program participants while ensuring that proper 
accountability and program integrity are main-
tained. 
(2) REPRESENTATION.—The advisory committee 
under this subsection shall include representation 
from each of the following (within the meaning of the 
Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.), as applicable): 
(A) Public and private nonprofit organiza-
tions. 
(B) Home-based day care providers. 
(C) Head Start centers. 
(D) For-profit proprietary organizations. 
(E) Shelters for homeless families. 
(F) Adult day care centers. 
(G) State agencies. 
(H) Sponsor organizations that provide ad-
ministrative support to multiple providers. 
(3) CONSIDERATIONS.—In developing the rec-
ommendations under this subsection, the advisory 
committee shall take into consideration, as appro-
priate— 
(A) any existing information, recommenda-
tions, and reports from the paperwork reduction 
work group convened by the Food and Nutrition 
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Service in response to section 119(i) of the Child 
Nutrition and WIC Reauthorization Act of 2004 
(42 U.S.C. 1766 note; 118 Stat. 755); 
(B) the use of technology for electronic rec-
ordkeeping to reduce paperwork burdens on pro-
gram participants and providers; and 
(C) input from additional advocates and 
stakeholders for a broader knowledge base, if the 
advisory committee determines necessary. 
(4) SECRETARIAL ACTION.— 
(A) GUIDANCE OR REGULATIONS.— 
(i) ISSUANCE.—Not later than 1 year 
after the date of the enactment of this Act, 
the Secretary shall issue guidance or regula-
tions, as appropriate, based on the rec-
ommendations of the advisory committee 
under paragraph (1) regarding streamlined 
and consolidated paperwork and record-
keeping requirements, including applica-
tions, monitoring and auditing require-
ments, and any other areas recommended 
by the advisory committee intended to re-
duce administrative burden. 
(ii) IMPLEMENTATION.—Not later than 
18 months after the date of the enactment of 
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this Act, the Secretary shall implement any 
changes resulting from the guidance or reg-
ulations described in clause (i). 
(B) REPORT.—After issuing any guidance 
or regulations under subparagraph (A), the Sec-
retary shall submit to the Committee on Agri-
culture, Nutrition, and Forestry of the Senate 
and the Committee on Education and the Work-
force of the House of Representatives a report de-
scribing any recommendations for legislative 
changes to further strengthen and streamline the 
application and monitoring process and reduce 
administrative burden on grantees, participants, 
local and State governments, and the Federal 
Government. 
SEC. 109. DEMONSTRATION PROJECTS. 
Section 18 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769) is amended— 
(1) by striking subsections (g), (h), (j), and (k); 
(2) by redesignating subsection (i) as subsection 
(g); 
(3) in subsection (g)(5), as so redesignated, by 
striking ‘‘2011 through 2015’’ and inserting ‘‘2017 
through 2021’’; 
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(4) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) ACCESS TO LOCAL FOODS: FARM TO SCHOOL 
PROGRAM.— 
‘‘(1) PROGRAM.—The Secretary shall carry out a 
program to assist eligible schools, State and local 
agencies, Indian tribal organizations, agricultural 
producers or groups of agricultural producers, and 
nonprofit entities through grants, technical assistance, 
and research to implement farm to school programs 
that improve access to local foods and improve nutri-
tion education in eligible schools. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) AGRICULTURAL PRODUCER.—The term 
‘agricultural producer’ means a farmer, rancher, 
or fisher (including of farm-raised fish). 
‘‘(B) ELIGIBLE SCHOOL.—The term ‘eligible 
school’ means a school or institution that par-
ticipates in— 
‘‘(i) a program under this Act, includ-
ing the summer food service program for 
children under section 13 and the early care 
and afterschool portions of the child and 
adult care food program under section 17; 
or 
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‘‘(ii) the school breakfast program es-
tablished under section 4 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1773). 
‘‘(3) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
award competitive grants under this subsection 
to be used for implementing farm to school pro-
grams for the purposes of improving access to 
local foods and improving nutrition education, 
through— 
‘‘(i) research, training, and technical 
assistance; 
‘‘(ii) supporting operations; 
‘‘(iii) planning; 
‘‘(iv) purchasing equipment; 
‘‘(v) developing school gardens; and 
‘‘(vi) developing partnerships to facili-
tate nutrition education and healthy eating. 
‘‘(B) 
REGIONAL
BALANCE.—In 
making 
awards under this subsection, the Secretary 
shall, to the maximum extent practicable, en-
sure— 
‘‘(i) geographical diversity; and 
‘‘(ii) equitable treatment of urban, 
rural, and tribal communities. 
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‘‘(C) IMPROVED
PROCUREMENT
AND
DIS-
TRIBUTION.—Funds provided under this sub-
section may be used to improve local food pro-
curement and distribution options between agri-
cultural producers and eligible schools, including 
innovative approaches to aggregation, processing, 
transportation, and distribution. 
‘‘(D) AWARDS.— 
‘‘(i) MAXIMUM
AMOUNT.—The total 
amount provided to a grant recipient under 
this subsection shall not exceed $150,000. 
‘‘(ii) TERM.—The term of an award 
shall not exceed 3 years. 
‘‘(iii) 
LIMITATION.—The 
Secretary 
shall not award any entity more than 1 
grant at any given time. 
‘‘(iv) PURPOSE AND SCOPE.—In car-
rying out this subsection, the Secretary 
shall make awards of diverse amounts and 
duration so as to best match a variety of 
purposes, scopes, and needs of the project 
proposals. 
‘‘(E) LIMITATION.—The Secretary shall not 
award a grant under this subsection if the ma-
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jority of grant funds would be used solely for the 
purpose of carrying out a conference. 
‘‘(4) FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—The Federal share of 
costs for a project funded through a grant 
awarded under this subsection shall not exceed 
75 percent of the total cost of the project. 
‘‘(B) FEDERAL MATCHING.—As a condition 
of receiving a grant under this subsection, a 
grant recipient shall provide matching support 
in the form of cash or in-kind contributions, in-
cluding facilities, equipment, or services provided 
by State and local governments, nonprofit orga-
nizations, and private sources. 
‘‘(5) CRITERIA FOR SELECTION.— 
‘‘(A) IN GENERAL.—To the maximum ex-
tent practicable, in providing assistance under 
this subsection, the Secretary shall give priority 
to proposals to— 
‘‘(i) serve a high proportion of children 
who are eligible for free or reduced price 
meals; 
‘‘(ii) incorporate nutrition education 
activities that encourage the participation 
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of school children in farm and garden-based 
agricultural education activities; 
‘‘(iii) provide families the opportunity 
to participate in educational programming, 
including through materials and engage-
ment activities, to improve nutrition out-
side the school environment; 
‘‘(iv) demonstrate collaboration be-
tween eligible schools, nongovernmental and 
community-based 
organizations, 
agricul-
tural producer groups, and other commu-
nity partners; 
‘‘(v) make local food products available 
on the menu of reimbursable meals under 
this Act at the eligible school; 
‘‘(vi) demonstrate the potential for 
long-term program sustainability with non- 
Federal funds; and 
‘‘(vii) expand the selection of local 
commodities available for eligible schools. 
‘‘(B) TRIBAL
COMMUNITY
PROJECTS.—In 
the case of projects serving tribal communities, 
the Secretary shall, to the maximum extent prac-
ticable, give highest priority to projects that pro-
pose to use products from tribal agricultural pro-
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ducers, in addition to the priorities under sub-
paragraph (A). 
‘‘(6) EVALUATION.—As a condition of receiving a 
grant under this subsection, each grant recipient shall 
agree to cooperate in an evaluation of the program by 
the Secretary. 
‘‘(7) TECHNICAL ASSISTANCE AND RESEARCH.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide technical assistance, research, and infor-
mation through amounts reserved under this sub-
section for such purposes, to assist schools, State 
and local agencies, Indian tribal organizations, 
agricultural producers, and nonprofit entities— 
‘‘(i) to facilitate the coordination and 
sharing of information and resources that 
may be applicable to the farm to school pro-
gram; 
‘‘(ii) to collect and share information 
on best practices; 
‘‘(iii) to disseminate research and data 
on existing farm to school programs and the 
potential for programs to begin in under-
served areas; and 
‘‘(iv) to increase awareness of, and 
participation in, farm to school programs 
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among agricultural and aquiculture pro-
ducers or agricultural producer groups, in-
cluding beginning, veteran, and socially dis-
advantaged farmers and ranchers. 
‘‘(B) REVIEW.—Not later than 1 year after 
the date of the enactment of the Improving Child 
Nutrition and Education Act of 2016 and every 
3 years thereafter, the Secretary shall review and 
submit to the Committee on Agriculture and the 
Committee on Education and the Workforce of 
the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes the regulatory and 
other barriers related to including locally or re-
gionally produced food products in school food 
programs, including any progress that has been 
made in identifying and eliminating such bar-
riers through examining— 
‘‘(i) barriers to the development and 
implementation of successful farm to school 
programs; 
‘‘(ii) the direct and indirect costs af-
fecting the production and marketing of lo-
cally or regionally produced agricultural 
food products for school food programs; 
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‘‘(iii) the costs local school food pro-
grams incur by acquiring such local foods 
for school meal programs in comparison to 
the costs for other foods in such school meal 
programs; and 
‘‘(iv) local and regional market access 
for such food products, partnerships, small- 
scale production, and any barriers to and 
long-term feasibility of such access. 
‘‘(8) FUNDING.— 
‘‘(A) IN
GENERAL.—On October 1, 2016, 
and each October 1 thereafter, out of any funds 
in the Treasury not otherwise appropriated, the 
Secretary of the Treasury shall transfer to the 
Secretary 
to 
carry 
out 
this 
subsection 
$10,000,000, to remain available until expended. 
‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, 
and shall use to carry out this subsection the 
funds transferred under subparagraph (A), with-
out further appropriation. 
‘‘(C) ADMINISTRATION.—Of the funds made 
available to the Secretary under subparagraph 
(A), not more than 5 percent may be used to pay 
administrative costs incurred by the Secretary in 
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carrying out this subsection and evaluating the 
program in accordance with paragraph (6). 
‘‘(e) SUMMER MEAL SERVICE THROUGH BUSINESS 
PARTNERSHIP.— 
‘‘(1) IN GENERAL.—From the funds made avail-
able under the summer food service program under 
section 13, the Secretary shall award grants on a 
competitive basis to not more than 4 State agencies 
to improve delivery of such summer food service pro-
gram for low-income children in underserved areas 
during the summer through sustainable, scalable, 
business-driven solutions. 
‘‘(A) DURATION.—A grant awarded under 
this subsection shall be for a period of not more 
than 3 years. 
‘‘(B) PRIORITY.—In awarding grants under 
this subsection, the Secretary shall give priority 
to State agencies that have met the application 
requirements under this subsection and which 
demonstrate a severe unmet need for serving chil-
dren in additional eligible areas in the State 
through the summer food service program under 
section 13. 
‘‘(C) LIMITATION.—Funds under this sub-
section will— 
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‘‘(i) be awarded for the purpose of re-
ducing childhood hunger and allowing par-
ents to better participate in the labor force 
or an education or workforce development 
program; and 
‘‘(ii) not preempt or prevent operation 
of the summer food service program under 
section 13. 
‘‘(2) STATE APPLICATION.—A State seeking to 
improve delivery of the summer food service program 
in such State in accordance with this subsection shall 
submit an application at such time and in such man-
ner as the Secretary may reasonably require. The ap-
plication shall contain— 
‘‘(A) State plans to implement and manage 
the program in accordance with other applicable 
Federal requirements under this Act; 
‘‘(B) a determination of the eligible areas in 
the State in which poor economic conditions 
exist in accordance with the program, but where 
an eligible service institution is not currently in 
operation, where the State may reimburse a ven-
dor; 
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‘‘(C) identified eligible vendors which the 
State has determined to be qualified to provide 
meals in accordance with this subsection; 
‘‘(D) a proposed timeline for entering into 
contracts with eligible vendors and strategies for 
effective communication; and 
‘‘(E) an assurance that funds will be used 
to provide meals to the most vulnerable, under-
served, and rural populations, as determined by 
the State. 
‘‘(3) ELIGIBLE VENDOR.—For purposes of this 
subsection, an eligible vendor is a food vendor which 
the State determines has the administrative capacity 
and proven operating performance to provide eligible 
meals to children in underserved areas in accordance 
with this subsection and the summer food service pro-
gram requirements on management responsibilities of 
sponsors and self-preparation sites, including require-
ments that the vendor— 
‘‘(A) accepts final administrative and fi-
nancial responsibility for management of an ef-
fective food service, including auditing and re-
porting responsibilities, but will not receive ad-
ministrative funding from the State to do so; 
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‘‘(B) has not been determined ineligible to 
participate in any other program under this Act 
or the Child Nutrition Act of 1966 by reason of 
violation of the requirements of that program; 
‘‘(C) will provide adequate supervisory and 
operational personnel for monitoring and man-
agement of a self-preparation site; 
‘‘(D) contracts directly with the State as a 
sponsor; 
‘‘(E) ensures that meals are inspected peri-
odically as required under existing program reg-
ulations; 
‘‘(F) participates in applicable State and 
Federal reporting and auditing requirements 
under this Act as appropriate, including to pro-
vide other information determined relevant by 
the Secretary in accordance with paragraph (5); 
‘‘(G) has State or local health certification 
for the facilities in which meals will be prepared 
and distributed for use in the program, and en-
sures that State and local health and sanitation 
requirements are met at all times; and 
‘‘(H) has the organizational capacity to 
offer meals in underserved communities, includ-
ing preparation and delivery logistics. 
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‘‘(4) STATE DISBURSEMENT.—A State shall use 
the grant awarded to the State under this subsection 
to reimburse an eligible vendor for meals served to eli-
gible children in accordance with the summer food 
service program under section 13 and with this sub-
section, as follows: 
‘‘(A) Reimbursements shall be available for 
an eligible vendor operating in an eligible area 
in which poor economic conditions exist where 
no sponsor is currently operating the program 
under section 13. 
‘‘(B) To the extent practicable, a State shall 
give priority to eligible vendors that— 
‘‘(i) demonstrate partnerships with en-
tities providing summer enrichment activi-
ties such as schools, local government agen-
cies, and nonprofit agencies; and 
‘‘(ii) provide meals at a congregate 
site. 
‘‘(C) A State shall follow established proce-
dures in entering into contracts with a vendor, 
such as through a Request for Proposal, Invita-
tion for Sealed Bid, Small Purchase Procedure, 
or other common method. 
‘‘(5) AUDITING.— 
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‘‘(A) STATE REPORTING.—Not later than 1 
year after the end of the grant period for a grant 
awarded to a State under this subsection, the 
State shall submit to the Secretary a report on— 
‘‘(i) the activities carried out with such 
grant; and 
‘‘(ii) the impacts of such activities on 
children, families, and eligible service insti-
tutions during the summer. 
‘‘(B) REPORT FROM SECRETARY.—No later 
than 4 years after the first grant is awarded 
under this subsection, the Secretary shall provide 
to the Committee on Education and the Work-
force of the House of Representatives and the 
Committee on Agriculture, Nutrition, and For-
estry of the Senate a report on the grant pro-
gram under this subsection, which shall in-
clude— 
‘‘(i) a review of information submitted 
by States under subparagraph (A); and 
‘‘(ii) best practices on reducing child-
hood hunger in the summer months. 
‘‘(6) LIMITATIONS.—The following rules shall 
apply with respect to this subsection: 
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‘‘(A) No commodities shall be provided to 
businesses or vendors under this subsection. 
‘‘(B) Vendors shall assume all administra-
tive costs under this subsection. 
‘‘(C) Meals shall be provided to children eli-
gible for the summer food service program under 
section 13. 
‘‘(D) A vendor receiving reimbursements 
shall not profit directly from such reimburse-
ments under this subsection. 
‘‘(E) The Secretary shall include payments 
to States under this subsection in its calculations 
for administrative costs incurred by States under 
subsection (k)(1) of section 13. 
‘‘(f) SUMMER ELECTRONIC BENEFIT TRANSFER FOR 
CHILDREN.— 
‘‘(1) PURPOSE.—The purposes of the provision of 
electronic benefits provided through this subsection 
are to assess the use of alternate methods of providing 
access to food for children during the summer months 
when school is not in regular session that are in-
tended to— 
‘‘(A) increase summer food service program 
effectiveness and efficiency; 
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‘‘(B) reduce or eliminate the food insecurity 
and hunger of children; and 
‘‘(C) improve the nutritional status of chil-
dren. 
‘‘(2) DEMONSTRATION.— 
‘‘(A) ELECTION.—A State that, as of the 
date of enactment of the Improving Child Nutri-
tion and Education Act of 2016, is operating, or 
has operated, a summer electronic benefit trans-
fer for children demonstration may elect to con-
tinue operating such demonstration in accord-
ance with the requirements of this subsection as 
an alternative to other delivery models of pro-
viding meals to children during the summer 
months when school is not in regular session. 
‘‘(B) STATE REQUIREMENTS.—As a condi-
tion of participating in the demonstration under 
this subsection, a State shall— 
‘‘(i) comply with the requirements 
under this subsection; and 
‘‘(ii) agree to provide such information 
the Secretary may require for the evalua-
tion of the demonstration as required under 
this subsection. 
‘‘(3) DEFINITIONS.—In this subsection: 
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‘‘(A) ELIGIBLE HOUSEHOLD.—The term ‘el-
igible household’ means a household that includes 
1 or more school-aged child determined as eligi-
ble to receive free or reduced price school meals 
during the prior school year, but such child is 
not participating in a program that provides 
food during the summer through the summer 
food service program under section 13. 
‘‘(B) STATE.—The term ‘State’ includes a 
tribal entity. 
‘‘(C) SUMMER ELECTRONIC BENEFIT TRANS-
FER FOR CHILDREN DEMONSTRATION.—The term 
‘summer electronic benefit transfer for children 
demonstration’ means an electronic benefit 
transfer demonstration project under section 
748(g)(1) of the Agriculture, Rural Development, 
Food and Drug Administration, and Related 
Appropriations Act, 2010 (Public Law 111–80; 
123 Stat. 2132). 
‘‘(4) BENEFIT LEVELS.— 
‘‘(A) IN GENERAL.—The Secretary shall ap-
prove States seeking to make an election under 
paragraph (2)(A) that will evaluate the impact 
of providing a variety of differentiated benefit 
levels to eligible children as a way to reach such 
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children to the greatest extent practicable. The 
values of such benefits shall be determined by the 
State, but shall be between $15 and $30 per 
month for each school-aged child in an eligible 
household. 
‘‘(B) RATE
DETERMINATION.—In deter-
mining the values under subparagraph (A), a 
State may consider differentiating rates based on 
the need for such benefits, which may be deter-
mined through factors such as— 
‘‘(i) the proportion of applicants that 
are eligible for free price meals; 
‘‘(ii) total number of households and 
children seeking to participate; 
‘‘(iii) food security in children across 
communities in such State; 
‘‘(iv) average redemption rates of bene-
fits; 
‘‘(v) impact of such values at improv-
ing food security in children; 
‘‘(vi) availability of other community 
programs that provide meals to children 
during the summer months when school is 
not in regular session where children might 
otherwise receive nutrition assistance; and 
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‘‘(vii) any other information a State 
determines is useful for determining such 
rates. 
‘‘(C) LIMITATIONS.— 
‘‘(i) TIME.—No child may receive more 
than 3 months of benefits under this para-
graph in any 12-month period. 
‘‘(ii) AMOUNT.—No child may receive 
more than $30 of benefits under this para-
graph per month. 
‘‘(D) COST
SHARING.—Nothing in this 
paragraph shall be construed to prohibit States 
or local entities from providing additional non- 
Federal resources for the purposes of this sub-
section. 
‘‘(5) EFFECTIVE IMPLEMENTATION.— 
‘‘(A) IN GENERAL.—In administering this 
subsection and providing benefits to children in 
accordance with this subsection, a State shall 
consider previous State experiences and best 
practices in implementing the summer electronic 
benefit transfer for children demonstration car-
ried out before the date of enactment of the Im-
proving Child Nutrition and Education Act of 
2016, including information evaluating findings 
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of the demonstration (including the 2013 final 
report published by the Department of Agri-
culture). 
‘‘(B) TECHNICAL
ASSISTANCE.—The Sec-
retary shall provide, and periodically update, 
technical assistance to States for purposes of this 
paragraph. 
‘‘(6) USE OF BENEFITS.— 
‘‘(A) IN GENERAL.—Benefits issued to fami-
lies through the election under paragraph (2)(A) 
may be used only for the purchase of food for 
consumption by school-aged children in such 
family. 
‘‘(B) TIMING.—Benefits issued through the 
election described in this subparagraph may be 
redeemed only when school is out of session for 
the summer period. 
‘‘(7) ADMINISTRATION.—In administering this 
subsection, the State shall— 
‘‘(A) ensure that benefits are issued only to 
eligible households that live— 
‘‘(i) in areas with high rates of poverty 
or long-term poverty that are rural and 
have no congregate feeding sites or access to 
meals otherwise provided through the sum-
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mer food service program authorized under 
section 13; or 
‘‘(ii) outside an area in which poor 
economic conditions exist but in an area 
with no access to meals otherwise provided 
through the summer food service program 
authorized under section 13; 
‘‘(B) issue benefits to eligible households 
only after such household has made an oral or 
written request to receive electronic benefit trans-
fer benefits under this subsection; and 
‘‘(C) document how the election will be ad-
ministered in the management and administra-
tion plan described in subsection (n), including 
the process for identifying areas in which bene-
fits will be issued. 
‘‘(8) EVALUATION.—The Secretary shall provide 
for an ongoing, independent evaluation of the dem-
onstration carried out under this subsection, includ-
ing quasi-experimental or other methods that are ca-
pable of producing scientifically valid information to 
determine effectiveness in achieving the purposes de-
scribed in paragraph (1), including examining or as-
sessing— 
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‘‘(A) feasibility of, or barriers to, successful 
implementation of this subsection; 
‘‘(B) varied approaches in State implemen-
tation of this subsection, including different ap-
proaches, challenges, and lessons learned; 
‘‘(C) specific levels of use and receipt of ben-
efits; 
‘‘(D) impact on children’s food security and 
nutritional impacts, including by the different 
impacts on children in a variety of geographical 
areas such as rural, urban, and suburban areas, 
localities, and States; 
‘‘(E) total cost (including administrative 
cost) of implementing and operating this sub-
section, including in comparison to other meth-
ods of providing summer meal service to school- 
aged children; 
‘‘(F) impacts and results of such evaluation 
in comparison to evaluations of the summer elec-
tronic benefits transfer for children demonstra-
tion published by the Secretary of Agriculture; 
and 
‘‘(G) the potential for benefits provided 
under this subsection to improve effectiveness 
and efficiency of the summer food service pro-
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gram in comparison to other methods of pro-
viding summer meal service to school-aged chil-
dren. 
‘‘(9) REPORT.—Not later than one year after 
amounts are first appropriated under paragraph 
(10), and each year thereafter, the Secretary shall 
submit to Congress a report that— 
‘‘(A) includes the information resulting 
from the most recent evaluation under para-
graph (8); and 
‘‘(B) takes into consideration evaluations of 
the summer electronic benefits transfer for chil-
dren demonstration published by the Secretary of 
Agriculture. 
‘‘(10) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—There is authorized to 
be appropriated to carry out this subsection not 
more than $10,000,000 for each of fiscal years 
2018 through 2020, to remain available until ex-
pended. 
‘‘(B) LIMITATIONS.—Of such appropria-
tions, for each fiscal year— 
‘‘(i) each State shall utilize a portion 
for administrative funds that shall be equal 
to the levels necessary to effectively and effi-
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100 
ciently administer the State’s demonstra-
tion under this subsection, as determined by 
the State; 
‘‘(ii) not more than 1 percent may be 
spent on administrative funds by the Sec-
retary; and 
‘‘(iii) not more than $499,999 shall be 
available for the Secretary to comply with 
paragraph (8). 
‘‘(11) GUIDANCE.—Not later than December 31, 
2016, the Secretary shall provide guidance to States 
to implement this subsection, including recommenda-
tions for States to successfully continue to implement 
the summer electronic benefit transfer for children 
demonstration while complying with the new or addi-
tional requirements of this subsection.’’; and 
(5) by adding at the end the following: 
‘‘(h) STATE ADMINISTRATION OF CHILD NUTRITION 
PROGRAMS.— 
‘‘(1) PURPOSES.—The purposes of this subsection 
are to provide States flexibility to develop programs 
and policies to best meet the nutritional needs of 
school-aged children in the State by providing flexi-
bility over school meal programs under this Act and 
section 4 of the Child Nutrition Act of 1966 (42 
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101 
U.S.C. 1773) and other programs to address such 
needs more effectively and efficiently with less Federal 
involvement, including by— 
‘‘(A) removing duplication, redundancies, 
regulatory burden, and unnecessary requirements 
resulting from the Federal administration of the 
school meal programs; 
‘‘(B) more efficiently using Federal, State, 
local, and nongovernmental resources to strength-
en delivery of the school meal programs and 
other programs; and 
‘‘(C) supporting healthy meals through in-
volvement by parents, family members, and the 
community, including nonprofit organizations, 
health organizations, and school officials from 
large and small urban, suburban, and rural 
areas in the State. 
‘‘(2) GRANTS AUTHORIZED.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
award grants, on a competitive basis, to up to 
3 States to enable the States to carry out the ac-
tivities described in this subsection. 
‘‘(B) 
CONSIDERATIONS.—In 
awarding 
grants under this subsection, the Secretary 
shall— 
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102 
‘‘(i) in a case in which more than 3 
States apply for a grant under this sub-
section, give priority to States by taking 
into consideration regional diversity; and 
‘‘(ii) ensure each State awarded a 
grant under this subsection meets the re-
quired assurances under paragraph (3)(D), 
except that the Secretary shall not approve 
or disapprove an application on the basis of 
a State’s plan or proposed program. 
‘‘(C) DURATION OF GRANTS.—A grant to a 
State under this subsection— 
‘‘(i) shall be awarded to the State for 
a 3-year period; and 
‘‘(ii) may be renewed by the Secretary 
for an additional 3-year period if the State 
can demonstrate success in meeting the nu-
tritional needs of the school-aged children in 
the State. 
‘‘(D) AMOUNT OF GRANTS.—The amount of 
a grant awarded to a State under this subsection 
for each year of the grant period shall be equal 
to the amount described in paragraph (3)(C). 
‘‘(E) 
MATCHING
REQUIREMENT.—Each 
State that receives a grant under this subsection 
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103 
shall provide funds from non-Federal sources 
(which may be provided in cash, commodities, or 
in kind) to support the activities under this sub-
section. 
‘‘(F) LIMITATIONS.—A State that receives a 
grant under this subsection may not, during any 
period during which the State receives such 
grant, receive funds under any of the following: 
‘‘(i) The school lunch program under 
this Act. 
‘‘(ii) The school breakfast program 
under section 4 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1773). 
‘‘(iii) The special milk program under 
section 3 of the Child Nutrition Act of 1966 
(42 U.S.C. 1772). 
‘‘(iv) The State administrative ex-
penses funding under section 7 of the Child 
Nutrition Act of 1966 (42 U.S.C. 1776). 
‘‘(v) The team nutrition network under 
section 19 of the Child Nutrition Act of 
1966 (42 U.S.C. 1788). 
‘‘(3) APPLICATION.—To receive a grant under 
this subsection, a State shall submit an application 
at such time and in such manner as the Secretary 
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104 
may reasonably require. The application shall con-
tain— 
‘‘(A) an assurance that each school-aged 
child in the State will have access to at least one 
affordable meal service option during the school 
day at the school in which the child is enrolled, 
and a plan for how the State will carry out such 
assurance, including— 
‘‘(i) the income thresholds or other 
needs-based determinations to be used for 
determining— 
‘‘(I) which students are eligible for 
free meals; 
‘‘(II) which students are eligible 
for reduced price meals; and 
‘‘(III) which students are required 
to pay the full price for meals; 
‘‘(ii) the estimated number of students 
in the State eligible for the thresholds for 
each meal category described in clause (i); 
‘‘(iii) the price to be charged to stu-
dents eligible for reduced price meals and 
the price to be charged to students required 
to pay the full price for meals; 
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‘‘(iv) how the State will identify and 
verify eligibility of such students, such as 
through census data, application processes, 
or any other State-determined method; 
‘‘(v) an identification of any non-Fed-
eral sources, including State funds, the 
State will utilize to meet the needs of school- 
aged children in the State if the grant re-
ceived under this subsection is not sufficient 
to cover the cost of the meals to be served 
during the period in which the State re-
ceives such grant; 
‘‘(vi) any other factors the State will 
use to determine distribution of funds re-
ceived under the grant to each elementary 
school and secondary school in the State to 
reimburse the schools for the cost of the 
meals served, including how the State will 
ensure a fair distribution of such funds to 
address the need for such meals at each such 
school; and 
‘‘(vii) the monitoring plan the State 
will use to ensure the funding described in 
clause (v) will be used in accordance with 
this subsection; 
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106 
‘‘(B) a description of the requirements for 
meals provided under this subsection that the 
State will require, including requirements for 
meal standards and pricing; 
‘‘(C) a request for an amount of grant funds 
for each year that the State will receive a grant 
under this subsection, which may not, for each 
such year exceed the amount the State received 
for fiscal year 2016— 
‘‘(i) for free and reduced price meal re-
imbursements under the programs described 
in clauses (i) and (ii) of paragraph (2)(F), 
excluding any additional reimbursements 
received under section 4(b)(3) of this Act; 
and 
‘‘(ii) under the programs described in 
paragraphs (iii) through (v) of paragraph 
(2)(F); and 
‘‘(D) assurances that the State will— 
‘‘(i) provide healthy meals to school- 
aged children in the State to ensure max-
imum participation of students in the 
State; 
‘‘(ii) provide technical assistance to 
local educational agencies and schools to en-
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107 
sure maximum participation of students in 
the State; 
‘‘(iii) provide an annual report to the 
Secretary that outlines the activities and 
progress made in providing healthy meals 
to students in a more cost efficient manner 
than such meals were provided prior to the 
State receiving such grant; and 
‘‘(iv) work with school leaders, school 
nutrition providers, and health profes-
sionals to develop and implement the plan 
under subparagraph (A) and to ensure that 
meals provided in schools in the State using 
the grant will be healthy and provided in 
an efficient and cost effective manner. 
‘‘(4) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—A State that receives a 
grant under this subsection shall use the grant 
funds to— 
‘‘(i) provide meals to school-aged chil-
dren in accordance with paragraph (3); 
‘‘(ii) carry out the activities described 
in subparagraph (B) of this paragraph; and 
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‘‘(iii) carry out any other activities the 
State determines will support the goals of 
this subsection. 
‘‘(B) ADDITIONAL STATE ACTIVITIES.—Each 
State that receives a grant under this subsection 
shall, in addition to the activities described in 
clauses (i) and (ii) of subparagraph (A), provide 
nutritional assistance to low-income and vulner-
able children, as determined by the State, by— 
‘‘(i) addressing specific State and com-
munity nutritional needs; 
‘‘(ii) engaging partners to deliver the 
meal programs to spur innovation in such 
delivery, including local governments and 
school officials, businesses, non-profit and 
faith-based organizations, and other com-
munity partners; 
‘‘(iii) developing or strengthening pri-
vate sector partnerships to support the com-
munity and nutritional needs of school-aged 
children; and 
‘‘(iv) achieving administrative and 
other programmatic cost savings. 
‘‘(C) LIMITATION.—A State may use not 
more than 10 percent of the grant received under 
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109 
this subsection for administrative and outreach 
expenses. 
‘‘(5) STATE REPORTING.—Not later than 2 years 
after receiving a grant under this subsection, a State 
shall submit to the Secretary a report on how the 
State was better able to operate school meals and 
other programs to address needs more effectively com-
pared to how the State addressed such needs before the 
grant was awarded to the State. The report shall in-
clude— 
‘‘(A) a description of how the State used the 
grant funds, the State costs of carrying out the 
activities under this subsection (including food, 
administrative, labor, oversight, and any other 
costs), and any revenue the State received by 
carrying out such activities (including Federal, 
non-Federal, and family contributions); 
‘‘(B) the strategies and activities under-
taken at the State and, if applicable, local level 
to meet the goals of this subsection; 
‘‘(C) financial efficiencies the State has 
identified through the grant, including the extent 
to which activities under the grant have led to 
the addition, blending, or braiding of other Fed-
eral or private funding, and the specific or esti-
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110 
mated amount of cost-savings, reduced burdens, 
and other efficiencies; 
‘‘(D) the impacts the State has made in 
meeting the goals of this subsection; 
‘‘(E) any barriers the State has identified 
in providing school meals, and ways in which to 
overcome such barriers; and 
‘‘(F) other State-determined and voluntarily 
provided information intended to share best 
practices for future implementation of this sub-
section. 
‘‘(6) 
LIMITATIONS
ON
FEDERAL
INTER-
FERENCE.—Nothing in this subsection shall be con-
strued to authorize the Secretary to establish, as a 
condition to receive a grant under this subsection or 
as requirement to operate such a grant, any criterion 
that specifies, defines, or prescribes— 
‘‘(A) nutritional guidelines, standards, or 
meal requirements, including the methods that a 
State uses to develop, implement, or improve 
such nutritional guidelines, standards, or meal 
requirements; 
‘‘(B) specific aspects, parameters, or meas-
ures of programmatic quality, including meas-
ures of compliance or evaluation; 
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111 
‘‘(C) nutritional curriculum, programs of 
instruction, or instructional content; 
‘‘(D) any aspect of meal provision criteria, 
including nutritional requirements, timing, du-
ration, type, price, amount, or any other aspect 
of meals or meal program operation; 
‘‘(E) any term under this subsection as such 
term applies to activities carried out by a State, 
including the terms healthy, affordable meal, 
school day, and nutritional needs; 
‘‘(F) the ways in which a State identifies 
and verifies eligibility for benefits, including 
child, family, and provider eligibility; 
‘‘(G) differentiated payment rates a State 
may use; 
‘‘(H) the amount or sources of non-Federal 
funds that a State must provide; 
‘‘(I) the percentages or amounts of grant 
funds to be used for specific activities within or 
among programs; 
‘‘(J) the scope or structure of programs, in-
cluding number of meals served, timing within 
the day, and length or time of year a program 
operates; and 
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112 
‘‘(K) any aspect or parameter of pro-
grammatic evaluation. 
‘‘(7) FEDERAL
REPORTING.—Not later than 4 
years after the first grant is awarded under this sub-
section, the Secretary shall provide to the Committee 
on Education and the Workforce of the House of Rep-
resentatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate, and to States, a re-
port on the feasibility of scaling the implementation 
of this subsection, including the efficiencies, cost sav-
ings, and other benefits identified by State implemen-
tation of the programs described in paragraph (2)(F) 
under this subsection. Such determination of feasi-
bility shall be based on information including— 
‘‘(A) State reports submitted under para-
graph (5); 
‘‘(B) a determination of the level of Federal 
cost-savings achieved and the amount of future 
cost-saving implications; 
‘‘(C) programmatic simplifications the Fed-
eral Government could pursue; and 
‘‘(D) other information provided by States 
or private entities that would be useful in rec-
ommendations to the public, States, and to Con-
gress.’’. 
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113 
SEC. 110. FRUIT AND VEGETABLE PROGRAM. 
Section 19 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769a) is amended— 
(1) in the heading, by striking ‘‘FRESH’’; 
(2) by striking ‘‘fresh’’ each place it appears in 
subsections (a), (b), and (e); and 
(3) in subsection (i)— 
(A) by striking paragraphs (5) and (7); 
(B) by redesignating paragraph (6) as 
paragraph (5); and 
(C) by adding at the end the following: 
‘‘(6) CLARIFICATION.— 
‘‘(A) GUIDANCE.—The Secretary shall issue 
guidance with respect to how funds under the 
program may be used, which— 
‘‘(i) clarifies to States that such funds 
may be used on all forms of fruits and vege-
tables, provided the fruit or vegetable prod-
uct meets the requirements of section 210.11 
of title 7, Code of Federal Regulations (as 
in effect on the date of enactment of the Im-
proving Child Nutrition and Education Act 
of 2016); 
‘‘(ii) provides the appropriate exemp-
tions described in such section 210.11 of the 
Code of Federal Regulations; and 
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‘‘(iii) encourages schools to introduce 
fruits and vegetables to children in new con-
texts, including by allowing schools to offer 
combinations of fruits and vegetables with 
tree nuts, which provide a good source of 
protein per serving and meet the nutrition 
standards of such section 210.11 of the Code 
of Federal Regulations, except that the Sec-
retary shall provide exemptions from the 
total fat requirements under such section 
210.11 for tree nut products. 
‘‘(B) LOCAL
DECISION.—Nothing in this 
section shall be construed to require a school par-
ticipating in the program to select forms of fruit 
or vegetables other than fresh.’’. 
SEC. 111. COMPLIANCE AND ACCOUNTABILITY. 
Section 22 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769c) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(1) IN GENERAL.—There 
shall be’’ and inserting ‘‘There shall be’’; and 
(B) by redesignating subparagraphs (A) 
and (B) as paragraphs (1) and (2), respectively, 
and indenting appropriately; 
(2) in subsection (b)— 
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115 
(A) in paragraph (1)(C)(i), by striking ‘‘3- 
year cycle’’ and inserting ‘‘5-year cycle’’; 
(B) 
by 
redesignating 
paragraphs 
(4) 
through (6) as paragraphs (5) through (7), re-
spectively; 
(C) by striking paragraph (3) and inserting 
the following: 
‘‘(3) ERROR REDUCTION PLANS.— 
‘‘(A) IN
GENERAL.—Each State agency 
shall work with the local educational agencies 
that have the highest rates of certification errors 
according to the verification process under sec-
tion 9(a)(D) to develop an error reduction plan 
and monitor implementation of the plan over the 
remainder of the review cycle. 
‘‘(B) PLAN COMPONENTS.—Each error re-
duction plan shall include— 
‘‘(i) specific measures that the local 
educational agency shall take to reduce cer-
tification errors, including at a min-
imum— 
‘‘(I) 
increasing 
the 
standard 
verification sample size, except such 
increase 
shall 
not 
result 
in 
a 
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116 
verification sample size of more than 
15 percent; 
‘‘(II) improvements in the appli-
cation; 
‘‘(III) the use of technology to 
minimize opportunities for error; and 
‘‘(IV) enhanced training and over-
sight of staff involved in the certifi-
cation and verification process; 
‘‘(ii) a timeline for the local edu-
cational agency to implement those meas-
ures within the review cycle; 
‘‘(iii) annual goals for reductions in 
certification errors; 
‘‘(iv) technical assistance to be pro-
vided by the State agency; and 
‘‘(v) working with an educational serv-
ice agency to help conduct the verification 
process and other aspects of the program as 
necessary to help reduce errors in the ad-
ministration of the program. 
‘‘(C) STATE AGENCY RESPONSIBILITIES.— 
Each State agency shall— 
‘‘(i) assist the local educational agen-
cies identified under subparagraph (D) with 
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117 
developing an error reduction plan that 
complies with subparagraph (B); 
‘‘(ii) provide technical assistance as de-
scribed in the error reduction plan under 
subparagraph (B)(iv); 
‘‘(iii) conduct annual reviews focused 
on the direct certification, application, cer-
tification, verification, meal counting, and 
meal claiming processes; and 
‘‘(iv) report annually to the Secretary 
on the progress of the State in reducing er-
rors. 
‘‘(D) SELECTION OF LOCAL EDUCATIONAL 
AGENCIES.— 
‘‘(i) IN GENERAL.—Each State agency 
shall select up to 10 percent of the local edu-
cational agencies in the State to develop an 
error reduction plan. 
‘‘(ii) LIMITATION.—The percentage of 
local educational agencies selected under 
clause (i) shall not be comprised of more 
than 50 percent of small local educational 
agencies, as determined by the Secretary. 
‘‘(iii) ASSESSMENT OF CERTIFICATION 
ERROR.—In 
selecting 
local 
educational 
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118 
agencies under this paragraph, certification 
error shall be assessed based on a measure 
determined by the Secretary that con-
siders— 
‘‘(I) the results of the reviews con-
ducted under paragraph (1) and 
‘‘(II) the percentage of household 
applications verified under section 
9(b)(3)(D)(i) that had the level of bene-
fits changed as a result of information 
obtained during the verification proc-
ess, excluding benefit terminations re-
sulting from not obtaining information 
during 
household 
verification 
con-
ducted under section 9(b)(3)(G). 
‘‘(4) HIGH PERFORMANCE.— 
‘‘(A) IN GENERAL.—If a local educational 
agency is determined to be in the top 20 percent 
of local educational agencies in the State, as de-
termined by the State under subparagraph (B), 
the sample size under section 9(b)(3)(D)(i)(II) 
shall be a verification sample size of 2.5 percent. 
‘‘(B) CONSIDERATIONS.—The State shall de-
termine whether a local educational agency is in 
the top 20 percent of local educational agencies 
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119 
in the State by considering error rates, con-
firmation rates, non-response rates, response 
rates, and other factors as necessary to make 
such determination.’’; and 
(D) in paragraph (6) (as redesignated by 
subparagraph (B)), in subparagraph (A), by 
striking ‘‘paragraph (4)’’ each place it appears 
and inserting ‘‘paragraph (5)’’; and 
(3) in subsection (d), by striking ‘‘2011 through 
2015’’ and inserting ‘‘2017 through 2021’’. 
SEC. 112. REPEAL OF STATE CHILDHOOD HUNGER CHAL-
LENGE GRANTS. 
Section 24 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769e) is repealed. 
SEC. 113. DUTIES OF THE SECRETARY RELATING TO NON-
PROCUREMENT DEBARMENT. 
Section 25 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769f) is amended— 
(1) by redesignating subsection (g) as subsection 
(h); and 
(2) by inserting after subsection (f) the following: 
‘‘(g) FINES.— 
‘‘(1) IN GENERAL.—In a situation in which a 
contractor is found guilty in any criminal proceeding 
or found liable in any civil or administrative pro-
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ceeding, of the activities listed in paragraph (2), in 
connection with the supplying, providing, or selling of 
goods or services to any local agency in connection 
with a child nutrition program, the Secretary shall 
impose a civil penalty of not more than $100,000,000, 
as determined by the Secretary, to provide restitution 
to the program for harm done to the program. 
‘‘(2) INCLUDED ACTIVITIES.—Activities include, 
at a minimum— 
‘‘(A) an anticompetitive activity, including 
bid-rigging, price-fixing, the allocation of cus-
tomers between competitors, or other violation of 
Federal or State antitrust laws; 
‘‘(B) fraud, bribery, theft, forgery, or embez-
zlement; 
‘‘(C) knowingly receiving stolen property; 
‘‘(D) making a false claim or statement; or 
‘‘(E) any other obstruction of justice. 
‘‘(3) USE OF FUNDS.—Any funds collected under 
this subsection shall be credited to the child nutrition 
programs appropriations account.’’. 
SEC. 114. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES. 
The Richard B. Russell National School Lunch Act is 
amended by inserting after section 26 (42 U.S.C. 1769g) 
the following: 
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‘‘SEC. 27. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DURABLE EQUIPMENT.—The term ‘durable 
equipment’ means durable food preparation, han-
dling, cooking, serving, and storage equipment greater 
than $500 in value. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) a local educational agency or a school 
food authority administering or operating a 
school lunch program under this Act; 
‘‘(B) a tribal organization; or 
‘‘(C) a consortium that includes a local edu-
cational agency or school food authority de-
scribed in subparagraph (A), a tribal organiza-
tion, or both. 
‘‘(3) INFRASTRUCTURE.—The term ‘infrastruc-
ture’ means a food storage facility, kitchen, food serv-
ice facility, cafeteria, dining room, or food prepara-
tion facility. 
‘‘(4) LOCAL EDUCATIONAL AGENCY.—The term 
‘local educational agency’ has the meaning given the 
term in section 8101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
‘‘(5) SCHOOL
FOOD
AUTHORITY.—The term 
‘school food authority’ has the meaning given the term 
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in section 210.2 of title 7, Code of Federal Regula-
tions (or a successor regulation). 
‘‘(6) TRIBAL ORGANIZATION.—The term ‘tribal 
organization’ has the meaning given the term in sec-
tion 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b). 
‘‘(b) LOAN GUARANTEES.— 
‘‘(1) AUTHORITY.—The Secretary shall issue a 
loan guarantee to an eligible lender for purposes of fi-
nancing the construction, remodeling, or expansion of 
infrastructure or the purchase of durable equipment 
that will assist the eligible entity in providing healthy 
meals through the school lunch program authorized 
under this Act. 
‘‘(2) PREFERENCE.—In issuing a loan guarantee 
under this subsection, the Secretary shall give a pref-
erence to an eligible entity that, as compared with 
other eligible entities seeking a loan guarantee under 
this subsection, demonstrates substantial or dispropor-
tionate— 
‘‘(A) need for infrastructure improvement or 
durable equipment; or 
‘‘(B) impairment in durable equipment. 
‘‘(3) OVERSIGHT.—The Secretary, acting through 
the Under Secretary for Rural Development, shall es-
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tablish procedures to oversee any project or purchase 
for which a loan guarantee is issued under this sub-
section. 
‘‘(4) GUARANTEE
AMOUNT.—A loan guarantee 
issued under this subsection may not guarantee more 
than 80 percent of the principal amount of the loan. 
‘‘(5) FEES AND COSTS.— 
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish fees for loan guarantees under this sub-
section that are, to the maximum extent prac-
ticable, equal to all costs of the loan guarantees 
as determined under the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et. seq.), as deter-
mined by the Secretary. 
‘‘(B) FEE SHORTFALL.—To the extent that 
the Secretary determines that fees described in 
subparagraph (A) are not sufficient to pay for 
all of the costs for the loan guarantees pursuant 
to the Federal Credit Reform Act of 1990 (2 
U.S.C. 661 et. seq.), the Secretary may use funds 
described in paragraph (6) to pay for the costs 
of loan guarantees not paid for by the fees. 
‘‘(6) FUNDING.—Subject to the availability of 
appropriations provided in advance in an appropria-
tions Act specifically for the purpose of carrying out 
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this subsection, there is authorized to be appropriated 
$5,000,000 for fiscal year 2017 and each fiscal year 
thereafter. 
‘‘(c) GRANTS.— 
‘‘(1) AUTHORITY.—Beginning in fiscal year 
2017 and subject to the availability of appropriations 
provided in advance in an appropriations Act specifi-
cally for the purpose of carrying out this subsection, 
the Secretary shall make grants, on a competitive 
basis, to eligible entities for the purchase of durable 
equipment 
and 
infrastructure 
needed 
to 
serve 
healthier meals and improve food safety. 
‘‘(2) PRIORITY.—In awarding grants under this 
subsection, the Secretary shall give priority to eligible 
entities that— 
‘‘(A) are located in States that have enacted 
comparable statutory grant funding mechanisms 
or that have otherwise appropriated funds for the 
purpose described in paragraph (1); and 
‘‘(B) have identified and are reasonably ex-
pected to meet an unmet local or community 
need— 
‘‘(i) through a public-private partner-
ship or partnership with a food pantry or 
other low-income assistance agency; or 
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‘‘(ii) by allowing related community 
organizations to use kitchen or cafeteria 
space. 
‘‘(3) FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—The Federal share of 
costs for assistance funded through a grant 
awarded under this subsection shall not exceed 
80 percent of the total cost of the durable equip-
ment or infrastructure. 
‘‘(B) MATCHING.—To receive a grant under 
this subsection, an eligible entity shall provide 
matching support in the form of cash or in-kind 
contributions. 
‘‘(C) WAIVER.—The Secretary may waive 
or vary the requirements of subparagraphs (A) 
and (B) if the Secretary determines that undue 
hardship or effective exclusion from participa-
tion would otherwise result. 
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—There is authorized to 
be appropriated $25,000,000 to carry out this 
subsection for fiscal year 2017 through fiscal 
year 2019. 
‘‘(B) LIMIT.—The Secretary may use not 
more than 5 percent of the funds made available 
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under subparagraph (A) to provide technical as-
sistance. 
‘‘(d) SALAD BARS.—Not later than 180 days after the 
date of the enactment of the Improving Child Nutrition and 
Education Act of 2016, the Secretary shall review or revise 
any guidance in existence on that date of enactment so as 
to ensure that school food authorities have flexibility in the 
establishment and implementation of salad bars.’’. 
SEC. 115. PROHIBITIONS. 
The Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) is further amended by adding at the 
end the following: 
‘‘SEC. 30. PROHIBITIONS. 
‘‘Nothing in this Act, the Child Nutrition Act of 1966 
(42 U.S.C. 1771 et seq.), the Healthy, Hunger-Free Kids 
Act of 2010, or the Improving Child Nutrition and Edu-
cation Act of 2016 shall— 
‘‘(1) authorize the Secretary to issue or establish 
any regulations or requirements not explicitly author-
ized under any such Act; or 
‘‘(2) authorize the Secretary to require, as a con-
dition of participation in any program under any 
such Act— 
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‘‘(A) any curriculum or education require-
ments for participating schools or child care pro-
viders; or 
‘‘(B) the adoption of any specific education 
standards for nutrition education.’’. 
TITLE II—CHILD NUTRITION ACT 
SEC. 201. SPECIAL MILK PROGRAM AUTHORIZATION. 
Section 3(a)(7) of the Child Nutrition Act of 1966 (42 
U.S.C. 1772(a)(7)) is amended by striking ‘‘on an annual 
basis each’’ and inserting ‘‘annually by February 15 for 
the upcoming’’. 
SEC. 202. SCHOOL BREAKFAST PROGRAM. 
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
1773) is amended— 
(1) in subsection (b)(1), by adding at the end the 
following: 
‘‘(F) INCREASED REIMBURSEMENT.—(i) For 
school year 2018–2019, the Secretary shall in-
crease by 2 cents the annually adjusted payment 
for each breakfast (free, reduced price, and paid) 
described in subparagraph (B). 
‘‘(ii) For school year 2019–2020, the na-
tional average payment for each breakfast re-
ferred to in clause (i) of this subparagraph shall 
equal the result obtained under such clause (i) 
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applicable to such breakfast, as annually ad-
justed for the school year in accordance with sub-
paragraph (B). 
‘‘(iii) For school year 2020–2021, the na-
tional average payment for each breakfast re-
ferred to in clause (i) of this subparagraph shall 
equal the annually adjusted payment for such 
breakfast, as determined under clause (ii) of this 
subparagraph, plus 1 cent. 
‘‘(iv) For school year 2021–2022, and each 
succeeding school year, the national average pay-
ment for each breakfast referred to in clause (i) 
of this subparagraph shall equal the result ob-
tained under clause (iii) of this subparagraph 
applicable to such breakfast, as annually ad-
justed for the school year in accordance with sub-
paragraph (B).’’. 
(2) in subsection (e)(1)(B), by striking ‘‘, includ-
ing technical’’ and all that follows through ‘‘estab-
lished under this section,’’. 
SEC. 203. STATE ADMINISTRATIVE EXPENSES. 
Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 
1776) is amended— 
(1) in subsection (a)— 
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(A) in paragraph (3), in the second sen-
tence, by striking ‘‘, except as provided in para-
graph (5)’’; 
(B) by striking paragraph (5); and 
(C) 
by 
redesignating 
paragraphs 
(6) 
through (9) as paragraphs (5) through (8), re-
spectively; 
(2) in subsection (b)— 
(A) by striking ‘‘expenses, for administra-
tive’’ and inserting the following: ‘‘expenses for— 
’’ 
‘‘(1) administrative’’; and 
(B) by striking ‘‘for support’’ and all that 
follows through ‘‘for staff’’ and inserting the fol-
lowing: 
‘‘(2) support services; 
‘‘(3) office equipment; 
‘‘(4) State-operated purchasing programs; and 
‘‘(5) staff’’; 
(3) in subsection (g)(2)(B), by amending clause 
(iii) to read as follows: 
‘‘(iii) MINIMIZING DISRUPTIONS.—The 
Secretary shall encourage school food au-
thorities to consider— 
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‘‘(I) providing the training re-
quired under this subparagraph to 
local food service personnel during 
paid, regular hours; and 
‘‘(II) that to the extent that train-
ing must occur during nonwork hours, 
it is minimally disruptive to employ-
ees’ other work obligations if employees 
are provided with sufficient notice of 
training.’’; 
(4) in subsection (i)— 
(A) in paragraph (3)— 
(i) in subparagraph (A), by inserting 
before the period at the end the following: 
‘‘and for the purposes described in section 
749(h) of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2010 
(Public Law 111–80; 123 Stat. 2133)’’; and 
(ii) by adding at the end the following: 
‘‘(C) PRIORITY.—In awarding funds to 
States under this paragraph, the Secretary shall 
give priority to States in which local educational 
agencies, school food authorities, or schools sub-
mit a plan under subparagraph (B) that in-
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cludes the use of technology or information man-
agement systems to provide assistance to tribal 
organizations administering the food distribu-
tion program on Indian reservations established 
under section 4(b) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2013(b)) for purposes of im-
proving the rate of direct certification of children 
in households participating in that program.’’; 
and 
(B) in paragraph (4), by striking ‘‘2015’’ 
and inserting ‘‘2021’’; 
(5) in subsection (j), by striking ‘‘2015’’ and in-
serting ‘‘2021’’; 
(6) by redesignating subsection (j) as subsection 
(k); and 
(7) by inserting after subsection (i) the following: 
‘‘(j) CENTRALIZED EXCHANGE NETWORK.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a centralized exchange network to facilitate 
State exchange of information and best practices, for 
programs authorized under this Act or the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1751 
et seq.). 
‘‘(2) NETWORK TOPICS.—State exchanges of in-
formation and best practices described in paragraph 
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(1) may include, at a minimum, research methods 
and data related to— 
‘‘(A) improved efficiency in the delivery of 
benefits; 
‘‘(B) improved compliance in the programs; 
and 
‘‘(C) reduction of fraud, waste, and abuse in 
the programs. 
‘‘(3) ADMINISTRATIVE
FUNDS.—The Secretary 
shall not use more than $450,000 for such network.’’. 
SEC. 204. REGULATIONS. 
Section 10(b)(1)(C) of the Child Nutrition Act of 1966 
(42 U.S.C. 1779(b)(1)(C)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) by striking the period at the end of clause 
(ii) and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(iii) ensure that the nutrition stand-
ards under this paragraph do not apply to 
fundraisers held by student groups or orga-
nizations, and that the school and applica-
ble State agency are not prohibited from de-
termining which such fundraisers may be 
held; and 
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‘‘(iv) ensure that the nutrition stand-
ards under this paragraph allow any foods 
that may be served as part of a reimburs-
able meal served under the school meal pro-
grams to be sold in schools as described in 
subparagraph (B).’’. 
SEC. 205. DEFINITION OF STATE AGENCY. 
Section 15 of the Child Nutrition Act of 1966 (42 
U.S.C. 1784) is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) STATE AGENCY.—The term ‘State agency’ 
means— 
‘‘(A) the chief State school officer (such as 
the State superintendent of public instruction, 
commissioner of education, or similar officer); 
‘‘(B) a board of education controlling the 
State department of education; 
‘‘(C) the State Commissioner or individual 
who administers agricultural programs in the 
State; or 
‘‘(D) a State official the State legislature 
designates to administer the programs under this 
Act.’’. 
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SEC. 206. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM 
FOR WOMEN, INFANTS, AND CHILDREN. 
(a) IN GENERAL.—Section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786) is amended— 
(1) in subsection (a), in the second sentence, by 
striking ‘‘promotion’’ and inserting ‘‘counseling, pro-
motion,’’; 
(2) in subsection (b)(14), by striking the para-
graph designation and all that follows through 
‘‘means those foods’’ and inserting the following: 
‘‘(14) SUPPLEMENTAL FOOD.—The term ‘supple-
mental food’ means any food’’; 
(3) in subsection (d)— 
(A) in paragraph (2)— 
(i) in subparagraph (B)— 
(I) in the matter preceding clause 
(i), by striking ‘‘may choose to’’ and 
inserting ‘‘shall’’; 
(II) in clause (i)(II), by striking 
‘‘and’’ at the end; 
(III) in clause (ii), by striking the 
period at the end and inserting ‘‘; 
and’’; and 
(IV) by adding at the end the fol-
lowing: 
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‘‘(iii) any basic allowance for subsistence pro-
vided under section 402 of title 37, United States 
Code, to a member of a uniformed service.’’; and 
(ii) by adding at the end the following: 
‘‘(E) CHILD SUPPORT PAYMENTS.—For the 
purpose of determining income eligibility under 
this section, a State agency shall exclude from 
income any child support payment for an appli-
cant who is legally obligated to pay child sup-
port for any noncustodial child.’’; and 
(B) in paragraph (3), by adding at the end 
the following: 
‘‘(G) DATA EXCHANGE STANDARDS FOR IM-
PROVED INTEROPERABILITY.— 
‘‘(i) DESIGNATION.—The Secretary, in 
consultation with an interagency work 
group established by the Office of Manage-
ment and Budget, and taking into consider-
ation State government perspectives, shall 
designate data exchange standards to gov-
ern, under this section— 
‘‘(I) necessary categories of infor-
mation that State agencies operating 
related programs are required under 
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136 
applicable law to electronically ex-
change with another State agency; and 
‘‘(II) Federal reporting and data 
exchange required under applicable 
law. 
‘‘(ii) REQUIREMENTS.—The data ex-
change standards required by clause (i) 
shall, to the maximum extent practicable— 
‘‘(I) incorporate a widely accept-
ed, nonproprietary, searchable, com-
puter-readable format; 
‘‘(II) contain interoperable stand-
ards developed and maintained by 
intergovernmental partnerships, such 
as the National Information Exchange 
Model; 
‘‘(III) incorporate interoperable 
standards developed and maintained 
by Federal entities with authority re-
garding contracting and financial as-
sistance; 
‘‘(IV) be consistent with, and im-
plement, applicable accounting prin-
ciples; 
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‘‘(V) be implemented in a manner 
that— 
‘‘(aa) is cost effective; and 
‘‘(bb) improves program effi-
ciency and effectiveness; 
‘‘(VI) be capable of being up-
graded as necessary; and 
‘‘(VII) protects the privacy of any 
personally 
identifiable 
information 
from being accessed by individuals who 
do not need access to such information. 
‘‘(iii) EFFECT
OF
SUBPARAGRAPH.— 
Nothing in this subparagraph requires any 
change to an existing data exchange stand-
ard for Federal reporting that is determined 
to be effective and efficient. 
‘‘(iv) IMPLEMENTATION.— 
‘‘(I) IN GENERAL.—Not later than 
2 years after the date of the enactment 
of the Improving Child Nutrition and 
Education Act of 2016, the Secretary 
shall issue a proposed rule to imple-
ment this subparagraph. 
‘‘(II) REQUIREMENTS.—The pro-
posed rule under this clause shall— 
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‘‘(aa) identify all federally 
required data exchanges; 
‘‘(bb) include specification 
and timing for the exchanges to be 
standardized; 
‘‘(cc) address the factors used 
in determining whether and when 
to standardize data exchanges; 
‘‘(dd) specify State imple-
mentation options; and 
‘‘(ee) describe future mile-
stones.’’; 
(4) in subsection (e)— 
(A) by striking the subsection designation 
and all that follows through ‘‘The State agency 
shall’’ in the first sentence of paragraph (1) and 
inserting the following: 
‘‘(e) NUTRITION AND DRUG ABUSE EDUCATION.— 
‘‘(1) EDUCATION.— 
‘‘(A) IN GENERAL.—A State agency shall’’; 
(B) in paragraph (1) (as amended by sub-
paragraph (A)), by adding at the end the fol-
lowing: 
‘‘(B) DISPOSAL OF CERTAIN INFANT FOR-
MULA.— 
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(10) in subsection (o) (as so redesignated)— 
(A) in paragraphs (1) and (2)(B), by strik-
ing ‘‘subsection (o)(1)(A)’’ each place it appears 
and inserting ‘‘subsection (n)(1)(A)’’; 
(B) in paragraph (5)— 
(i) in subparagraph (C), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (D), by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(E) fifth, to reimburse any WIC infant 
formula manufacturer for any rebate provided to 
the State agency on WIC infant formula unlaw-
fully trafficked under a provision of law de-
scribed in paragraph (2).’’; and 
(C) by adding at the end the following: 
‘‘(6) NOTICE OF INVESTIGATION.— 
‘‘(A) IN GENERAL.—For any investigation 
into the trafficking of WIC infant formula pur-
suant to this subsection, the Secretary shall pro-
vide notice of resolution of the disposition of an 
unlawful action resulting from the investigation 
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‘‘(B) a description of the means by which 
the State agency will use and disseminate the 
team nutrition messages and material to chil-
dren and, if appropriate, families of such chil-
dren; 
‘‘(C) an explanation of the ways in which 
the State agency will use the funds from the 
grant to work toward the goals required under 
clause (i), and to promote healthy eating in 
schools throughout the State; 
‘‘(D) a description of the ways in which the 
State team nutrition network messages and ac-
tivities will be coordinated at the State and local 
level with other community health promotion 
and education activities; 
‘‘(E) an annual summary of the team nu-
trition network activities and their effectiveness; 
‘‘(F) a description of the ways in which 
school environments might support healthy eat-
ing and physical activity; and 
‘‘(G) a description of how all communica-
tions to parents and legal guardians of students 
who are members of a household receiving infor-
mation under the program shall be in an under-
standable and uniform format and, to the max-
VerDate Sep 11 2014 
00:38 Dec 09, 2016
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Frm 00170
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E:\BILLS\H5003.RH
H5003
lotter on DSK5VPTVN1PROD with BILLS