School Food Modernization Act of 2021
Bill: S.876 | Sponsor: Sen. Collins, Susan M. (R-ME)
Policy area: Agriculture and Food

Summary:
School Food Modernization Act of 2021
This bill provides for loan guarantees and grants to support healthy meals under the National School Lunch Program and School Breakfast Program.
The bill directs the Department of Agriculture (USDA) to issue loan guarantees to local educational agencies (LEAs), school food authorities, tribal organizations, and other eligible entities to finance infrastructure improvements or equipment purchases to facilitate their provision of healthy meals through the school meal programs.
USDA must also award competitive matching grants to assist LEAs, school food authorities, tribal organizations, and other eligible entities in purchasing the durable equipment and infrastructure they need to serve healthier meals and improve food safety.
USDA must give preference under both programs to applicants that demonstrate a substantial or disproportionate need for food service infrastructure or durable equipment, and shall establish fees for the loan guarantee program.
In addition, USDA must award competitive matching grants to experienced third-party training institutions to provide school food service personnel with the training and technical assistance they need to (1) meet or exceed nutrition standards under the school meal programs, and (2) improve the efficacy and efficiency of the school meal programs.

To amend the Richard B. Russell National School Lunch Act to require 
  the Secretary of Agriculture to make loan guarantees and grants to 
   finance certain improvements to school lunch facilities, to train 
         school food service personnel, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Food Modernization Act of 
2021''.

SEC. 2. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN 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. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN IMPROVEMENTS 
              TO SCHOOL LUNCH FACILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Durable equipment.--The term `durable equipment' 
        means durable food preparation, handling, cooking, serving, and 
        storage equipment greater than $500 in value.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local educational agency or a school food 
                authority administering or operating a school meal 
                program;
                    ``(B) a tribal organization; or
                    ``(C) a consortium that includes a local 
                educational agency or school food authority described 
                in subparagraph (A), a tribal organization, or both.
            ``(3) Infrastructure.--The term `infrastructure' means a 
        food storage facility, kitchen, food service facility, 
        cafeteria, dining room, or food preparation facility.
            ``(4) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        8101 of the Elementary and Secondary 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 section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
    ``(b) Loan Guarantees for Assistance to Schools for Infrastructure 
Improvements and Durable Equipment Necessary To Provide Healthy Meals 
Through School Meal Programs.--
            ``(1) In general.--Subject to the availability of 
        appropriations provided in advance in an appropriations Act 
        specifically for the purpose of carrying out this subsection, 
        the Secretary shall issue a loan guarantee to an eligible 
        entity for purposes of financing the construction, remodeling, 
        or expansion of infrastructure or the purchase of durable 
        equipment that will assist the eligible entity in providing 
        healthy meals through the school meal program under this Act.
            ``(2) Preferences.--In issuing a loan guarantee under this 
        subsection, the Secretary shall give a preference to an 
        eligible entity that, as compared with other eligible entities 
        seeking a loan guarantee under this subsection, the Secretary 
        determines demonstrates substantial or disproportionate--
                    ``(A) need for infrastructure improvement; or
                    ``(B) durable equipment need or impairment.
            ``(3) Oversight.--The Secretary, acting through the Under 
        Secretary for Rural Development, 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.
            ``(5) Fees and costs.--
                    ``(A) In general.--The Secretary shall establish 
                fees for loan guarantees under this subsection that, to 
                the maximum extent practicable, are equal to the total 
                cost of the loan guarantees (as defined in section 
                502(5) of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a(5))), as determined by the Secretary.
                    ``(B) Fee shortfall.--If the fees established under 
                subparagraph (A) are not equal to the total cost of the 
                loan guarantees described in that subparagraph, the 
                Secretary may use the funds made available under 
                paragraph (6)(A) to pay for the costs of loan 
                guarantees not covered by the fees.
            ``(6) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to be 
                appropriated to carry out this subsection $5,000,000 
                for each of fiscal years 2022 through 2026.
                    ``(B) Technical assistance.--The Secretary may use 
                not more than 5 percent of the amount made available to 
                carry out this subsection for each fiscal year to 
                provide technical assistance to applicants and 
                prospective applicants in preparing applications and 
                creating financing packages that leverage a mix of 
                public and private funding sources.
    ``(c) Equipment Grants.--
            ``(1) In general.--Subject to the availability of 
        appropriations provided in advance in an appropriations Act 
        specifically for the purpose of carrying out this subsection, 
        the Secretary shall award competitive grants to State agencies 
        to award subgrants to eligible entities to purchase the durable 
        equipment needed to serve healthy meals, improve food safety, 
        and help support the establishment, maintenance, or expansion 
        of school meal programs.
            ``(2) Preferences.--In awarding a subgrant under this 
        subsection, the State agency shall give preference to an 
        eligible entity that, as compared with other eligible entities 
        seeking a subgrant under this subsection, the State agency 
        determines demonstrates substantial or disproportionate--
                    ``(A) need for infrastructure improvement; or
                    ``(B) durable equipment need or impairment.
            ``(3) Authorization of appropriations.--
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as may be necessary to carry out 
                this subsection for each of fiscal years 2022 through 
                2026.
                    ``(B) Technical assistance.--The Secretary may use 
                not more than 5 percent of the amount made available to 
                carry out this subsection for each fiscal year to 
                provide technical assistance to applicants and 
                prospective applicants in preparing applications and 
                creating financing packages that leverage a mix of 
                public and private funding sources.''.

SEC. 3. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE 
              PERSONNEL.

    The Richard B. Russell National School Lunch Act is amended by 
inserting after section 21 (42 U.S.C. 1769b-1) the following:

``SEC. 21A. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE 
              PERSONNEL.

    ``(a) In General.--The Secretary shall carry out a grant program 
under which the Secretary shall award grants, on a competitive basis, 
to provide support to eligible third-party training institutions 
described in subsection (b) to develop and administer training and 
technical assistance for school food service personnel to meet or 
exceed nutrition standards under section 4(b)(3) and improve efficacy 
and efficiency of the school meal program under this Act and the school 
breakfast program established by section 4 of the Child Nutrition Act 
of 1966 (42 U.S.C. 1773).
    ``(b) Criteria for Eligible Third-Party Institutions.--The 
Secretary shall establish specific criteria that eligible third-party 
training institutions shall meet to qualify to receive grants under 
this section, which shall include--
            ``(1) a demonstrated capacity to administer effective 
        training and technical assistance programming to school food 
        service personnel;
            ``(2) prior, successful experience in providing or engaging 
        in training and technical assistance programming or applied 
        research activities involving eligible entities, school food 
        service administrators, or directors;
            ``(3) prior, successful experience in developing relevant 
        educational training tools or course materials or curricula on 
        topics addressing child and school nutrition or the updated 
        nutrition standards under section 4(b)(3); and
            ``(4) the ability to deliver effective and cost-efficient 
        training and technical assistance programming to school food 
        service personnel--
                    ``(A) at training sites that are located within a 
                proximate geographic distance to schools, central 
                kitchens, or other worksites; or
                    ``(B) through an online training and assistance 
                program on topics that do not require in-person 
                attendance.
    ``(c) Program Assistance.--The Secretary shall assist the 
institutions receiving grants under this section in publicizing and 
disseminating training and other project materials and online tools to 
the maximum extent practicable.
    ``(d) Federal Share.--
            ``(1) In general.--The Federal share of costs for training 
        and technical assistance funded through a grant awarded under 
        this section shall not exceed 80 percent of the total cost of 
        the training and technical assistance.
            ``(2) Matching.--As a condition of receiving a grant under 
        this section, the eligible third-party training institution 
        shall provide matching support in the form of cash or in-kind 
        contributions.
    ``(e) Oversight.--The Secretary shall establish procedures to 
enable the Secretary--
            ``(1) to oversee the administration and operation of 
        training and technical assistance funded through grants awarded 
        under this section; and
            ``(2) to ensure that the training and assistance is 
        operated consistent with the goals and requirements of this 
        Act.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as may be necessary to carry out this section for 
        each of fiscal years 2022 through 2026.
            ``(2) Technical assistance.--The Secretary may use not more 
        than 5 percent of the amount made available to carry out this 
        section for each fiscal year to provide technical assistance to 
        applicants and prospective applicants in preparing applications 
        and creating financing packages that leverage a mix of public 
        and private funding sources.''.

SEC. 4. REPORT TO CONGRESS.

    Not later than 1 year after funds are made available to carry out 
the amendments made by this Act, and annually thereafter, the Secretary 
of Agriculture shall submit to Congress a report on the progress of the 
Secretary in implementing the amendments made by this Act.
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