I 
113TH CONGRESS 
2D SESSION 
H. R. 5242 
To amend the Richard B. Russell National School Lunch Act to establish 
a permanent, nationwide summer electronic benefits transfer for children 
program. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2014 
Mrs. DAVIS of California (for herself, Ms. DELAURO, and Ms. DELBENE) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on Education and the 
Workforce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Richard B. Russell National School Lunch 
Act to establish a permanent, nationwide summer elec-
tronic benefits transfer for children program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Child Summer 
Hunger Act of 2014’’. 
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SEC. 2. SUMMER ELECTRONIC BENEFITS TRANSFER FOR 
CHILDREN PROGRAM. 
Section 13(a) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1761(a)) is amended by add-
ing at the end the following: 
‘‘(13) SUMMER ELECTRONIC BENEFITS TRANS-
FER FOR CHILDREN PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) 
ELIGIBLE
HOUSEHOLD.—The 
term ‘eligible household’ means a house-
hold that includes 1 or more children who 
are eligible to receive free or reduced price 
lunches under this Act or free or reduced 
price breakfasts under the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et seq.). 
‘‘(ii) SUMMER EBT CARD.—The term 
‘summer EBT card’ means an electronic 
benefit transfer card that is issued to an 
eligible household under this paragraph 
and limited to food purchases. 
‘‘(B) PROGRAM.—The Secretary shall es-
tablish a program under which the Secretary 
shall provide to eligible households summer 
EBT cards for the purpose of providing access 
to food for children during summer months— 
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‘‘(i) to reduce or eliminate the food in-
security and hunger of children; and 
‘‘(ii) to improve the nutritional status 
of children. 
‘‘(C) USE.—An eligible household may use 
a summer EBT card only to purchase food 
from retail food stores that have been approved 
for participation in the supplemental nutrition 
assistance program established under the Food 
and Nutrition Act of 2008 (7 U.S.C. 2011 et 
seq.), in accordance with section 7(b) of that 
Act (7 U.S.C. 2016(b)). 
‘‘(D) AMOUNT.—Each summer EBT card 
issued shall be in an amount of— 
‘‘(i) for calendar year 2016, $150 in 
food assistance per child per summer; and 
‘‘(ii) for each subsequent calendar 
year, the amount specified in clause (i) as 
adjusted to reflect changes in reimburse-
ment rates for school meals under this Act 
between calendar year 2016 and the most 
recent calendar year. 
‘‘(E) TIMING.—Summer EBT cards shall 
be issued at the end of the regular school year. 
‘‘(F) FUNDING.— 
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‘‘(i) IN
GENERAL.—On October 1, 
2015, and on each October 1 thereafter, 
out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the 
Treasury shall transfer to the Secretary 
such sums as are necessary to carry out 
this section, to remain available until ex-
pended. 
‘‘(ii) RECEIPT
AND
ACCEPTANCE.— 
The Secretary shall be entitled to receive, 
shall accept, and shall use to carry out this 
section the funds transferred under clause 
(i), without further appropriation. 
‘‘(G) REGULATIONS.— 
‘‘(i) IN GENERAL.—Not later than Oc-
tober 1, 2015, the Secretary shall issue 
regulations to carry out this paragraph. 
‘‘(ii) 
REQUIREMENTS.—Regulations 
issued under this subparagraph shall re-
quire that— 
‘‘(I) children shall be eligible to 
participate and shall be enrolled into 
the program under this paragraph for 
a summer without further application 
if the children are enrolled to partici-
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pate in the free or reduced price lunch 
program under this Act or the free or 
reduced 
price 
breakfast 
program 
under the Child Nutrition Act of 1966 
(42 U.S.C. 1771 et seq.) during the 
school year immediately preceding the 
summer; and 
‘‘(II) local educational agencies 
shall distribute to the families of all 
children enrolled in schools partici-
pating in programs authorized under 
this Act and the Child Nutrition Act 
of 1966 (42 U.S.C. 1771 et seq.) and, 
to the maximum extent practicable, 
the families of all children enrolled in 
schools of the local educational agency 
information, as provided by the Sec-
retary,— 
‘‘(aa) regarding the program 
authorized under this paragraph, 
including eligibility rules and how 
children in eligible households 
that are not automatically en-
rolled under subclause (I) may 
apply for program benefits; and 
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‘‘(bb) to assist households 
receiving summer EBT cards in 
making healthy food choices and 
maximizing resources. 
‘‘(iii) ALTERNATIVE TIMING.— 
‘‘(I) IN
GENERAL.—In issuing 
regulations under this subparagraph, 
the Secretary shall allow alternative 
plans for the timing of issuance of the 
summer electronic benefit cards under 
subparagraph (D) in any part of a 
State in which the school year does 
not include a typical summer break, 
on the condition that the Secretary 
determines that no alternative plan in-
creases or decreases Federal costs. 
‘‘(II) CONSIDERATIONS.—In de-
veloping regulations under subclause 
(I), the Secretary shall consider the 
ability of a State effectively to issue 
benefits under an alternative sched-
ule.’’. 
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SEC. 3. DEFER DEDUCTION OF INTEREST EXPENSE RE-
LATED TO DEFERRED INCOME. 
(a) IN GENERAL.—Section 163 of the Internal Rev-
enue Code of 1986 (relating to deductions for interest ex-
pense) is amended by redesignating subsection (n) as sub-
section (o) and by inserting after subsection (m) the fol-
lowing new subsection: 
‘‘(n) DEFERRAL OF DEDUCTION FOR INTEREST EX-
PENSE RELATED TO DEFERRED INCOME.— 
‘‘(1) GENERAL RULE.—The amount of foreign- 
related interest expense of any taxpayer allowed as 
a deduction under this chapter for any taxable year 
shall not exceed an amount equal to the applicable 
percentage of the sum of— 
‘‘(A) the taxpayer’s foreign-related interest 
expense for the taxable year, plus 
‘‘(B) the taxpayer’s deferred foreign-re-
lated interest expense. 
For purposes of this paragraph, the applicable per-
centage is the percentage equal to the current inclu-
sion ratio. 
‘‘(2) 
TREATMENT
OF
DEFERRED
DEDUC-
TIONS.—If, for any taxable year, the amount of the 
limitation determined under paragraph (1) exceeds 
the taxpayer’s foreign-related interest expense for 
the taxable year, there shall be allowed as a deduc-
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tion for the taxable year an amount equal to the 
lesser of— 
‘‘(A) such excess, or 
‘‘(B) the taxpayer’s deferred foreign-re-
lated interest expense. 
‘‘(3) DEFINITIONS
AND
SPECIAL
RULE.—For 
purposes of this subsection— 
‘‘(A) FOREIGN-RELATED
INTEREST
EX-
PENSE.—The term ‘foreign-related interest ex-
pense’ means, with respect to any taxpayer for 
any taxable year, the amount which bears the 
same ratio to the amount of interest expense 
for such taxable year allocated and apportioned 
under sections 861, 864(e), and 864(f) to in-
come from sources outside the United States 
as— 
‘‘(i) the value of all stock held by the 
taxpayer in all section 902 corporations 
with respect to which the taxpayer meets 
the ownership requirements of subsection 
(a) or (b) of section 902, bears to 
‘‘(ii) the value of all assets of the tax-
payer which generate gross income from 
sources outside the United States. 
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‘‘(B) DEFERRED
FOREIGN-RELATED
IN-
TEREST EXPENSE.—The term ‘deferred foreign- 
related interest expense’ means the excess, if 
any, of the aggregate foreign-related interest 
expense for all prior taxable years beginning 
after December 31, 2014, over the aggregate 
amount allowed as a deduction under para-
graphs (1) and (2) for all such prior taxable 
years. 
‘‘(C) VALUE OF ASSETS.—Except as other-
wise provided by the Secretary, for purposes of 
subparagraph (A)(ii), the value of any asset 
shall be the amount with respect to such asset 
determined for purposes of allocating and ap-
portioning interest expense under sections 861, 
864(e), and 864(f). 
‘‘(D) CURRENT
INCLUSION
RATIO.—The 
term ‘current inclusion ratio’ means, with re-
spect to any domestic corporation which meets 
the ownership requirements of subsection (a) or 
(b) of section 902 with respect to one or more 
section 902 corporations for any taxable year, 
the ratio (expressed as a percentage) of— 
‘‘(i) the sum of all dividends received 
by the domestic corporation from all such 
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section 902 corporations during the taxable 
year plus amounts includible in gross in-
come under section 951(a) from all such 
section 902 corporations, in each case com-
puted without regard to section 78, divided 
by 
‘‘(ii) the aggregate amount of post- 
1986 undistributed earnings. 
‘‘(E) AGGREGATE AMOUNT OF POST-1986 
UNDISTRIBUTED EARNINGS.—The term ‘aggre-
gate amount of post-1986 undistributed earn-
ings’ means, with respect to any domestic cor-
poration which meets the ownership require-
ments of subsection (a) or (b) of section 902 
with respect to one or more section 902 cor-
porations, the domestic corporation’s pro rata 
share of the post-1986 undistributed earnings 
(as defined in section 902(c)(1)) of all such sec-
tion 902 corporations. 
‘‘(F) FOREIGN CURRENCY CONVERSION.— 
For purposes of determining the current inclu-
sion ratio, and except as otherwise provided by 
the Secretary, the aggregate amount of post- 
1986 undistributed earnings for the taxable 
year shall be determined by translating each 
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