conducted to examine the health and 
safety of children participating in the 
school meal programs; 
‘‘(III) not increasing the cost to 
implement the requirements of the 
school meal programs; and 
‘‘(IV) not discouraging students 
from participating in the school meal 
programs; 
‘‘(iii) if necessary to meet the require-
ments of clause (ii), revise the regulations 
to meet such requirements; 
‘‘(iv) not later than 30 days prior to 
publication under clause (v)(II) of the re-
vised regulations— 
‘‘(I) submit the revised regula-
tions for comment to the Committee 
on Education and the Workforce of 
the House of Representatives and the 
Committee on Agriculture, Nutrition, 
and Forestry of the Senate; and 
‘‘(II) review any comments pro-
vided under subclause (I), and further 
revise the regulations, if necessary to 
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ensure the revised regulations are in 
compliance with clause (i); and 
‘‘(v) publish in the Federal Register, 
and submit to the Committee on Education 
and the Workforce of the House of Rep-
resentatives and the Committee on Agri-
culture, Nutrition, and Forestry of the 
Senate— 
‘‘(I) a notice that no changes to 
the regulations are required with the 
certification described in clause (ii); or 
‘‘(II) the revised regulations de-
scribed in clause (iv) with the certifi-
cation described in clause (ii). 
‘‘(B) FIRST REVIEW.—The first review re-
quired under subparagraph (A) after the date 
of enactment of the Improving Child Nutrition 
and Education Act of 2016 shall— 
‘‘(i) be concluded not later than De-
cember 31, 2016; 
‘‘(ii) include a review of the sodium 
and whole grain requirements under the 
regulations for the school meal programs; 
and 
‘‘(iii) ensure that such requirements— 
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‘‘(I) allow for cultural foods to be 
served under the school meal pro-
grams; 
‘‘(II) maintain the sodium target 
requirements 
established 
for 
the 
school lunch program and school 
breakfast program under sections 
210.10(f) and 220.8(f) of title 7, Code 
of Federal Regulations, respectively 
(as such regulations are in effect on 
the day before the date of the enact-
ment of the Improving Child Nutri-
tion and Education Act of 2016) until 
such requirements are revised in ac-
cordance with subclause (III); and 
‘‘(III) in a case in which the so-
dium target requirements are revised 
as a result of the review described in 
this subparagraph, ensure that such a 
revision— 
‘‘(aa) is based on health re-
quirements for children; 
‘‘(bb) is supported by a ma-
jority of research focused on 
school-aged children that directly 
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establishes, 
through 
well-con-
trolled randomized trials or well- 
designed, long-term observational 
studies, that sodium reductions 
are both safe and produce bene-
ficial health outcomes for such 
children; 
‘‘(cc) is able to support food 
safety and be produced in a man-
ner that does not significantly in-
crease the cost of food; and 
‘‘(dd) does not take effect 
until 3 years after the revision 
has been published in the Federal 
Register. 
‘‘(C) SPECIAL RULE FOR REGULATION RE-
LIEF FOR FAMILY MEAL DAYS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the Secretary shall issue guidance, or 
promulgate new rules as necessary, to en-
sure each State agency provides guidance 
to school food authorities with respect to 
the allowance of up to 4 family meal days, 
as designated by a school, which shall be 
exempt from the meal pattern rules speci-
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fied under the regulations for the school 
meal programs, during which the school 
may— 
‘‘(I) invite parents to participate 
in special meals, such as a Thanks-
giving meal or a parents’ day meal; 
and 
‘‘(II) provide additional nutrition 
education, such as recipe building or 
healthy cooking classes to parents and 
families on making healthy meal op-
tions at home, which may be provided 
by an entity or individual other than 
a school food service director or food 
service personnel. 
‘‘(ii) 
CLARIFICATION.—In 
issuing 
guidance or promulgating rules under 
clause (i), the Secretary shall not establish 
requirements for family meal days, other 
than to ensure that schools have the au-
thority to hold up to 4 family meal days 
per school year. 
‘‘(D) 
REGULATION
FLEXIBILITY.—The 
Secretary shall provide guidance, when there is 
difficulty in procuring food to comply with the 
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regulations, to allow a school food authority to 
substitute food items across food groups and 
subgroups, including in-season, locally produced 
fruits and vegetables, notwithstanding the food- 
based meal patterns and menu planning re-
quirements of this subsection, provided that the 
school food authority continues to meet applica-
ble daily and weekly nutrient and dietary re-
quirements under this subsection.’’; 
(5) by striking subsections (g) and (k); 
(6) by redesignating subsections (h), (i), (j), 
and (l) as subsections (g), (h), (i), and (j), respec-
tively; and 
(7) in subsection (g) (as so redesignated), by 
striking ‘‘2011 through 2015’’ each place it appears 
in paragraphs (3) and (4) and inserting ‘‘2017 
through 2021’’. 
SEC. 105. MISCELLANEOUS PROVISIONS. 
(a) UNIVERSAL MEAL SERVICE IN HIGH POVERTY 
AREAS THRESHOLD.—Section 11(a)(1)(F) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 
17659a(a)(1)(F)) is amended— 
(1) in clause (ii)(I), in the matter preceding 
item (aa), by inserting ‘‘(including a subset of 
schools within the local educational agency if the re-
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sult obtained by dividing the total number of the 
identified students enrolled in such schools by the 
total number of all students enrolled in such schools, 
is above the threshold in clause (viii))’’ after ‘‘on be-
half of certain schools’’; 
(2) in clause (vi), by inserting ‘‘(except in the 
case of a nonpublic school that has requested infor-
mation for the sole purpose of verifying eligibility of 
students for free or reduced price lunch)’’ after this 
‘‘subparagraph’’; 
(3) by striking clause (viii) and inserting the 
following: 
‘‘(viii) THRESHOLD.— 
‘‘(I) IN GENERAL.—For each school year 
beginning on or after July 1, 2017, the Sec-
retary shall use a threshold that is not less than 
60 percent. 
‘‘(II) COMMUNITY ELIGIBILITY SELECTION 
TRANSITION.—In the case of a school that re-
ceived special assistance payments under this 
subparagraph during the school year imme-
diately prior to the school year in which the Im-
proving Child Nutrition and Education Act of 
2016 was enacted, such school shall, not later 
than June 30, 2018— 
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‘‘(aa) meet the threshold described in 
subclause (I); or 
‘‘(bb) transition from receiving pay-
ments under this subparagraph in accord-
ance with subclause (III). 
‘‘(III) TECHNICAL
ASSISTANCE.—In the 
case of schools described in subclause (II)(bb), 
the Secretary shall provide technical assistance 
to ensure that such schools are able to effec-
tively and efficiently transition from receiving 
payments under this subparagraph to receiving 
special assistance payments otherwise made 
available under this paragraph, including com-
municating the application process to families 
in a timely manner to ensure continuity of serv-
ices for eligible families.’’; and 
(4) in clause (xi)— 
(A) in subclause (II), by striking ‘‘Not 
later than December 31, 2013’’ and inserting 
‘‘Not later than one year after the date of en-
actment of the Improving Child Nutrition and 
Education Act of 2016’’; and 
(B) in subclause (III), by striking ‘‘If the 
Secretary uses the authority provided in clause 
(vii)(II)(bb) to use a different multiplier for dif-
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ferent schools or local educational agencies, for 
each school year beginning on or after July 1, 
2014, not later than April 1, 2014’’ and insert-
ing ‘‘If the Secretary uses the authority pro-
vided in clause (vii), for each school year begin-
ning on or after July 1, 2017, not less than one 
year prior to the Secretary electing to use such 
authority,’’. 
(b) REIMBURSEMENT RATE.—Section 11(a)(3)(A) of 
the Richard B. Russell National School Lunch Act (42 
U.S.C. 17659a(a)(3)(A)) is amended by striking ‘‘July 1’’ 
and inserting ‘‘February 15’’. 
(c) DEFINITION OF AUTHORIZED STATE AGENCY.— 
Paragraph (9) of section 12(d) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760(d)(9)) is 
amended to read as follows: 
‘‘(9) AUTHORIZED STATE AGENCY.—The term 
‘authorized 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; 
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‘‘(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.’’. 
(d) PROCUREMENT TRAINING.—Section 12(m)(4) of 
the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended by striking ‘‘2015’’ and insert-
ing ‘‘2021’’. 
(e) PRICE FOR A PAID LUNCH.—Section 12 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 
1760) is further amended by striking subsection (p) and 
redesignating subsections (q) and (r) as subsections (p) 
and (q), respectively. 
SEC. 106. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN. 
Section 13 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1761) is amended— 
(1) in subsection (a)— 
(A) in paragraph (4), by adding at the end 
the following: 
‘‘(C) EDUCATIONAL AND ENRICHMENT AC-
TIVITIES.—In determining participation under 
subparagraph (A), the State shall prioritize ap-
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plications that include an educational or enrich-
ment activity, or demonstrate a partnership 
with an entity providing such activity.’’; 
(B) by amending paragraph (8) to read as 
follows: 
‘‘(8) STREAMLINING.— 
‘‘(A) SEAMLESS SUMMER.—Except as oth-
erwise determined by the Secretary, a service 
institution that is a public or private nonprofit 
school food authority may provide summer or 
school vacation food service in accordance with 
applicable provisions of law governing the 
school lunch program established under this Act 
or the school breakfast program established 
under the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.). 
‘‘(B) 
SUMMER
AND
CACFP
AT-RISK 
STREAMLINING.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subsections (b)(2) and (c)(1), a State may 
elect to streamline and simplify program 
operations by reducing paperwork and 
other administrative burdens while retain-
ing appropriate measures of program in-
tegrity, which may include the utilization 
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of technical assistance provided to the 
State under clause (iv) for service institu-
tions that— 
‘‘(I) are described in paragraphs 
(6) or (7); 
‘‘(II) provide care to at-risk 
school children (as defined in section 
17(r)(2)), and may be eligible child 
care centers or homes (as defined 
under section 17(a)(2)); and 
‘‘(III) are not public schools. 
‘‘(ii) 
STREAMLINED
REIMBURSE-
MENT.—States that demonstrate stream-
lined and simplified program operations 
under clause (i) for service institutions, 
and that are selected by the Secretary 
under clause (v), shall streamline reim-
bursement for such service institutions by 
providing reimbursement for— 
‘‘(I) lunch and either breakfast 
or a supplement served to at-risk 
school children— 
‘‘(aa) during each day of op-
eration during the months of 
May through September; and 
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‘‘(bb) in the case of a service 
institution that provides meal 
service to such children who are 
not in school for a period during 
the school year due to a natural 
disaster, building repair, court 
order, or similar cause, at any 
time during such period in that 
school year; and 
‘‘(II) up to 1 meal and 1 supple-
ment served to children during each 
day of operation outside of school 
hours during the regular school cal-
endar, including after school, week-
ends, and school holidays. 
‘‘(iii) RATE
OF
REIMBURSEMENT.— 
The State shall reimburse service institu-
tions seeking reimbursement under this 
subparagraph at a rate that is consistent 
with section 17(r)(4)(B). 
‘‘(iv) TECHNICAL ASSISTANCE.— 
‘‘(I) IN
GENERAL.—Not later 
than December 31, 2016, the Sec-
retary shall develop guidance and pro-
vide technical assistance for States 
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and service institutions to assist in 
the implementation of this subpara-
graph, including by identifying areas 
of programmatic overlap in the pro-
gram under this section and the child 
and adult care food program under 
section 17 so that States may simplify 
the administration of each such pro-
gram. 
‘‘(II) GUIDANCE.—Such guidance 
shall include information on possible 
ways States may ensure participation 
under this subparagraph will lead to 
reduced paperwork and other adminis-
trative 
burdens, 
including 
rec-
ommendations for streamlined pro-
gram applications, reporting require-
ments, inspections, and other areas of 
potential duplication, while retaining 
appropriate measures of program in-
tegrity. 
‘‘(III) OTHER STATES.—Informa-
tion provided under this clause shall 
be provided in such a manner that 
any State may identify areas of pro-
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grammatic overlap, and reduce paper-
work and other burdens, even if such 
State has not yet been selected to pro-
vide reimbursements to service institu-
tions in accordance with this subpara-
graph. 
‘‘(v) 
SUCCESSFUL
IMPLEMENTA-
TION.— 
‘‘(I) IN GENERAL.—A State seek-
ing to provide reimbursements in ac-
cordance this subparagraph shall dem-
onstrate to the Secretary the ways in 
which the State has used the election 
under clause (i) to reduce paperwork 
and 
other 
administrative 
burdens 
while retaining appropriate measures 
of program integrity, which may in-
clude the utilization of technical as-
sistance provided to the State under 
clause (iv). 
‘‘(II) INITIAL
SELECTION
OF 
STATES.— 
‘‘(aa) IN
GENERAL.—The 
Secretary shall select not more 
than 5 States to provide reim-
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bursements in accordance with 
this subparagraph, beginning in 
May 2017, if such States have 
the capacity to effectively imple-
ment this subparagraph, as dem-
onstrated by streamlining and 
simplifying program operations 
in accordance with subclause (I). 
‘‘(bb) UPDATE.—When ap-
propriate, but not later than May 
31, 2018, and consistent with 
subclause (V)(bb), the Secretary 
shall 
update 
the 
information 
under clause (iv). 
‘‘(III) 
NEXT
SELECTION
OF 
STATES.— 
‘‘(aa) IN GENERAL.—If the 
Secretary determines that addi-
tional States have the capacity 
described in subclause (I) and 
additional best practices could be 
provided, the Secretary may se-
lect not more than 5 such States 
to provide reimbursements in ac-
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cordance with this subparagraph 
beginning in October 2018. 
‘‘(bb) UPDATE.—Not later 
than September 30, 2019, and 
consistent 
with 
subclause 
(V)(bb), the Secretary shall up-
date the information under clause 
(iv). 
‘‘(IV) ADDITIONAL
SELECTION 
OF STATES.—The Secretary may se-
lect additional States to provide reim-
bursements in accordance with this 
subparagraph beginning in May 2020, 
and each year thereafter, if such 
States have the capacity described in 
subclause (I). 
‘‘(V) BEST PRACTICES.— 
‘‘(aa) IN
GENERAL.—As a 
condition of being selected under 
this clause, a State shall provide, 
in such time and in such manner 
as the Secretary may reasonably 
require, information to the Sec-
retary regarding best practices of 
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successful implementation of this 
subparagraph. 
‘‘(bb) UPDATE.—The Sec-
retary shall continue to periodi-
cally 
update 
the 
information 
under clause (iv) to include the 
best practices provided under 
item (aa) for continued success-
ful implementation of this sub-
paragraph.’’; 
(C) by striking paragraphs (9), (10), and 
(12); 
(D) by redesignating paragraph (11) as 
paragraph (9); and 
(E) by adding at the end the following: 
‘‘(10) TEMPORARY ALLOWANCE FOR OFF-SITE 
CONSUMPTION.— 
‘‘(A) IN
GENERAL.—Beginning in May 
2017, the Secretary shall grant requests made 
by a State to allow children who are partici-
pating in the program but for whom an oper-
ation under paragraph (12) is not available, to 
consume meals away from a congregate feeding 
site when the program is available to such chil-
dren at the site, but— 
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‘‘(i) the site is closed due to extreme 
weather conditions; 
‘‘(ii) violence or other public safety 
concerns in the area temporarily prevent 
children from traveling safely to the site; 
or 
‘‘(iii) other emergency circumstances, 
as defined by the State, prevent access to 
the site. 
‘‘(B) LIMITATIONS.—In granting a request 
under subparagraph (A), the Secretary shall en-
sure that— 
‘‘(i) allowances are issued by a State 
only between the months of May through 
September; 
‘‘(ii) allowances are granted in the 
most efficient and effective manner to en-
sure programs and States can quickly re-
spond and adapt to the circumstances de-
scribed in clauses (i) through (iii) of sub-
paragraph (A); and 
‘‘(iii) once an allowance is issued, any 
meal in which a component is offered but 
not served is not reimbursed under sub-
section (b). 
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‘‘(C) STATE PLAN.—As part of the man-
agement and administration plan described in 
subsection (n), a State shall describe— 
‘‘(i) the approval process, including 
the timeline, the State would undertake to 
issue an allowance; 
‘‘(ii) standards for what circumstances 
merit an allowance, how long an allowance 
will last, and when an allowance may be 
extended; and 
‘‘(iii) how the program would operate 
once an allowance is issued. 
‘‘(11) OFF-SITE CONSUMPTION.— 
‘‘(A) IN GENERAL.—Beginning in May of 
2017, a State may elect for service institutions 
to carry out an off-site consumption operation 
in the State to provide summer food service 
program meals to children eligible to participate 
in the program that such children may consume 
away from a congregate feeding site. 
‘‘(B) AVAILABILITY.—The operation de-
scribed in subparagraph (A) shall be available 
to a child described in subparagraph (A) only if 
the child lives in an area that is eligible to par-
ticipate in the summer food service program, 
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but that is not currently being served, and such 
area— 
‘‘(i) is rural, as defined by the State; 
or 
‘‘(ii) is not rural, and is an area in 
which more than 80 percent of students 
are certified as eligible for free or reduced 
price meals. 
‘‘(C) ADMINISTRATION.— 
‘‘(i) IN
GENERAL.—The following 
shall apply to an operation described in 
subparagraph (A): 
‘‘(I) The number of meals served 
to each child in a single meal service 
is limited to 2 meals, and the number 
of meals in a seven-day period shall be 
limited to 10 meals. 
‘‘(II) Any meal served shall meet 
the same standards for nutrition, 
safety, and quality as a meal served at 
a congregate feeding site. 
‘‘(III) Any meal in which a com-
ponent is offered but not served shall 
not be reimbursed under subsection 
(b). 
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‘‘(IV) Each State shall give pri-
ority to children who are living where 
congregate feeding sites are not acces-
sible. 
‘‘(V) Nothing in this section shall 
be construed to allow congregate feed-
ing sites to cease from operating in 
order to be replaced by off-site con-
sumption operations under this para-
graph. 
‘‘(VI) A State shall not— 
‘‘(aa) operate an off-site 
consumption operation simulta-
neously in the same service area 
with a congregate feeding site; 
‘‘(bb) use more than 10 per-
cent of funds received for admin-
istrative expenses to carry out 
this paragraph; or 
‘‘(cc) implement an off-site 
consumption 
operation 
in 
all 
service areas in the State. 
‘‘(ii) 
STATE
PLAN.—Each 
State 
choosing to provide summer food service 
program meals through an off-site con-
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sumption operation under this paragraph 
shall describe how the State plans to im-
plement the operation in the management 
and administration plan in subsection (n), 
which shall include information on how the 
State will— 
‘‘(I) document operation, includ-
ing implementation; 
‘‘(II) determine the method for 
selecting eligible areas and eligible 
service institutions to most effectively 
deliver summer food service program 
meals in the manner described in this 
paragraph; 
‘‘(III) design mechanisms by 
which households with children eligible 
to participate in the program could in-
dicate a need for meal service through 
such an operation; 
‘‘(IV) develop an appropriate 
maintenance of effort requirement for 
service institutions currently operating 
congregate feeding sites; 
‘‘(V) develop requirements for 
implementing 
safety 
and 
security 
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measures to ensure that safety and 
security through such an operation is 
equivalent to such measures at a con-
gregate feeding site; and 
‘‘(VI) periodically reevaluate the 
potential for children to be served at 
a congregate feeding site.’’; 
(2) in subsection (f)(2), by inserting before the 
period at the end the following: ‘‘and in providing 
appropriate meals to children with medically cer-
tified special dietary needs, including food allergies 
or other special dietary needs of individual children, 
including religious dietary restrictions’’; 
(3) in subsection (k)(3)— 
(A) by striking ‘‘(3) To provide’’ and in-
serting the following: 
‘‘(3) NUTRITIONAL AND FOOD QUALITY MONI-
TORING.— 
‘‘(A) IN GENERAL.—To provide’’; and 
(B) by adding at the end the following: 
‘‘(B) INSUFFICIENT FUNDS.— 
‘‘(i) IN GENERAL.—If funds provided 
under subparagraph (A) are insufficient to 
pay for State or local health department 
inspections, and to reinspect facilities and 
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deliveries to test meal quality, as required 
under this Act or the Child Nutrition Act 
of 1966 (42 U.S.C. 1771 et seq.), State 
agencies may elect to use funds described 
in paragraph (1) for those activities. 
‘‘(ii) LIMITATION.—Funds described 
in clause (i) shall not exceed the lesser 
of— 
‘‘(I) actual costs; or 
‘‘(II) 1 percent of program 
funds.’’; 
(4) by amending subsection (n) to read as fol-
lows: 
‘‘(n) STATE PLAN.—Each State desiring to partici-
pate in the program shall notify the Secretary by January 
1 of each year of its intent to administer the program and 
shall submit, by February 15, a management and adminis-
tration plan for the program for the fiscal year, which 
shall include, at a minimum— 
‘‘(1) the State’s administrative budget for the 
fiscal year; and 
‘‘(2) the State’s plans for— 
‘‘(A) use of program funds and additional 
State or private funds to reach children with 
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the greatest need, to the maximum extent prac-
ticable; 
‘‘(B) strengthening the congregate feeding 
model for program delivery, including a process 
for identifying gaps in service and barriers to 
access; 
‘‘(C) administrative and fiscal plans for 
using the allowance described in subsection 
(a)(11) and, if applicable, the option described 
in subsection (a)(12) to assist service institu-
tions in reaching children with the greatest 
need; 
‘‘(D) providing technical assistance and 
training for eligible service institutions; 
‘‘(E) monitoring and inspecting service in-
stitutions, feeding sites, and food service man-
agement companies and ensuring that such 
companies do not enter into contracts for more 
meals than they can provide effectively and effi-
ciently, and in compliance with the program; 
‘‘(F) timely and effective action against 
program violators; and 
‘‘(G) ensuring fiscal integrity by auditing 
service institutions not subject to auditing re-
quirements prescribed by the Secretary.’’; and 
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(5) in subsection (r), by striking ‘‘2015’’ and 
inserting ‘‘2021’’. 
SEC. 107. COMMODITY DISTRIBUTION PROGRAM. 
Section 14 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1762a) is amended— 
(1) in subsection (f), in the third sentence— 
(A) by striking ‘‘section 9(a) of this Act’’ 
and inserting ‘‘section 9(f)’’; and 
(B) by striking ‘‘represent the four basic 
food groups, including’’ and inserting ‘‘in-
clude’’; and 
(2) by striking subsection (h). 
SEC. 108. CHILD AND ADULT CARE FOOD PROGRAM. 
(a) IN GENERAL.—Section 17 of the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 1766) is 
amended— 
(1) in subsection (a)— 
(A) in paragraph (2)— 
(i) in subparagraph (B), in the matter 
preceding clause (i), by striking ‘‘if’’ and 
inserting ‘‘if, during the month preceding 
the date of submission of the applicable 
initial application or reapplication’’; 
(ii) in subparagraph (E), by striking 
‘‘and’’ at the end; 
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(iii) in subparagraph (F), by striking 
the period at the end and inserting a semi-
colon; and 
(iv) by adding at the end the fol-
lowing: 
‘‘(G) any public or licensed nonprofit pri-
vate residential child care institution (as de-
fined in subsection (v)(1)) that is not concur-
rently receiving reimbursement under the school 
lunch program under this Act or the school 
breakfast program under the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et seq.); and 
‘‘(H) any boarding school funded by the 
Bureau of Indian Education that is not concur-
rently receiving reimbursement under the school 
lunch or the school breakfast program.’’; 
(B) in paragraph (3), by striking ‘‘sub-
section (r)’’ and inserting ‘‘subsections (r) and 
(v)’’; and 
(C) by adding at the end the following: 
‘‘(7) DURATION OF DETERMINATION.—With re-
spect to an institution described in paragraph 
(2)(B), an eligibility determination under this sub-
section shall remain in effect for a period of 4 
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months after the date such institution is approved 
by the State under subsection (d).’’; 
(2) in subsection (b), by striking ‘‘For the fiscal 
year ending September 30, 1979, and for each sub-
sequent fiscal year, the’’ and inserting ‘‘The’’; 
(3) in subsection (d)— 
(A) in paragraph (4)— 
(i) by striking ‘‘In consultation’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—In consultation’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) REPORTS.—Each sponsoring organi-
zation shall, on an annual basis, submit to the 
applicable State agency a report that describes, 
with respect to the preceding fiscal year— 
‘‘(i) the expenditures of program 
funds by the sponsoring organization; and 
‘‘(ii) the amount of meal reimburse-
ments retained by the sponsoring organiza-
tion for administrative costs, if applica-
ble.’’; and 
(B) in paragraph (5), by adding at the end 
the following: 
‘‘(F) SERIOUS DEFICIENCY PROCESS.— 
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‘‘(i) IN GENERAL.—Not later than 1 
year after the date of the enactment of the 
Improving Child Nutrition and Education 
Act of 2016, the Secretary shall review the 
serious deficiency process for the program 
under this section. 
‘‘(ii) REVIEW.—In carrying out clause 
(i), the Secretary shall review the processes 
for, and those involved in— 
‘‘(I) a finding of serious defi-
ciency, including— 
‘‘(aa) what measures auto-
matically result in a finding of 
serious deficiency; and 
‘‘(bb) how differentiation is 
being made between— 
‘‘(AA) 
a 
reasonable 
margin of human error and 
systematic 
or 
intentional 
noncompliance; and 
‘‘(BB) State-specific re-
quirements and Federal law 
and regulations, if applica-
ble; 
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‘‘(II) appeals and mediation in 
any case in which there is a finding of 
serious deficiency; 
‘‘(III) 
determining 
the 
cir-
cumstances under which a corrective 
action plan is acceptable; 
‘‘(IV) information sharing be-
tween Departments of Agriculture and 
Health and Human Services; and 
‘‘(V) termination and disquali-
fication, including maintenance of the 
list under subparagraph (E). 
‘‘(iii) 
GUIDANCE
AND
REGULA-
TIONS.— 
‘‘(I) IN
GENERAL.—After con-
ducting the review under this sub-
paragraph, the Secretary shall use 
findings from the information col-
lected to issue guidance, and, as ap-
propriate, regulations, from such find-
ings that will assist sponsoring orga-
nizations, State agencies, and the 
Food and Nutrition Service in ensur-
ing a fair, uniform, and effective ad-
ministration of the serious deficiency 
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process, while retaining program in-
tegrity. 
‘‘(II) 
SCOPE.—Such 
guidance 
shall include— 
‘‘(aa) clarity on the different 
measures for noncompliance; 
‘‘(bb) parameters for an ap-
peals process to review a finding 
of serious deficiency or a deter-
mination that a corrective action 
plan is inadequate; and 
‘‘(cc) adequate timeframes 
under a corrective action plan for 
compliance that are consistent 
for all types of institutions par-
ticipating in the program, includ-
ing family or group day care 
homes. 
‘‘(III) INFORMATION SHARING.— 
Within such guidance or regulation, 
and as soon as practicable, the Sec-
retary shall ensure information about 
findings are shared with the Secretary 
of Health and Human Services as to 
allow for maximum health, safety, 
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oversight, and monitoring of child 
care and Head Start facilities.’’; 
(4) in subsection (f)— 
(A) in paragraph (2)(C), by adding at the 
end the following: 
‘‘(iii) CARRYOVER FUNDS.—Not more 
than 10 percent of the amount reserved by 
sponsoring organizations under clause (i) 
for administrative expenses for a fiscal 
year may remain available for obligation or 
expenditure in the succeeding fiscal year 
for administrative purposes.’’; and 
(B) in paragraph (3)— 
(i) by striking subparagraph (C); and 
(ii) by redesignating subparagraphs 
(D) and (E) as subparagraphs (C) and 
(D), respectively; 
(5) in subsection (g), by striking paragraph (6) 
and inserting the following: 
‘‘(6) USE OF DONATED FOODS.—To the max-
imum extent practicable, each institution shall use in 
its food service foods that are donated by the Sec-
retary.’’; 
(6) in subsection (h)(1), by adding at the end 
the following: 
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‘‘(E) ENGAGEMENT
WITH
STATE
AND 
LOCAL AGENCIES.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), institutions participating in the pro-
gram under this section may engage with 
authorized State agencies and local edu-
cational agencies to use existing infrastruc-
ture to enhance the use of, and increase 
access to, donated commodities. 
‘‘(ii) EFFECT
OF
SUBPARAGRAPH.— 
Nothing in this subparagraph shall compel 
a local educational agency unwillingly to 
serve any institution participating in the 
program under this section.’’; 
(7) in subsection (i)(2)(B)(i), by striking ‘‘if the 
State agency demonstrates’’ and all that follows 
through the period at the end and inserting ‘‘if the 
State agency demonstrates that the State agency 
can use funds to improve program management, 
oversight, and integrity, including by working with 
other State agencies involved with the monitoring of 
institutions under this section in order to streamline 
and coordinate the efforts of such State agencies.’’; 
(8) in subsection (r), by striking paragraphs (5) 
and (6); 
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(9) in subsection (s)(2)(C), by striking ‘‘parents 
of enrolled children at enrollment’’ and inserting 
‘‘parents or legal guardians of enrolled children in 
an easily accessible manner’’; 
(10) in subsection (u)(3)— 
(A) in subparagraph (A), by inserting be-
fore the period at the end the following: ‘‘and 
in providing appropriate meals to children with 
medically certified special dietary needs, includ-
ing food allergies or other special dietary needs 
of individual students, including religious die-
tary restrictions’’; 
(B) in subparagraph (C)(i), by inserting 
‘‘for distribution to participants and families of 
participants’’ after ‘‘nutrition education’’; and 
(C) in subparagraph (H), by adding at the 
end the following: 
‘‘(iii) SUNSET.—The Secretary shall 
return to the general fund of the Treasury 
any funds that were— 
‘‘(I) made available under this 
subparagraph; and 
‘‘(II) not obligated as of the date 
of the enactment of the Improving 
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Child Nutrition and Education Act of 
2016.’’; and 
(11) by adding at the end the following: 
‘‘(v) PARTICIPATION BY RESIDENTIAL CHILD CARE 
INSTITUTIONS.— 
‘‘(1) DEFINITION OF RESIDENTIAL CHILD CARE 
INSTITUTION.—In this subsection, the term ‘residen-
tial child care institution’ means any public or non-
profit private residential child care institution, or 
distinct part of such an institution, that— 
‘‘(A) operates principally for the care of 
children; and 
‘‘(B) if private, is licensed to provide resi-
dential child care services under the appropriate 
licensing code by the State or local agency. 
‘‘(2) ADMINISTRATION.—Except as otherwise 
provided in this subsection, a residential child care 
institution shall be considered eligible for reimburse-
ment for meals or supplements served to eligible 
children residing at the residential child care institu-
tion, so long as the institution does not simulta-
neously participate in the school lunch program 
under this Act or the school breakfast program 
under the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.). 
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‘‘(3) MEAL
OR
SUPPLEMENT
REIMBURSE-
MENT.— 
‘‘(A) LIMITATIONS.—A residential child 
care institution may claim reimbursement under 
this section— 
‘‘(i) only for a meal or supplement 
served to children residing at the residen-
tial child care institution, who are— 
‘‘(I) not more than 18 years of 
age; or 
‘‘(II) children with disabilities; 
and 
‘‘(ii) for not more than— 
‘‘(I) 1 breakfast, 1 lunch, and 1 
supplement per child per day; or 
‘‘(II) 1 breakfast, 1 supper, and 
1 supplement per child per day. 
‘‘(B) RATE.—A meal or supplement eligi-
ble for reimbursement under this subsection 
shall be reimbursed at the rate at which free, 
reduced price, and paid meals and supplements, 
respectively, are reimbursed under subsection 
(c).’’. 
(b) ADVISORY COMMITTEE.— 
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(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary shall establish and convene an advisory com-
mittee— 
(A) to examine the feasibility of reducing 
unnecessary or duplicative paperwork resulting 
from regulations and recordkeeping require-
ments, including paperwork resulting from ad-
ditional State requirements, for individuals and 
entities participating or seeking to participate 
in the child and adult care food program under 
section 17 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766) (as amend-
ed by subsection (a)), including (within the 
meaning of that Act (42 U.S.C. 1751 et 
seq.))— 
(i) State agencies; 
(ii) family child care homes; 
(iii) child care centers; 
(iv) sponsoring organizations; and 
(v) families. 
(B) to provide recommendations to reduce 
unnecessary or duplicative paperwork for those 
program participants while ensuring that prop-
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er accountability and program integrity are 
maintained. 
(2) REPRESENTATION.—The advisory com-
mittee under this subsection shall include represen-
tation from each of the following (within the mean-
ing 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 Nutri-
tion Service in response to section 119(i) of the 
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Child Nutrition and WIC Reauthorization Act 
of 2004 (42 U.S.C. 1766 note; 118 Stat. 755); 
(B) the use of technology for electronic 
recordkeeping to reduce paperwork burdens on 
program 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 regu-
lations, 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 en-
actment of this Act, the Secretary shall im-
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plement any changes resulting from the 
guidance or regulations described in clause 
(i). 
(B) REPORT.—After issuing any guidance 
or regulations under subparagraph (A), the 
Secretary shall submit to the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate 
and the Committee on Education and the 
Workforce of the House of Representatives a 
report describing any recommendations for leg-
islative changes to further strengthen and 
streamline the application and monitoring proc-
ess and reduce administrative burden on grant-
ees, 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 (d) through (h), (j), 
and (k); 
(2) by redesignating subsection (i) as subsection 
(g); 
(3) in subsection (g)(5), as so redesignated, by 
striking ‘‘2011through 2015’’ and inserting ‘‘2017 
through 2021’’; and 
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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 assist-
ance, and research to implement farm to school pro-
grams that improve access to local foods and im-
prove nutrition 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 ‘eligi-
ble school’ means a school or institution that 
participates 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 
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and adult care food program under section 
17; or 
‘‘(ii) the school breakfast program es-
tablished under section 4 of the Child Nu-
trition 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 eat-
ing. 
‘‘(B) REGIONAL
BALANCE.—In making 
awards under this subsection, the Secretary 
shall, to the maximum extent practicable, en-
sure— 
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‘‘(i) geographical diversity; and 
‘‘(ii) equitable treatment of urban, 
rural, and tribal communities. 
‘‘(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, includ-
ing innovative approaches to aggregation, proc-
essing, 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. 
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‘‘(E) LIMITATION.—The Secretary shall 
not award a grant under this subsection if the 
majority 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 condi-
tion of receiving a grant under this subsection, 
a grant recipient shall provide matching sup-
port in the form of cash or in-kind contribu-
tions, including facilities, equipment, or services 
provided by State and local governments, non-
profit organizations, 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 chil-
dren who are eligible for free or reduced 
price meals; 
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‘‘(ii) incorporate nutrition education 
activities that encourage the participation 
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, agri-
cultural producer groups, and other com-
munity partners; 
‘‘(v) make local food products avail-
able 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 
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practicable, give highest priority to projects 
that propose to use products from tribal agri-
cultural producers, in addition to the priorities 
under subparagraph (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 pro-
gram by the Secretary. 
‘‘(7) 
TECHNICAL
ASSISTANCE
AND
RE-
SEARCH.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide technical assistance, research, and in-
formation through amounts reserved under this 
subsection for such purposes, to assist schools, 
State and local agencies, Indian tribal organiza-
tions, agricultural producers, and nonprofit en-
tities— 
‘‘(i) to facilitate the coordination and 
sharing of information and resources that 
may be applicable to the farm to school 
program; 
‘‘(ii) to collect and share information 
on best practices; 
‘‘(iii) to disseminate research and 
data on existing farm to school programs 
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and the potential for programs to begin in 
underserved areas; and 
‘‘(iv) to increase awareness of, and 
participation in, farm to school programs 
among agricultural and aquiculture pro-
ducers or agricultural producer groups, in-
cluding beginning, veteran, and socially 
disadvantaged farmers and ranchers. 
‘‘(B) REVIEW.—Not later than 1 year 
after the date of the enactment of the Improv-
ing Child Nutrition and Education Act of 2016 
and every 3 years thereafter, the Secretary shall 
review and submit to the Committee on Agri-
culture 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 de-
scribes the regulatory and other barriers related 
to including locally or regionally produced food 
products in school food programs, including any 
progress that has been made in identifying and 
eliminating such barriers through examining— 
‘‘(i) barriers to the development and 
implementation of successful farm to 
school programs; 
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‘‘(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; 
‘‘(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 ex-
pended. 
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this subsection 
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the funds transferred under subparagraph (A), 
without further appropriation. 
‘‘(C) ADMINISTRATION.—Of the funds 
made available to the Secretary under subpara-
graph (A), not more than 5 percent may be 
used to pay administrative costs incurred by the 
Secretary in 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 
available 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 program for low-income children in under-
served areas during summer through sustainable, 
scalable, business-driven solutions. 
‘‘(A) DURATION.—A grant awarded under 
this section shall be for a period of not more 
than 3 years. 
‘‘(B) 
PRIORITY.—In 
awarding 
grants 
under this section, the Secretary shall give pri-
ority to State agencies that have met the appli-
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cation requirements under this subsection and 
which demonstrate a severe unmet need for 
serving children in additional eligible areas in 
the State through the summer food service pro-
gram under section 13. 
‘‘(C) LIMITATION.—Funds under this sec-
tion will— 
‘‘(i) be intended to reduce childhood 
hunger and allow parents to better partici-
pate in the labor force or an education or 
workforce development program; and 
‘‘(ii) not preempt or prevent operation 
of the summer food service program as it 
operates through requirements of section 
13. 
‘‘(2) STATE APPLICATION.—A State seeking to 
operate a demonstration award under this subsection 
shall submit an application at such time and in such 
manner as the Secretary may reasonably require. 
The application 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 
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exist in accordance with the program, but where 
an eligible service institution is not currently in 
operation, where the State may reimburse a 
vendor; 
‘‘(C) identified eligible vendors which the 
State has determined to be qualified to provide 
meals in accordance with this section; 
‘‘(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.—Under this section, 
an eligible vendor is a food vendor which the State 
determines has the administrative capacity and prov-
en operating performance to provide eligible meals to 
children in underserved areas in accordance with 
this subsection and with the limitations and require-
ments set forth in the summer food service program 
regulations regarding management responsibilities of 
sponsors and self-preparation sites, including the 
vendor— 
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‘‘(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; 
‘‘(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 Comptroller General in accordance with 
paragraph (5); 
‘‘(G) has State or local health certification 
for the facilities in which meals will be prepared 
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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. 
‘‘(4) STATE DISBURSEMENT.—A State shall re-
imburse an eligible vendor for meals served to eligi-
ble 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 
entities providing summer enrichment ac-
tivities such as schools, local government 
agencies, and nonprofit agencies; and 
‘‘(ii) provide meals at a congregate 
site, although such vendor shall not be re-
quired to do so. 
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‘‘(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.—Not later than 1 year after 
the end of each grant period for each grant under 
awarded under this subsection, the Comptroller Gen-
eral of the United States shall provide a report to 
Congress, including information about the impacts 
on children, families, and eligible service institutions 
during the summer in each State receiving such 
grant, including— 
‘‘(A) the impact on parents’ abilities to 
participate in the labor force or an education or 
workforce development program; 
‘‘(B) the reduction of childhood hunger 
and food insecurity; 
‘‘(C) the ability for such business-driven 
models to be sustainable and scalable, including 
the costs associated in doing so; and 
‘‘(D) the extent to which such funds under 
this section encouraged partnerships with 
schools, local government agencies, and non-
profit agencies. 
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‘‘(6) LIMITATIONS.—The following rules shall 
apply with respect to this subsection: 
‘‘(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 el-
igible 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 calcula-
tions 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 sub-
section are to assess the use of alternate methods of 
providing access to food for children during the sum-
mer months when school is not in regular session 
that are intended to— 
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‘‘(A) increase summer food service pro-
gram effectiveness and efficiency; 
‘‘(B) reduce or eliminate the food insecu-
rity 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 Nu-
trition and Education Act of 2016, is operating, 
or has operated, a summer electronic benefit 
transfer for children demonstration may elect to 
continue operating such demonstration in ac-
cordance with the requirements of this sub-
section as an alternative to other delivery mod-
els of providing 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) be in full compliance with the 
electronic benefit transfer systems require-
ments of section 17(g)(12) of the Child 
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Nutrition 
Act 
of 
1966 
(42 
U.S.C. 
1786(g)(12)); 
‘‘(ii) comply with the requirements 
under this subsection; and 
‘‘(iii) agree to provide such informa-
tion the Comptroller General of the United 
States may require for the evaluation of 
the demonstration as required under this 
subsection. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
HOUSEHOLD.—The term 
‘eligible household’ means a household that in-
cludes 1 or more school-aged child determined 
as eligible to receive free or reduced price school 
meals during the prior school year, but such 
child is not participating in a program that pro-
vides food during the summer through the sum-
mer food service program under section 13. 
‘‘(B) STATE.—The term ‘State’ includes a 
tribal entity. 
‘‘(C) 
SUMMER
ELECTRONIC
BENEFIT 
TRANSFER FOR CHILDREN DEMONSTRATION.— 
The term ‘summer electronic benefit transfer 
for children demonstration’ means an electronic 
benefit transfer demonstration project under 
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section 748(g)(1) of the Agriculture, Rural De-
velopment, Food and Drug Administration, and 
Related Appropriations Act, 2010 (Public Law 
111–80; 123 Stat. 2132) that uses the elec-
tronic benefit systems implemented in a State 
under section 17(g)(12) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(g)(12)). 
‘‘(4) BENEFIT LEVELS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
approve 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 children to the greatest extent prac-
ticable. The values of such benefits shall be de-
termined 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 de-
termined through factors such as— 
‘‘(i) the proportion of applicants that 
are eligible for free price meals; 
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‘‘(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 ben-
efits; 
‘‘(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 
‘‘(vii) any other information a State 
sees useful at determining such rates. 
‘‘(C) LIMITATIONS.— 
‘‘(i) TIME.—No child may receive 
more than 3 months of benefits under this 
paragraph 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- 
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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 elec-
tronic benefit transfer for children demonstra-
tion carried out before the date of enactment of 
the Improving Child Nutrition and Education 
Act of 2016, including information evaluating 
findings of the demonstration (including the 
2013 final report published by the Department 
of Agriculture). 
‘‘(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 
families 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. 
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‘‘(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 pov-
erty or long-term poverty that are rural 
and have no congregate feeding sites or ac-
cess to meals otherwise provided through 
the summer food service program author-
ized 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 
transfer benefits under this subsection; 
‘‘(C) document how the election will be ad-
ministered in the management and administra-
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tion plan described in subsection (n), including 
the process for identifying areas in which bene-
fits will be issued; and 
‘‘(D) ensure full compliance with section 
17(h)(12)(13) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(h)(12)(13)). 
‘‘(8) EVALUATION.—The Secretary shall pro-
vide for an ongoing, independent evaluation of the 
demonstration carried out under this subsection, in-
cluding quasi-experimental or other methods that 
are capable of producing scientifically valid informa-
tion to determine effectiveness in achieving the pur-
poses described in paragraph (1), including exam-
ining or assessing— 
‘‘(A) feasibility of, or barriers to, success-
ful 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 
benefits; 
‘‘(D) impact on children’s food security 
and nutritional impacts, including by the dif-
ferent impacts on children in a variety of geo-
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graphical areas such as rural, urban, and sub-
urban 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 evalua-
tion in comparison to evaluations of the sum-
mer electronic benefits transfer for children 
demonstration 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-
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 Comptroller Gen-
eral of the United States shall submit to Congress 
a report that— 
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‘‘(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 
children demonstration published by the Sec-
retary 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 
expended. 
‘‘(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 ef-
ficiently 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 
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‘‘(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 rec-
ommendations for States to successfully continue to 
implement the summer electronic benefit transfer for 
children demonstration while complying with the new 
or additional requirements of this subsection.’’. 
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.—The Secretary shall 
issue guidance that clarifies to States that funds 
under this program may be used on all forms of 
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100 
fruits and vegetables and is no longer limited to only 
fresh fruits and vegetables.’’. 
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)— 
(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 insert-
ing 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 er-
rors according to the verification process under 
section 9(a)(D) to develop an error reduction 
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101 
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 
certification errors, including at a min-
imum— 
‘‘(I) 
increasing 
the 
standard 
verification sample size, except such 
increase 
shall 
not 
result 
in 
a 
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 
oversight of staff involved in the cer-
tification 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; 
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102 
‘‘(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 
administration of the program. 
‘‘(C) STATE AGENCY RESPONSIBILITIES.— 
Each State agency shall— 
‘‘(i) assist the local educational agen-
cies identified under subparagraph (D) 
with developing an error reduction plan 
that complies with subparagraph (B); 
‘‘(ii) provide technical assistance as 
described 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 
errors. 
‘‘(D) SELECTION OF LOCAL EDUCATIONAL 
AGENCIES.— 
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103 
‘‘(i) IN GENERAL.—Each State agency 
shall select up to 10 percent of the local 
educational agencies in the State to de-
velop 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 
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 
conducted under paragraph (1); and 
‘‘(II) the percentage of household 
applications verified under section 
9(b)(3)(D)(i) that had the level of 
benefits changed as a result of infor-
mation 
obtained 
during 
the 
verification process, excluding benefit 
terminations resulting from not ob-
taining information during household 
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verification conducted 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 per-
cent of local educational agencies in the State, 
as determined 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 
determine whether a local educational agency is 
in the top 20 percent of local educational agen-
cies in the State by considering error rates, 
confirmation rates, nonresponse 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’’. 
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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 sub-
section (h); and 
(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(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-
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 connec-
tion 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— 
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‘‘(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 em-
bezzlement; 
‘‘(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: 
‘‘SEC. 27. 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— 
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‘‘(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 
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 
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 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 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.— 
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‘‘(1) AUTHORITY.—The Secretary shall issue a 
loan guarantee to an eligible lender for purposes of 
financing the construction, remodeling, or expansion 
of infrastructure or the purchase of durable equip-
ment that will assist the eligible entity in providing 
healthy meals through the school lunch program au-
thorized under this Act. 
‘‘(2) PREFERENCE.—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, demonstrates substantial or 
disproportionate— 
‘‘(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 Develop-
ment, shall establish procedures to oversee any 
project or purchase for which a loan guarantee is 
issued under this subsection. 
‘‘(4) GUARANTEE AMOUNT.—A loan guarantee 
issued under this subsection may not guarantee 
more than 80 percent of the principal amount of the 
loan. 
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‘‘(5) FEES AND COSTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish fees for loan guarantees under this 
subsection that are, to the maximum extent 
practicable, equal to all costs of the loan guar-
antees as determined under the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661 et seq.), as 
determined by the Secretary. 
‘‘(B) FEE
SHORTFALL.—To the extent 
that the Secretary determines that fees de-
scribed in subparagraph (A) are not sufficient 
to pay for all of the costs for the loan guaran-
tees 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 
this subsection, there is authorized to be appro-
priated $5,000,000 for fiscal year 2016 and each fis-
cal year thereafter. 
‘‘(c) GRANTS.— 
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‘‘(1) AUTHORITY.—Beginning in fiscal year 
2017 and subject to the availability of appropria-
tions provided in advance in an appropriations Act 
specifically for the purpose of carrying out this sub-
section, the Secretary shall make grants, on a com-
petitive 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 eligi-
ble entities that— 
‘‘(A) are located in States that have en-
acted comparable statutory grant funding 
mechanisms or that have otherwise appro-
priated funds for the purpose described in para-
graph (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 
‘‘(ii) by allowing related community 
organizations to use kitchen or cafeteria 
space. 
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‘‘(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.—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 avail-
able under subparagraph (A) to provide tech-
nical assistance. 
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‘‘(d) SALAD BARS.—Not later than 180 days after 
the date of the enactment of the Improving Child Nutri-
tion and Education Act of 2016, the Secretary shall review 
or revise any guidance in existence on that date of enact-
ment 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 Health, 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 estab-
lish any regulations or requirements not explicitly 
authorized under any such Act; or 
‘‘(2) authorize the Secretary to require, as a 
condition of participation in any program under any 
such Act— 
‘‘(A) any curriculum or education require-
ments for participating schools or child care 
providers; or 
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‘‘(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 an-
nual 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 
increase by 2 cents the annually adjusted pay-
ment 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) 
applicable to such breakfast, as annually ad-
justed for the school year in accordance with 
subparagraph (B). 
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‘‘(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 
payment for each breakfast referred to in clause 
(i) of this subparagraph shall equal the result 
obtained under clause (iii) of this subparagraph 
applicable to such breakfast, as annually ad-
justed for the school year in accordance with 
subparagraph (B).’’; and 
(2) in subsection (e)(1)(B), by striking ‘‘, in-
cluding technical’’ and all that follows through ‘‘es-
tablished 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)— 
(A) in paragraph (3), in the second sen-
tence, by striking ‘‘, except as provided in para-
graph (5)’’; 
(B) by striking paragraph (5); and 
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(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 
following: 
‘‘(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— 
‘‘(I) providing the training re-
quired under this subparagraph to 
local food service personnel during 
paid, regular hours; and 
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‘‘(II) that to the extent that 
training must occur during nonwork 
hours, it is minimally disruptive to 
employees’ 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 fol-
lowing: 
‘‘(C) PRIORITY.—In awarding funds to 
States under this paragraph, the Secretary 
shall give priority to States in which local edu-
cational agencies, school food authorities, or 
schools submit a plan under subparagraph (B) 
that includes the use of technology or informa-
tion management systems to provide assistance 
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to tribal organizations administering the food 
distribution program on Indian reservations es-
tablished under section 4(b) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(b)) for 
purposes of improving the rate of direct certifi-
cation of children in households participating in 
that program.’’; and 
(B) in paragraph (4), by striking ‘‘2015’’ 
and inserting ‘‘2020’’; 
(5) in subsection (j), by striking ‘‘2015’’ and 
inserting ‘‘2020’’; 
(6) by redesignating subsection (j) as sub-
section (k); and 
(7) by inserting after subsection (i) the fol-
lowing: 
‘‘(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 pro-
grams; 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 net-
work.’’. 
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 ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(iii) ensuring that the nutrition 
standards under this paragraph do not 
apply to fundraisers held by student 
groups or organizations; and 
‘‘(iv) ensure that the nutrition stand-
ards under this paragraph allow any foods 
that may be served as part of a reimburs-
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able meal served under the school meal 
programs to be sold in schools as described 
in subparagraph (B).’’. 
SEC. 205. DEFINITION OF AUTHORIZED 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) AUTHORIZED STATE AGENCY.—The term 
‘authorized 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.’’. 
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— 
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(1) in subsection (a), in the second sentence, by 
inserting ‘‘counseling,’’ before ‘‘promotion,’’; 
(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 ‘sup-
plemental 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: 
‘‘(iii) any basic allowance for subsist-
ence provided under section 402 of title 
37, United States Code, to a member of a 
uniformed service.’’; and 
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(ii) by adding at the end the fol-
lowing: 
‘‘(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 
applicant who is legally obligated to pay child 
support for any noncustodial child.’’; and 
(B) in paragraph (3), by adding at the end 
the following: 
‘‘(G) DATA
EXCHANGE
STANDARDS
FOR 
IMPROVED INTEROPERABILITY.— 
‘‘(i) DESIGNATION.—The Secretary, 
in consultation with an interagency work 
group established by the Office of Manage-
ment and Budget, and taking into consid-
eration State government perspectives, 
shall designate data exchange standards to 
govern, under this section— 
‘‘(I) necessary categories of infor-
mation that State agencies operating 
related programs are required under 
applicable law to electronically ex-
change with another State agency; 
and 
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‘‘(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; 
‘‘(V) be implemented in a man-
ner that— 
‘‘(aa) is cost effective; and 
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‘‘(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 infor-
mation. 
‘‘(iii) EFFECT OF SUBPARAGRAPH.— 
Nothing in this subparagraph requires any 
change to an existing data exchange stand-
ard for Federal reporting that is deter-
mined to be effective and efficient. 
‘‘(iv) IMPLEMENTATION.— 
‘‘(I) IN
GENERAL.—Not later 
than 2 years after the date of the en-
actment of the Improving Child Nutri-
tion and Education Act of 2016, the 
Secretary shall issue a proposed rule 
to implement this subparagraph. 
‘‘(II) REQUIREMENTS.—The pro-
posed rule under this clause shall— 
‘‘(aa) identify all federally 
required data exchanges; 
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‘‘(bb) include specification 
and timing for the exchanges to 
be standardized; 
‘‘(cc) address the factors 
used in determining whether and 
when to standardize data ex-
changes; 
‘‘(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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125 
‘‘(i) IN GENERAL.—The State agency 
shall ensure that all pregnant, postpartum, 
and breastfeeding participants in the pro-
gram, and parents or caretakers of infant 
and child participants in the program, are 
provided education regarding proper dis-
posal of unused or excess infant formula 
obtained with food instruments issued 
under the program under this section. 
‘‘(ii) 
INCLUSIONS.—The 
education 
under this subparagraph shall include in-
formation regarding— 
‘‘(I) the safety hazards of pur-
chasing infant formula from an unau-
thorized vendor; and 
‘‘(II) the penalties associated 
with the gifting, trading, sale, or re-
sale of infant formula or other supple-
mental foods obtained with food in-
struments issued under the program 
under this section, in accordance with 
subsection (o).’’; and 
(C) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) NUTRITION EDUCATION MATERIALS.— 
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126 
‘‘(A) IN GENERAL.—The Secretary, after 
submitting proposed nutrition education mate-
rials to the Secretary of Health and Human 
Services for comment, shall issue the materials 
for use in the program under this section. 
‘‘(B) SHARING OF MATERIALS WITH CHILD 
AND
ADULT
CARE
FOOD
PROGRAM.—A State 
agency may allow the local agencies or clinics 
operating under the State agency to share nu-
trition educational materials with institutions 
participating in the Child and Adult Care Food 
Program established under section 17 of the 
Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766) at no cost to that program, 
if a written materials-sharing agreement exists 
between the relevant agencies.’’; 
(5) in subsection (f)— 
(A) by striking ‘‘(f)(1)(A) Each State 
agency’’ and all that follows through the end of 
paragraph (1)(A) and inserting the following: 
‘‘(f) PLAN OF OPERATION AND ADMINISTRATION BY 
STATE AGENCY.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) SUBMISSION.— 
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127 
‘‘(i) IN GENERAL.—Each State agency 
shall submit to the Secretary a plan of op-
eration and administration of the program 
authorized under this section. 
‘‘(ii) DEADLINES.—Each State agency 
shall submit— 
‘‘(I) an initial plan not later than 
such date as is specified by the Sec-
retary; and 
‘‘(II) an update to the plan every 
3 years thereafter or, if the require-
ments of this section continue to be 
met by current plan, an assurance 
that the current plan continues to 
meet such requirements.’’; 
(B) in paragraph (1)(B), by striking ‘‘sub-
mitted for’’ and inserting ‘‘submitted covering’’; 
(C) in paragraph (1)(C)— 
(i) in clause (x), by striking ‘‘and’’ at 
the end; 
(ii) by redesignating clause (xi) as 
clause (xiii); and 
(iii) by inserting after clause (x) the 
following: 
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128 
‘‘(xi) a plan to allow, during an emer-
gency or disaster period, for different foods 
to be obtained with program benefits in 
lieu of, or in addition to, the supplemental 
foods available to be obtained with such 
benefits; 
‘‘(xii) a plan detailing the methods to 
be used by all local agencies to ensure 
compliance with subsection (d)(2); and’’; 
(D) in paragraph (5)— 
(i) by striking ‘‘(5) State and local’’ 
and inserting the following: 
‘‘(5) ACCOUNTS, RECORDS, AND REVIEW.— 
‘‘(A) IN GENERAL.—State and local’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) REVIEW.—The Secretary shall peri-
odically review State and local agency compli-
ance with the approved plan of operation and 
administration of the applicable State.’’; 
(E) in paragraph (10)— 
(i) by striking ‘‘(10) The Secretary’’ 
and inserting the following: 
‘‘(10) STANDARDS FOR ADMINISTRATION.— 
‘‘(A) IN GENERAL.—The Secretary’’; and 
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129 
(ii) by adding at the end the fol-
lowing: 
‘‘(B) NOTIFICATION
TO
STATE
AUTHOR-
ITY.—If, on reviewing the administration by a 
State of the program, the Secretary determines 
there is a need to temporarily halt the State 
from approving new vendors to address defi-
ciencies in proper administration, the Secretary 
may issue a moratorium on the authority of the 
State to approve new vendors, subject to the 
condition that the Secretary shall provide the 
State with reasoning behind such determination 
and shall establish— 
‘‘(i) a timeframe under which the 
moratorium will be issued, including any 
renewal or lifting of the moratorium; 
‘‘(ii) a process to approve vendors for 
the State in a manner that does not im-
pede— 
‘‘(I) the sale of a business; or 
‘‘(II) the establishment of any 
new business; and 
‘‘(iii) a review process to be conducted 
by the Secretary to ensure that partici-
pants, nonparticipants, and vendors are 
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emcdonald on DSK67QTVN1PROD with BILLS
130 
not adversely impacted by the implementa-
tion of the moratorium.’’; 
(F) in paragraph (11)— 
(i) in subparagraph (C)— 
(I) in clause (i), by inserting be-
fore the semicolon at the end the fol-
lowing: ‘‘which, beginning not later 
than 60 days after the date of enact-
ment of the Improving Child Nutri-
tion and Education Act of 2016, shall 
include an examination of criteria re-
lating to fluid milk (in consideration 
of the most recent Dietary Guidelines 
for Americans published under section 
301 of the National Nutrition Moni-
toring and Related Research Act of 
1990 (719 U.S.C. 5341)), and an ex-
amination of the consumption and re-
demption rates of milk beginning on 
May 5, 2014’’; and 
(II) in clause (ii), by striking 
‘‘and cultural eating patterns’’ and in-
serting ‘‘cultural eating patterns, com-
mercial availability, and participant 
demand’’; and 
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138 
‘‘(aa) participation or re-
demption rates; 
‘‘(bb) costs to the State 
agency for infant fruits, vegeta-
bles, cereal, or meat, including 
product, administrative, and pro-
curement costs; and 
‘‘(cc) the ability of the State 
agency— 
‘‘(AA) to achieve the 
purpose described in sub-
section (a); 
‘‘(BB) to provide in-
fants with a variety of devel-
opmentally appropriate in-
fant fruits, vegetables, ce-
real, or meat; and 
‘‘(CC) to serve the nu-
tritional needs of program 
participants; and 
‘‘(dd) consumers who are 
not participants, including the 
availability of alternate brands 
and potential effects on retail 
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139 
pricing of infant fruits, vegeta-
bles, cereal, or meat; and 
‘‘(II) whether the contract is 
compatible with— 
‘‘(aa) the management infor-
mation and food instrument sys-
tem of the State agency; 
‘‘(bb) eligible vendors; and 
‘‘(cc) the capacity of the 
manufacturer to meet technical 
specifications; and 
‘‘(ii) provide to the Secretary— 
‘‘(I) a written explanation of how 
the considerations described in clause 
(i) affected the decision of the State 
agency to solicit bids for a contract; 
and 
‘‘(II) not later than 15 months 
after the start of such contract, a re-
port that shall include— 
‘‘(aa) the net savings to date 
from the contract; 
‘‘(bb) an assessment of the 
impact on eligible stores, non-
participants, and retail prices for 
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