(2) the different types of assistance provided to
such individuals in accordance with such para-
graphs;
(3) the extent to which such assistance was ef-
fective in achieving the goals described in section
221(b);
(4) the standards and methods the State is
using to ensure the nutritional quality of such assist-
ance, including meals and supplements;
(5) the number of low birthweight births in the
State in such fiscal year compared to the number of
such births in the State in the previous fiscal year;
and
(6) any other information the Secretary deter-
mines to be appropriate.
SEC. 226. 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
pursuant to chapter 75 of title 31, United States
Code, finds has been used in violation of this sub-
title.
(2) LIMITATION.—In carrying out paragraph
(1), the Secretary shall not reduce any quarterly
payment by more than 25 percent.
(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED
REPORT.—The Secretary shall reduce by 3 percent the
amount otherwise payable to a State under a grant under
this subtitle 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 preced-
ing fiscal year.
SEC. 227. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this subtitle $4,606,000,000 for fiscal
year 1996, $4,777,000,000 for fiscal year 1997,
$4,936,000,000 for fiscal year 1998, $5,120,000,000 for
fiscal year 1999, and $5,308,000,000 for fiscal year 2000.
(b) AVAILABILITY.—Amounts authorized to be appro-
priated under subsection (a) are authorized to remain
available until the end of the fiscal year subsequent to the
fiscal year for which such amounts are appropriated.
Subtitle C—School-Based Nutrition
Block Grant Program
SEC. 251. AUTHORIZATION.
(a) ENTITLEMENT.—
(1) IN GENERAL.—In the case of each State
that in accordance with section 253 submits to the
Secretary of Agriculture an application for a fiscal
year, each such State shall be entitled to receive
from the Secretary for such fiscal year a grant for
the purpose of achieving the goals described in sub-
section (b). Subject to paragraph (2), the grant shall
consist of the allotment for such State determined
under section 252 of the school-based nutrition
amount for the fiscal year.
(2) REQUIREMENT
TO
PROVIDE
COMMOD-
ITIES.—9 percent of the amount of the assistance
available under this subtitle for each State shall be
in the form of commodities.
(3) SCHOOL-BASED NUTRITION AMOUNT.—For
purposes of this subtitle, the term ‘‘school-based nu-
trition amount’’ means $6,681,000,000 for fiscal
year 1996, $6,956,000,000 for fiscal year 1997,
$7,237,000,000 
for 
fiscal 
year 
1998,
$7,538,000,000 
for 
fiscal 
year 
1999, 
and
$7,849,000,000 for fiscal year 2000.
(4) AVAILABILITY.—Payments under a grant to
a State from the allotment determined under section
252 for any fiscal year may be obligated by the
State in that fiscal year or in the succeeding fiscal
year.
(b) GOALS.—The goals of this subtitle are—
(1) to safeguard the health and well-being of
children through the provision of nutritious, well-bal-
anced meals and food supplements;
(2) to provide economically disadvantaged chil-
dren access to nutritious free or low cost meals, food
supplements, and low-cost milk;
(3) to ensure that children served under this
subtitle are receiving the nutrition they require to
take advantage of the educational opportunities pro-
vided to them;
(4) to emphasize foods which are naturally good
sources of vitamins and minerals over foods which
have been enriched with vitamins and minerals and
are high in fat or sodium content;
(5) to provide a comprehensive school nutrition
program for children; and
(6) to minimize paperwork burdens and admin-
istrative expenses for participating schools.
(c) TIMING OF PAYMENTS.—The Secretary shall pro-
vide payments under a grant under this subtitle to States
on a quarterly basis.
SEC. 252. ALLOTMENT.
The Secretary shall allot the amount appropriated to
carry out this subtitle for a fiscal year among the States
as follows:
(1) FIRST FISCAL YEAR.—
(A) IN
GENERAL.—With respect to the
first fiscal year for which the Secretary provides
grants to States under this subtitle, the amount
allotted to each State shall bear the same pro-
portion to such remainder as the aggregate of
the amounts described in subparagraph (B)
that were received by each such State under the
provisions of law described in such subpara-
graph (as such provisions of law were in effect
on the day before the date of the enactment of
this Act) for the preceding fiscal year bears to
the aggregate of the amounts described in sub-
paragraph (B) that were received by all such
States under such provisions of law for such
preceding fiscal year.
(B) AMOUNTS DESCRIBED.—The amounts
described in this subparagraph are the follow-
ing:
(i) The amount received under the
school breakfast program established under
section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773).
(ii) The amount received under the
school lunch program established under the
National School Lunch Act (42 U.S.C.
1751 et seq.).
(iii) 12.5 percent of the sum of the
amounts received under the following pro-
grams:
(I) The child and adult care food
program under section 17 of the Na-
tional School Lunch Act (42 U.S.C.
1766), except for subsection (o) of
such section.
(II) The summer food service
program 
for 
children 
established
under section 13 of the National
School Lunch Act (42 U.S.C. 1761).
(III) The special milk program
established under section 3 of the
Child Nutrition Act of 1966 (42
U.S.C. 1772).
(2) SECOND FISCAL YEAR.—With respect to the
second fiscal year for which the Secretary provides
grants to States under this subtitle—
(A) 90 percent of such remainder shall be
allotted among the States by allotting to each
State an amount that bears the same propor-
tion to such remainder as the amount allotted
to each such State from a grant under this sub-
title for the preceding fiscal year bears to the
aggregate of the amounts allotted to all such
States from grants under this subtitle for such
preceding fiscal year; and
(B) 10 percent of such remainder shall be
allotted among the States by allotting to each
State an amount that bears the same propor-
tion to such remainder as the relative number
of meals served during the 1-year period ending
on June 30 of the preceding fiscal year in a
State from amounts received from a grant
under this subtitle for such preceding fiscal
year bears to the total number of meals served
in all States from amounts received from grants
under this subtitle for the preceding fiscal year.
(3) THIRD FISCAL YEAR.—With respect to the
third fiscal year for which the Secretary provides
grants to States under this subtitle—
(A) 80 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(A); and
(B) 20 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(B).
(4) FOURTH
FISCAL
YEAR.—With respect to
the fourth fiscal year for which the Secretary pro-
vides grants to States under this subtitle—
(A) 70 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(A); and
(B) 30 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(B).
(5) FIFTH FISCAL YEAR.—With respect to the
fifth fiscal year for which the Secretary provides
grants to States under this subtitle—
(A) 60 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(A); and
(B) 40 percent of such remainder shall be
allotted among the States by allotting to each
State an amount determined in accordance with
the formula described in paragraph (2)(B).
SEC. 253. APPLICATION.
The Secretary may provide a grant under this subtitle
to a State for a fiscal year only if the State submits to
the Secretary an application containing only—
(1) an agreement that the State will use
amounts received from such grant in accordance
with section 254;
(2) an agreement that the State will set mini-
mum nutritional requirements for meals provided
under this subtitle based on the most recent tested
nutritional research available, except that—
(A) such requirements shall not be con-
strued to prohibit the substitution of foods to
accommodate the medical or other special die-
tary needs of individual students; and
(B) such requirements shall, at a mini-
mum, be based on—
(i) the weekly average of the nutrient
content of school lunches; or
(ii) such other standards as the State
may prescribe;
(3) an agreement that the State will take such
reasonable steps as the State deems necessary to re-
strict the use and disclosure of information about in-
dividuals and families receiving assistance under this
subtitle;
(4) an agreement that the State will use not
more than 2 percent of the amount of such grant for
administrative costs incurred to provide assistance
under this subtitle; and
(5) an agreement that the State will submit to
the Secretary a report in accordance with section
255.
SEC. 254. USE OF AMOUNTS.
(a) IN GENERAL.—The Secretary may provide a
grant under this subtitle to a State only if the State agrees
that 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 supple-
ment programs;
(4) nonprofit low-cost milk services; and
(5) nonprofit summer meals programs.
(b) ADDITIONAL REQUIREMENT.—In providing as-
sistance 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.—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 follow-
ing provisions of law:
(A) Part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.).
(B) Part B of title IV of the Social Secu-
rity 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) 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 specified in paragraph (1) shall not be subject
to the requirements of this subtitle, but shall be sub-
ject to the same requirements that apply to Federal
funds provided 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
commodities for use in the food service program of
such school district in accordance with this section.
Such schools may continue to receive commodity as-
sistance in the form that they received such assist-
ance 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)