it will use all amounts received from such grant to provide
assistance to schools to establish and carry out nutritious
food service programs that provide affordable meals and
supplements to students, which may include—
(1) nonprofit school breakfast programs;
(2) nonprofit school lunch programs;
(3) nonprofit before and after school supplement
programs;
(4) nonprofit low-cost milk services; and
(5) nonprofit summer meals programs.
(b) ADDITIONAL REQUIREMENT.—In providing assist-
ance to schools to establish and carry out nutritious food
service programs in accordance with subsection (a), the
State shall ensure that not less than 80 percent of the
amount of the grant is used to provide free or low cost meals
or supplements to economically disadvantaged children.
(c) AUTHORITY TO USE AMOUNTS FOR OTHER PUR-
POSES.—
(1) IN GENERAL.—Subject to paragraphs (2) and
(3), a State may use not more than 20 percent of
amounts received from a grant under this subtitle for
a fiscal year to carry out a State program pursuant
to any or all of the following provisions of law:
(A) Part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.).
(B) Part B of title IV of the Social Security
Act (42 U.S.C. 620 et seq).
(C) Title XX of the Social Security Act (42
U.S.C. 1397 et seq.).
(D) Subtitle B of this title.
(E) The Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.).
(2) SUFFICIENT
FUNDING
DETERMINATION.—
Prior to using any amounts received from a grant
under this subtitle for a fiscal year to carry out a
State program pursuant to any or all of the provi-
sions of law described in paragraph (1), the appro-
priate State agency shall make a determination that
sufficient amounts will remain available for such fis-
cal year to carry out this subtitle.
(3) RULES GOVERNING USE OF AMOUNTS FOR
OTHER PURPOSES.—Amounts paid to the State under
a grant under this subtitle that are used to carry out
a State program pursuant to a provision of law spec-
ified in paragraph (1) shall not be subject to the re-
quirements of this subtitle, but shall be subject to the
same requirements that apply to Federal funds pro-
vided directly under the provision of law to carry out
the program.
(d) LIMITATION ON PROVISION OF COMMODITIES TO
CERTAIN SCHOOL DISTRICTS.—
(1) IN GENERAL.—A State may not require a
school district described in paragraph (2), except
upon the request of such school district, to accept com-
modities for use in the food service program of such
school district in accordance with this section. Such
schools may continue to receive commodity assistance
in the form that they received such assistance as of
January 1, 1987.
(2) SCHOOL
DISTRICT
DESCRIBED.—A school
district described in this paragraph is a school dis-
trict that as of January 1, 1987, was receiving all
cash payments or all commodity letters of credit in
lieu of entitlement commodities for the school lunch
program of such school district under section 18(b) of
the National School Lunch Act (42 U.S.C. 1751 et
seq.), as such section was in effect on the day before
the date of the enactment of this Act.
(e) PROHIBITION ON PHYSICAL SEGREGATION, OVERT
IDENTIFICATION, OR OTHER DISCRIMINATION WITH RE-
SPECT TO CHILDREN ELIGIBLE FOR FREE OR LOW COST
MEALS
OR SUPPLEMENTS.—In providing assistance to
schools to establish and carry out nutritious food service
programs in accordance with subsection (a), the State shall
ensure that such schools do not—
(1) physically segregate children eligible to re-
ceive free or low cost meals or supplements on the
basis of such eligibility;
(2) provide for the overt identification of such
children by special tokens or tickets, announced or
published list of names, or other means; or
(3) otherwise discriminate against such children.
SEC. 255. REPORTS.
The Secretary may provide a grant under this subtitle
to a State for a fiscal year only if the State agrees that
it will submit, for such fiscal year, a report to the Secretary
describing—
(1) the number of individuals receiving assist-
ance under the grant;
(2) the different types of assistance provided to
such individuals;
(3) the total number of meals served to students
under the grant, including the percentage of such
meals served to economically disadvantaged students;
(4) the extent to which such assistance was effec-
tive in achieving the goals described in section 251(b);
(5) the standards and methods the State is using
to ensure the nutritional quality of such assistance,
including meals and supplements; and
(6) any other information the Secretary deter-
mines to be appropriate.
SEC. 256. PENALTIES.
(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION OF
THIS SUBTITLE.—
(1) IN GENERAL.—The Secretary shall reduce the
amounts otherwise payable to a State under a grant
under this subtitle by any amount paid to the State
under this subtitle which an audit conducted pursu-
ant to chapter 75 of title 31, United States Code,
finds has been used in violation of this subtitle.
(2) LIMITATION.—In carrying out paragraph
(1), the Secretary shall not reduce any quarterly pay-
ment by more than 25 percent.
(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED RE-
PORT.—The Secretary shall reduce by 3 percent the amount
otherwise payable to a State under a grant under this sub-
title for a fiscal year if the Secretary determines that the
State has not submitted the report required by section 225
for the immediately preceding fiscal year, within 6 months
after the end of the immediately preceding fiscal year.
SEC. 257. WAIVER OF STATE LAW PROHIBITING ASSISTANCE
TO CHILDREN ENROLLED IN PRIVATE ELE-
MENTARY AND SECONDARY SCHOOLS.
If, by reason of any other provision of law, a State
is prohibited from providing assistance received from a
grant under this subtitle for children enrolled in a private
elementary or secondary school, the Secretary shall arrange
for the provision of such assistance to such children through
arrangements which shall be subject to the requirements of
this subtitle.
SEC. 258. MODEL NUTRITION STANDARDS FOR MEALS FOR
STUDENTS.
(a) MODEL NUTRITION STANDARDS.—Not later than
April 1, 1996, the Food and Nutrition Board of the Insti-
tute of Medicine of the National Academy of Sciences, in
cooperation with nutritionists and directors of programs
providing meals to students under this subtitle, shall de-
velop model nutrition standards for meals provided to such
students under this subtitle.
(b) REPORT TO CONGRESS.—Not later than 1 year
after the date on which the model nutrition standards are
developed under subsection (a), the Food and Nutrition
Board of the Institute of Medicine of the National Academy
of Sciences shall prepare and submit to the Committee on
Economic and Educational Opportunities of the House of
Representatives and the Committee on Agriculture, Nutri-
(1) GENERAL
DISQUALIFICATION
OF
ILLEGAL
ALIENS.—An alien who is not lawfully present in the
United States is not eligible for any of the following
programs:
(A) 
OLDER
AMERICAN-RELATED
PRO-
GRAMS.—
(i) A program carried out under the
Older American Community Service Em-
ployment Act (42 U.S.C. 3001 et seq.).
(ii) A program under title III of the
Older Americans Act of 1965.
(B) DOMESTIC VOLUNTEER SERVICE.—
(i) A program carried out under part
B of title II of the Domestic Volunteer Serv-
ice Act of 1973 (42 U.S.C. 5011–5012).
(ii) A program carried out under part
C of title II of such Act (42 U.S.C. 5013).
(C) LOW-INCOME
ENERGY
ASSISTANCE.—
The program under the Low-Income Energy As-
sistance Act of 1981 (42 U.S.C. 8621 et seq.).
(D) COMMUNITY
SERVICES.—A program
carried out under the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.).
(E) CHILD CARE.—A program carried out
under the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.), as
amended by this Act.
(F) HIGHER EDUCATION PROGRAMS.—
(i) The program of basic educational
opportunity grants under subpart 1 of part
A of title IV of the Higher Education Act
of 1965.
(ii) The program of Federal supple-
mental education opportunity grants under
subpart 3 of part A of title IV of the Higher
Education Act of 1965.
(iii) The program of grants to States
for State student incentives under subpart 4
of part A of title IV of the Higher Edu-
cation Act of 1965.
(iv) The special program for students
whose families are engaged in migrant and
seasonal farmwork under subpart 5 of part
A of title IV of the Higher Education Act
of 1965.
(v) The program of Federal student
loans (Stafford loans) under part B of title
IV of the Higher Education Act of 1965.
(vi) The program of Federal work-
study under part C of title IV of the Higher
Education Act of 1965.
(vii) The direct student loan program
under part D of title IV of the Higher Edu-
cation Act of 1965.
(viii) The Federal Perkins loan pro-
gram under part E of title IV of the Higher
Education Act of 1965.
(ix) All graduate programs under title
IX of the Higher Education Act of 1965.
(G) JOB TRAINING PROGRAMS.—
(i) The program of training for dis-
advantaged adults under part A of title II
of the Job Training Partnership Act (29
U.S.C. 1601 et seq.).
(ii) The program of training for dis-
advantaged youth under part C of such Act
(29 U.S.C. 1641 et seq.).
(iii) The Job Corps program under
part B of title IV of such Act (29 U.S.C.
1692 et seq.).
(iv) A summer youth employment and
training program under part B of title II
of such Act (29 U.S.C. 1630 et seq.).
(H) HOMELESS ASSISTANCE.—The program
for emergency food and shelter grants under title
III of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11331 et seq.).
(I) NUTRITION ASSISTANCE.—
(i) The family nutrition block grant
program under subtitle B of title II of this
Act.
(ii) The school-based nutrition block
grant program under subtitle C of title II
of this Act.
(2) GENERAL
RESTRICTION
ON
ALL
LEGAL
ALIENS.—An alien who is lawfully present in the
United States is not eligible for any of the following
programs:
(A) 
OLDER
AMERICAN-RELATED
PRO-
GRAMS.—
(i) A program carried out under the
Older American Community Service Em-
ployment Act (42 U.S.C. 3001 et seq.).
(ii) A program under title III of the
Older Americans Act of 1965.
(B) DOMESTIC VOLUNTEER SERVICE.—