistance Program (SNAP) has been the transition to 
electronic benefit transfer (EBT) technology for the delivery 
of program benefits. Prior to EBT, benefits were delivered in 
the form of paper coupons that were used by SNAP participants 
in exchange for food at authorized SNAP vendors. The transition 
from paper coupons to EBT has created a much more positive 
experience for SNAP participants in the retail setting, as well 
as a more efficient way to process benefits for SNAP vendors. 
In the vast majority of states participating in the WIC 
program, benefits are still provided to participants in the 
form of paper vouchers. In order to facilitate a similar 
transition from paper to EBT in the WIC program, this section 
mandates WIC EBT implementation nationwide by October 1, 2020. 
Exemptions are granted to State agencies in the case of unusual 
technological barriers or operational costs.
    Updating technology in the WIC Program will allow State WIC 
staff at all levels to perform operations more effectively and 
efficiently, increasing accountability and streamlining program 
monitoring and business practices through electronic solutions. 
At the clinic level it will enhance client services by 
improving clinic efficiencies. EBT will improve access to 
prescribed WIC foods by allowing the participant to shop for 
benefits when they want to and in the amounts they wish to 
purchase. EBT will also simplify the retail point-of-sale 
transaction and will reduce participant stigma and improve the 
shopping experience. WIC benefit redemption and payment for WIC 
transactions will be vastly improved for retailers using EBT.

                          Legislative History

                            COMMITTEE ACTION

                              (1) HEARINGS

Child Nutrition Programs in the economic downturn

    On December 8, 2008, the Senate Committee on Agriculture, 
Nutrition and Forestry held a hearing to assess the 
effectiveness of USDA's food assistance and child nutrition 
programs in promoting health, preventing chronic disease and 
fighting hunger in the economic downturn. During this hearing, 
testimony was heard from a panel that included: Dr. Eileen 
Kennedy, Tufts University, Boston, Massachusetts; Mary Kay Fox, 
Mathematica Policy Research, Cambridge, MA; Dr. Mariana 
Chilton, Children's Sentinel Nutrition Assessment Project, 
Philadelphia, PA; and Carolyn Duff, A.C. Moore Elementary 
School, Columbia, SC.

Improving nutrition for America's children in difficult economic times

    On March 4, 2009, the Senate Committee on Agriculture, 
Nutrition and Forestry held a hearing to discuss how to improve 
nutrition for children during times of economic difficulty. The 
hearing included two panels of witnesses. The first panel 
focused on improving nutrition through the National School 
Lunch and School Breakfast Programs. Witnesses testifying 
included: Dr. Katie Wilson, Onalaska Public Schools, Onalaska, 
WI; Dr. Susan Bartlett, ABT Associates, Cambridge, MA; and 
Connie Boldt, Knoxville Community School District, Knoxville, 
IA. The second panel addressed improving nutrition for children 
when they are not in school. Witnesses for this panel included: 
Dr. David Paige, John Hopkins Medical School, Baltimore, MD; 
Kenneth Hecht, California Food Policy Advocates, Oakland, CA; 
and Lucy Nolan, End Hunger Connecticut, Hartford, CT.

Reforming nutrition for kids in schools

    On March 31, 2009, the Senate Committee on Agriculture, 
Nutrition and Forestry held a hearing to discuss how to improve 
nutrition for kids in schools beyond improvements in the 
federal school meal programs. The hearing included two panels 
of witnesses. The first panel provided perspectives from 
schools and included: Dr. Pat Cooper, Early Childhood and 
Family Learning Foundation, New Orleans, LA; Nancy 
Huehnergarth, New York State Healthy Eating and Physical 
Activity Alliance, Chappaqua, NY; Byron Garrett, National 
Parent Teacher Association, Chicago, IL; and Reginald Felton, 
National School Boards Association, Alexandria, VA. The second 
panel offered perspectives from health professionals and the 
food and beverage industry. Witnesses included: Karen Ehrens, 
North Dakota Dietetic Association, Bismarck, ND; Miriam 
Erickson Brown, Anderson Erickson Dairy Company, Des Moines, 
IA; Hank Izzo, Mars Snackfood U.S., Hackettstown, NJ; and Susan 
Neely, American Beverage Association, Washington, D.C.

Field Hearing to consider the benefits of Farm-To-School projects, 
        healthy eating and physical activity for school children

    On May 15, 2009, the Senate Committee on Agriculture, 
Nutrition and Forestry held a field hearing in Atlanta, Georgia 
to consider the benefits of farm-to-school projects, healthy 
eating and physical activity to school children. Witnesses 
included: Dr. David Satcher, Morehouse School of Medicine, 
Atlanta, GA; Dr. William Dietz, Centers for Disease Control and 
Prevention, Atlanta, GA; Cindy Long, U.S. Department of 
Agriculture, Alexandria, VA; and Glyen Holmes, New North 
Florida Cooperative Association, Inc., Marianna, FL.

Reauthorization of U.S. Child Nutrition Programs

    On November 17, 2009, the Senate Committee on Agriculture, 
Nutrition and Forestry held a hearing to consider opportunities 
to fight hunger and improve child health in the pending 
reauthorization of U.S. child nutrition programs. The first 
witness was Secretary of Agriculture Tom Vilsack. Following 
Secretary Vilsack, a panel of witnesses gave testimony 
including: Dr. Margaret Boyle, USDA Agricultural Research 
Service, Little Rock, AR; Rich Huddleston, Arkansas Advocates 
for Children and Families, Little Rock, AR; Rhonda Sanders, 
Arkansas Hunger Alliance, Little Rock, AR; and Jennifer Smith, 
Walmart, Bentonville, AR.

                          (2) COMMITTEE MARKUP

    On March 24, 2010, the Senate Committee on Agriculture, 
Nutrition and Forestry met in open session to mark up the 2010 
child nutrition reauthorization bill. Members of the Committee 
in attendance included: Senators Lincoln, Chambliss, Harkin, 
Leahy, Stabenow, Nelson, Brown, Casey, Klobuchar, Bennet, 
Gillibrand, Lugar, Cochran, Roberts, Johanns, Grassley and 
Thune. The Chairman's mark was presented at 9:34 a.m. by 
Chairman Lincoln. Opening statements were made. The Chairman's 
mark was unanimously adopted by voice vote subject to the 
amendments to be offered by members of the Committee later in 
the markup. The Committee then considered a number of 
amendments to the Chairman's mark.
    Senator Thune offered an amendment to designate a portion 
of the research and demonstration project funding made 
available under the school lunch program for research focused 
on child nutrition issues on Native American reservations. The 
amendment was unanimously adopted by voice vote.
    Senator Lincoln offered an enbloc amendment containing both 
technical and substantive, but bipartisan, changes to the 
Chairman's mark. The amendment was unanimously adopted by voice 
vote.
    Senator Stabenow offered an amendment that directs the 
Secretary of Agriculture to conduct a study of states 
participating in afterschool supper programs. The amendment was 
unanimously adopted by voice vote.
    Senator Bennet offered an amendment that directs the 
Secretary of Agriculture to assist states in developing and 
implementing a continuous improvement plan for direct 
certification in the school lunch program as well as require 
states to include improvements in technology and information 
systems in a continuous improvement plan. The amendment was 
unanimously adopted by voice vote.
    Senator Chambliss offered an amendment that would use the 
Conservation Stewardship Program as a funding offset as well as 
provide additional funding for the Emergency Food Assistance 
Program and Summer Food Service Program. The amendment failed 
on a roll call vote of 10 yeas and 11 nays.
    Senator Brown offered an amendment to provide grants for 
summer food service as well as an amendment to establish an 
organic food pilot program within the school lunch program. 
Both amendments were adopted unanimously by voice vote.
    Senator Bennet offered an amendment to create state 
childhood hunger challenge grants. The amendment was 
unanimously adopted by voice vote.
    The Committee adjourned at 11:00 a.m.

                             Rollcall Vote

    Senator Chambliss offered an amendment to the Chairman's 
mark that would use the Conservation Stewardship Program as a 
funding offset in lieu of the Environmental Quality Incentives 
Program as well as provide additional funding for the Emergency 
Food Assistance Program and Summer Food Service Program. By 
rollcall vote of 10 yeas and 11 nays as follows, the amendment 
was defeated.
        YEAS--10                      NAYS--11
Mr. Chambliss                       Mr. Leahy
Mr. Lugar                           Mr. Harkin
Mr. Cochran                         Mr. Conrad
Mr. McConnell                       Mr. Baucus
Mr. Roberts                         Ms. Stabenow
Mr. Johanns                         Mr. Brown
Mr. Grassley                        Mr. Casey
Mr. Thune                           Ms. Klobuchar
Mr. Cornyn                          Mrs. Gillibrand
Mr. Nelson                          Mr. Bennet
                                    Mrs. Lincoln

                 Estimated Costs and Unfunded Mandates

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 20, 2010.
Hon. Blanche L. Lincoln,
Chairman, Committee on Agriculture, Nutrition and Forestry,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Healthy, Hunger-
Free Kids Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kathleen 
FitzGerald and Emily Holcome.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                          Director.
    Enclosure.

Healthy, Hunger-Free Kids Act of 2010

    Summary: The legislation would reauthorize--through 2015--
and amend child nutrition programs, primarily the National 
School Lunch Program (NSLP), the School Breakfast Program 
(SBP), and the Special Supplemental Nutrition Program for 
Women, Infants, and Children (WIC). CBO estimates that enacting 
this legislation would increase direct spending by $68 million 
over the 2010-2015 period and decrease direct spending by $11 
million over the 2010-2020 period. (The bill would increase 
revenues by less than $500,000 over the 2010-2020 period.) Pay-
as-you-go procedures would apply because enacting the 
legislation would affect direct spending and revenues.\1\
---------------------------------------------------------------------------
    \1\Different time periods apply for the current pay-as-you-go rules 
in the House of Representatives and the Senate. CBO estimates that 
enacting the bill would reduce direct spending by $2 million over the 
2010-2014 period, but increase direct spending by $33 million over the 
2010-2019 period. (The legislation would increase revenues by 
insignificant amounts over both of those periods.)
---------------------------------------------------------------------------
    Additionally, CBO estimates that implementing this bill 
would have discretionary costs of $35.9 billion over the 2011-
2015 period, assuming appropriation of the necessary amounts. 
Most of these costs are for the reauthorization of WIC, which 
received an appropriation of $7.3 billion in fiscal year 2010.
    The bill would impose new requirements on states and 
schools that implement child nutrition programs. Those 
requirements would be intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA). Beginning the first 
year that the mandates take effect, CBO estimates that the 
aggregate costs of the mandates to states and schools would 
exceed the threshold established in UMRA for intergovernmental 
mandates ($70 million in 2010, adjusted annually for 
inflation).
    The bill would impose a mandate, as defined in UMRA, on the 
private sector, by requiring entities selling food on a school 
campus or at any time during the school day to comply with 
science-based standards established by the Secretary of 
Agriculture. Because of uncertainties about the standards that 
the Secretary would establish under this bill, CBO cannot 
estimate whether the costs to the private sector would exceed 
the threshold established in UMRA ($141 million in 2010, 
adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the legislation is shown in the following 
table. The costs of this legislation fall within budget 
function 600 (income security).

                                                            TABLE 1.--BUDGETARY EFFECTS OF THE HEALTHY, HUNGER-FREE KIDS ACT OF 2010
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2010      2011      2012      2013      2014      2015      2016      2017      2018      2019      2020    2010-2015  2010-2020
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDINGEstimated Budget Authority..................................         0      -165      -362        74        23       -19       -17       -24       -25       -33       -40       -449       -588
Estimated Outlays...........................................         0       -92      -166       115       141        70        33        -1       -29       -38       -44         68        -11                                                                                       CHANGES IN REVENUEEstimated Revenues..........................................         0         *         *         *         *         *         *         *         *         *         *          *          *                                                                                 NET CHANGE IN THE DEFICIT FROM
                                                                             CHANGES IN DIRECT SPENDING AND REVENUESImpact on the Deficit\1\....................................         0       -92      -166       115       141        70        33        -1       -29       -38       -44         68        -11                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATIONEstimated Authorization Level...............................         1     7,688     7,650     7,740     7,834     7,959         0         0         0         0         0     38,872     38,872
Estimated Outlays...........................................         0     5,674     6,865     7,694     7,783     7,900     1,970       792         0         0         0     35,916     38,678
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\Positive numbers indicate increases in deficits; negative numbers indicate decreases in deficits.
Note * = less than $500,000.

    Basis of estimate: For the purpose of this estimate, CBO 
assumes the bill will be enacted by the end of the fiscal year. 
The bill specifies that most provisions would become effective 
on October 1, 2010.

Direct spending and revenues

    CBO estimates that enacting the bill would increase direct 
spending by $68 million over the 2011-2015 period and decrease 
direct spending by $11 million over the 2011-2020 period. Table 
2 details the components of the estimated effects. CBO 
estimates that enacting the bill also would increase revenues 
by less than $500,000 over both the 2011-2015 and 2011-2020 
periods. (We estimate no direct spending or revenue effects for 
2010.)
    Performance-Based Rate Increase. Section 201 would increase 
federal reimbursements to schools, beginning in fiscal year 
2013, by 6 cents for all lunches in schools that serve both 
breakfasts and lunches that meet regulations concerning meal 
patterns and nutrition standards. The increase of 6 cents would 
be adjusted each year for inflation. Under the legislation, 
states would be responsible for certifying that schools comply 
with the guidelines. Additionally, the bill would provide $50 
million per year for two years for state administrative 
expenses related to certifying schools.
    CBO estimates that nearly all schools would receive the 
higher reimbursement rate. Including interactions with other 
provisions in the bill, CBO estimates that this provision would 
increase direct spending by $1.1 billion over the 2011-2015 
period and $3.2 billion over the 2011-2020 period.
    Environmental Quality Incentives Program (EQIP). EQIP 
provides financial assistance to agricultural producers to 
implement conservation practices. The Food, Conservation, and 
Energy Act of 2008 (Public Law 110-246) provided funding of 
$1.588 billion for 2011 and $1.750 billion for 2012 for new 
contracts each year. Section 442 would reduce those annual 
amounts to $1.447 billion beginning in 2011, for a total 
savings of $746 million over the 2011-2015 period and $2.2 
billion over the 2011-2020 period.
    Nutrition Education and Obesity Prevention Grant Program. 
Section 241 would establish a new grant program for nutrition 
education proposes as part of the Supplemental Nutrition 
Assistance Program (SNAP). The bill would eliminate the current 
practice by which state spending (both cash and in-kind) on 
approved activities for nutrition education is matched by the 
federal government as part of their SNAP administrative costs. 
The bill would provide $375 million for grants in fiscal year 
2011, and adjust that amount for inflation in future years. 
Those funds would be distributed by formula to the states and 
there would no longer be a requirement for states to provide 
matching funds. States could use the money to provide nutrition 
education and obesity prevention programs to SNAP recipients 
and other low-income individuals.

                                   TABLE 2.--ESTIMATED DIRECT SPENDING UNDER THE HEALTHY, HUNGER-FREE KIDS ACT OF 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        By fiscal year, in millions of dollars--
                               -------------------------------------------------------------------------------------------------------------------------
                                  2011      2012      2013      2014      2015      2016      2017      2018      2019      2020    2011-2015  2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDINGPerformance-Based Rate
 Increase\1\:
    Estimated Budget Authority         0         0       400       410       376       387       398       410       422       434      1,186      3,237
    Estimated Outlays.........         0         0       340       408       381       385       397       408       420       432      1,129      3,171
EQIP:
    Estimated Budget Authority      -141      -303      -303      -303      -303      -303      -303      -303      -303      -303     -1,353     -2,868
    Estimated Outlays.........       -41      -116      -164      -197      -228      -258      -287      -303      -303      -303       -746     -2,200
Nutrition Education:
    Estimated Budget Authority        10       -15       -50       -80      -115      -145      -180      -210      -245      -275       -250     -1,305
    Estimated Outlays.........        10       -15       -50       -50      -115      -145      -180      -210      -245      -275       -250     -1,305
Commodity Support:
    Estimated Budget Authority      -100      -100      -100      -100      -100      -100      -100      -100      -100      -100       -500     -1,000
    Estimated Outlays.........      -100      -100      -100      -100      -100      -100      -100      -100      -100      -100       -500     -1,000
CACFP:
    Estimated Budget Authority        31        45        54        63        70        82        90       100       106       111        263        752
    Estimated Outlays.........        27        43        53        62        69        81        89        98       105       110        254        737
Direct Certification:
    Estimated Budget Authority         5         7        15        24        42        47        52        54        59        61         93        366
    Estimated Outlays.........         1         8        16        23        40        46        52        54        58        60         88        358
Technical Assistance,
 Demonstration Projects, and
 Grants:
    Estimated Budget Authority        23         2        57         7         7         7         7         7         7         7         96        131
    Estimated Outlays.........         7        10        17        23        19        17        17         7         7         7         76        131
Eliminating Applications:
    Estimated Budget Authority         5         1         2         3         6        10        14        19        24        28         17        113
    Estimated Outlays.........         1         3         4         3         5         9        13        18        23        28         16        108
Independent Review:
    Estimated Budget Authority        -3        -4        -6        -6        -7        -7        -7        -7        -8        -8        -26        -63
    Estimated Outlays.........        -2        -4        -6        -6        -7        -7        -7        -7        -8        -8        -25        -62
Reauthorization of Expiring
 Provisions:
    Estimated Budget Authority         5         5         5         5         5         5         5         5         5         5         15         51
    Estimated Outlays.........         5         5         5         5         5         5         5         5         5         5         26         51
    Total Changes:
        Estimated Budget            -165      -362        74        23       -19       -17       -24       -25       -33       -40       -449       -588
         Authority............
        Estimated Outlays.....       -92      -166       115       141        70        33        -1       -29       -38       -44         68        -11
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\Estimate includes interactions with other provisions.
Notes: Components may not sum to totals because of rounding EQIP = Environmental Quality Incentives Program; CACFP = Child and Adult Care Food Program.

    Based on historical spending patterns and the ability of 
states to use in-kind resources toward the federal match, CBO 
estimates that spending under current law will grow by 8 
percent per year on average over the next decade, significantly 
higher than the proposed funding under the bill. Thus, CBO 
estimates that enacting this proposal would reduce direct 
spending by $1.3 billion over the 2011-2020 period.
    Commodity Support. Under current law, the Food and 
Nutrition Service (FNS) is required to spend at least 12 
percent of the total cash assistance in the NSLP on 
commodities. Through fiscal year 2010, the value of bonus 
commodities can be counted toward this requirement. Bonus 
commodities are purchases made by the Department of Agriculture 
and donated to the NSLP. Section 401 would extend the authority 
to count the value of bonus commodities toward the 12 percent 
requirement through fiscal year 2020. Based on recent levels of 
donations, CBO estimates that the NSLP would receive $100 
million per year in bonus commodities, reducing spending in the 
program by that amount. Therefore, CBO estimates that enacting 
this provision would save $1 billion over the 2011-2020 period.
    Child and Adult Care Food Program (CACFP). The bill makes 
several changes to the Child and Adult Care Food Program that 
would expand participation or alter the way the program is 
administered. In total, CBO estimates that this legislation 
would increase direct spending for CACFP by $737 million over 
the 2011-2020 period.
    Expansion of Afterschool Meals for At-Risk Children. 
Section 122 would allow more organizations participating in the 
CACFP at-risk snack program to serve suppers after school in 
addition to the snacks already served. Currently, an after-
school program that has an educational component and is located 
in an area where at least half of the student body is certified 
for free or reduced-price meals can be reimbursed for snacks 
served free to students. In fiscal year 2009, almost 33 million 
after-school snacks were served.
    Under current law, organizations that participate in CACFP 
at-risk snack programs in 13 states and the District of 
Columbia also can be reimbursed for suppers. Just over 19 
million reimbursable suppers were served to students in 2009. 
The provision would allow programs nationwide to be reimbursed 
for suppers.
    Based on data from the states that currently participate in 
the supper option, we assume that there would be some 
additional growth in the number of sites in the at-risk program 
and that roughly 60 percent of sites would begin to serve 
suppers. CBO estimates that each site would serve, on average, 
7,000 suppers per fiscal year. However, in some states, after-
school programs may already serve suppers through the CACFP if 
the site qualifies as a day care center. Based on data on meals 
in day care centers and information from states, CBO estimates 
that about 25 percent of the meals that are now served through 
day care providers would be served through the at-risk program 
under the bill. By 2015, CBO estimates that there would be 
almost 21 million additional suppers served, rising to 29 
million by 2020. Enacting this provision would increase direct 
spending by $215 million over the 2011-2015 period and $641 
million over the 2011-2020 period, CBO estimates.
    Simplifying Area Eligibility Determinations in CACFP. Homes 
that provide day care services can participate in the CACFP and 
are divided into two tiers. Reimbursement rates are higher for 
meals served in tier 1 homes, which are either located in low-
income areas, serve low-income children, or have low-income 
providers. Current law defines a low-income area as one in 
which at least half the students in the local elementary school 
qualify for free or reduced-price meals. All other meals are 
reimbursed at the lower tier 2 rate. Section 121 would allow 
day care homes to qualify for tier 1 status as long as any 
school in the district meets the low-income qualifications. CBO 
estimates that when this provision is fully phased in, 
approximately 2,250 tier 2 homes would switch to tier 1 status 
and 225 new day care homes would join the program. Based on the 
average costs for this program, CBO estimates that enacting 
this provision would cost about $6 million per year, totaling 
$29 million over the 2011-2015 period and $61 million over the 
2011-2020 period.
    CACFP Administrative Provisions. Section 334 would alter 
the way organizations that sponsor day care homes in eh CACFP 
are reimbursed for administrative costs. Section 335 would 
provide an opportunity for states to receive additional funding 
to conduct audits of institutions participating in the CACFP. 
CBO estimates that enacting those provisions would increase 
direct spending on administrative and audit costs in the CACFP 
by $10 million over the 2011-2015 period and $35 million over 
the 2011-2020 period.
    Direct Certification. The bill has several provisions 
related to direct certification. In total, CBO estimates that 
enacting those provisions would cost $358 million over the 
2011-2020 period. Since 2008, all school food authorities 
(SFAs) have been required to obtain documentation directly from 
the Supplemental Nutrition Assistance Program to directly 
certify students in SNAP households for free meals. Directly 
certified students do not have to complete applications and do 
not have to verify their incomes. CBO expects that increasing 
direct certification would lead to schools serving more 
reimbursable meals.
    Direct Certification for Children Receiving Medicaid 
Benefits. Section 103 would establish a pilot program to allow 
selected school districts to directly certify certain students 
who receive Medicaid benefits for free school meals. By 2015, 
CBO estimates that about 115,000 students annually would be 
newly certified for free school meals.
    Schools currently do not have the authority to use Medicaid 
data to directly certify students. Under the bill, the pilot 
program would expand over three years beginning on July 1, 
2012, so that by the 2014-2015 school year, the Secretary of 
Agriculture could select districts that collectively serve up 
to 10 percent of students certified for free and reduced-price 
meals nationwide.
    The pilot would allow schools to directly certify students 
of Medicaid for free meals provided their income as measured by 
the Medicaid program is below 133 percent of poverty. Because 
Medicaid uses a different measure to determine eligibility, 
students who are currently eligible for paid or reduced-price 
meals based on their gross household income would become newly 
eligible for free meals. In addition, because direct 
certification relieves the requirement to complete a paper 
application, CBO assumes some students who are income-eligble 
for free meals but currently do not participate would become 
newly certified for free meals and begin to use the program.
    The bill also would provide $5 million in fiscal year 2011 
for a study of direct certification with Medicaid. In total, 
CBO estimates that enacting section 103 would increase direct 
spending by $328 million over the 2011-2020 period.
    Improving Direct Certification. Section 101 would set new 
standards for direct certification in the NSLP and provide $12 
million for state performance awards. The bill would establish 
a target for SFAs to directly certify 80 percent of eligible 
students in the 2011-2012 school year, with that target rising 
to 95 percent two years later. SFAs directly certified, on 
average, about 70 percent of students in SNAP households in the 
2008-2009 school year. Under the bill, the Secretary of 
Agriculture would require states that do not meet those targets 
to develop and implement improvement plans. CBO expects that 
this policy would lead to a modest increase in the number of 
children directly certified.
    Currently, some SFAs directly certify students by requiring 
them to submit a letter from the he SNAP office to the school. 
The bill would prohibit that method for direct certification. 
Based on information from FNS, CBO expects that this proposal 
would increase direct certification rates.
    In total, CBO estimates that about 4,500 students a year, 
on average, would be newly certified for free meals as result 
of those changes. Enacting section 101 would increase direct 
spending by $20 million over the 2011-2015 period and by $30 
million over the 2011-2020 period, CBO estimates.
    Technical Assistance, Demonstration Projects, and Grants. 
The bill would provide funding for technical assistance, 
demonstration projects, and several grant programs that would 
increase direct spending by the amounts specified in the 
legislation. In total, those provisions would cost $131 million 
over the 2011-2020 period.
     Section 141 would provide $50 million in 2013 for 
research on the causes and consequences of childhood hunger and 
characteristics of households that experience childhood hunger, 
and demonstration projects to test new strategies to end 
childhood hunger.
     Section 221 would provide $10 million in 2011 for 
technical assistance to develop regulations for the nutritional 
content of meals served through CACFP and guidance for physical 
activity in child care settings.
     Section 223 would provide $5 million in 2011 for 
the Secretary to study the nutritional quality of food served 
and opportunities for physical activity in day care homes and 
centers.
     Section 243 would provide $5 million per year 
starting in 2013, for grants and technical assistance so that 
schools can implement farm-to-school programs to provide local 
produce in schools, build school gardens, and conduct other 
similar activities.
     Section 306 would provide $5 million in fiscal 
year 2011 and $1 million in each year thereafter for the 
Secretary to establish a program of required education, 
training, and certification for those responsible for the 
management of school food authorities and to establish 
standards for selection of State agency directors responsible 
for the NSLP and the SBP.
     Section 307 would provide $2 million for fiscal 
year 2011 to conduct a study of, issue guidance on, and 
promulgate regulations on the allocation and impact of costs 
other than food or labor charged to school food authorities.
     Section 352 would provide $1 million per year for 
fiscal year 2011 and every year thereafter for the Secretary to 
establish a product codes database for use in implementing an 
electronic benefits transfer system in WIC.
    Eliminating Applications. Section 104 would give local 
educational agencies (LEAs) two new options for establishing 
the percentage of meals served that are reimbursed at the free 
and reduced price rate. LEAs that participate in either option 
would not need to collect household applications from students 
to determine free or reduced price meal eligibility and would 
be required to serve meals free of charge to all students.
    The two new options would allow schools to use alternate 
procedures for claiming meal reimbursement in exchange for 
serving meals free of charge. CBO estimates the impact of each 
option independently and then estimated the interaction between 
the two. After accounting for the interaction between those two 
options, CBO estimates that enacting section 104 would cost 16 
million over the 2011-2015 period and $108 million over the 
2011-2020 period.
    Direct Certification Option. Under section 104, 
participating LEAs would receive reimbursements for free meals 
based on their direct certification rates according to a 
formula specified in the bill. The remaining meals would be 
reimbursed at the rate for paid meals. The bill would allow a 
limited number of states to participate through July 1, 2014, 
at which point any state could participate. Prior to July 1, 
2014, participating schools or school districts would need to 
directly certify at least 40 percent of their students; after 
that date, the Secretary could set a different minimum 
threshold.
    CBO expects that schools and school districts with high 
percentages of students eligible for free or reduced price 
meals would be the most likely to participate. Based on 
administrative data from FNS and information on participation 
in existing alternative options for eliminating yearly 
applications, CBO estimates that by the end of the 10-year 
period, about 300 schools would participate in this option. At 
those schools, CBO estimates that a slightly higher percentage 
of meals would be reimbursed at the free rate. Because all 
meals would be served free of charge, CBO also anticipates 
increased participation in both the NSLP and the SBP.
    Survey Option. Section 104 also would direct the Secretary 
of Agriculture to identify and implement alternatives means of 
establishing the percentages of meals served to students 
eligible for free and reduced price meals. The bill would allow 
the Secretary to use the American Community Survey or other 
data sources to approximate the actual makeup of students and 
replace the collection of household applications for free and 
reduced price meal eligibility. Schools that participate in 
this option would be required to serve breakfasts and lunches 
free of charge to all students.
    CBO expects that schools that would participate have high 
percentages of students eligible for free or reduced price 
meals. Based on data on the percentage of students eligible for 
free and reduced price meals in all schools and information on 
the number of schools that currently participate in other 
alternate meal counting provisions, CBO estimates that 
approximately 2,200 schools would participate in this option by 
2020. We expect increased participation among students in the 
NSLP and SBP due to meals being served free of charge.
    Independent Review. Section 304 would require local 
educational agencies that demonstrate high levels of 
administrative error to have a second person review eligibility 
determinations for free and reduced price meals. CBO estimates 
that a second review would lead to, on net, a reduction in meal 
benefits. Using data from FNS, CBO estimates that enacting this 
provision would reduce direct spending by $25 million over the 
2011-2015 period and $62 million over the 2011-2020 period.
    Reauthorization of Expiring Provisions. Sections 402 
through 422 would reauthorize a number of expiring provisions 
in the Richard B. Russell National School Lunch Act and the 
Child Nutrition Act of 1966. Consistent with the budget 
projection rules in the Balanced Budget and Emergency Deficit 
Control Act, the costs of extending the provisions in sections 
402, 404, 405, and 422 are included in CBO's baseline and are 
therefore not included in the tally of incremental spending 
attributed to this bill. Those amounts total roughly $3 billion 
over the 2011-2015 period.
    The bill would provide an additional $5 million per year 
for program management above current-law levels. Funding for 
the information clearinghouse would be extended through 2015 
and would cost $1 million over the 2011-2015 period. In 
addition, the bill would increase funding for the Food Service 
Management Institute by $1 million per year and provide $4 
million per year for federal administrative support. In total, 
enacting those provisions would cost $51 million over the 2011-
2020 period, CBO estimates.
    Provisions with Insignificant Costs, Savings, or Revenues. 
CBO estimates that many other provisions in the bill could 
affect outlays or revenues but would total less than $500,000 
in any year and over the 2011-2020 period. (Some provisions 
would authorize the appropriation of funds to provide grants to 
states for activities related to mandatory spending for the 
child nutrition programs, but the expected interactions between 
potential appropriations and the mandatory programs would be 
small and are not included below.)
     Section 102 would make certain foster children 
categorically eligible for free meals.
     Section 111 would align the eligibility criteria 
for public and private sponsoring organizations who participate 
in the Summer Food Service Program (SFSP) and eliminate the 
current size restriction on for-profit sponsors.
     Section 112 would require state agencies to ensure 
that school food authorities that participate in the NSLP 
inform families of the availability of meals through the SBP 
and SFSP.
     Section 143 would require the Secretary to examine 
the practices of states and local educational agencies 
regarding credit for children's costs of school lunches and 
breakfasts, and would then implement and test new standards.
     Section 205 would establish rules for the prices 
school food authorities can charge for paid lunches. Because 
this provision would require some schools to raise their lunch 
prices, participation in the NSLP would decline modestly.
     Section 303 would give the Secretary the authority 
to impose fines against an SFA, school, or state agency that 
fails to correct severe mismanagement of a child nutrition 
program, disregards a program requirement of which the 
institution has been informed, or fails to correct repeated 
violations of program requirements. CBO estimates that this 
provision would increase revenues by less than $500,000.
     Section 332 would direct the Secretary to 
promulgate regulations to ensure that state agencies use a fair 
and timely hearing process to reduce the amount of time between 
a state's action and the hearing in cases where an action of 
the state affects an institution's participation or 
reimbursement rates.
     Section 333 would allow family or group day care 
homes that participate in the CACFP to assist in the 
transmission of data concerning the household income of the 
children they serve, in accordance with a policy developed by 
the Secretary and with written consent of the children's 
parents or guardians.
     Section 337 would direct FNS to carry out a study 
of the states currently participating in the afterschool supper 
program through CACFP and report to the Congress within a year 
of enactment.
     Section 362 specifies that any institution or 
person that has been terminated from any child nutrition 
program may not be approved to participate in any other child 
nutrition program.

Spending subject to appropriation

    The bill would reauthorize and amend discretionary programs 
previously authorized by the Richard B. Russell National School 
Lunch act and the Child Nutrition Act of 1966 and would 
authorize additional new discretionary programs through 2015. 
As shown in Table 3, CBO estimates that implementing this 
legislation would result in new discretionary outlays of $35.9 
billion--primarily for the WIC program--over the 2011-2015 
period, assuming the appropriation of the necessary amounts. 
The projected annual funding of $7.7 billion to $8.0 billion 
per year under the bill compares to the level of roughly $7.3 
billion that was appropriated for WIC in 2010.

           TABLE 3.--SPENDING SUBJECT TO APPROPRIATION UNDER THE HEALTHY, HUNGER-FREE KIDS ACT OF 2010
----------------------------------------------------------------------------------------------------------------
                                                          By fiscal year, in millions of dollars--
                                          ----------------------------------------------------------------------
                                             2010      2011      2012      2013      2014      2015    2010-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATIONReauthorize WIC:
    Estimated Authorization Level........         0     7,317     7,390     7,470     7,557     7,673     37,407
    Estimated Outlays....................         0     5,451     6,604     7,405     7,489     7,597     34,546
Other WIC Provisions:
    Estimated Authorization Level........         0       240       243       253       260       269      1,265
    Estimated Outlays....................         0       181       219       250       256       265      1,171
New Grants:
    Estimated Authorization Level........         0        85         5         5         5         5        105
    Estimated Outlays....................         0        21        21        21        21        21        105
Administrative Costs:
    Estimated Authorization Level........         1        36        11        11        11        11         81
    Estimated Outlays....................         0        17        16        16        16        16         81
Studies and Demonstrations:
    Estimated Authorization Level........         0        10         1         1         1         1         14
    Estimated Outlays....................         0         4         5         3         1         1         13
    Total Changes:
        Estimated Authorization Level....         1     7,688     7,650     7,740     7,834     7,959     38,872
        Estimated Outlays................         0     5,674     6,865     7,694     7,783     7,900     35,916
----------------------------------------------------------------------------------------------------------------

    WIC Reauthorization. This bill would reauthorize and make 
changes to the Special Supplemental Nutrition Program for 
Women, Infants, and Children. WIC provides supplemental foods, 
health care referrals, and nutrition education to pregnant and 
post-partum women with low income and infants and children up 
to 5 years of age.
    The bill would reauthorize the appropriation of such sums 
as may be necessary for WIC. For fiscal year 2010, the Congress 
appropriated about $7.3 billion for WIC. Based on historical 
spending patterns and adjusting for anticipated inflation, CBO 
estimates that reauthorizing WIC would cost about $34.5 billion 
over the 2011-2015 period, assuming appropriation of the 
authorized amounts.
    Other WIC Provisions. The bill would make several other 
changes to the WIC program that CBO estimates would cost $1.2 
billion over the 2011-2015 period.
    Certification. The bill would allow states to certify 
children participating in WIC for a period of up to one year. 
Under current law, children are only certified for six months 
and must be re-certified to continue receiving benefits. CBO 
expects this provision would increase the number of children in 
the program at any one time by retaining children who might not 
have been re-certified. CBO estimates that implementing this 
provision would cost $372 million over the 2011-2015 period, 
assuming the appropriation of the necessary amounts.
    Infrastructure. The bill would authorize the appropriation 
of $134 million for 2010 for infrastructure and management 
information systems and would further allow the authorization 
of appropriations to grow by inflation from 2011 through 2015. 
(In 2010, the Congress provided $157 million for those 
activities.) The bill also would require states to implement 
electronic benefits transfer systems by 2020, unless granted an 
exemption from the Secretary. CBO expects that the funds 
necessary to implement the electronic benefits transfer systems 
would be provided from the funds authorized for infrastructure 
and management information systems. CBO estimates that 
implementing this provision would cost $652 million over the 
2011-2015 period, assuming appropriation of the authorized 
amounts.
    Farmers' Market Nutrition Program. The bill would authorize 
the appropriation of such sums as are necessary for the 
Farmers' Market Nutrition Program (FMNP). The FMNP operates in 
45 states and Indian Tribal Organizations and provides benefits 
to WIC participants to purchase fresh, unprepared, locally 
grown products at farmers' markets. The program received an 
appropriation of $20 million in fiscal year 2010. CBO estimates 
that reauthorizing the FMNP would cost $101 million over the 
2011-2015 periods, assuming appropriation of the estimated 
amounts.
    Evaluation. The bill also would authorize appropriations 
for WIC evaluation funds and would increase the maximum cap on 
expenditure from $5 million to $15 million. CBO estimates that 
funding for this provision would cost $46 million over the 
2011-2015 period, assuming appropriation of the authorized 
amounts.
    New Grants. Several provisions in the bill would authorize 
a combined $105 million in funding for new grant programs 
related to nutrition and school means. CBO estimates that 
implementing those grant programs would cost $105 million over 
the 2011-2015 period, assuming appropriation of the necessary 
amounts.
      Section 113 would authorize the appropriation of 
$20 million for competitive grants to provide technical 
assistance and improve retention of sponsors in the SFSP.
      Section 142 would authorize the appropriation of 
such sums as are necessary for 2011 through 2014 for a 
competitive grant program to combat childhood hunger. Based on 
the costs of similar grant programs, CBO estimates that 
implementing the State Childhood Hunger Challenge Grants would 
cost $50 million over the 2011-2015 period.
      Section 210 would authorize the appropriation of 
$10 million for the Secretary to provide competitive grants to 
school food authorities for a pilot program to increase the 
availability of organic foods in the NSLP.
      Section 243 would authorize the appropriation of 
such sums as are necessary for a grant program to increase 
access to locally grown foods in school meal programs. This 
authority would be in addition to the annual $5 million in 
mandatory funds provided for the same purpose in this bill. CBO 
estimates that implementing this provision would cost $25 
million over the 2011-2015 period.
    Administrative Costs. Three provisions would reauthorize 
existing authority for the appropriation of funds for 
administrative costs at a total cost of $81 million over the 
2010-2015 period, assuming appropriation of the necessary 
amounts, CBO estimates.
      Section 403 would authorize funding of $1 million 
per year for procurement training beginning in 2010.
      Section 408 would authorize funding for 
compliance and accountability reviews for institutions 
participating in any child nutrition program. It also would 
increase the authorization of appropriations from $6 million to 
$10 million per year, beginning in 2011.
      Section 421 would authorize the appropriation of 
such sums as are necessary for technology infrastructure 
grants. CBO estimates that implementing this provision would 
cost $25 million over the 2011-2015 period.
    Studies and Demonstrations. The bill also would authorize 
funding for studies and demonstrations at a total cost of $13 
million over the 2011-2015 period, CBO estimates, assuming 
appropriation of the necessary amounts.
      Section 204 would authorize $3 million in fiscal 
year 2011 for the Department of Agriculture to conduct a study, 
in conjunction with the Centers for Disease Control and 
Prevention, on the effectiveness of school wellness policies.
      Section 209 would authorize such sums as are 
necessary to provide information to the public on the school 
nutrition environment. Based on similar programs, CBO estimates 
that implementing this provision would cost $8 million over the 
2011-2015 period.
      Section 244 would authorize the appropriation of 
such sums as are necessary for the Department of Agriculture, 
in consultation with the Department of Health and Human 
Services, to establish a research and demonstration project on 
behavioral economics as it relates to food service in schools. 
Based on spending patterns in similar projects, CBO estimates 
that implementing this provision would cost $2 million over the 
five-year period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

      TABLE 4.--CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR THE HEALTHY, HUNGER-FREE KIDS ACT OF 2010, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON
                                                 AGRICULTURE, NUTRITION, AND FORESTRY ON MARCH 24, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           By fiscal year, in millions of dollars--
                                    --------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2010-    2010-
                                       2010     2011     2012     2013     2014     2015     2016     2017     2018     2019     2020     2015     2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go-Impact.....        0      -92     -166      115      141       70       33       -1      -29      -38      -44       68      -11
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
For large entitlement programs like child nutrition programs, 
the Unfunded Mandates Reform Act defines an increase in the 
stringency of conditions as an intergovernmental mandate if the 
affected governments lack authority to offset those costs while 
continuing to provide required services. The bill would alter, 
and in several cases increase, conditions for receiving 
assistance under child nutrition programs. Because states and 
schools have limited flexibility to amend their programmatic or 
financial responsibilities in the program, the new requirements 
would be intergovernmental mandates. In aggregate, CBO 
estimates that the costs to governmental entities would exceed 
the annual threshold established in UMRA ($70 million in 2010, 
adjusted annually for inflation) beginning in 2012.

Mandates

    The bill would impose a mandate on schools by requiring 
schools to comply with nutrition standards for all foods sold 
in schools and on school campuses, at any time during the 
school day. Those standards also would apply to meals served 
outside the school meal program (for instance, foods sold 
through vending machines, school stores, snacks bars, and a la 
carte sales). Sales from those foods account for the majority 
of revenues--over $2 billion annually--that schools generate 
from foods sold outside the school meal program. To comply with 
the nutrition standards, CBO estimates that schools would lose 
revenues of more than $100 million, annually, beginning the 
first year the regulations took effect.
    The bill also would require schools to comply with new 
standards for operating school meal programs as well as new 
standards for activities conducted outside the current 
regulatory authority of the child nutrition program. For 
example, the bill would require schools to:
            Make potable water available, free of 
        charge, to children at meal times,
            Provide meals that comply with new menu 
        planning and nutrition standards,
            Extend food safety standards to any 
        facilities that store, prepare, or serve food, and
            Comply with new federal pricing standards 
        for school meals that are provided to children who are 
        not approved for federal benefits.
    Schools would incur costs to comply with these new 
requirements. The most significant cost would result from 
increases in food and labor costs associated with meeting the 
new nutrition standards. Based on data from schools that have 
adopted policies that improved the nutritional quality of 
meals, CBO estimates schools would incur costs between $200 
million and $400 million annually in the first year the 
requirements took effect. Schools that comply with the new menu 
planning and nutrition standards would, however, received an 
increase in federal reimbursement, approximately $300 million 
beginning in 2013. In addition, some schools would generate 
additional revenues from the increase in prices charged to 
children who are not approved for federal benefits.
    Finally, states that implement the school lunch and 
breakfast programs are responsible for carrying out 
administrative duties including overseeing schools that operate 
the programs. The bill would require states to increase the 
number of eligible children who are approved for free meals 
because of their participation in other federal programs. It 
also would require states to meet new standards for hiring and 
training staff, and certify schools that meet new federal 
requirements for meals. CBO estimates that the costs to states 
to comply with these mandates would be less than $50 million 
annually. The bill also would provide federal funds to states 
for implementing some of those responsibilities.

Other impacts

    States and schools would benefit from other provisions in 
the bill that authorize grant funds and reauthorize the WIC 
program. New requirements on state WIC programs, including cost 
containment measures and electronic benefit transfers, would 
not constitute intergovernmental mandates because they would 
result from voluntary participation in a federal program.
    Estimated impact on the private sector: The bill would 
impose a mandate, as defined in UMRA, on the private sector 
requiring entities selling food on the school campus or at any 
time during the school day to comply with science-based 
standards established by the Secretary of Agriculture. Because 
of uncertainties about the standards that the Secretary would 
establish under this legislation, CBO cannot determine whether 
the costs to the private sector would exceed the threshold 
established in UMRA ($141 million in 2010, adjusted annually 
for inflation).
    Estimate prepared by: Federal costs: Nutrition programs--
Kathleen FitzGerald, Emily Holcombe, and Jennifer Reynolds 
EQIP--Jim Langley; Impact on state, local, and tribal 
governments: Lisa Ramirez-Branum; Impact on the private sector: 
Keisuke Nakagawa.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                   Congressionally-Directed Spending

    In accordance with rule XLIV of the Standing Rules of the 
Senate, on March 18 2010, the Chairman and Ranking Member 
notified each Senate office of the need to supply information 
concerning any congressionally-directed spending request 
associated with the markup of this bill. No such requests were 
made.

                           Regulatory Impact

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

Individuals and businesses affected

    The Committee anticipates no major increase in regulatory 
burden to individuals, and believes that many children who are 
members of households receiving benefits through the Medicaid 
program, who are enrolled in schools with high proportions of 
students participating in school meal programs at no charge or 
reduced price, foster children who are currently not 
participating in school meals, as well as others, will benefit 
economically and nutritionally from the bill. Other 
requirements of the bill that would mandate changes to current 
operations will fall mainly on school food authorities and 
other eligible community-based operators of child nutrition 
programs, as well as vendors in the WIC program who will be 
required to utilize electronic benefit transfer systems to 
redeem WIC benefits. The Committee believes that, overall, the 
changes made by the bill will modestly increase the 
administrative burden for some school food authorities and 
other institutions, and ultimately ease burden for WIC vendors 
as electronic benefit systems are implemented.

Economic impact on individuals, consumers and businesses

    As noted above, in those instances where an increase in 
regulatory burden does result from provisions in the bill, the 
incremental increase in regulatory burden would fall mainly on 
school food authorities and other eligible community-based 
operators of child nutrition programs. The Committee believes 
that the increased cost in compliance with the additional 
requirements would in many cases be offset by the additional 
funding provided in the bill as well as reductions in 
administrative and paperwork and increased technical assistance 
associated with other provisions. For the WIC electronic 
benefit transfer mandate, the bill prohibits the cost of 
certain equipment or systems from being imposed on WIC vendors.

Impact on personal privacy

    The Committee believes that the bill would have minimal 
impact on personal privacy.

Amount of additional paperwork

    The Committee does not anticipate a major increase in 
paperwork burdens resulting from the passage of this 
legislation. For certain schools, institutions, and families, 
the Committee anticipates a decrease in paperwork associated 
with participation in child nutrition programs as a result of 
provisions included in the Committee bill.

                       Section-by-Section Summary

                TITLE I--A PATH TO END CHILDHOOD HUNGER

               SUBTITLE A--NATIONAL SCHOOL LUNCH PROGRAM

Section 101. Improving direct certification

    This section amends section 9(b)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) to 
make a technical amendment and to (1) require that the 
Secretary provide performance awards (funded at $4 million for 
each of fiscal years 2012, 2013, and 2014) to States with 
``outstanding performance'' or ``substantial improvement'' in 
direct certification for free school meals of children 
receiving other public assistance benefits; (2) establish 
performance benchmarks and add a requirement for ``continuous 
improvement plans'' for States with direct certification rates 
below these benchmarks; and (3) clarify that direct 
certification for free school meals must require no action on 
the part of a child's household, including return of a letter 
to the school.

Section 102. Categorical eligibility of foster children

    This section amends sections 9(b) and 9(d) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1758(b) and 
(d)) to confer categorical eligibility for free school meals on 
foster children whose care and placement is the responsibility 
of a State foster care agency or a court.

Section 103. Direct certification for children receiving Medicaid 
        benefits

    This section amends section 9(b) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)) by adding a new 
paragraph (15) to establish a demonstration project to 
determine the effectiveness of directly certifying children for 
free school meals using household income data from Medicaid. 
Local educational agencies selected for the demonstration 
project will directly certify for free school meals all 
children who are receiving Medicaid and whose household income 
(as measured by Medicaid before the application of any expense 
disregard, block disregard, or other income disregard), does 
not exceed 133 percent of the federal poverty line. State 
educational agencies with local educational agencies selected 
for participation in the demonstration project will enter into 
an agreement with the Medicaid state agency no later than July 
1 of their first year of participation. The demonstration 
project is phased in as follows: (1) During the 2012-2013 
school year, areas selected by the Secretary for the 
demonstration will, in the aggregate, serve 2.5% of the 
students currently certified for free or reduced price school 
meals nationally; (2) in the 2013-2014 school year, the 
selected areas will serve a total of 5% of students certified 
for free or reduced price meals; and (3) in the 2014-2015 
school year and subsequent school years, selected areas will 
serve a total of 10% of these students. The Committee 
recognizes the Secretary is unlikely to be able to select local 
educational agencies with enrollments that collectively equal 
the specified percentage exactly, but expects the Secretary to 
come as close as possible in order to fulfill the goals of this 
section.
    This section also requires the Secretary to estimate the 
cost of direct certification with Medicaid for each of two 
years of the demonstration project, and to submit a report no 
later than October 1, 2014, on the results of the demonstration 
project. $5 million in mandatory funds is provided for the 
report.
    This section also provides the Secretary with access to the 
educational and other records of State and local educational 
and other agencies receiving funds or providing benefits under 
the Richard B. Russell National School Lunch Act or the Child 
Nutrition Act of 1966, and income and program participation 
information from Medicaid agencies, to carry out the 
demonstration project. This section makes technical amendments 
to Section 1902(a)(7) of the Social Security Act (42 U.S.C. 
1396a(a)(7)) and Section 444(b)(1) of the General Education 
Provisions Act (20 U.S.C. 1232g(b)(1)) to facilitate 
implementation.

Section 104. Eliminating individual applications through community 
        eligibility

    Subsection (a) amends section 11(a)(1) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)) by 
creating a new subparagraph (F), which establishes a new 
mechanism by which schools or local educational agencies with 
high proportions of low-income children may be reimbursed for 
meals they provide based on their percentage of ``identified 
students''. For the purposes of this section, ``identified 
students'' are students who are certified for the free school 
meals based on documentation of their receipt of other 
benefits, including students directly certified based on 
receipt of benefits from the Supplemental Nutrition Assistance 
Program, Temporary Assistance for Needy Families cash 
assistance program, or the Food Distribution Program on Indian 
Reservations, as well as students whose free meal eligibility 
is determined based on information from the homeless or migrant 
liaison, information from a provider of services under the 
Runaway and Homeless Youth Act, or based on participation in 
Head Start or Early Head Start. The number of ``identified 
students'' is reported annually to the Secretary by State 
agencies on the Form FNS-742 (School Food Authority 
Verification Summary Report) under the category ``free eligible 
who are not subject to verification'', which should minimize 
any additional reporting burden of this provision.
    Subsection (b) amends section 11 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1759a) by adding a new 
subsection (g), which provides that schools with high 
proportions of low-income children may be reimbursed for meals 
they provide based upon data gathered through sources other 
than school meal applications, including income data provided 
through the U.S. Census Bureau. To the maximum extent 
practicable, the Secretary must identify alternatives to daily 
counting of meals served by category (free, reduced-price, 
paid) and the use of annual applications as the basis for 
eligibility for free or reduced-price school meals. These 
alternatives must consider recommendations relating to the use 
of the Census Bureau's American Community Survey for use by 
schools that provide accurate and effective means of providing 
meals consistent with the eligibility status of students. Such 
recommendations may be carried out through changes in program 
rules or demonstration projects.

                SUBTITLE B--SUMMER FOOD SERVICE PROGRAM

Section 111. Alignment of eligibility rules for public and private 
        sponsors

    This section amends section 13(a)(7) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1761(a)(7)) to 
eliminate an existing limitation on private nonprofit Summer 
Food Service Program sponsors pertaining to the number of sites 
that they may operate. Under current law, private nonprofit 
sponsors may not operate more than 25 sites and each site is 
restricted to not more than 300 children. Eliminating the 
existing site limit on private nonprofit sponsors aligns 
sponsoring rules for both public and private nonprofit Summer 
Food Service Program sponsors.

Section 112. Outreach to eligible families

    This section amends section 13(a) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(a)) to require State 
agencies administering the National School Lunch Program to 
ensure that school food authorities conduct various types of 
outreach to inform families of the availability and location of 
summer food service program meal sites and the availability of 
the School Breakfast Program. The Committee recognizes that, 
despite the availability of the School Breakfast Program in 
most schools throughout the country, many eligible children do 
not participate in this valuable program. The Committee urges 
the Secretary to utilize this provision, and to conduct other 
appropriate outreach, in order to improve participation in the 
School Breakfast Program among eligible children.

Section 113. Summer food service support grants

    This section amends section 13(a) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(a)) by adding a new 
paragraph (12) which authorizes appropriations of $20 million 
for fiscal years 2011 through 2015 for competitive grants to 
States for the Summer Food Service Program. Grants may be used 
to provide summer program sponsors with technical assistance, 
assistance with site improvement costs, and other innovative 
activities that improve and encourage sponsor retention. In 
making grants, the Secretary if required to give priority to 
applicant States with (1) significant low-income child 
populations; and (2) plans that include innovative approaches 
to retain and support programs after the grant funds expire.

             SUBTITLE C--CHILD AND ADULT CARE FOOD PROGRAM

Section 121. Simplifying area eligibility determinations in the Child 
        and Adult Care Food Program

    This section amends section 17(f)(3)(A)(ii)(I)(bb) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(f)(3)(A)(ii)(I)(bb)) to expand the types of income data 
which are allowed to make area eligibility determinations in 
the Child and Adult Care Food Program. Under current law, 
``tier I'' family day care homes--homes served by a low-income 
provider or located in a geographic area in which at least 50 
percent of the children residing in that area are eligible to 
receive free or reduced price meals--receive higher 
reimbursement for meals served. A variety of income data 
sources may be used for purpose of establishing this 
eligibility, including elementary school enrollment data, 
census tracts, the child care provider's income, or household 
income of the child. This section expands the allowable sources 
of income information to include data from secondary schools.

Section 122. Expansion of afterschool meals for at-risk children

    This section amends section 17(r) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(r)) to expand to all 
state agencies the authority for the Secretary to reimburse 
child care providers participating in the Child and Adult Care 
Food Program at-risk afterschool program for meals served to 
children during afterschool hours. This section also requires 
the Secretary, within 180 days of enactment and each year 
thereafter, to issue guidelines and a handbook for at-risk 
afterschool programs.

SUBTITLE D--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
                              AND CHILDREN

Section 131. Certification periods

    This section amends section 17(d)(3)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(A)) to allow state 
WIC agencies to certify participant children for up to one year 
if the child receives regular health and nutrition assessments.

                       SUBTITLE E--MISCELLANEOUS

Section 141. Childhood Hunger Research

    This section amends the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.) by adding a new section 23, 
Childhood Hunger Research, to establish a grant program to 
conduct research on the causes and consequences of childhood 
hunger and food insecurity, as well as the characteristics of 
households with childhood hunger and food insecurity. The 
Secretary is authorized to enter into competitively awarded 
contracts or cooperative agreements, or provide grants to other 
entities under terms and conditions established by the 
Secretary in order to conduct the research. Mandatory funding 
of $10 million is provided for this program.
    This section also requires the Secretary to carry out 
demonstration projects that test innovative strategies to end 
childhood hunger, including alternative models for service 
delivery and benefit levels that promote the reduction or 
elimination of childhood hunger and food insecurity. The 
Secretary is authorized to enter into competitively awarded 
contracts or cooperative agreements with or provide grants to 
various entities to carry out the projects. At least one of the 
demonstration projects will be carried out on a rural Indian 
reservation with a high prevalence of diabetes. Each 
demonstration project awarded funding under the program shall 
be independently evaluated. Mandatory funding of $40 million is 
provided for these projects. The Committee encourages the 
Secretary to utilize a portion of the funds provided by this 
section to test innovative projects during hours when children 
are out of school, including weekends and holiday breaks.

Section 142. State Childhood Hunger challenge grants

    This section amends the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.) by adding a new section 24. 
Subject to appropriations, funds provided under this section 
will be used by the Secretary to award competitive grants or 
cooperative agreements with Governors to carry out 
comprehensive and innovative strategies to end childhood 
hunger, including alternative models for service delivery and 
benefit levels that promote the reduction or elimination of 
childhood hunger. Each project awarded a grant or cooperative 
agreement shall provide for (1) a baseline and annual 
assessments of the prevalence of childhood hunger in the State; 
(2) a collaborative planning process in the State; (3) an 
annual budget; (4) performance goals; and (5) an independent 
outcome evaluation. In developing criteria for these grants, 
the Secretary is required to consult with Secretaries from the 
U.S. Departments of Health and Human Services, Labor, 
Education, and Housing and Urban Development. The Secretary 
will provide a status report annually beginning December 31, 
2011, and ensure that evaluation results are shared broadly to 
promote the wide use of successful strategies.

Section 143. Review of local policies on meal charges and provision of 
        alternate meals

    This section requires the Secretary, in conjunction with 
States and participating local educational agencies, to examine 
the current policies and practices of States and local 
educational agencies regarding extending credit to children to 
pay for their reimbursable meals, and providing non-
reimbursable meals to children without cash on hand. Based on 
this review, the Secretary will prepare a report and may 
implement national standards for meal charges and the provision 
of alternate meals. In determining whether to implement 
national standards, the Secretary must consider the impact on 
overt identification of low-income children, the manner in 
which the affected households will be provided assistance in 
establishing eligibility for free or reduced price meals, and 
the potential financial impact on local educational agencies.

    TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF 
                                CHILDREN

               SUBTITLE A--NATIONAL SCHOOL LUNCH PROGRAM

Section 201. Performance-based reimbursement rate increases for new 
        meal patterns

    This section amends section 4(b) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1753(b)) to establish a 
timeframe for the Secretary to promulgate proposed, as well as 
interim or final regulations to update the meal patterns and 
nutrition standards for the school lunch and school breakfast 
programs based on recommendations made by the Food and 
Nutrition Board of the National Research Council of the 
National Academy of Sciences. It provides an increase of 6 
cents per lunch in federal cash reimbursements, adjusted for 
inflation in future years, for those schools that meet the new 
meal patterns. $50,000,000 in mandatory funds is provided in 
each of two fiscal years for State activities related to 
training, technical assistance, certification, and oversight 
activities, of which the Secretary may reserve $3,000,000 per 
fiscal year to support Federal administrative activities to 
carry out this section.

Section 202. Nutrition requirements for fluid milk

    This section amends section 9(a)(2)(A) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(a)(2)(A)) to 
require that meals served under the Richard B. Russell National 
School Lunch Act offer a variety of fluid milk that is 
consistent with the Dietary Guidelines for Americans.

Section 203. Water

    This section amends section 9(a) of the Richard B. Russell 
National School Lunch Act by adding a new paragraph (5), which 
requires schools participating in the National School Lunch 
Program to offer free, potable water for consumption in the 
place of meal service during meal time.

Section 204. Local school wellness policy implementation

    Subsection (a) amends the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1751 et seq.) by adding a new 
Section 9A, which establishes a requirement that each local 
educational agency participating in a program authorized by the 
Richard B. Russell National School Lunch Act or the Child 
Nutrition Act of 1966 establish a local wellness policy for all 
schools under its jurisdiction. In accordance with regulations 
promulgated by the Secretary, local wellness policies must 
include, at a minimum, goals for nutrition education, physical 
activity, and other school-based policies that promote student 
wellness; nutrition guidelines for all foods available on 
school campus during the school day; participation by the local 
community in the development and periodic review of the 
wellness policy; public notification; and periodic assessment 
and reporting. The Secretary is required, in consultation with 
the Department of Education and the Centers for Disease Control 
and Prevention, to provide technical assistance to local 
educational agencies for use in establishing healthy school 
nutrition environments. Subject to the availability of 
appropriations, the Secretary is required to issue a report not 
later than January 1, 2014, on the implementation, strength, 
and effectiveness of the local school wellness policies carried 
out in accordance with this section.
    Subsection (b) repeals section 204 of the Child Nutrition 
and WIC Reauthorization Act of 2004 (42 U.S.C. 1751 note; 
Public Law 108-265), which established a requirement for local 
wellness policies.

Section 205. Equity in school lunch pricing

    This section amends section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760) to establish 
requirements pertaining to the nonfederal contribution required 
of school districts receiving federal reimbursement through the 
National School Lunch Program. To ensure that children 
receiving free and reduced price lunches receive the full value 
of federal funds, this section requires participating school 
districts which have a paid lunch price that is less than the 
difference between the free lunch reimbursement rate and the 
paid lunch reimbursement rate to eventually set paid lunch 
prices such that the total per meal revenue received for those 
lunches is equal to the per meal revenue provided by the 
federal government for free lunches. For those school districts 
in which an increase in the paid lunch price applies, paid 
lunch prices must increase annually by the same inflation 
adjustment factor applied to the federal reimbursement rate, 
plus an additional two percentage points. This section also 
allows school districts to round paid lunch prices down to the 
nearest five cents, and to vary paid lunch prices by school so 
long as on average the revenue requirement is met across the 
district. It also caps the maximum annual price increase 
required in districts which have a paid lunch price that is 
less than the difference between the free lunch reimbursement 
rate and paid lunch reimbursement rate at 10 cents. However, 
the section also permits school districts to increase paid 
lunch prices by more than 10 cents at the option of the school 
district. School districts that charge at least the difference 
between the free lunch reimbursement rate and the paid lunch 
reimbursement rate for paid meals must adjust their prices on 
an annual basis by the inflation adjustment factor used for 
federal reimbursement rates. Participating school food 
authorities may reduce the average price of a paid lunch 
required under this section if the State agency ensures that 
sufficient funding from non-Federal sources (other than in-kind 
contributions) is added to the nonprofit school food service 
account to compensate for the reduction.

Section 206. Revenue from non-program foods sold in school food 
        authorities

    This section amends section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760) by adding subsection 
(q), which requires the percentage of revenues obtained from 
the sale of non-program foods purchased using funds of the 
nonprofit school food service account to equal or exceed the 
percentage of costs associated with obtaining such non-program 
foods. The method set forth in this section to make this 
determination is intended to ease the potential administrative 
burden that separate accounting could entail. This section also 
requires that all revenues from non-program foods accrue to the 
school food service account.

Section 207. Reporting and notification of school performance

    This section amends section 22 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769c) by extending the 
unified accountability system to the school breakfast program 
and specifically requiring that the system review compliance 
with the nutritional requirements established in the Richard B. 
Russell National School Lunch Act and the Child Nutrition Act 
of 1966 for the school lunch and school breakfast programs. 
These reviews must be conducted on a three-year cycle and 
schools must be selected for review based on criteria 
established by the Secretary. Reports of local review findings 
must be made available to the Secretary and the public.

Section 208. Nutrition standards for all foods sold in school

    This section amends section 10 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1779) and requires the Secretary to 
establish by regulation, science-based nutrition standards for 
all foods sold in schools other than foods currently reimbursed 
under the Child Nutrition Act of 1966 of the Richard B. Russell 
National School Lunch Act. Such standards will apply on the 
entire school campus until the end of the school day. In 
establishing nutrition standards, the Secretary is directed to 
establish standards that are consistent with the goals of the 
Dietary Guidelines for Americans, consider authoritative 
scientific research, existing voluntary agreements, and the 
practical application of nutrition standards, and provide for 
exemptions for school sponsored fundraisers if they are 
sanctioned by the school. The Secretary is also required to 
update the standards, as practicable and necessary, following 
the publication of new editions of the Dietary Guidelines for 
Americans.

Section 209. Information for the public on the school nutrition 
        environment

    This section amends section 9 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758) by adding a new 
subsection (k) that requires the Secretary to establish 
requirements for local educational agencies participating in 
the School Lunch or School Breakfast Programs to report 
information about the school nutrition environment to the 
Secretary and to the public on a periodic basis. The 
requirements must include information for all schools on school 
food safety inspections, local wellness policies, meal program 
participation, the nutritional quality of program meals, and 
other information determined by the Secretary. The Secretary 
also must provide training and technical assistance to State 
and local educational agencies on the assessment and reporting 
on the school nutrition environment requirements. This section 
authorizes such sums as are necessary for each of fiscal years 
2011 through 2015.

Section 210. Organic Food Pilot Program

    This section amends section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) by adding a new 
subsection (j) that, subject to appropriations, authorizes $10 
million for fiscal years 2011 through 2015 for the Secretary to 
carry out a pilot program of competitive grants to school food 
authorities to increase the quantity of organic foods provided 
to children through the National School Lunch Program. In 
selecting grant recipients, the Secretary shall give preference 
to applicant school food authorities with greater than 50 
percent of the households in the district at or below the 
Federal poverty line.

             SUBTITLE B--CHILD AND ADULT CARE FOOD PROGRAM

Section 221. Nutrition and wellness goals for meals served through the 
        Child and Adult Care Food Program

    This section establishes new guidelines pertaining to 
health and nutrition promotion in institutions participating in 
the Child and Adult Care Food Program.
    Paragraph (1) amends section 17(a) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(a)) to add a 
findings section and modify the purpose of the program to 
provide aid to child and adult care institutions and family or 
group day care homes for the provision of nutritious foods and 
the maintenance of an overall wellness environment that 
contributes to the healthy growth and development of young 
children, and the health and wellness of older adults and 
chronically impaired disabled persons.
    Paragraph (2) amends section 17(g) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(g)) to 
establish nutritional requirements for reimbursable meals 
provided under the CACFP. The Secretary is required to review 
and, as appropriate, update meal patterns for the Child and 
Adult Care Food Program not less frequently than once every 10 
years to ensure that the meals are consistent with the goals of 
the most recent Dietary Guidelines of Americans and the 
recommendations made by authoritative scientific organizations 
concerning appropriate nutrition standards for foods served to 
children in child care settings. Milk served as a component of 
a reimbursable meal must be provided in accordance with the 
Dietary Guidelines for Americans.
    Paragraph (3) amends section 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766) to add a new 
subsection (u) which establishes requirements for the Secretary 
related to the promotion of nutrition, health and wellness in 
child care centers and homes participating in the Child and 
Adult Care Food Program. The Secretary is required to encourage 
and provide guidance to providers to offer children daily 
opportunities for physical activity, and to limit the use of 
electronic media to an appropriate level. Child care centers 
and homes are required to make drinking water available to 
children throughout the day, including at meal times. Further, 
$10 million in mandatory funds is provided for the Secretary to 
provide technical assistance to sponsoring organizations and 
providers related to nutrition and physical activity, including 
the development of a handbook containing guidelines and best 
practices to promote improved nutrition, health and wellness of 
young children.

Section 222. Interagency coordination to promote health and wellness in 
        child care licensing

    This section requires the Secretary to coordinate with the 
Secretary of Health and Human Services to encourage State child 
care licensing agencies to include nutrition and wellness 
standards within State child care licensing standards.

Section 223. Study on nutrition and wellness quality of child care 
        settings

    This section requires the Secretary, in consultation with 
the Secretary of Health and Human Services, to conduct a 
nationally representative study of child care centers and 
family or group day care homes to assess the nutritional 
quality of foods served to children, as well as the quantity 
and types of physical activity and sedentary activity in which 
children are engaged. It also requires an assessment of the 
barriers and facilitators to: Providing foods that meet the 
Dietary Guidelines, providing opportunities for physical 
activity, and participating in the Child and Adult Care Food 
Program. $5 million in mandatory funds is provided for this 
section.

SUBTITLE C--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
                              AND CHILDREN

Section 231. Support for breastfeeding in the WIC Program

    This section amends section 17 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786) to clarify that breastfeeding support 
and promotion are core program goals and activities in the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children.
    It also amends section 17(h) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(h)) by striking the existing paragraph (4) 
and replacing it with a new paragraph (4), which includes 
several new program responsibilities pertaining to 
breastfeeding promotion in the WIC Program. Clause (vii) of the 
new paragraph (4)(A) requires the Secretary to annually compile 
and publish breastfeeding performance measurements for each 
state agency and each local agency. Clause (viii) of the new 
paragraph (4)(A) requires the Secretary to implement a program 
to recognize exemplary breastfeeding support practices at local 
agencies or clinics participating in the WIC Program. Clause 
(ix) of the new paragraph (4)(A) requires the Secretary to 
implement a program to provide performance bonuses to state 
agencies that achieve the highest proportion of breastfed 
infants or the greatest improvement in the proportion of 
breast-fed infants. Subparagraphs (B) and (C) of the new 
section (4) provide additional direction to the Secretary 
regarding the programs required to be established under clauses 
(viii) and (ix) of paragraph (4)(A).
    This section also amends section 17(h) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)) by striking paragraph 
(10) and replacing it with a new paragraph (10). The new 
paragraph (10) amends funding levels for set-asides for (1) 
infrastructure and special projects; (2) management information 
systems; and (3) special nutrition education projects, 
including breastfeeding peer counselors and breastfeeding 
performance bonuses authorized under clause (ix) of section 
17(h)(4)(A) of the Child Nutrition Act of 1966. The new 
paragraph (10) also indexes each of the set-asides for 
inflation.

Section 232. Review of available supplemental foods

    This section amends section 17(f)(11)(D) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(f)(11)(D)) to specify 
that the Secretary shall conduct a review of supplemental foods 
provided in the Special Supplemental Nutrition Program for 
Women, Infants, and Children no less than every 10 years.

                       SUBTITLE D--MISCELLANEOUS

Section 241. Nutrition Education and Obesity Prevention Grant Program

    This section amends the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.) by removing the existing nutrition 
education program under section 11(f) and adding a new section 
28 at the end. It permits State agencies administering the 
Supplemental Nutrition Assistance Program to implement a 
nutrition education and obesity prevention program for eligible 
individuals that promotes healthy food choices consistent with 
the most recent Dietary Guidelines for Americans. State 
agencies may use funds provided through this section for any 
evidence-based allowable use of funds identified by the 
Administrator of the Food and Nutrition Service of the 
Department of Agriculture in consultation with the Director of 
the Centers for Disease Control and Prevention of the 
Department of Health and Human Services, including individual 
and group-based nutrition education as well as community and 
public health approaches. Mandatory funding for this section is 
set at $375,000,000 for fiscal year 2011, and indexed for 
inflation each fiscal year thereafter. The initial allocation 
of nutrition education funding provided for under this section 
is intended to be proportional for each State to its share of 
total Federal reimbursement for Supplemental Nutrition 
Assistance Program nutrition education activities in fiscal 
year 2009. This determination will be based on the State's 
final fiscal year 2009 SNAP SF-269 reports, which were due to 
the Secretary in February 2010 and serve as the basis for the 
annual close out of the State Administrative Cost grants.

Section 242. Procurement and processing of food service products and 
        commodities

    This section amends section 9(a)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(a)(4)) by 
adding a new subparagraph (C) that requires the Secretary to 
develop and disseminate model product specifications and 
practices for foods offered in the school nutrition programs 
under the Richard B. Russell National School Lunch Act and the 
Child Nutrition Act of 1966 to ensure that the foods reflect 
the most recent Dietary Guidelines for Americans. It also 
requires the Secretary, no later than one year after enactment, 
to conduct a study on the quantity and quality of nutritional 
information available to school food authorities about food 
service products and commodities and to submit a report to 
Congress on the results, including legislative recommendations 
to ensure that school food authorities have access to the 
nutritional information needed for menu planning and compliance 
assessments. This section requires the Secretary to purchase 
the widest practicable variety of healthful foods that reflect 
the most recent Dietary Guidelines when purchasing and 
processing commodities for use in the school nutrition 
programs.

Section 243. Access to local foods: Farm to School Program

    This section amends section 18(g)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769(g)(4)) to 
provide $5 million in mandatory funding for fiscal year 2013 
and each fiscal year thereafter for a program to provide grants 
and technical assistance to schools and nonprofit entities for 
the purpose of establishing farm to school programs. The 
Committee requests that the Secretary review price information 
for produce purchased through Farm-to-School programs, DoD 
Fresh, and general procurement under new local preference 
regulations. To the extent possible, the Committee requests 
that the Secretary report any trends or indicators of the best 
price option among these procurement choices.

Section 244. Research on strategies to promote the selection and 
        consumption of healthy foods

    This section authorizes the Secretary, in consultation with 
the Secretary of Health and Human Services, to establish a 
research, demonstration, and technical assistance program to 
promote healthy eating and reduce the prevalence of obesity by 
applying the principles of behavioral economics research in 
schools, child care programs, and other settings. The Secretary 
may enter into competitively awarded contracts or cooperative 
agreements or provide grants to States or public or private 
agencies or organizations to carry out the program and must 
submit annual reports to Congress that include the policies, 
priorities, and operations of the program, the results of any 
evaluations completed, and the efforts undertaken to 
disseminate successful practices through outreach and technical 
assistance. This section authorizes the appropriation of such 
sums as are necessary for each of fiscal years 2011 through 
2015 to carry out this section.

 TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION 
                                PROGRAMS

               SUBTITLE A--NATIONAL SCHOOL LUNCH PROGRAM

Section 301. Privacy protection

    This section amends section 9(d)(1) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(d)(1)) to 
specify, as a condition of eligibility, that applications for 
free- or reduced-price lunches must include the last four 
digits of the social security number of the primary wage earner 
responsible for the child for whom the application is made.

Section 302. Applicability of food safety program on entire school 
        campus

    This section amends section 9(h)(5) of the Richard B. 
Russell National School Lunch Act to specify that the school 
food safety program established for meals served through the 
National School Lunch Program and the School Breakfast Program 
applies to any facility or part of a facility in which foods 
are stored, prepared, or served for the purposes of the school 
nutrition programs under the Richard B. Russell National School 
Lunch Act or the Child Nutrition Act of 1966.

Section 303. Fines for violating program requirements

    This section amends section 22 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769c) by adding a new 
subsection (e).
    Paragraph (1) of subsection (e) provides authority to the 
Secretary to establish regulations to impose a fine against any 
school food authority, school, or service institution if the 
Secretary determines that it has (1) failed to correct severe 
mismanagement of the program; (2) disregarded a program 
requirement of which it had been informed; or (3) failed to 
correct repeated violations of program requirements. Fines 
imposed under this subsection are graduated, with up to one 
percent of total fiscal year reimbursements imposed for the 
first violation or violations, up to 5 percent of total fiscal 
year reimbursements imposed for the second violation or 
violations, and up to 10 percent of fiscal year reimbursements 
imposed for the third violation or violations.
    Paragraph (2) of subsection (e) provides similar authority 
to the Secretary to impose fines on state agencies 
administering the child nutrition programs by reducing their 
payments for administrative expenses.
    Paragraph (3) of subsection (e) specifies that funds to pay 
fines imposed under paragraphs (1) and (2) must come from non-
federal sources.

Section 304. Independent review of applications

    This section amends section 22(b) of the Richard B. Russell 
National School Lunch Act (42.U.S.C. 1769(b)) by adding a new 
paragraph (6) which requires error prone local educational 
agencies, as determined by the Secretary, to conduct a second, 
independent review of the eligibility determination of each 
free and reduced price application prior to notifying the 
household of the determination. The independent review must be 
completed in a timely manner. It also requires these error 
prone local educational agencies to submit a report on the 
results of independent reviews to the State agency.

Section 305. Program evaluation

    This section amends section 28 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769i) by adding a new 
subsection (c) to require State and local agencies, 
institutions and contractors receiving funding under the 
Richard B. Russell National School Lunch Act or the Child 
Nutrition Act of 1966 to cooperate with the Secretary in the 
conduct of evaluations and studies.

Section 306. Professional standards for school food service

    This section amends section 7 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1776) by replacing 
subsection (g). It requires the Secretary to establish a 
program of required education, training, and certification for 
all local school food service directors, including minimum 
educational requirements, minimum training and certification 
criteria, and minimum periodic training requirements. This 
section also requires the Secretary to establish criteria for 
states to use in the selection of state agency directors 
responsible for the School Lunch Program and School Breakfast 
Program. For both school food service managers and state agency 
directors, the Secretary is required to establish a date of 
mandatory compliance with the new requirements. Compliance with 
selection criteria for state agency directors shall apply only 
to those state directors selected and hired after the effective 
date of the criteria.
    This section also authorizes the Secretary to provide 
financial assistance to one or more professional food service 
management organizations to establish and manage the training 
and certification program. It provides $5 million in mandatory 
funding on October 1, 2010, and $1 million each year 
thereafter, for development and maintenance of the training and 
certification programs. Additionally, it requires the Secretary 
to provide training designed to improve (1) the accuracy of 
approvals for free and reduced price meals; and (2) the 
identification of reimbursable meals at the point of service. 
Local food service personnel, under specifications established 
by the Secretary, are required to complete annual training and 
certification. The Committee expects the training and education 
requirements will not be burdensome, and will be easily 
accessible and available to local school food service 
professionals.

Section 307. Indirect costs

    Subsection (a) requires the Secretary, within 180 days of 
enactment, to issue guidance to school food authorities 
participating in the National School Lunch Program and the 
School Breakfast Program on existing program rules pertaining 
to charging the nonprofit school food service account for 
indirect costs (e.g., trash collection, phone service).
    Subsection (b) requires the Secretary to conduct a study to 
assess (1) the allocation of indirect costs to school food 
authorities participating in the National School Lunch Program 
and the School Breakfast Program; (2) the methodologies used to 
establish such indirect cost rates; and (3) the impact of 
indirect costs on the nonprofit food service account. Following 
the publication of the study, the Secretary may promulgate 
regulations to address (1) any identified deficiencies in the 
allocation of indirect costs; and (2) the authority of school 
food authorities to reimburse only those costs identified by 
the Secretary as reasonable and necessary. Mandatory funding of 
$2 million is provided to conduct the study.

Section 308. Ensuring safety of school meals

    This section amends the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.) by adding a new section 29 
that requires the Secretary, no later than one year after 
enactment, to (1) develop guidelines to determine the 
circumstances under which it is appropriate for the Secretary 
to institute an administrative hold on suspect foods purchased 
by the Secretary for use in the school meal programs; (2) work 
with States to explore ways to increase the timeliness of 
notification of food recalls to schools; (3) improve the 
timeliness of communication between the Food and Nutrition 
Service and States about holds and recalls; and (4) establish a 
timeframe to improve the commodity hold and recall procedures 
of the USDA to address the role of processors and distributors. 
This section also requires the Secretary, no later than one 
year after enactment, to revise the procedures of the Food 
Safety and Inspection Service to ensure that schools are 
included in effectiveness checks.

                SUBTITLE B--SUMMER FOOD SERVICE PROGRAM

Section 321. Summer Food Service Program permanent operating agreements

    This section amends section 13(b) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(b)) to require 
service institutions participating in the Summer Food Service 
Program to enter into permanent operating agreements with the 
applicable State agency. It also establishes parameters for the 
termination of the agreements, and requires that each 
participating institution submit an annual budget for program 
administrative costs, which shall be subject to approval by the 
State agency.

Section 322. Summer Food Service Program disqualification

    This section amends section 13 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761) by adding a new 
subsection (q) to require the Secretary to establish procedures 
for terminating the participation of institutions in the Summer 
Food Service Program. The procedures must include a provision 
for fair and prompt hearings when a State action limits an 
institution's participation in or reimbursement under the 
program. The Secretary also is required to maintain a list of 
institutions and individuals that have been disqualified from 
participation in the program. The list must be made available 
to States for use in approving or renewing program 
applications.

             SUBTITLE C--CHILD AND ADULT CARE FOOD PROGRAM

Section 331. Renewal of application materials and operating agreements

    This section amends sections 17(d) and 17(j)(3) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(d), 42 U.S.C. 1766(j)(3)) to (1) require permanent 
operating agreements between sponsoring organizations and State 
agencies, as well as between sponsoring organizations and 
sponsored child care centers; and (2) modify the frequency with 
which initial applications and follow-up applications must be 
submitted by sponsoring organizations to State agencies; (3) 
eliminate the current on-site review requirements related to 
the submission of block claims by providers; and (4) provide 
the Secretary authority to develop a policy to detect and deter 
false claims submitted by institutions and providers in the 
program.

Section 332. State liability for payments to aggrieved child care 
        institutions

    This section amends section 17(e) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(e)) to require State 
agencies to provide a fair hearing to any participating 
institution aggrieved by actions taken by the State agency 
which affect the institution's participation in, or claims 
submitted for reimbursement under the Child and Adult Care Food 
Program. In the event that a State agency does not provide such 
hearing in accordance with the timeframes established by the 
Secretary, such State agency will be required to pay, out of 
non-federal sources, valid reimbursement claims submitted by 
the aggrieved institution until such hearing is held.

Section 333. Transmission of income information by sponsored family or 
        group day care homes

    This section amends section 17(f)(3)(A)(iii)(III) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(f)(3)(A)(iii)(III)) to permit family day care home 
providers to assist families in transmitting program forms 
which contain income information to the family day care home 
sponsoring organization.

Section 334. Simplifying and enhancing administrative payments to 
        sponsoring organizations

    This section amends section 17(f)(3) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(f)(3)) to 
modify the structure of, and formula used to determine, 
administrative payments made to sponsoring organizations of 
family day care homes. Under current law, sponsoring 
organizations are not allowed to carry over unspent 
administrative funds into the next fiscal year. Additionally, 
sponsors receive the lesser of three different administrative 
formulas: (1) Actual costs incurred in administering the 
program during the fiscal year; (2) the amount specified in an 
administrative budget developed by the sponsoring organization 
for the fiscal year; or (3) the number of homes served by the 
sponsoring organization multiplied by administrative rates 
determined by the Secretary (the ``homes times rate'' formula). 
This section requires all sponsoring organizations to be 
reimbursed according to the ``homes times rate'' formula. 
Additionally, the section permits sponsoring organizations to 
carry over not more than ten percent of their administrative 
funding from the previous fiscal year into the next fiscal 
year. All carryover funds must be used by sponsors within the 
next fiscal year.

Section 335. Child and Adult Care Food Program audit funding

    This section amends section 17(i) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766(i)) to permit the 
Secretary to increase administrative funding to State agencies 
for the purpose of conducting audits of participating Child and 
Adult Care Food Program institutions for fiscal year 2016 and 
each fiscal year thereafter. Under current law, each State 
agency administering the Child and Adult Care Food Program 
receives audit funding in amounts up to 1.5 percent of total 
funds spent on the program in the state during the second 
preceding fiscal year. This section permits the Secretary to 
increase audit funding for State agencies beyond the current 
1.5 percent cap, to no more than 2 percent, provided that the 
State agency can effectively demonstrate to the Secretary that 
such funding would improve program management.

Section 336. Reducing paperwork and improving program administration

    This section requires the Secretary to 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 
Child and Adult Care Food Program. Additionally, the Secretary 
is provided discretion, in conjunction with States and 
institutions participating in the Child and Adult Care Food 
Program, to examine any other aspect of administration of the 
program. It also requires the Secretary to submit a report to 
Congress no later than four years after enactment detailing the 
results of the examination.

Section 337. Study relating to the Child and Adult Care Food Program

    This section requires the Secretary to carry out a study of 
States participating in an afterschool supper program under 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). It requires the Secretary to submit a report to 
Congress, no later than one year after enactment, that 
describes (1) the results of the study; (2) best practices of 
States in soliciting sponsors for an afterschool supper 
program; and (3) any Federal or state laws or requirements that 
may be barriers to participation in the program.

SUBTITLE D--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
                              AND CHILDREN

Section 351. Sharing of materials with other programs

    This section amends section 17(e)(3) of the Child Nutrition 
Act (42 U.S.C. 1786(e)(3)) to authorize State agencies 
administering WIC to permit local WIC agencies or clinics to 
share nutrition education materials with institutions 
participating in the Child and Adult Care Food Program at no 
cost to the Child and Adult Care Food Program. The Committee 
requests that the Secretary advise WIC state agencies that the 
current Dietary Guidelines for Americans urges Americans to 
increase their fruit and vegetable intakes regardless of type 
(fresh, frozen, canned and dried). The Committee also urges the 
Secretary to, within reason, allow various package sizes of WIC 
approved foods that provide greater value than specific sizes 
that are not readily available or purchased by non-WIC 
customers.

Section 352. WIC Program management

    Section 352 makes several amendments to section 17 of the 
Child Nutrition Act of 1966 (42 U.S.C. 1786) for purposes of 
improving WIC Program management.
    Subsection (a) amends section 17(g)(5) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)(5)) by increasing the 
amount of funds available for program evaluation.
    Subsection (b) amends section 17(h)(8) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) by adding 
subparagraph (K) which requires State agencies to report WIC 
rebate payments from infant formula manufacturers in the month 
the payments are received.
    Subsection (c) amends section 17(h)(9) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(9)) to require State 
agencies which institute cost containment measures for 
authorized WIC foods to verify that no additional States are 
added to the State alliance after the initial submission of a 
competitive bid, to have a system in place to ensure that 
rebate invoices under competitive bidding provide a reasonable 
estimate of the number of units sold to participants in the WIC 
program, to open and read aloud all bids at a public 
proceeding, and to provide a minimum of 30 days between the 
publication of the bid solicitation and the day on which the 
bids are due.
    Subsection (d) amends section 17(h)(12) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(12)) to make a number 
of changes designed to improve program operations through 
improvements in technology. This subsection mandates WIC 
electronic benefit transfer (EBT) implementation nationwide by 
October 1, 2020. It also provides new cost sharing provisions 
for State agencies and retailers and requires the development 
of WIC EBT technical standards for States, contractors, and 
vendors. The Committee encourages the Secretary to work closely 
with State agencies to determine their resource needs to 
achieve the goal of nationwide EBT implementation.
    Subsection (e) amends section 17(h)(13) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)(13)) by requiring 
State agencies to use the national universal product code (UPC) 
database established by the Secretary. Mandatory funding of $1 
million each year is provided to develop and support the 
database.
    Subsection (f) amends section 17(i) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(i)) by adding paragraph (8) which 
permits WIC State agencies to use rebates of food funds 
received from infant formula manufacturers during the current 
fiscal year to pay for allowable food expenditures incurred 
during the previous fiscal year. This authority is limited to 
each of fiscal years 2012 and 2013.

Section 353. Efficacy of foods eligible for use under the Special 
        Supplemental Nutrition Program for Women, Infants, and Children

    This section amends section 17(f)(11) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786) by adding a new 
subparagraph (E) to provide the Secretary a mechanism by which 
to ensure that food products offered through the WIC program 
provide benefits relative to their cost.

                       SUBTITLE E--MISCELLANEOUS

Section 361. Full use of Federal funds

    This section amends section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760) by specifying in 
subsection (b) that agreements between the Secretary and State 
agencies administering programs authorized under the Richard B. 
Russell National School Lunch Act or the Child Nutrition Act of 
1966 shall include a provision that supports full use of 
Federal funds provided to State agencies for the administration 
of the programs and excludes the Federal funds from State 
budget restrictions or limitations including, at a minimum, 
hiring freezes, work furloughs, and travel restrictions.

Section 362. Disqualified schools, institutions, and individuals

    This section amends section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760) by adding a new 
subsection (r) that specifies that any school, institution, 
service institution, facility, or individual that has been 
terminated from any program authorized under the Richard B. 
Russell National School Lunch Act or the Child Nutrition Act of 
1966 and is on a list of disqualified institutions or 
individuals under the Summer Food Service Program or the Child 
and Adult Care Food Program may not be approved to participate 
in any program under the Richard B. Russell National School 
Lunch Act or the Child Nutrition Act of 1966.

                        TITLE IV--MISCELLANEOUS

          SUBTITLE A--REAUTHORIZATION OF EXPIRING PROVISIONS.

          PART I--RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

    Part I of subtitle A of title IV reauthorizes expiring 
provisions of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.).

Section 401. Commodity support

    This section amends section 6(e)(1)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) to 
extend through September 30, 2020, authority to classify bonus 
commodity purchases as support which meets the requirement that 
not less than 12 percent of the assistance provided to schools 
participating in the National School Lunch Program be provided 
in the form of commodities.

Section 402. Food safety audits and reports by states

    Paragraph (1) amends section 9(h)(3) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(h)(3)) to 
extend through fiscal year 2015 a requirement for States to (1) 
audit the food safety inspections which schools participating 
in the National School Lunch Program and School Breakfast 
Program are required to conduct; and (2) submit to the 
Secretary a report of the results of the audit.
    Paragraph (2) amends section 9(h)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(h)(4)) to 
extend through fiscal year 2015 a requirement for the Secretary 
to conduct annual audits of food safety reports submitted to 
the Secretary by States.

Section 403. Procurement training

    This section amends section 12(m)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1760(m)(4)) to 
extend through fiscal year 2015 an authorization of 
appropriations to carry out a procurement training program for 
States, State agencies, schools, and school food authorities 
participating in the National School Lunch Program and School 
Breakfast Program.

Section 404. Authorization of the Summer Food Service Program for 
        children

    This section amends section 13(r) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(r)) to extend through 
fiscal year 2015 the authority to provide appropriations for 
activities carried out under the Summer Food Service Program.

Section 405. Year-round services for eligible entities

    This section amends section 18(i)(5) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769(i)(5)) to 
extend through fiscal year 2015 authorization for the Secretary 
to provide to the State of California such sums as are 
necessary to reimburse service institutions for year-round meal 
services provided through the Summer Food Service Program.

Section 406. Training, technical assistance, and Food Service 
        Management Institute

    This section amends section 21 (e) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769b-19(e)) to 
strike an authorization of appropriations and to make various 
conforming amendments. Mandatory funding is increased by an 
additional $1 million per year for the Food Service Management 
Institute.

Section 407. Federal administrative support

    This section amends section 21(g)(1)(A) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1769b-1(g)(1)(A)) 
to provide mandatory funding of $4 million per year for the 
Secretary to conduct training and technical assistance related 
to improving program integrity and administrative accuracy in 
school meals programs, as well as to assist State educational 
agencies in reviewing the administrative practices of local 
educational agencies.

Section 408. Compliance and accountability

    This section amends section 22(d) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769c(d)) to authorize 
appropriations of $10,000,000 for each of fiscal years 2011 
through 2015 for the purposes of carrying out the unified 
system of compliance and accountability for local food service 
authorities that participate in the National School Lunch 
Program.

Section 409. Information clearinghouse

    This section amends section 26(d) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769g(d)) to provide 
$250,000 for each of fiscal years 2010 through 2015 for the 
purposes of maintaining an information clearinghouse.

                  PART II--CHILD NUTRITION ACT OF 1966

    Part II of subtitle A of title IV reauthorizes expiring 
provisions of the Child Nutrition Act of 1966 (42 U.S.C. 1771 
et seq.).

Section 421. Technology infrastructure improvement

    This section amends section 7(i)(4) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1776(i)(4)) to extend through fiscal 
year 2015 an authorization of appropriations for management 
information systems and technology infrastructure improvements 
related to the school meals programs.

Section 422. State administrative expenses

    This section amends section 7(j) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1766(j)) to extend through fiscal year 2015 
an authorization of appropriations for state expenses related 
to the administration of the Special Milk Program, School 
Breakfast Program, National School Lunch Program, and Child and 
Adult Care Food Program.

Section 423. Special Supplemental Nutrition Program for Women, Infants, 
        and Children

    This section amends section 17(g)(1)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)(A)) to extend 
through fiscal year 2015 an authorization of appropriations for 
the purposes of operating the Special Supplemental Nutrition 
program for Women, Infants, and Children.

Section 424. Farmers Market Nutrition Program

    This section amends section 17(m)(9) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(m)(9)) to extend through 2015 an 
authorization of appropriations for the WIC Farmers Market 
Nutrition Program.

                    SUBTITLE B--TECHNICAL AMENDMENTS

    Subsection (a) of Subtitle (B) of title IV makes technical 
changes to remove obsolete provisions of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.).

Section 441. Technical amendments

    Paragraph (1) of subsection (a) amends section 9(f) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1758(f)) to require that schools that participate in the 
National School Lunch Program or School Breakfast Program serve 
lunches and breakfasts that consider the nutrient needs of 
children who may be at risk for inadequate food intake and food 
insecurity.
    Paragraph (2) of subsection (a) amends section 11(a)(3)(B) 
of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1759a(a)(3)(B)) to strike obsolete language pertaining to 
rounding rules for the annual adjustment in average payment 
rates for breakfasts, lunches, and supplements served through 
the National School Lunch Program and School Breakfast Program.
    Paragraph (3) of subsection (a) amends section 11 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1759a) 
to strike subsection (f), which authorized the Secretary to 
provide grants to 10 State agencies in fiscal years 2000 and 
2001 for the purpose of identifying schools likely to benefit 
from participating in the National School Lunch Program through 
provisions 2 and 3.
    Paragraph (4) of subsection (a) amends section 12 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1760) 
to strike subsection (k), which required the Secretary to issue 
final regulations to conform the nutrition requirements of the 
National School Lunch Program and School Breakfast Program with 
the most recent Dietary Guidelines no later than June 1, 1995.
    Paragraph (5) of subsection (a) amends section 13 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1761) 
to make various technical amendments in order to reformat 
subsection 13(a).
    Paragraph (6) of subsection (a) amends section 14(d) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1762a(d)) to strike a provision which requires the Secretary to 
provide a report to Congress on the impact of procedures 
established to ensure that state and school input is secured in 
the selection of school commodity offerings. The report was 
completed and provided to Congress in 1978.
    Paragraph (7) of subsection (a) amends section 17 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766) 
to strike subsection (p), which authorizes the Secretary to 
conduct a pilot program in Nebraska in fiscal years 2006 and 
2007 to determine alternative eligibility thresholds for rural 
area day care home providers to participate in the Child and 
Adult Care Food Program.
    Paragraph (8) of subsection (a) amends section 17(q) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1766(q)) to strike paragraph (3), which authorizes the 
Secretary to reserve $1 million for Child and Adult Care Food 
Program training and technical assistance for each of fiscal 
years 2005 and 2006 in order to assist State agencies in 
improving their program management and oversight.
    Paragraph (9) of subsection (a) amends section 18 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
to strike subsection (a), which authorizes the Secretary to 
conduct pilot projects in not more than three states in which 
the Secretary is administering programs to evaluate the effects 
of contracting with private nonprofit organizations to act as a 
State agency under the National School Lunch Act and Child 
Nutrition Act.
    Paragraph (10) of subsection (a) amends section 18(c) of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 
1769(c)) to strike paragraphs (1) and (2), which authorize the 
Secretary to conduct a pilot project to identify alternatives 
to the standard application and meal counting process.
    Paragraph (11) of subsection (a) amends section 18 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
to strike subsection (d), which authorizes the Secretary to 
conduct a pilot program in at least 25 districts under which 
the milk offered by schools meets the fortification 
requirements for low fat, skim and other forms of milk.
    Paragraph (12) of subsection (a) amends section 18 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
to strike subsection (e), which authorizes the Secretary to 
provide grants to States to conduct pilot projects in 
elementary schools offering free school breakfasts.
    Paragraph (13) of subsection (a) amends section 18 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769) 
to strike subsection (f), which authorizes the Secretary to 
conduct a pilot project to modify residential camp eligibility 
for the Summer Food Service Program at 1 private nonprofit 
residential camp in not more than two states.
    Paragraph (14) of subsection (a) amends section 27 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1769h) 
to repeal the section, which authorizes funding for the 
Secretary to carry out activities to help accommodate special 
dietary needs for fiscal years 1999 through 2003.
    Subsection (b) of Subtitle (B) of title IV makes technical 
changes to remove obsolete provisions of the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et seq.).
    Paragraph (1) of subsection (b) amends section 7(a)(1) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(1)) to 
repeal language relating to State administrative costs in 
fiscal years 2005 through 2007.
    Paragraph (2) of subsection (b) amends section 17(f)(11) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(11)) to 
strike subparagraph (C), which authorizes the Secretary to 
award grants to not more than 10 local sites to evaluate the 
feasibility of including fresh, frozen, or canned fruits and 
vegetables.

Section 442. Environmental Quality Incentives Program

    This section amends section 1241(a)(6) of the Food Security 
Act of 1985 (16 U.S.C. 3841(a)(6)) to provide $1,447,000,000 
for each of fiscal years 2011 and 2012 for the Commodity Credit 
Corporation to carry out the Environmental Quality Incentives 
Program.

Section 443. Budgetary effects

    This section requires that the budgetary effects of this 
Act, for the purpose of complying with the Statutory Pay-As-
You-Go-Act of 2010, be determined by reference to the latest 
statement titled ``Budgetary Effects of PAYGO Legislation'' for 
this Act, submitted for printing in the Congressional Record by 
the Chairman of the Senate Budget Committee, provided that such 
statement has been submitted prior to the vote on passage.

Section 444. Effective date

    This section requires that the provisions included in the 
Healthy, Hunger-Free Kids Act of 2010 take effect on October 1, 
2010, except as otherwise specifically provided in this Act or 
any of the amendments made by this Act.

              Additional, Supplemental, or Minority Views

 ADDITIONAL VIEWS OF SENATORS CHAMBLISS, GRASSLEY, ROBERTS, THUNE, AND 
                                JOHANNS

    While we were pleased the committee was able to unanimously 
report the Healthy, Hunger-Free Kids Act of 2010, we remain 
concerned about using funding from the Environmental Quality 
Incentives Program (EQIP) as an offset for this bill. EQIP is 
highly popular and widely used by farmers, ranchers and private 
forest landowners. It is so popular it had $1.3 billion is 
unfunded applications in fiscal year 2009.
    EQIP was created to help producers comply with local, state 
and federal environmental regulations. It has successfully met 
this goal. For example, in fiscal year 2009, EQIP was used to 
develop more than 2,000 comprehensive nutrient management 
plans. These plans are used by livestock producers to comply 
with the Environmental Protection Agency's (EPA) Concentrated 
Animal Feeding Operation regulation.
    Unfortunately, agriculture is facing many new environmental 
regulations from EPA. For example, the agency has proposed a 
new, unworkable regulation regarding drift from pesticide 
applications. EPA also wants farmers and ranchers to get 
permits to control the greenhouse gas emissions attributed to 
their operations. Further, the agency is planning to require 
producers to get duplicative permits under the Clean Water Act 
in order to apply pesticides.
    The Administration argues that the cuts to EQIP will have 
no practical effect on the ground. This is not accurate. The 
cut will mean fewer producers will receive assistance to 
address the conservation and environmental challenges they 
face. We believe this is not a good time to reduce assistance 
available to producers to deal with current challenges and 
future regulations required by EPA.

                SUPPLEMENTAL VIEWS OF SENATOR GILLIBRAND

    I would like to take this opportunity to state my support 
of the strongest possible child nutrition reauthorization bill. 
This is especially important considering that in a recent 
report the USDA found that 16 percent of households with 
children reported food insecurity. Alongside this deprivation, 
we are also witnessing an obesity rate that is skyrocketing. 
Currently 17 percent of young children are obese. A recent 
report by the Centers for Disease and Control estimates that 
obesity enacts nearly $150 billion a year in increased health 
care costs and lost productivity for our nation.
    President Obama has identified his priority in working with 
Congress to significantly increase funding for child nutrition 
programs. The administration has proposed an increase of $10 
billion, which would help make necessary and urgent strides 
towards improving quality and access to nutritious food for our 
nation's neediest children. I support the President's target.
    I would also like to take this opportunity to state my 
position on the urgent need to ban trans fats from school 
lunches. Many schools still serve foods containing artificially 
created trans fats, an artery clogging product originally used 
to extend the shelf life of food, provide texture and decrease 
cost. The American Heart Association recommends that an 
individual should have, at most, 2 grams of trans fats a day. 
Small amounts of trans fats occur naturally in meat and dairy 
products, so a typical diet leaves virtually no room for 
artificial trans fats. Although a person may not get heart 
disease until they are in their 40s, research by the University 
of Maryland has shown that kids as young as 8, 9 and 10 already 
have the high cholesterol and blood fats that clog arteries. 
The American Heart Association states that trans fats cost this 
country $500 million per year, and the New England Journal of 
Medicine reports that 6-19% less heart attacks would occur each 
year if trans fats were banned. Currently, there are no trans 
fat guidelines or requirements for the School Meal Programs, 
and this is harming our children's health. The time is now for 
USDA to remove artificial trans fats from school lunches.
    I am also concerned with the SNAP-Ed program offset since 
it would eliminate federal government matching for state funded 
nutrition education activities. Nutrition education is an 
essential component of promoting healthy eating and living for 
today's children, which are the future of our country. We 
cannot afford to maintain our current obesity rates, which 
currently cost this country $150 billion per year. Just as our 
obesity rates are rising, these associated costs are rising. 
This vital component of the food stamp program helps families 
gain more control over their lives, and promotes good behaviors 
that can reduce obesity and other diet-related disease. We need 
to invest in nutrition today, to save our nation's health and 
dollars in the future.

         SUPPLEMENTAL VIEWS OF SENATORS GILLIBRAND AND STABENOW

    EQIP is a highly popular program that is widely used by 
farmers, ranchers and forest landowners nationwide. The fact 
that there were $1.3 billion in unfunded applications in 2009 
is testament to the program's potential in conserving our 
nation's agricultural lands and private forests. This voluntary 
program helps farmers improve air quality, forest health, 
grazing lands health, groundwater quality, wildlife habitat, 
plant population health, soil quality, surface water quality, 
water quantity, wetlands health, and provides other invaluable 
benefits. The community health benefits of maintaining clean 
recreational space, the economic benefits of keeping our 
agricultural community thriving, and the urban/rural benefits 
of clean watersheds for safe drinking water should not be 
sacrificed. We do not support the precedent of using 
conservation funds as a bank account to pay for other projects.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that, in its 
opinion, it is necessary to dispense with the requirements of 
that paragraph in order to expedite the business of the Senate.

                                  
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