103
tritional requirements prescribed by the Secretary 
under subsection (e) of this section. 
‘‘(4) NUTRITION QUALITY ADJUSTMENT.—The 
Secretary shall increase by 6 cents the annually ad-
justed payment for each breakfast served under this 
Act and section 17 of the Richard B. Russell Na-
tional School Lunch Act. These funds shall be used 
to assist States, to the extent feasible, in improving 
the nutritional quality of the breakfasts. 
‘‘(5) AGRICULTURAL COMMODITIES.—Notwith-
standing any other provision of law, whenever stocks 
of agricultural commodities are acquired by the Sec-
retary or the Commodity Credit Corporation and are 
not likely to be sold by the Secretary or the Com-
modity Credit Corporation or otherwise used in pro-
grams of commodity sale or distribution, the Sec-
retary shall make such commodities available to 
school food authorities and eligible institutions serv-
ing breakfasts under this Act in a quantity equal in 
value to not less than 3 cents for each breakfast 
served under this Act. 
‘‘(6) EFFECT
ON
EXPENDITURES.—Expendi-
tures of funds from State and local sources for the 
maintenance of the breakfast program shall not be
104
diminished as a result of funds or commodities re-
ceived under paragraph (4) or (5). 
‘‘(c) STATE DISBURSEMENT TO SCHOOLS.—Funds 
paid to any State during any fiscal year for the purpose 
of this section shall be disbursed by the State educational 
agency, in accordance with such agreements approved by 
the Secretary as may be entered into by such State agency 
and the schools in the State, to those schools in the State 
which the State educational agency, determines are eligi-
ble to participate in the school breakfast program. 
‘‘(d) PARTICIPATION BY SCHOOLS.—
‘‘(1) REQUIREMENTS FOR PARTICIPATION.—To 
be eligible to participate in the school breakfast pro-
gram under this section, a school food authority 
shall—
‘‘(A) agree to serve all breakfasts at no 
charge to all students who wish to participate 
without regard to family income in all partici-
pating schools; and 
‘‘(B) meet all other requirements that the 
Secretary may reasonably establish. 
‘‘(2) START-UP ASSISTANCE.—The Secretary is 
authorized to provide additional assistance to schools 
not participating in the school breakfast program 
prior to the enactment of the Family and Workplace
105
Balancing Act of 2004 in order to assist such 
schools to begin participation in the school breakfast 
program under this section. 
‘‘(3) STATE
EDUCATIONAL
AGENCY
ASSIST-
ANCE.—Each State educational agency shall assist 
schools not participating in the school breakfast pro-
gram prior to the enactment of the Family and 
Workplace Balancing Act of 2004 to enter into 
agreements with such agencies in order to partici-
pate in the school breakfast program under this sec-
tion. 
‘‘(e) NUTRITIONAL AND OTHER PROGRAM REQUIRE-
MENTS.—
‘‘(1) 
MINIMUM
NUTRITIONAL
REQUIRE-
MENTS.—Breakfasts served by schools participating 
in the school breakfast program under this section 
shall consist of a combination of foods and shall 
meet minimum nutritional requirements prescribed 
by the Secretary on the basis of tested nutritional 
research, except that the minimum nutritional re-
quirements shall be measured by not less than the 
weekly average of the nutrient content of school 
breakfasts. 
‘‘(2) TECHNICAL ASSISTANCE AND TRAINING.—
The Secretary shall provide through State edu-
106
cational agencies technical assistance and training, 
including technical assistance and training in the 
preparation of foods high in complex carbohydrates 
and lower-fat versions of foods commonly used in the 
school breakfast program established under this sec-
tion, to schools participating in the school breakfast 
program to assist the schools in complying with the 
nutritional requirements prescribed by the Secretary 
pursuant to paragraph (1) and in providing appro-
priate meals to children with medically certified spe-
cial dietary needs. 
‘‘(3) OPTION VERSUS SERVE.—At the option of 
a local school food authority, a student in a school 
under the authority that participates in the school 
breakfast program under this Act may be allowed to 
refuse not more than one item of a breakfast that 
the student does not intend to consume. A refusal of 
an offered food item shall not affect the amount of 
payments made under this Act to a school for the 
breakfast.’’. 
(b) TECHNICAL AMENDMENTS.—
(1) CHILD NUTRITION ACT OF 1966.—Section 
20 of the Child Nutrition Act of 1966 (42 U.S.C. 
1789) is amended by striking subsection (b) and re-
107
designating subsections (c) through (e) as sub-
sections (b) through (d), respectively. 
(2) RICHARD B. RUSSELL NATIONAL SCHOOL 
LUNCH
ACT.—The Richard B. Russell National 
School Lunch Act is amended—
(A) in section 9(b)—
(i) in paragraph (2)(C)(ii), by striking 
‘‘or breakfasts’’; and 
(ii) in paragraph (6)(A), by striking 
‘‘and breakfast’’; 
(B) in section 11(a)(1)—
(i) in subparagraph (C), by striking 
‘‘or breakfasts’’ each place it appears; 
(ii) in subparagraph (C)(i)(I), by 
striking ‘‘or in the case of a school’’ and 
all that follows through ‘‘4 successive 
school years’’; 
(iii) in subparagraph (D)(iii), by strik-
ing ‘‘or for free and reduced price lunches 
and breakfasts’’; 
(iv) in subparagraph (D)(iv), by strik-
ing ‘‘or school breakfast’’; 
(v) in subparagraph (E)(i)(I) by strik-
ing ‘‘or in the case of a school’’ and all
108
that follows through ‘‘4 successive school 
years’’; and 
(vi) in subparagraph (E)(i)(II)—
(I) by striking ‘‘or breakfasts’’ 
both places it appears; and 
(II) by striking ‘‘or school break-
fast’’; 
(C) in section 11(a)(3)(A), by striking 
clause (iii); 
(D) in section 13(a)(1)(C), by striking ‘‘or 
breakfasts’’; 
(E) in section 17—
(i) in subsection (c), by striking para-
graph (2), and redesignating paragraphs 
(3) through (6) as paragraphs (2) through 
(5), respectively; and 
(ii) in subsection (f)(3)(E)(ii(I), by 
striking ‘‘meals’’ and inserting ‘‘lunches’’; 
and 
(F) in section 18, by striking subsection 
(e) and redesignating subsections (f) and (g) as 
subsections (e) and (f), respectively.
109
Subtitle C—Nutritional Improve-
ment for Children Served Under 
Child Nutrition Programs 
SEC. 321. NUTRITIONAL IMPROVEMENT FOR CHILDREN 
SERVED 
UNDER 
CHILD 
NUTRITION 
PRO-
GRAMS 
(a) IN GENERAL.—Section 18 of the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 1769) is 
amended by adding at the end the following: 
‘‘(h) HEALTHY SCHOOL NUTRITION ENVIRONMENT 
INCENTIVE GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a program under which the Secretary shall make 
competitive grants to selected local educational agen-
cies—
‘‘(A) to create healthy school nutrition en-
vironments; and 
‘‘(B) to assess the impact of the environ-
ments on the health and well-being of children 
enrolled in the schools. 
‘‘(2) SELECTION
OF
SCHOOLS.—In selecting 
local educational agencies to receive incentive grants 
under this subsection, the Secretary shall—
‘‘(A) ensure that not less than 75 percent 
of the schools under the jurisdiction of the
110
agencies selected to participate in the program 
established under this subsection are schools in 
which not less than 50 percent of the students 
enrolled in each school are eligible for free or 
reduced price meals under this Act; 
‘‘(B) ensure that, of the agencies selected 
to participate in the program, there is appro-
priate representation of rural, urban, and sub-
urban schools, as determined by the Secretary; 
‘‘(C) ensure that, of the agencies selected 
to participate in the program, there is appro-
priate representation of elementary, middle, and 
secondary schools, as determined by the Sec-
retary; 
‘‘(D) ensure that agencies selected to re-
ceive a grant under this subsection meet the re-
quirements of paragraph (3); 
‘‘(E) give priority to agencies that develop 
comprehensive plans that include the involve-
ment of a broad range of community stake-
holders in achieving healthy school nutrition en-
vironments; 
‘‘(F) give priority to agencies that develop 
comprehensive plans that include a strategy for 
maintaining healthy school nutrition environ-
111
ments in the years following the fiscal years for 
which the agencies receive grants under this 
subsection; 
‘‘(G) select only agencies that submit grant 
applications by May 1, 2004; and 
‘‘(H) make grant awards effective not later 
than July 15, 2004. 
‘‘(3) REQUIREMENTS.—
‘‘(A) INPUT.—Prior to the solicitation of 
proposals for grants under this subsection, the 
Secretary shall solicit input from appropriate 
nutrition, health, and education organizations 
(such as the American School Food Service As-
sociation, the American Dietetic Association, 
and the National School Boards Association) 
regarding the appropriate criteria for a healthy 
school environment. 
‘‘(B) CRITERIA FOR HEALTHY SCHOOL EN-
VIRONMENTS.—The Secretary shall, taking into 
account input received under subparagraph (A), 
establish criteria for defining a healthy school 
environment, including criteria that—
‘‘(i) provide program meals that meet 
nutritional standards for breakfasts and 
lunches established by the Secretary;
112
‘‘(ii) ensure that all food served (in-
cluding food served in participating schools 
and service institutions in competition with 
the programs authorized under this Act 
and the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.)) on school grounds 
during regular school hours is consistent 
with the nutritional standards for break-
fasts and lunches established by the Sec-
retary; 
‘‘(iii) promote the consumption of 
fruits and vegetables; 
‘‘(iv) provide nutrition education to 
students and staff; and 
‘‘(v) meet other criteria established by 
the Secretary. 
‘‘(C) PLANS.—To be eligible to receive a 
grant under this subsection, a local educational 
agency shall submit to the Secretary a healthy 
school nutrition environment plan that describes 
the actions the schools under the jurisdiction of 
such agency will take to meet the criteria estab-
lished under subparagraph (B).
113
‘‘(4) GRANTS.—For each of fiscal years 2005 
through 2008, the Secretary shall make a grant to 
each agency selected under paragraph (2). 
‘‘(5) EVALUATIONS.—
‘‘(A) IN GENERAL.—The Secretary, acting 
through the Administrator of the Food and Nu-
trition Service, shall conduct an evaluation of a 
representative sample of schools that receive 
grants under this subsection. 
‘‘(B) CONTENT.—The evaluation shall 
measure, at a minimum, the effects of a healthy 
school nutrition environment on—
‘‘(i) overweight children and obesity; 
‘‘(ii) dietary intake; 
‘‘(iii) nutrition education and behav-
ior; 
‘‘(iv) the adequacy of time to eat; 
‘‘(v) physical activities; 
‘‘(vi) parental and student attitudes 
and participation; and 
‘‘(vii) related funding issues, including 
the cost of maintaining a healthy school 
nutrition environment. 
‘‘(C) REPORTS.—The Secretary shall sub-
mit to the Committee on Education and the
114
Workforce of the House of Representatives and 
the Committee on Agriculture, Nutrition, and 
Forestry of the Senate—
‘‘(i) not later than December 31, 
2005, an interim report on the activities of 
schools evaluated under this subsection; 
and 
‘‘(ii) not later than December 31, 
2007, a final report on the activities of 
schools evaluated under this subsection. 
‘‘(6) FUNDING.—
‘‘(A) IN GENERAL.—Out of any funds in 
the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall transfer to the 
Secretary of Agriculture to carry out this sub-
section—
‘‘(i) on October 1, 2003, $10,000,000; 
and 
‘‘(ii) on October 1, 2004, and each 
October 1 thereafter through October 1, 
2006, $35,000,000. 
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this section the