II 

113TH CONGRESS 

2D SESSION S. 2248 

To amend the Richard B. Russell National School Lunch Act and the Child 

Nutrition Act of 1966 to increase the number of children eligible for 

free school meals, with a phased-in transition period, with an offset. 

IN THE SENATE OF THE UNITED STATES 

APRIL 10, 2014 

Mr. FRANKEN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Richard B. Russell National School Lunch 

Act and the Child Nutrition Act of 1966 to increase 

the number of children eligible for free school meals, 

with a phased-in transition period, with an offset. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Expand School Meals 

5 Act of 2014’’. 


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1 TITLE I—TRANSITION PERIOD 

2 SEC. 101. PHASED-IN INCREASE IN STATES PROVIDING 

3 FREE SCHOOL LUNCHES AND BREAKFASTS. 

4 Section 11 of the Richard B. Russell National School 

5 Lunch Act (42 U.S.C. 1759a) is amended by adding at 

6 the end the following: 

7 ‘‘(h) PHASED-IN INCREASE IN STATES PROVIDING

8 FREE SCHOOL LUNCHES AND BREAKFASTS.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall expand 

10 the service of free lunches and breakfasts provided 

11 at schools participating in the school lunch program 

12 under this Act and the school breakfast program 

13 under section 4 of the Child Nutrition Act of 1966 

14 (42 U.S.C. 1773) in States selected by the Secretary 

15 in accordance with paragraph (2). 

16 ‘‘(2) SELECTION OF STATES.— 

17 ‘‘(A) IN GENERAL.—A State that elects to 

18 participate in the program under this sub19 section shall submit to the Secretary an applica20 tion at such time, in such manner, and con21 taining such information as the Secretary may 

22 require. 

23 ‘‘(B) FIRST YEAR.—For the school year 

24 beginning July 1, 2014, the Secretary shall en25 roll in the program under this subsection any 


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1 State that, as of April 10, 2014, has enacted a 

2 law under which, in compliance with this Act 

3 and the Child Nutrition Act of 1966 (42 U.S.C. 

4 1771 et seq.) (as appropriate), school food au5 thorities in the State provide free breakfasts or 

6 lunches in lieu of reduced-price breakfasts or 

7 lunches in schools statewide. 

8 ‘‘(C) SUBSEQUENT YEARS.— 

9 ‘‘(i) IN GENERAL.—The Secretary 

10 shall enroll in the program under this sub11 section not more than— 

12 ‘‘(I) for the school year beginning 

13 July 1, 2015, 5 additional States; 

14 ‘‘(II) for the school year begin15 ning July 1, 2016, 5 additional 

16 States; 

17 ‘‘(III) for the school year begin18 ning July 1, 2017, 5 additional 

19 States; 

20 ‘‘(IV) for the school year begin21 ning July 1, 2018, 5 additional 

22 States; and 

23 ‘‘(V) for the school year begin24 ning July 1, 2019, 5 additional 

25 States. 


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1 ‘‘(ii) PRIORITY.—In enrolling States, 

2 the Secretary shall give priority to States 

3 that— 

4 ‘‘(I) have enacted a law described 

5 in subparagraph (B) after April 10, 

6 2014; 

7 ‘‘(II) have school food authorities 

8 that provide free breakfasts or lunches 

9 in lieu of reduced-price breakfasts or 

10 lunches in schools in the State; or 

11 ‘‘(III) have high levels of partici12 pation in the free or reduced-price 

13 lunch program, as determined by the 

14 Secretary. 

15 ‘‘(3) INCOME ELIGIBILITY.—For any State en16 rolled in the program under this subsection, the in17 come guidelines for determining eligibility for free 

18 lunches or breakfasts in the State shall be 185 per19 cent of the applicable family size income levels con20 tained in the nonfarm income poverty guidelines pre21 scribed by the Office of Management and Budget, as 

22 adjusted annually in accordance with section 

23 9(b)(1)(B). 

24 ‘‘(4) RELATIONSHIP TO UNIVERSAL MEAL

25 SERVICE IN HIGH POVERTY AREAS.—A school for 


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1 which a local educational agency has elected to re2 ceive special assistance payments under subsection 

3 (a)(1)(F) may not receive any additional payments 

4 under this subsection.’’. 

5 SEC. 102. PERIOD OF EFFECTIVENESS. 

6 The amendments made by section 101 shall be effec7 tive only during the period beginning on the date of enact8 ment of this Act and ending on June 30, 2019. 

9 TITLE II—PERMANENT CHANGE 

10 SEC. 201. FREE LUNCH ELIGIBILITY. 

11 (a) IN GENERAL.—Section 9(b)(1) of the Richard B. 

12 Russell National School Lunch Act (42 U.S.C. 

13 1758(b)(1)) is amended— 

14 (1) by redesignating subparagraph (B) as sub15 paragraph (D); 

16 (2) by striking ‘‘(b)(1)(A) Not’’ and inserting 

17 the following: 

18 ‘‘(b) INCOME ELIGIBILITY GUIDELINES.— 

19 ‘‘(1) ESTABLISHMENT.— 

20 ‘‘(A) IN GENERAL.—Not’’; 

21 (3) in subparagraph (A)— 

22 (A) in the first sentence, by striking ‘‘and 

23 reduced price’’; 

24 (B) in the second sentence— 


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1 (i) by striking ‘‘The income guidelines 

2 for determining eligibility for free lunches 

3 shall be 130 percent’’ and inserting the fol4 lowing: 

5 ‘‘(B) FREE LUNCHES.—The income guide6 lines for determining eligibility for free lunches 

7 shall be 185 percent’’; and 

8 (ii) by striking ‘‘subparagraph (B)’’ 

9 and inserting ‘‘subparagraph (D)’’; 

10 (C) by striking the third sentence; and 

11 (D) in the last sentence, by striking ‘‘The 

12 Office’’ and inserting the following: 

13 ‘‘(C) FREQUENCY OF REVISIONS.—The Of14 fice’’; and 

15 (4) in subparagraph (D) (as redesignated by 

16 paragraph (1))— 

17 (A) by striking ‘‘(D) The’’ and inserting 

18 the following: 

19 ‘‘(D) AMOUNT OF REVISIONS.—The’’; and 

20 (B) by striking ‘‘subparagraph (A) of this 

21 paragraph’’ and inserting ‘‘subparagraph (C)’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 9 of the Richard B. Russell Na24 tional School Lunch Act (42 U.S.C. 1758) is amend25 ed— 


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1 (A) in subsection (b)— 

2 (i) by striking ‘‘free and reduced 

3 price’’ each place it appears (other than 

4 paragraph (7)) and inserting ‘‘free’’; 

5 (ii) by striking ‘‘free or reduced price’’ 

6 each place it appears and inserting ‘‘free’’; 

7 (iii) in paragraph (2)(B)(i), by strik8 ing ‘‘, and shall contain’’ and all that fol9 lows through ‘‘or reduced price lunches’’; 

10 (iv) in paragraph (3)— 

11 (I) in subparagraph (E)(iii), by 

12 striking ‘‘free or reduced-price’’ each 

13 place it appears and inserting ‘‘free’’; 

14 and 

15 (II) in subparagraph (F)— 

16 (aa) in clause (i), by striking 

17 ‘‘Subject to clauses (ii) and (iii),’’ 

18 and inserting ‘‘Subject to clause 

19 (ii),’’; 

20 (bb) in clause (ii)(II), by 

21 striking ‘‘133 percent’’ both 

22 places it appears in items (aa) 

23 and (bb) and inserting ‘‘185 per24 cent’’; 


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1 (cc) by striking clause (iii); 

2 and 

3 (dd) by redesignating 

4 clauses (iv) and (v) as clauses 

5 (iii) and (iv), respectively; 

6 (v) in paragraph (7)— 

7 (I) in the paragraph heading, by 

8 striking ‘‘AND REDUCED PRICE’’ and 

9 inserting ‘‘MEALS’’; 

10 (II) by striking ‘‘and reduced 

11 price policy’’ each place it appears 

12 and inserting ‘‘meals policy’’; and 

13 (III) in subparagraph (B), by 

14 striking ‘‘and reduced price meals’’ 

15 and inserting ‘‘meals’’; 

16 (vi) in paragraph (9)— 

17 (I) in the paragraph heading, by 

18 striking ‘‘AND REDUCED PRICE’’; 

19 (II) by striking subparagraph 

20 (B); and 

21 (III) by redesignating subpara22 graph (C) as subparagraph (B); 

23 (vii) in paragraph (10), by striking 

24 ‘‘or a reduced price lunch’’; and 


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1 (viii) in paragraph (11), in the first 

2 sentence, by striking ‘‘or reduced price 

3 lunches’’; 

4 (B) in subsection (c), in the third sentence, 

5 by striking ‘‘or at a reduced cost’’; 

6 (C) in subsection (d), by striking ‘‘or re7 duced price’’ each place it appears; and 

8 (D) in subsection (e), by striking ‘‘, re9 duced price,’’. 

10 (2) Section 11 of the Richard B. Russell Na11 tional School Lunch Act (42 U.S.C. 1759a) is 

12 amended— 

13 (A) in subsection (a)— 

14 (i) in paragraph (1)— 

15 (I) in subparagraph (A)— 

16 (aa) by striking ‘‘the sum 

17 of’’; and 

18 (bb) by striking ‘‘and the 

19 product obtained by multiplying’’ 

20 and all that follows through ‘‘for 

21 such fiscal year’’; 

22 (II) in subparagraph (B)— 

23 (aa) by striking ‘‘or reduced 

24 price lunches’’ the first place it 

25 appears; 


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1 (bb) by striking ‘‘or reduced 

2 price lunches, as the case may 

3 be,’’; and 

4 (cc) by striking ‘‘and re5 duced price lunches’’; 

6 (III) in subparagraph (C)— 

7 (aa) in clause (ii), by strik8 ing ‘‘or reduced price lunches or 

9 breakfasts’’ each place it ap10 pears; and 

11 (bb) in clause (iii), by strik12 ing ‘‘or reduced price’’; and 

13 (IV) in subparagraph (D), by 

14 striking ‘‘and reduced price lunches’’ 

15 each place it appears in clauses (iii) 

16 and (iv); and 

17 (ii) in paragraph (2), by striking ‘‘and 

18 the special assistance factor for reduced 

19 price’’ and all that follows through ‘‘free 

20 lunches’’; 

21 (B) in subsection (b), in the first sentence, 

22 by striking ‘‘and reduced price’’; 

23 (C) in subsection (d), by striking ‘‘and the 

24 average number of children who received reVerDate Mar 15 2010 22:57 Apr 17, 2014 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2248.IS S2248

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1 duced price lunches’’ each place it appears 

2 paragraphs (1) and (2); and 

3 (D) in subsection (e)— 

4 (i) in the second sentence, by striking 

5 ‘‘, and shall serve meals at a reduced 

6 price’’ and all that follows through ‘‘such 

7 section’’; and 

8 (ii) in the third sentence, by striking 

9 ‘‘or reduced priced’’. 

10 (3) Section 12(l)(4) of the Richard B. Russell 

11 National School Lunch Act (42 U.S.C. 1760(l)(4)) 

12 is amended— 

13 (A) in subparagraph (C), by striking ‘‘and 

14 reduced price’’; 

15 (B) by striking subparagraph (D); 

16 (C) in subparagraph (H), by striking ‘‘or 

17 reduced price’’; and 

18 (D) by redesignating subparagraphs (E) 

19 through (M) as subparagraphs (D) through 

20 (L), respectively. 

21 (4) Section 13 of the Richard B. Russell Na22 tional School Lunch Act (42 U.S.C. 1761) is amend23 ed— 

24 (A) in subsection (a)— 


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1 (i) in paragraph (1)(A)(i), by striking 

2 ‘‘or reduced price’’ each place it appears; 

3 and 

4 (ii) in paragraph (5), by striking ‘‘or 

5 reduced price’’; and 

6 (B) in subsection (f)(3), by striking ‘‘or re7 duced price’’. 

8 (5) Section 17 of the Richard B. Russell Na9 tional School Lunch Act (42 U.S.C. 1766) is amend10 ed— 

11 (A) in subsection (a)(2)(B)(i), by striking 

12 ‘‘or reduced price’’; 

13 (B) in subsection (c)— 

14 (i) in paragraph (1), by inserting ‘‘(as 

15 calculated on the day before the date of en16 actment of the Expand School Meals Act 

17 of 2014)’’ after ‘‘lunches, reduced price 

18 lunches’’; 

19 (ii) in paragraph (2), by inserting 

20 ‘‘(as calculated on the day before the date 

21 of enactment of the Expand School Meals 

22 Act of 2014)’’ after ‘‘breakfasts, reduced 

23 price breakfasts’’; and 

24 (iii) by striking paragraph (4) and in25 serting the following: 


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1 ‘‘(4) DETERMINATIONS.— 

2 ‘‘(A) FREE MEALS.—Determinations with 

3 regard to eligibility for free meals and supple4 ments shall be made in accordance with the in5 come eligibility guidelines for free lunches under 

6 section 9. 

7 ‘‘(B) REDUCED PRICE MEALS.—Deter8 minations with regard to eligibility for reduced 

9 price meals and supplements shall be made in 

10 accordance with the income eligibility guidelines 

11 for reduced price lunches under section 9, as in 

12 effect on the day before the date of enactment 

13 of the Expand School Meals Act of 2014.’’; 

14 (C) in subsection (f)(3)— 

15 (i) by striking ‘‘or reduced price’’ each 

16 place it appears; and 

17 (ii) in subparagraph (A)(iii)(II)(aa), 

18 in the item heading, by striking ‘‘OR RE19 DUCED PRICE’’; and 

20 (D) in subsection (r)(1)(B), by striking ‘‘or 

21 reduced price’’. 

22 (6) Section 17A(c)(1) of the Richard B. Russell 

23 National School Lunch Act (42 U.S.C. 1766a(c)(1)) 

24 is amended in the matter preceding subparagraph 

25 (A) by striking ‘‘or reduced price’’. 


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1 (7) Section 18 of the Richard B. Russell Na2 tional School Lunch Act (42 U.S.C. 1769) is amend3 ed by striking subsection (j). 

4 (8) Section 19 of the Richard B. Russell Na5 tional School Lunch Act (42 U.S.C. 1769a) is 

6 amended— 

7 (A) by striking ‘‘or reduced price’’ each 

8 place it appears; and 

9 (B) by striking ‘‘and reduced price’’ each 

10 place it appears. 

11 (9) Section 20(b) of the Richard B. Russell Na12 tional School Lunch Act (42 U.S.C. 1769b(b)) is 

13 amended by striking ‘‘and reduced price’’. 

14 (10) Section 21(a)(1)(B) of the Richard B. 

15 Russell National School Lunch Act (42 U.S.C. 

16 1769b–1(a)(1)(B)) is amended— 

17 (A) in the matter preceding clause (i), by 

18 striking ‘‘or reduced price’’; and 

19 (B) in clause (iii), by striking ‘‘and re20 duced price’’. 

21 (c) TRANSITION RULES.—The Secretary of Agri22 culture shall carry out the amendments made by para23 graphs (2) and (8) of subsection (b) in accordance with 

24 transition rules established by the Secretary. 


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1 SEC. 202. FREE BREAKFAST ELIGIBILITY. 

2 (a) IN GENERAL.—Section 4 of the Child Nutrition 

3 Act of 1966 (42 U.S.C. 1773) is amended— 

4 (1) in subsection (b)— 

5 (A) in paragraph (1)— 

6 (i) in subparagraph (A)(i)(II)— 

7 (I) by striking ‘‘, for reduced 

8 price breakfasts,’’; 

9 (II) by striking ‘‘or reduced 

10 price’’; and 

11 (III) by striking ‘‘clause (B) of 

12 this paragraph’’ and inserting ‘‘sub13 paragraph (B)’’; 

14 (ii) in subparagraph (B)— 

15 (I) in the third sentence, by 

16 striking ‘‘or reduced price’’; and 

17 (II) by striking the second sen18 tence; 

19 (iii) by striking subparagraph (C); 

20 (iv) by redesignating subparagraphs 

21 (D) and (E) as subparagraphs (C) and 

22 (D), respectively; and 

23 (v) in subparagraph (D) (as so redes24 ignated)— 


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1 (I) in the subparagraph heading, 

2 by striking ‘‘AND REDUCED PRICE’’ 

3 and inserting ‘‘MEALS’’; 

4 (II) by striking ‘‘and reduced 

5 price policy’’ each place it appears 

6 and inserting ‘‘meals policy’’; and 

7 (III) by striking ‘‘and reduced 

8 price meals’’ and inserting ‘‘meals’’; 

9 and 

10 (B) in paragraph (2)— 

11 (i) in subparagraph (A), by striking 

12 ‘‘or reduced price’’; and 

13 (ii) by striking subparagraph (C); and 

14 (2) in subsections (d)(1)(A) and (e)(1)(A), by 

15 striking ‘‘or at a reduced price’’ each place it ap16 pears. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Section 7 of the Child Nutrition Act of 

19 1966 (42 U.S.C. 1776) is amended— 

20 (A) in subsection (e)(2)(B)(ii), by striking 

21 ‘‘or reduced price’’; 

22 (B) in subsection (g)(2)(B)(i)(I), by strik23 ing ‘‘and reduced price’’; and 


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1 (C) in subsection (i), by striking ‘‘and re2 duced price’’ each place it appears in para3 graphs (2)(B)(iii) and (3)(B)(i). 

4 (2) Section 17(d)(2)(A)(i) of the Child Nutri5 tion Act of 1966 (42 U.S.C. 1786(d)(2)(A)(i)) is 

6 amended by striking ‘‘and reduced price’’. 

7 (3) Section 20(b) of the Child Nutrition Act of 

8 1966 (42 U.S.C. 1789(b)) is amended by striking 

9 ‘‘and reduced-price’’. 

10 (4) Section 23(d)(2) of the Child Nutrition Act 

11 of 1966 (42 U.S.C. 1793(d)(2)) is amended by strik12 ing ‘‘or reduced price’’. 

13 SEC. 203. PERIOD OF EFFECTIVENESS. 

14 The amendments made by this title shall be effective 

15 beginning on July 1, 2019. 

16 TITLE III—OFFSET 

17 SEC. 301. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES. 

18 (a) DISALLOWANCE OF DEDUCTION.— 

19 (1) IN GENERAL.—Section 162(g) of the Inter20 nal Revenue Code of 1986 is amended— 

21 (A) by redesignating paragraphs (1) and 

22 (2) as subparagraphs (A) and (B), respectively, 

23 (B) by striking ‘‘If’’ and inserting: 

24 ‘‘(1) TREBLE DAMAGES.—If’’, and 


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1 (C) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) PUNITIVE DAMAGES.—No deduction shall 

4 be allowed under this chapter for any amount paid 

5 or incurred for punitive damages in connection with 

6 any judgment in, or settlement of, any action. This 

7 paragraph shall not apply to punitive damages de8 scribed in section 104(c).’’. 

9 (2) CONFORMING AMENDMENT.—The heading 

10 for section 162(g) of such Code is amended by in11 serting ‘‘OR PUNITIVE DAMAGES’’ after ‘‘LAWS’’. 

12 (b) INCLUSION IN INCOME OF PUNITIVE DAMAGES

13 PAID BY INSURER OR OTHERWISE.— 

14 (1) IN GENERAL.—Part II of subchapter B of 

15 chapter 1 of the Internal Revenue Code of 1986 is 

16 amended by adding at the end the following new sec17 tion: 

18 ‘‘SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSUR19 ANCE OR OTHERWISE. 

20 ‘‘Gross income shall include any amount paid to or 

21 on behalf of a taxpayer as insurance or otherwise by rea22 son of the taxpayer’s liability (or agreement) to pay puni23 tive damages.’’. 


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1 (2) REPORTING REQUIREMENTS.—Section 6041 

2 of such Code is amended by adding at the end the 

3 following new subsection: 

4 ‘‘(h) SECTION TO APPLY TO PUNITIVE DAMAGES

5 COMPENSATION.—This section shall apply to payments by 

6 a person to or on behalf of any corporation, individual, 

7 partnership, or other entity, as insurance or otherwise, by 

8 reason of such corporation, individual, partnership, or en9 tity’s liability (or agreement) to pay punitive damages.’’. 

10 (3) CONFORMING AMENDMENT.—The table of 

11 sections for part II of subchapter B of chapter 1 of 

12 such Code is amended by adding at the end the fol13 lowing new item: 

‘‘Sec. 91. Punitive damages compensated by insurance or otherwise.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to damages paid or incurred on 

16 or after the date of the enactment of this Act. 

Æ 


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