[Federal Register Volume 83, Number 139 (Thursday, July 19, 2018)]
[Notices]
[Pages 34105-34108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15465]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


National School Lunch, Special Milk, and School Breakfast 
Programs, National Average Payments/Maximum Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the annual adjustments to the national 
average payments, the amount of money the Federal Government provides 
States for lunches, afterschool snacks, and breakfasts served to 
children participating in the National School Lunch and School 
Breakfast Programs; to the maximum reimbursement rates, the maximum per 
lunch rate from Federal funds that a State can provide a school food 
authority for lunches served to children participating in the National 
School Lunch Program; and to the rate of reimbursement for a half-pint 
of milk served to non-needy children in a school or institution that 
participates in the Special Milk Program for Children. The annual 
payments and rates adjustments for the National School Lunch and School 
Breakfast Programs reflect changes in the Food Away From Home series of 
the Consumer Price Index for All Urban Consumers. The annual rate 
adjustment for the Special Milk Program reflects changes in the 
Producer Price Index for Fluid Milk Products. Further adjustments are 
made to these rates to reflect higher costs of providing meals in 
Alaska, Hawaii and Puerto Rico. The payments and rates are prescribed 
on an annual basis each July.

DATES: These rates are effective from July 1, 2018 through June 30, 
2019.

FOR FURTHER INFORMATION CONTACT: Jessica Saracino, Branch Chief, 
Program Monitoring and Operational Support

[[Page 34106]]

Division, Child Nutrition Programs, Food and Nutrition Service, U.S. 
Department of Agriculture, 3101 Park Center Drive, Room 640, 
Alexandria, VA 22302-1594.

SUPPLEMENTARY INFORMATION: 

Background

    Special Milk Program for Children--Pursuant to section 3 of the 
Child Nutrition Act of 1966, as amended (42 U.S.C. 1772), the 
Department announces the rate of reimbursement for a half-pint of milk 
served to non-needy children in a school or institution that 
participates in the Special Milk Program for Children. This rate is 
adjusted annually to reflect changes in the Producer Price Index for 
Fluid Milk Products, published by the Bureau of Labor Statistics of the 
Department of Labor.
    National School Lunch and School Breakfast Programs--Pursuant to 
sections 11 and 17A of the Richard B. Russell National School Lunch 
Act, (42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773), the Department annually announces the 
adjustments to the National Average Payment Factors and to the maximum 
Federal reimbursement rates for lunches and afterschool snacks served 
to children participating in the National School Lunch Program and 
breakfasts served to children participating in the School Breakfast 
Program. Adjustments are prescribed each July 1, based on changes in 
the Food Away From Home series of the Consumer Price Index for All 
Urban Consumers, published by the Bureau of Labor Statistics of the 
Department of Labor.
    Lunch Payment Levels--Section 4 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1753) provides general cash for food 
assistance payments to States to assist schools in purchasing food. The 
Richard B. Russell National School Lunch Act provides two different 
section 4 payment levels for lunches served under the National School 
Lunch Program. The lower payment level applies to lunches served by 
school food authorities in which less than 60 percent of the lunches 
served in the school lunch program during the second preceding school 
year were served free or at a reduced price. The higher payment level 
applies to lunches served by school food authorities in which 60 
percent or more of the lunches served during the second preceding 
school year were served free or at a reduced price.
    To supplement these section 4 payments, section 11 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1759(a)) provides 
special cash assistance payments to aid schools in providing free and 
reduced price lunches. The section 11 National Average Payment Factor 
for each reduced price lunch served is set at 40 cents less than the 
factor for each free lunch.
    As authorized under sections 8 and 11 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1757 and 1759a), maximum 
reimbursement rates for each type of lunch are prescribed by the 
Department in this Notice. These maximum rates are to ensure equitable 
disbursement of Federal funds to school food authorities.
    Performanced-Based Reimbursement--In addition to the funding 
mentioned above, school food authorized certified as meeting the meal 
pattern and nutrition standard requirements set forth in 7 CFR 210 and 
220 are eligible to receive performance-based cash assistance for each 
reimbursable lunch served (an additional six cents per lunch available 
beginning October 1, 2012, and adjusted annually thereafter).
    Afterschool Snack Payments in Afterschool Care Programs--Section 
17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1766a) establishes National Average Payments for free, reduced price 
and paid afterschool snacks as part of the National School Lunch 
Program.
    Breakfast Payment Factors--Section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773) establishes National Average Payment Factors for 
free, reduced price, and paid breakfasts served under the School 
Breakfast Program and additional payments for free and reduced price 
breakfasts served in schools determined to be in ``severe need'' 
because they serve a high percentage of needy children.

Adjusted Payments

    The following specific section 4, section 11, and section 17A 
National Average Payment Factors and maximum reimbursement rates for 
lunch, the afterschool snack rates, and the breakfast rates are in 
effect from July 1, 2018 through June 30, 2019. Due to a higher cost of 
living, the average payments and maximum reimbursements for Alaska, 
Puerto Rico and Hawaii are higher than those for all other States. The 
District of Columbia, Virgin Islands, and Guam use the figures 
specified for the contiguous States. These rates do not include the 
value of USDA Foods or cash-in-lieu of USDA Foods which schools receive 
as additional assistance for each meal served to participants under the 
Program. A notice announcing the value of USDA Foods and cash-in-lieu 
of USDA Foods is published separately in the Federal Register.
    Adjustments to the national average payment rates for all lunches 
served under the National School Lunch Program, breakfasts served under 
the School Breakfast Program, and afterschool snacks served under the 
National School Lunch Program are rounded down to the nearest whole 
cent.

Special Milk Program Payments

    For the period July 1, 2018 through June 30, 2019, the rate of 
reimbursement for a half-pint of milk served to a non-needy child in a 
school or institution that participates in the Special Milk Program is 
20.50 cents reflecting a decrease of 0.25 cents from the School Year 
(SY) 2017-2018 level.This change is based on the 0.22 percent decrease 
in the Producer Price Index for Fluid Milk Products from May 2017 to 
May 2018.
    As a reminder, schools or institutions with pricing programs that 
elect to serve milk free to eligible children continue to receive the 
average cost of a half-pint of milk (the total cost of all milk 
purchased during the claim period divided by the total number of 
purchased half-pints) for each half-pint served to an eligible child.

National School Lunch Program Payments

    Overall, payments for the National School Lunch Program and the 
Afterschool Snack Program either remained the same or increased from 
last years payments due to a 2.68 percent increase in the national 
average payment rates for schools and residential child care 
institutions for the period July 1, 2018 through June 30, 2019 in the 
Consumer Price Index for All Urban Consumers during the 12-month period 
May 2017 to May 2018 (from a level of 268.128 in May 2017, as 
previously published in the Federal Register to 275.307 in May 2018).
    These changes are reflected below.
    Section 4 National Average Payment Factors--In school food 
authorities that served less than 60 percent free and reduced price 
lunches in School Year (SY) 2016-2017, the payments for meals served 
are: Contiguous States--paid rate--31 cents (no change from the SY 
2017-2018 level), free and reduced price rate--31 cents (no change), 
maximum rate--39 cents (no change); Alaska--paid rate--51 cents (1 cent 
increase), free and reduced price rate--51 cents (1 cent increase), 
maximum rate--61 cents (no change); Hawaii and Puerto Rico--paid rate--
37 cents (1 cent increase), free and reduced price rate--

[[Page 34107]]

37 cents (1 cent increase), maximum rate--45 cents (no change).
    In school food authorities that served 60 percent or more free and 
reduced price lunches in School Year 2016-2017, payments are: 
Contiguous States--paid rate--33 cents (no change from the SY 2017-2018 
level), free and reduced price rate--33 cents (no change), maximum 
rate--39 cents (no change); Alaska--paid rate--53 cents (1 cent 
increase), free and reduced price rate--53 cents (1 cent increase), 
maximum rate--61 cents (no change); Hawaii and Puerto Rico--paid rate--
39 cents (1 cent increase), free and reduced price rate--39 cents (1 
cent increase), maximum rate--45 cents (no change).
    School food authorities certified to receive the performance-based 
cash assistance will receive an additional 6 cents (adjusted annually) 
added to the above amounts as part of their section 4 payments.
    Section 11 National Average Payment Factors--Contiguous States--
free lunch--3 dollars (8 cents increase from the SY 2017-2018 level), 
reduced price lunch--2 dollars and 60 cents (8 cents increase); 
Alaska--free lunch--4 dollars and 87 cents (13 cents increase), reduced 
price lunch--4 dollars and 47 cents (13 cents increase); Hawaii and 
Puerto Rico--free lunch--3 dollars and 51 cents (9 cents increase), 
reduced price lunch--3 dollars and 11 cents (9 cents increase).
    Afterschool Snacks in Afterschool Care Programs--The payments are: 
Contiguous States--free snack--91 cents (3 cents increase from the SY 
2017-2018 level), reduced price snack--45 cents (1 cent increase), paid 
snack--8 cents (no change); Alaska--free snack--1 dollar and 48 cents 
(4 cents increase), reduced price snack--74 cents (2 cents increase), 
paid snack--13 cents (no change); Hawaii and Puerto Rico--free snack--1 
dollar and 6 cents (2 cents increase), reduced price snack--53 cents (1 
cent increase), paid snack--9 cents (no change).

School Breakfast Program Payments

    Overall, payments for the National School Breakfast Program either 
remained the same or increased from last years payments due to a 2.68 
percent increase in the national average payment rates for schools and 
residential child care institutions for the period July 1, 2018 through 
June 30, 2019 in the Consumer Price Index for All Urban Consumers 
during the 12-month period May 2017 to May 2018 (from a level of 
268.128 in May 2017, as previously published in the Federal Register to 
275.307 in May 2018).
    These changes are reflected below.
    For schools ``not in severe need'' the payments are: Contiguous 
States--free breakfast--1 dollar and 79 cents (4 cents increase from 
the SY 2017-2018 level), reduced price breakfast--1 dollar and 49 cents 
(4 cents increase), paid breakfast--31 cents (1 cent increase); 
Alaska--free breakfast--2 dollars and 87 cents (8 cents increase), 
reduced price breakfast--2 dollars and 57 cents (8 cents increase), 
paid breakfast--46 cents (1 cent increase); Hawaii and Puerto Rico--
free breakfast--2 dollars and 9 cents (6 cents increase), reduced price 
breakfast--1 dollar and 79 cents (6 cents increase), paid breakfast--35 
cents (1 cent increase).
    For schools in ``severe need'' the payments are: Contiguous 
States--free breakfast--2 dollars and 14 cents (5 cents increase from 
the SY 2017-2018 level), reduced price breakfast--1 dollar and 84 cents 
(5 cents increase), paid breakfast--31 cents (1 cent increase); 
Alaska--free breakfast--3 dollars and 43 cents (8 cents increase), 
reduced price breakfast--3 dollars and 13 cents (8 cents increase), 
paid breakfast--46 cents (1 cent increase); Hawaii and Puerto Rico--
free breakfast--2 dollars and 50 cents (7 cents increase), reduced 
price breakfast--2 dollars and 20 cents (7 cents increase), paid 
breakfast--35 cents (1 cent increase).

Payment Chart

    The following chart illustrates the lunch National Average Payment 
Factors with the sections 4 and 11 already combined to indicate the per 
lunch amount; the maximum lunch reimbursement rates; the reimbursement 
rates for afterschool snacks served in afterschool care programs; the 
breakfast National Average Payment Factors including severe need 
schools; and the milk reimbursement rate. All amounts are expressed in 
dollars or fractions thereof. The payment factors and reimbursement 
rates used for the District of Columbia, Virgin Islands, and Guam are 
those specified for the contiguous States.

              School Programs--Meal, Snack and Milk Payments to States and School Food Authorities
             [Expressed in dollars or fractions thereof, effective from: July 1, 2018-June 30, 2019]
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                                                           Less than               60% or               Maximum
       National school lunch program \1\        Less than    60% +6     60% or    more +6    Maximum    rate +6
                                                   60%     cents \2\     more    cents \2\     rate    cents \2\
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CONTIGUOUS STATES:
    PAID......................................       0.31       0.37       0.33       0.39       0.30       0.45
    REDUCED PRICE.............................       2.91       2.97       2.93       2.99       3.08       3.14
    FREE......................................       3.31       3.37       3.33       3.39       3.48       3.54
ALASKA:
    PAID......................................       0.51       0.57       0.53       0.59       0.62       0.67
    REDUCED PRICE.............................       4.98       5.04       5.00       5.06       5.22       5.28
    FREE......................................       5.38       5.44       5.40       5.46       5.62       5.68
HAWAII and PUERTO RICO:
    PAID......................................       0.37       0.43       0.39       0.45       0.45       0.51
    REDUCED PRICE.............................       3.48       3.54       3.50       3.56       3.66       3.73
    FREE......................................       3.88       3.94       3.90       3.96       4.06       4.12
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                                            Non-severe
        School breakfast program               need         Severe need
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CONTIGUOUS STATES:
    PAID................................            0.31            0.31
    REDUCED PRICE.......................            1.49            1.84
    FREE................................            1.79            2.14
ALASKA:
    PAID................................            0.46            0.46
    REDUCED PRICE.......................            2.57            3.13
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[[Page 34108]]


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                                            Non-severe
        School breakfast program               need         Severe need
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    FREE................................            2.87            3.43
HAWAII and PUERTO RICO:
    PAID................................            0.35            0.35
    REDUCED PRICE.......................            1.79            2.20
    FREE................................            2.09            2.50


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      Special milk program           All milk        Paid milk                       Free milk
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SPECIAL PROGRAMS WITHOUT FREE             0.2050             N/A  N/A.
 OPTION.
PRICING PROGRAMS WITH FREE                   N/A          0.2050  Average Cost Per 1/2 Pint of Milk.
 OPTION.
NONPRICING PROGRAMS.............          0.2050             N/A  N/A.
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        After school snacks served in after school care programs
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CONTIGUOUS STATES:
    PAID................................................            0.08
    REDUCED PRICE.......................................            0.45
    FREE................................................            0.91
ALASKA:
    PAID................................................            0.13
    REDUCED PRICE.......................................            0.74
    FREE................................................            1.48
HAWAII and PUERTO RICO:
    PAID................................................            0.09
    REDUCED PRICE.......................................            0.53
    FREE................................................            1.06
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\1\ Payment listed for Free and Reduced Price Lunches include both
  section 4 and section 11 funds.
\2\ Performance-based cash reimbursement (adjusted annually for
  inflation).

    This action is not a rule as defined by the Regulatory Flexibility 
Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that 
Act.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507), no new recordkeeping or reporting requirements have been 
included that are subject to approval from the Office of Management and 
Budget.
    This notice has been determined to be not significant and was 
reviewed by the Office of Management and Budget in conformance with 
Executive Order 12866.
    National School Lunch, School Breakfast, and Special Milk Programs 
are listed in the Catalog of Federal Domestic Assistance under No. 
10.555, No. 10.553, and No. 10.556, respectively, and are subject to 
the provisions of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials. (See 2 
CFR 415.3-415.6).

    Authority: Sections 4, 8, 11, and 17A of the Richard B. Russell 
National School Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 
1766a) and sections 3 and 4(b) of the Child Nutrition Act, as 
amended, (42 U.S.C. 1772 and 42 U.S.C. 1773(b)).

    Dated: July 13, 2018.
Brandon Lipps,
Administrator, Food and Nutrition Service.
[FR Doc. 2018-15465 Filed 7-18-18; 8:45 am]
 BILLING CODE 3410-30-P