I 
114TH CONGRESS 
1ST SESSION H. R. 3316 
To amend the Richard B. Russell National School Lunch Act to require 
the Secretary of Agriculture to make loan guarantees and grants to 
finance certain improvements to school lunch facilities, to train school 
food service personnel, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2015 
Mr. BARLETTA (for himself, Mr. DESAULNIER, Mr. THOMPSON of Pennsyl-
vania, and Ms. PINGREE) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce, and in addition 
to the Committees on Agriculture and Appropriations, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To amend the Richard B. Russell National School Lunch 
Act to require the Secretary of Agriculture to make 
loan guarantees and grants to finance certain improve-
ments to school lunch facilities, to train school food 
service personnel, and for other purposes. 
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 ‘‘School Food Mod-
ernization Act’’. 
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SEC. 2. LOAN GUARANTEES AND GRANTS TO FINANCE CER-
TAIN IMPROVEMENTS TO SCHOOL LUNCH FA-
CILITIES. 
The Richard B. Russell National School Lunch Act 
is amended by inserting after section 26 (42 U.S.C. 
1769g) the following: 
‘‘SEC. 27. LOAN GUARANTEES AND GRANTS TO FINANCE 
CERTAIN 
IMPROVEMENTS 
TO 
SCHOOL 
LUNCH FACILITIES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) DURABLE EQUIPMENT.—The term ‘dura-
ble equipment’ means durable food preparation, han-
dling, cooking, serving, and storage equipment great-
er than $500 in value. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local educational agency or a school 
food authority administering or operating a 
school lunch program; 
‘‘(B) a tribal organization; or 
‘‘(C) a consortium that includes a local 
educational 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 
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service facility, cafeteria, dining room, or food prepa-
ration facility. 
‘‘(4) LOCAL EDUCATIONAL AGENCY.—The term 
‘local educational agency’ has the meaning given the 
term in section 9101 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 in section 210.2 of title 7, Code of Federal 
Regulations (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
FOR
ASSISTANCE
TO 
SCHOOLS
FOR INFRASTRUCTURE IMPROVEMENTS
AND 
DURABLE
EQUIPMENT
NECESSARY
TO
PROVIDE 
HEALTHY
MEALS
THROUGH
SCHOOL
LUNCH
PRO-
GRAMS.— 
‘‘(1) AUTHORITY TO GUARANTEE LOANS.—The 
Secretary shall issue a loan guarantee to an eligible 
entity for purposes of financing the construction, re-
modeling, or expansion of infrastructure or the pur-
chase of durable equipment that the Secretary deter-
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mines will assist the eligible entity in providing 
healthy meals through a school lunch program. 
‘‘(2) COMPETITIVE
BASIS.—Subject to para-
graph (3), the Secretary shall select eligible entities 
to receive a loan guarantee under this subsection on 
a competitive basis. 
‘‘(3) PREFERENCES.—In issuing a loan guar-
antee under this subsection, the Secretary shall give 
a preference to an eligible entity that, as compared 
with other eligible entities seeking a loan guarantee 
under this subsection, the Secretary determines 
demonstrates substantial or disproportionate— 
‘‘(A) need for infrastructure improvement; 
or 
‘‘(B) durable equipment need or impair-
ment. 
‘‘(4) OVERSIGHT.—The Secretary shall estab-
lish procedures to enable the Secretary to oversee 
the construction, remodeling, or expansion of infra-
structure or the purchase of durable equipment for 
which a loan guarantee is issued under this sub-
section. 
‘‘(5) GUARANTEE AMOUNT.—A loan guarantee 
issued under this subsection may not guarantee 
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more than 80 percent of the principal amount of the 
loan. 
‘‘(6) FEES.—The Secretary shall establish fees 
with respect to loan guarantees under this sub-
section that, as determined by the Secretary— 
‘‘(A) are sufficient to cover all the adminis-
trative costs to the Federal Government for the 
operation of the program; 
‘‘(B) may be in the form of an application 
or transaction fee, or interest rate adjustment; 
and 
‘‘(C) may be based on the risk premium 
associated with the loan or loan guarantee, tak-
ing into consideration— 
‘‘(i) the price of Treasury obligations 
of a similar maturity; 
‘‘(ii) prevailing market conditions; 
‘‘(iii) the ability of the eligible infra-
structure project to support the loan guar-
antee; and 
‘‘(iv) the total amount of the loan 
guarantee. 
‘‘(7) FUNDING.— 
‘‘(A) IN GENERAL.—To provide loan guar-
antees under this subsection, the Secretary 
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shall reserve $300,000,000 of the loan guar-
antee authority remaining and unobligated as of 
the date of enactment of the School Food Mod-
ernization Act under the program of community 
facility guaranteed loans under section 306(a) 
of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1926(a)). 
‘‘(B) TECHNICAL ASSISTANCE.—The Sec-
retary may use not more than 5 percent of the 
amount made available to carry out this sub-
section for each fiscal year to provide technical 
assistance to applicants and prospective appli-
cants in preparing applications and creating fi-
nancing packages that leverage a mix of public 
and private funding sources. 
‘‘(c) EQUIPMENT GRANTS.— 
‘‘(1) AUTHORITY
TO
MAKE
GRANTS.—Begin-
ning in fiscal year 2016 and subject to the avail-
ability of appropriations, the Secretary shall make 
grants, on a competitive basis, to eligible entities to 
assist the eligible entities in purchasing the 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— 
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‘‘(A) eligible entities in States that have 
enacted comparable statutory grant funding 
mechanisms or that have otherwise appro-
priated funds to assist eligible entities in pur-
chasing the durable equipment and infrastruc-
ture needed to serve healthier meals and im-
prove food safety, as determined by the Sec-
retary; and 
‘‘(B) eligible entities that have identified 
and are reasonably expected to meet an unmet 
local or community need, including through— 
‘‘(i) a public-private partnership or 
partnership with a food pantry or other 
low-income assistance agency; or 
‘‘(ii) the provision for or allowance of 
kitchen or cafeteria usage by related or 
outside community organizations. 
‘‘(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 
equipment or infrastructure. 
‘‘(B) MATCHING.—As a condition on re-
ceiving a grant under this subsection, an eligi-
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ble 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 in the grant program under this subsection 
would otherwise result. 
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—There are authorized 
to be appropriated $25,000,000 to carry out 
this subsection for each of fiscal years 2016 
through 2021. 
‘‘(B) TECHNICAL ASSISTANCE.—The Sec-
retary may use not more than 5 percent of the 
amount made available to carry out this sub-
section for each fiscal year to provide technical 
assistance to applicants and prospective appli-
cants in preparing applications and creating fi-
nancing packages that leverage a mix of public 
and private funding sources.’’. 
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SEC. 3. TRAINING AND TECHNICAL ASSISTANCE FOR 
SCHOOL FOOD SERVICE PERSONNEL. 
The Richard B. Russell National School Lunch Act 
is amended by inserting after section 21 (42 U.S.C. 
1769b–1) the following: 
‘‘SEC. 21A. TRAINING AND TECHNICAL ASSISTANCE FOR 
SCHOOL FOOD SERVICE PERSONNEL. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
grant program under which the Secretary shall award 
grants, on a competitive basis, to provide support to eligi-
ble third-party training institutions described in sub-
section (b) to develop and administer training and tech-
nical assistance for school food service personnel to meet 
nutrition standards under section 4(b)(3) and improve ef-
ficacy and efficiency of the school lunch program under 
this Act and the school breakfast program established by 
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
1773). 
‘‘(b) ELIGIBLE THIRD-PARTY INSTITUTIONS DE-
FINED.—For purposes of this section, the term ‘eligible 
third-party institution’ means— 
‘‘(1) a nonprofit organization with dem-
onstrated experience in food or nutrition services 
training and technical assistance; 
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‘‘(2) an institution of higher education as de-
fined in section 102 of the Higher Education Oppor-
tunity Act of 2008; 
‘‘(3) an area career and technical education 
school as defined in section 3 of the Carl D. Perkins 
Career and Technical Education Act of 2006; or 
‘‘(4) a consortium of entities described in para-
graphs (1), (2), and (3). 
‘‘(c) CRITERIA FOR ELIGIBLE THIRD-PARTY INSTI-
TUTIONS.—The Secretary shall establish specific criteria 
that eligible third-party training institutions shall meet to 
qualify to receive grants under this section, which shall 
include— 
‘‘(1) a demonstrated capacity to administer ef-
fective training and technical assistance program-
ming to school food service personnel; 
‘‘(2) prior, successful experience in providing or 
engaging in training and technical assistance pro-
gramming or applied research activities involving eli-
gible entities, school food service administrators, or 
directors; 
‘‘(3) prior, successful experience in developing 
relevant educational training tools or course mate-
rials or curricula on topics addressing child and 
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school nutrition or the updated nutrition standards 
under section 4(b)(3); and 
‘‘(4) the ability to deliver effective and cost-effi-
cient training and technical assistance programming 
to school food service personnel— 
‘‘(A) at training sites that are located 
within a proximate geographic distance to 
schools, central kitchens, or other worksites; or 
‘‘(B) through an online training and assist-
ance program on topics that do not require in- 
person attendance. 
‘‘(d) PROGRAM ASSISTANCE.—The Secretary shall 
assist the institutions receiving grants under this section 
in publicizing and disseminating training and other project 
materials and online tools to the maximum extent prac-
ticable. 
‘‘(e) FEDERAL SHARE.— 
‘‘(1) IN GENERAL.—The Federal share of costs 
for training and technical assistance funded through 
a grant awarded under this section shall not exceed 
80 percent of the total cost of the training and tech-
nical assistance. 
‘‘(2) MATCHING.—As a condition of receiving a 
grant under this section, the eligible third-party 
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training institution shall provide matching support 
in the form of cash or in-kind contributions. 
‘‘(f) OVERSIGHT.—The Secretary shall establish pro-
cedures to enable the Secretary— 
‘‘(1) to oversee the administration and oper-
ation of training and technical assistance funded 
through grants awarded under this section; and 
‘‘(2) to ensure that the training and assistance 
is operated consistent with the goals and require-
ments of this Act. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated $10,000,000 to carry out this section 
for each of fiscal years 2016 through 2021. 
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary 
may use not more than 5 percent of the amount 
made available to carry out this section for each fis-
cal year to provide technical assistance to applicants 
and prospective applicants in preparing applications 
and creating financing packages that leverage a mix 
of public and private funding sources.’’. 
SEC. 4. REPORT TO CONGRESS. 
Not later than 1 year after funds are made available 
to carry out sections 21A and 27 of the Richard B. Russell 
National School Lunch Act (as added by this Act), and 
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