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[Federal Register Volume 90, Number 7 (Monday, January 13, 2025)]
[Notices]
[Pages 2671-2673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00479]

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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

Summer Food Service Program; 2025 Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice informs the public of the annual adjustments to 
the reimbursement rates for meals served in the Summer Food Service 
Program. These adjustments address changes in the Consumer Price Index, 
as required under the Richard B. Russell National School Lunch Act. The 
2025 reimbursement rates are presented as a combined set of rates to 
highlight simplified cost accounting procedures. The 2025 rates are 
also presented individually, as separate operating and administrative 
rates of reimbursement, to show the effect of the Consumer Price Index 
adjustment on each rate. On average, the 2025 rates adjustment 
represents a 3.6 percent increase in the rates from last year.

DATES: This adjustment is applicable January 1, 2025.

FOR FURTHER INFORMATION CONTACT: Penny Burke, Program Monitoring and 
Operational Support Division, Child Nutrition Programs, Food and 
Nutrition Service, United States Department of Agriculture, 1320 
Braddock Place, Suite 401, Alexandria, Virginia 22314. Tel. (303) 844-
0357.

SUPPLEMENTARY INFORMATION: The Summer Food Service Program (SFSP) is 
listed in the Catalog of Federal Domestic Assistance under No. 10.559 
and is subject to the provisions of Executive Order 12372, which 
requires intergovernmental consultation with State and local officials. 
(See 2 CFR part 415 and final rule-related notice published at 48 FR 
29114, June 24, 1983.)
    In accordance with the Paperwork Reduction Act of 1995, 44 U.S.C. 
3501-3520, no new recordkeeping or reporting requirements have been 
included that are subject to approval from the Office of Management and 
Budget.
    This notice is not a rule as defined by the Regulatory Flexibility 
Act, 5 U.S.C.

[[Page 2672]]

601-612, and thus is exempt from the provisions of that Act. 
Additionally, this notice has been determined to be exempt from formal 
review by the Office of Management and Budget under Executive Order 
12866.

Definitions

    The terms used in this notice have the meaning ascribed to them 
under 7 CFR part 225 of the SFSP regulations.

Background

    This notice informs the public of the annual adjustments to the 
reimbursement rates for meals served in SFSP. In accordance with 
sections 12(f) and 13, 42 U.S.C. 1760(f) and 1761 of the Richard B. 
Russell National School Lunch Act (NSLA) and SFSP regulations under 7 
CFR part 225, the USDA announces the adjustments in SFSP payments for 
meals served to participating children during calendar year 2025.
    The 2025 reimbursement rates are presented as a combined set of 
rates to highlight simplified cost accounting procedures. Reimbursement 
is based solely on a ``meals times rates'' calculation, without 
comparison to actual or budgeted costs.
    Sponsors receive reimbursement that is determined by the number of 
reimbursable meals served, multiplied by the combined rates for food 
service operations and administration. However, the combined rate is 
based on separate operating and administrative rates of reimbursement, 
each of which is adjusted differently for inflation.

Calculation of Rates

    The combined rates are constructed from individually authorized 
operating and administrative reimbursements. Simplified procedures 
provide flexibility, enabling sponsors to manage their reimbursements 
to pay for any allowable cost, regardless of the cost category. 
Sponsors remain responsible, however, for ensuring proper 
administration of the Program, while providing the best possible 
nutrition benefit to children.
    The operating and administrative rates are calculated separately. 
However, the calculations of adjustments for both cost categories are 
based on the same set of 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 United States Department of Labor. 
They represent a 3.6 percent increase in this series for the 12-month 
period, from November 2023 through November 2024 (from 360.383 in 
November 2023 to 373.530 in November 2024).

Table of 2025 Reimbursement Rates

    Presentation of the 2025 maximum per meal rates for meals served to 
children in SFSP combines the results from the calculations of 
operational and administrative payments, which are further explained in 
this notice. The total amount of payments to State agencies for 
disbursement to SFSP sponsors will be based upon these adjusted 
combined rates and the number of meals of each type served. These 
adjusted rates will be in effect from January 1, 2025, through December 
31, 2025.
    These changes are reflected below.
    All States except Alaska and Hawaii--Rural or Self-prep Sites--
Breakfast--3 dollars and 8.75 cents (11 cent increase from the 2024 
reimbursement rate), Lunch or Supper--5 dollars and 40.25 cents (19 
cent increase), Snack--1 dollar and 28 cents (4.50 cent increase); All 
Other Types of Sites--Breakfast--3 dollars and 3 cents (10.75 cent 
increase), Lunch or Supper--5 dollars and 31.50 cents (18.50 cent 
increase), Snack--1 dollar and 25 cents (4.50 cent increase).
    Alaska--Rural or Self-prep Sites--Breakfast--5 dollars and 0 cents 
(17.50 cent increase), Lunch or Supper--8 dollars and 76 cents (31 cent 
increase), Snack--2 dollar and 7.50 cents (7.75 cent increase); All 
Other Types of Sites--Breakfast--4 dollars and 90.75 cents (17.25 cent 
increase), Lunch or Supper--8 dollars and 61.75 cents (30.50 cent 
increase), Snack--2 dollar and 2.75 cents (7.5 cent increase).
    Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands--Rural or 
Self-prep Sites--Breakfast--4 dollars and 1.25 cents (14.25 cent 
increase), Lunch or Supper--7 dollars and 2.50 cents (24.25 cent 
increase), Snack--1 dollar and 66 cents (5.50 cent increase); All Other 
Types of Sites--Breakfast--3 dollars and 93.50 cents (14 cent 
increase), Lunch or Supper--6 dollars and 91.25 cent (24 cent 
increase), Snack--1 dollar and 62.25 cents (5.5 cent increase).

                                                                2025 Reimbursement Rates
                                                                       [Combined]
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  Per meal rates in whole or fractions of U.S. dollars      All states      All states        Alaska          Alaska       Guam, Hawaii,   Guam, Hawaii,
---------------------------------------------------------  except Alaska   except Alaska --------------------------------  Puerto Rico,    Puerto Rico,
                                                            and Hawaii      and Hawaii                                       and U.S.        and U.S.
                                                         --------------------------------                                 Virgin Islands  Virgin Islands
                       Site types                                                         Rural or self-     All other   -------------------------------
                                                          Rural or self-     All other      prep sites    types of sites  Rural or self-     All other
                                                            prep sites    types of sites                                    prep sites    types of sites
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Breakfast...............................................          3.0875          3.0300          5.0000          4.9075          4.0125          3.9350
Lunch or Supper.........................................          5.4025          5.3150          8.7600          8.6175          7.0250          6.9125
Snack...................................................          1.2800          1.2500          2.0750          2.0275          1.6600          1.6225
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Operating Rates

    The portion of the SFSP rates for operating costs is based on 
payment amounts set in section 13(b)(1) of the NSLA, 42 U.S.C. 
1761(b)(1). They are rounded down to the nearest whole cent, as 
required by section 11(a)(3)(B)(iii) of the NSLA, 42 U.S.C. 
1759a(a)(3)(B)(iii).
    These changes are reflected below.
    All States except Alaska and Hawaii--Breakfast--2 dollars and 81 
cents (10 cents increase from the 2024 reimbursement rate), Lunch or 
Supper--4 dollars and 89 cents (17 cents increase), Snack--1 dollar and 
14 cents (4 cents increase).
    Alaska--Breakfast--4 dollars and 55 cents (16 cents increase), 
Lunch or Supper--7 dollars and 93 cents (28 cents increase), Snack--1 
dollar and 85 cents (7 cents increase).
    Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands--Breakfast--
3 dollars and 65 cents (13 cents increase), Lunch or Supper--6 dollars 
and 36 cents (22 cents increase), Snack--1 dollar and 48 cents (5 cents 
increase).

[[Page 2673]]

                                 Operating Component of 2025 Reimbursement Rates
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                                                                                                  Guam, Hawaii,
 Operating rates in U.S. dollars, rounded down to the nearest     All states                       Puerto Rico,
                          whole cent                            except Alaska        Alaska      and U.S. Virgin
                                                                 and  Hawaii                         Islands
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Breakfast....................................................             2.81             4.55             3.65
Lunch or Supper..............................................             4.89             7.93             6.36
Snack........................................................             1.14             1.85             1.48
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Administrative Rates

    The administrative cost component of the reimbursement is 
authorized under section 13(b)(3) of the NSLA, 42 U.S.C. 1761(b)(3). 
Rates are higher for sponsors of sites located in rural areas and for 
``self-prep'' sponsors that prepare their own meals at the SFSP site or 
at a central facility instead of purchasing them from vendors. The 
administrative portion of SFSP rates are adjusted, either up or down, 
to the nearest quarter-cent.
    These changes are reflected below.
    All States except Alaska and Hawaii--Rural or Self-prep Sites--
Breakfast--27.75 cents (1 cent increase from the 2024 reimbursement 
rate), Lunch or Supper--51.25 cents (2 cent increase), Snack--14 cents 
(0.50 cent increase); All Other Types of Sites--Breakfast--22 cents 
(0.75 cent increase), Lunch or Supper--42.50 cents (1.5 cent increase), 
Snack 11 cents (0.50 cent increase).
    Alaska--Rural or Self-prep Sites--Breakfast--45 cents (1.5 cent 
increase), Lunch or Supper--83 cents (3 cent increase), Snack--22.50 
cents (0.75 cent increase); All Other Types of Sites--Breakfast--35.75 
cents (1.25 cent increase), Lunch or Supper--68.75 cents (2.50 cent 
increase), Snack--17.75 cents (0.5 cent increase).
    Guam, Hawaii, Puerto Rico, and the U.S. Virgin Islands--Rural or 
Self-prep Sites--Breakfast--36.25 cents (1.25 cent increase), Lunch or 
Supper--66.50 cents (2.25 cent increase), Snack--18 cents (0.50 cent 
increase); All Other Types of Sites--Breakfast--28.50 cents (1 cent 
increase), Lunch or Supper--55.25 cents (2 cent increase), Snack--14.25 
cents (0.5 cent increase).

                                                  Administrative Component of 2025 Reimbursement Rates
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  Administrative rates in U.S. dollars, adjusted, up or     All states      All states        Alaska          Alaska       Guam, Hawaii,   Guam, Hawaii,
            down, to the nearest quarter-cent              except Alaska   except Alaska --------------------------------  Puerto Rico,    Puerto Rico,
---------------------------------------------------------   and Hawaii      and Hawaii                                       and U.S.        and U.S.
                                                         --------------------------------                                 Virgin Islands  Virgin Islands
                                                                                          Rural or self-     All other   -------------------------------
                       Site types                         Rural or self-     All other      prep sites    types of sites  Rural or self-     All other
                                                            prep sites    types of sites                                    prep sites    types of sites
--------------------------------------------------------------------------------------------------------------------------------------------------------
Breakfast...............................................          0.2775          0.2200          0.4500          0.3575          0.3625          0.2850
Lunch or Supper.........................................          0.5125          0.4250          0.8300          0.6875          0.6650          0.5525
Snack...................................................          0.1400          0.1100          0.2250          0.1775          0.1800          0.1425
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Authority: Sections 9, 13, and 14, Richard B. Russell National 
School Lunch Act, 42 U.S.C. 1758, 1761, and 1762a, respectively.

Tameka Owens,
Acting Administrator and Assistant Administrator, Food and Nutrition 
Service.
[FR Doc. 2025-00479 Filed 1-10-25; 8:45 am]
BILLING CODE 3410-30-P
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