II 

113TH CONGRESS 

2D SESSION S. 2366 

To amend the Richard B. Russell National School Lunch Act to establish 

a permanent, nationwide summer electronic benefits transfer for children 

program. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2014 

Mrs. MURRAY 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 to establish a permanent, nationwide summer electronic benefits transfer for children program. 

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 ‘‘Stop Child Summer 

5 Hunger Act of 2014’’. 


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1 SEC. 2. SUMMER ELECTRONIC BENEFITS TRANSFER FOR 

2 CHILDREN PROGRAM. 

3 Section 13(a) of the Richard B. Russell National 

4 School Lunch Act (42 U.S.C. 1761(a)) is amended by add5 ing at the end the following: 

6 ‘‘(13) SUMMER ELECTRONIC BENEFITS TRANS7 FER FOR CHILDREN PROGRAM.— 

8 ‘‘(A) DEFINITIONS.—In this paragraph: 

9 ‘‘(i) ELIGIBLE HOUSEHOLD.—The 

10 term ‘eligible household’ means a house11 hold that includes 1 or more children who 

12 are eligible to receive free or reduced price 

13 lunches under this Act or free or reduced 

14 price breakfasts under the Child Nutrition 

15 Act of 1966 (42 U.S.C. 1771 et seq.). 

16 ‘‘(ii) SUMMER EBT CARD.—The term 

17 ‘summer EBT card’ means an electronic 

18 benefit transfer card that is issued to an 

19 eligible household under this paragraph 

20 and limited to food purchases. 

21 ‘‘(B) PROGRAM.—The Secretary shall es22 tablish a program under which the Secretary 

23 shall provide to eligible households summer 

24 EBT cards for the purpose of providing access 

25 to food for children during summer months— 


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1 ‘‘(i) to reduce or eliminate the food in2 security and hunger of children; and 

3 ‘‘(ii) to improve the nutritional status 

4 of children. 

5 ‘‘(C) USE.—An eligible household may use 

6 a summer EBT card only to purchase food 

7 from retail food stores that have been approved 

8 for participation in the supplemental nutrition 

9 assistance program established under the Food 

10 and Nutrition Act of 2008 (7 U.S.C. 2011 et 

11 seq.), in accordance with section 7(b) of that 

12 Act (7 U.S.C. 2016(b)). 

13 ‘‘(D) AMOUNT.—Each summer EBT card 

14 issued shall be in an amount of— 

15 ‘‘(i) for calendar year 2016, $150 in 

16 food assistance per child per summer; and 

17 ‘‘(ii) for each subsequent calendar 

18 year, the amount specified in clause (i) as 

19 adjusted to reflect changes in reimburse20 ment rates for school meals under this Act 

21 between calendar year 2016 and the most 

22 recent calendar year. 

23 ‘‘(E) TIMING.—Summer EBT cards shall 

24 be issued at the end of the regular school year. 

25 ‘‘(F) FUNDING.— 


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1 ‘‘(i) IN GENERAL.—On October 1, 

2 2015, and on each October 1 thereafter, 

3 out of any funds in the Treasury not oth4 erwise appropriated, the Secretary of the 

5 Treasury shall transfer to the Secretary 

6 such sums as are necessary to carry out 

7 this section, to remain available until ex8 pended. 

9 ‘‘(ii) RECEIPT AND ACCEPTANCE.— 

10 The Secretary shall be entitled to receive, 

11 shall accept, and shall use to carry out this 

12 section the funds transferred under clause 

13 (i), without further appropriation. 

14 ‘‘(G) REGULATIONS.— 

15 ‘‘(i) IN GENERAL.—Not later than Oc16 tober 1, 2015, the Secretary shall issue 

17 regulations to carry out this paragraph. 

18 ‘‘(ii) REQUIREMENTS.—Regulations 

19 issued under this subparagraph shall re20 quire that— 

21 ‘‘(I) children shall be eligible to 

22 participate and shall be enrolled into 

23 the program under this paragraph for 

24 a summer without further application 

25 if the children are enrolled to particiVerDate Mar 15 2010 23:38 May 28, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2366.IS S2366

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1 pate in the free or reduced price lunch 

2 program under this Act or the free or 

3 reduced price breakfast program 

4 under the Child Nutrition Act of 1966 

5 (42 U.S.C. 1771 et seq.) during the 

6 school year immediately preceding the 

7 summer; and 

8 ‘‘(II) local educational agencies 

9 shall distribute to the families of all 

10 children enrolled in schools partici11 pating in programs authorized under 

12 this Act and the Child Nutrition Act 

13 of 1966 (42 U.S.C. 1771 et seq.) and, 

14 to the maximum extent practicable, 

15 the families of all children enrolled in 

16 schools of the local educational agency 

17 information, as provided by the Sec18 retary— 

19 ‘‘(aa) regarding the program 

20 authorized under this paragraph, 

21 including eligibility rules and how 

22 children in eligible households 

23 that are not automatically en24 rolled under subclause (I) may 

25 apply for program benefits; and 


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1 ‘‘(bb) to assist households 

2 receiving summer EBT cards in 

3 making healthy food choices and 

4 maximizing resources. 

5 ‘‘(iii) ALTERNATIVE TIMING.— 

6 ‘‘(I) IN GENERAL.—In issuing 

7 regulations under this subparagraph, 

8 the Secretary shall allow alternative 

9 plans for the timing of issuance of the 

10 summer electronic benefit cards under 

11 subparagraph (D) in any part of a 

12 State in which the school year does 

13 not include a typical summer break, 

14 on the condition that the Secretary 

15 determines that no alternative plan in16 creases or decreases Federal costs. 

17 ‘‘(II) CONSIDERATIONS.—In de18 veloping regulations under subclause 

19 (I), the Secretary shall consider the 

20 ability of a State effectively to issue 

21 benefits under an alternative sched22 ule.’’. 


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1 SEC. 3. DEFER DEDUCTION OF INTEREST EXPENSE RE2 LATED TO DEFERRED INCOME. 

3 (a) IN GENERAL.—Section 163 of the Internal Rev4 enue Code of 1986 (relating to deductions for interest ex5 pense) is amended by redesignating subsection (n) as sub6 section (o) and by inserting after subsection (m) the fol7 lowing new subsection: 

8 ‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX9 PENSE RELATED TO DEFERRED INCOME.— 

10 ‘‘(1) GENERAL RULE.—The amount of foreign11 related interest expense of any taxpayer allowed as 

12 a deduction under this chapter for any taxable year 

13 shall not exceed an amount equal to the applicable 

14 percentage of the sum of— 

15 ‘‘(A) the taxpayer’s foreign-related interest 

16 expense for the taxable year, plus 

17 ‘‘(B) the taxpayer’s deferred foreign-re18 lated interest expense. 

19 For purposes of this paragraph, the applicable per20 centage is the percentage equal to the current inclu21 sion ratio. 

22 ‘‘(2) TREATMENT OF DEFERRED DEDUC23 TIONS.—If, for any taxable year, the amount of the 

24 limitation determined under paragraph (1) exceeds 

25 the taxpayer’s foreign-related interest expense for 

26 the taxable year, there shall be allowed as a deducVerDate Mar 15 2010 23:38 May 28, 2014 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2366.IS S2366

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1 tion for the taxable year an amount equal to the 

2 lesser of— 

3 ‘‘(A) such excess, or 

4 ‘‘(B) the taxpayer’s deferred foreign-re5 lated interest expense. 

6 ‘‘(3) DEFINITIONS AND SPECIAL RULE.—For 

7 purposes of this subsection— 

8 ‘‘(A) FOREIGN-RELATED INTEREST EX9 PENSE.—The term ‘foreign-related interest ex10 pense’ means, with respect to any taxpayer for 

11 any taxable year, the amount which bears the 

12 same ratio to the amount of interest expense 

13 for such taxable year allocated and apportioned 

14 under sections 861, 864(e), and 864(f) to in15 come from sources outside the United States 

16 as— 

17 ‘‘(i) the value of all stock held by the 

18 taxpayer in all section 902 corporations 

19 with respect to which the taxpayer meets 

20 the ownership requirements of subsection 

21 (a) or (b) of section 902, bears to 

22 ‘‘(ii) the value of all assets of the tax23 payer which generate gross income from 

24 sources outside the United States. 


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1 ‘‘(B) DEFERRED FOREIGN-RELATED IN2 TEREST EXPENSE.—The term ‘deferred foreign3 related interest expense’ means the excess, if 

4 any, of the aggregate foreign-related interest 

5 expense for all prior taxable years beginning 

6 after December 31, 2014, over the aggregate 

7 amount allowed as a deduction under para8 graphs (1) and (2) for all such prior taxable 

9 years. 

10 ‘‘(C) VALUE OF ASSETS.—Except as other11 wise provided by the Secretary, for purposes of 

12 subparagraph (A)(ii), the value of any asset 

13 shall be the amount with respect to such asset 

14 determined for purposes of allocating and ap15 portioning interest expense under sections 861, 

16 864(e), and 864(f). 

17 ‘‘(D) CURRENT INCLUSION RATIO.—The 

18 term ‘current inclusion ratio’ means, with re19 spect to any domestic corporation which meets 

20 the ownership requirements of subsection (a) or 

21 (b) of section 902 with respect to one or more 

22 section 902 corporations for any taxable year, 

23 the ratio (expressed as a percentage) of— 

24 ‘‘(i) the sum of all dividends received 

25 by the domestic corporation from all such 


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1 section 902 corporations during the taxable 

2 year plus amounts includible in gross in3 come under section 951(a) from all such 

4 section 902 corporations, in each case com5 puted without regard to section 78, divided 

6 by 

7 ‘‘(ii) the aggregate amount of post8 1986 undistributed earnings. 

9 ‘‘(E) AGGREGATE AMOUNT OF POST-1986

10 UNDISTRIBUTED EARNINGS.—The term ‘aggre11 gate amount of post-1986 undistributed earn12 ings’ means, with respect to any domestic cor13 poration which meets the ownership require14 ments of subsection (a) or (b) of section 902 

15 with respect to one or more section 902 cor16 porations, the domestic corporation’s pro rata 

17 share of the post-1986 undistributed earnings 

18 (as defined in section 902(c)(1)) of all such sec19 tion 902 corporations. 

20 ‘‘(F) FOREIGN CURRENCY CONVERSION.— 

21 For purposes of determining the current inclu22 sion ratio, and except as otherwise provided by 

23 the Secretary, the aggregate amount of post24 1986 undistributed earnings for the taxable 

25 year shall be determined by translating each 


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1 section 902 corporation’s post-1986 undistrib2 uted earnings into dollars using the average ex3 change rate for such year. 

4 ‘‘(G) SECTION 902 CORPORATION.—The 

5 term ‘section 902 corporation’ has the meaning 

6 given to such term by section 909(d)(5). 

7 ‘‘(4) TREATMENT OF AFFILIATED GROUPS.— 

8 The current inclusion ratio of each member of an af9 filiated group (as defined in section 864(e)(5)(A)) 

10 shall be determined as if all members of such group 

11 were a single corporation. 

12 ‘‘(5) APPLICATION TO SEPARATE CATEGORIES

13 OF INCOME.—This subsection shall be applied sepa14 rately with respect to the categories of income speci15 fied in section 904(d)(1). 

16 ‘‘(6) REGULATIONS.—The Secretary may pre17 scribe such regulations or other guidance as is nec18 essary or appropriate to carry out the purposes of 

19 this subsection, including regulations or other guid20 ance providing— 

21 ‘‘(A) for the proper application of this sub22 section with respect to changes in ownership of 

23 a section 902 corporation, 

24 ‘‘(B) that certain corporations that other25 wise would not be members of the affiliated 


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1 group will be treated as members of the affili2 ated group for purposes of this subsection, 

3 ‘‘(C) for the proper application of this sub4 section with respect to the taxpayer’s share of 

5 a deficit in earnings and profits of a section 

6 902 corporation, 

7 ‘‘(D) for appropriate adjustments to the 

8 determination of the value of stock in any sec9 tion 902 corporation for purposes of this sub10 section or to the foreign-related interest expense 

11 to account for income that is subject to tax 

12 under section 882(a)(1), and 

13 ‘‘(E) for the proper application of this sub14 section with respect to interest expense that is 

15 directly allocable to income with respect to cer16 tain assets.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2014. 

Æ 


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