Child Nutrition Amendments
PL 95-627 (S.3085), enacted 11/10/1978

PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3603 
Public Law 95-627 
95th Congress 
An Act 
To extend and amend the special supplemental food program and the child care 
food program, and for other purposes. 
Nov. 10, 1978 
[S. 3085] 
note. 
42 u s e 1766. 
'Institution.' 
Guidelines. 
Eligibility. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, That this Act may be Child Nutrition 
cited as the "Child Nutrition Amendments of 1978". 
Amendments of 
1978. 
CHILD CARE FOOD PROGRAM 
SEC. 2. Section 17 of the National School Lunch Act is amended to 
read as follows: 
"CHILD CARE FOOD PROGRAM 
"SEC. 17. (a) The Secretary may carry out a program to assist 
States through grants-in-aid and other means to initiate, maintain, 
and expand nonprofit food service programs for children in institutions 
providing child care. For purposes of this section, the term 'institution' 
means any public or private nonprofit organization providing non-
residential child care, including, but not limited to, child care centers, 
settlement houses, recreational centers, Head Start centers, and 
institutions providing child care facilities for handicapped children. 
In addition, the term 'institution' shall include programs developed 
to provide day care outside school hours for schoolchildren, and public 
or nonprofit private organizations that sponsor family or group day 
care homes. The Secretary may establish separate guidelines for insti-
tutions that provide care to school children outside of school hours. 
For purposes of determining eligibility— 
" (1) no institution, other than a family or group day care home 
sponsoring organization, or family or group day care home shall 
be eligible to participate in the program unless it has Federal, 
State, or local licensing or approval, or is complying with appro-
priate renewal procedures as prescribed by the Secretary and the 
State has no information indicating that the institution's license 
will not be renewed; or where Federal, State, or local licensing or 
approval is not available, it receives funds under title XX of the 
Social Security Act or otherwise demonstrates that it meets either 
any applicable State or local government licensing or approval 
standards or approval standards established by the Secretary 
after consultation with the Secretary of Health, Education, and 
Welfare; and 
" (2) no institution shall be eligible to participate in the program 
unless it satisfies the following criteria: 
"(A) accepts final administrative and financial responsi-
bility for management of an effective food service; 
"(B) has not been seriously deficient in its operation of the 
child care food program, or any other program under this 
Act or the Child Nutrition Act of 1966, for a period of time 
specified by the Secretary; and 
"(C) will provide adequate supervisory and operational 
personnel for overall monitoring and management of the child 
care food program. 
42 use 1397. 
42 use 1771 
note. 
92 STAT. 3604 
PUBLIC LAW 95-627—NOV. 10, 1978 
"(b) For the fiscal year ending September 30, 1979, and for each 
subsequent fiscal year, the Secretary shall provide cash assistance to 
States for meals served in the manner specified in subsection (c) of 
this section, except that, in any fiscal year, the aggregate amount of 
assistance provided to a State by the Secretary under this section shall 
not exceed the sum of (1) the Federal funds provided by the State to 
participating institutions within the State for that fiscal year and (2) 
any funds used by the State under section 10 of the Child Nutrition 
42 use 1779. 
Act of 1966. 
"(c) The Secretary shall provide assistance to each State in the 
following manner: 
"(1) For meals served to children in institutions, other than 
family or group day care home sponsoring organizations, where 
no less than two-thirds of the children enrolled are members of 
families that satisfy the income standards for free and reduced-
42 use 1758. 
price school meals under section 9 of this Act, each State shall 
receive an amount equal to the sum of the products obtained by 
multiplying— 
" ( A ) (i) the total number of breakfasts served in the State 
in these institutions by (ii) the sum of the national average 
payment rate for breakfasts and the national average pay-
ment rate for free breakfasts under section 4 of the Child 
Nutrition Act of 1966; 
" ( B) (i) the total number of lunches and suppers served 
in the State in these institutions by (ii) the sum of the 
national average payment rate for lunches under section 4 of 
this Act, and the national average payment rate for free 
lunches under section 11 of this Act; and 
"(C) (i) the total number of supplements served in the 
State in these institutions by (ii) the national average pay-
ment rate for supplements served in such institutions. 
For the six-month period ending June 30, 1978, the national 
average payment rate for supplements served in these institutions 
shall be 23.75 cents. For supplements served in these institutions 
thereafter, the Secretary shall prescribe adjustments to this 
national average payment rate on July 1 and January 1 of each 
year. Such adjustments shall be computed to the nearest one-
fourth cent based on changes, measured over the most recent six-
month period for which data are available, in the series for food 
away from home of the Consumer Price Index for All Urban 
Consumers. 
"(2) For meals served to children in institutions, other than 
family or group day care home sponsoring organizations, where 
less than two-thirds but not less than one-third of the children 
enrolled are members of families that satisfy the income standards 
for free and reduced-price school meals under section 9 of this 
Act, each State shall receive an amount equal to the sum of the 
products obtained by multiplying— 
" ( A ) (i) the total number of breakfasts served in the State 
in these institutions by (ii) the sum of the national average 
payment rate for reduced-price breakfasts under section 4 of 
the Child Nutrition Act of 1966; 
" ( B ) (i) the total number of lunches and suppers served in 
the State in these institutions by (ii) the sum of the national 
42 use 1754. 
average payment rate for lunches under section 4 of this Act 
42 use 1773. 
42 use 1759a. 
National average 
payment rate. 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3605 
and the national average payment rate for reduced-price 
lunches under section 11 of this Act; and 
"(C) (i) the total number of supplements served in the 
State m these institutions by (ii) the national average pay-
ment rate for supplements served in such institutions. 
For the six-month period ending June 30, 1978, the national 
average payment rate for supplements served in these institutions 
shall be 18 cents. The Secretary shall prescribe adjustments to this 
national average payment rate on July 1 and January 1 of each 
year. Such adjustments shall be computed to the nearest one-
fourth cent based on changes, measured over the most recent six-
month period for which data are available, in the series for food 
away from home of the Consumer Price Index for All Urban 
Consumers. 
"(3) For meals served to children in institutions, other than 
family or group day care home sponsoring organizations and 
institutions electing to use the optional reimbursement procedures 
under subsection (?) (3) of this section, where less than one-third 
of the enrolled children are members of families that satisfy the 
income standards for free and reduced-price school meals under 
section 9 of this Act, each State shall receive an amount equal to 
the sum of the products obtained by multiplying— 
"(A) (i) the total number of breakfasts served in the State 
in these institutions by (ii) the national average payment 
rate for breakfasts under section 4 of the Child Nutrition Act 
of 1966; 
" ( B ) (i) the total number of lunches and suppers served in 
the State in these institutions by (ii) the national average 
payment rate for lunches under section 4 of this Act; and 
"(C) (i) the total number of supplements served in the 
State in these institutions by (ii) the national average pay-
ment rate for supplements in such institutions. 
For the six-month period ending June 30, 1978, the national 
average payment rate for supplements served in these institutions 
shall be 6 cents. The Secretary shall prescribe adjustments to this 
national average payment rate on July 1 and January 1 of each 
year. Such adjustments shall be computed to the nearest one-
fourth cent based on changes, measured over the most recent six-
month period for which data are available, in the series for food 
away from home of the Consumer Price Index for All Urban 
Consumers. 
" (4) For meals served to children in institutions electing to use 
the reimbursement procedures under subsection (f) (3) of this 
section, each State shall receive assistance in the following 
manner: 
"(A.) for meals served to children who are members of 
families that satisfy the income standards for free school 
meals under section 9 of this Act, each State shall receive an 
amount equal to the sum of the products obtained by 
multiplying— 
"(i) (I) the number of breakfasts served by (II) the 
sum of the national average payment rate for breakfasts 
and the national average payment rate for free break-
fasts under section 4 of the Child Nutrition Act of 1966 ; 
"(ii) (I) the number of lunches and suppers served by 
42 u s e 1759a. 
National average 
payment rate. 
42 
use 
1758. 
42 
use 
1773. 
National average 
payment rate. 
92 STAT. 3606 
PUBLIC LAW 95-627—NOV. 10, 1978 
42 use 1773. 
42 use 1759a. 
(II) the sum of the national average payment rate for 
42 use 1754. 
lunches under section 4 of this Act and the national 
average payment rate for free lunches under section 11 
of this Act; and 
"(iii) (I) the number of supplements served by (II) 
the national average payment rate for supplements deter-
mined under clause (C) of paragraph (1) of this 
subsection; 
"(B) for meals served to children who are members of 
families that satisfy the income standards for reduced-price 
42 use 1758. 
nleals under section 9 of this Act, each State shall receive an 
amount equal to the sum of the products obtained by 
multiplying— 
"(i) (I) the number of breakfasts served by (II) the 
sum of the national average payment rate for break-
fasts and the national average payment rate for reduced-
price breakfasts under section 4 of the Child Nutrition 
Act of 1966; 
"(ii) (I) the number of lunches and suppers served by 
(II) the sum of the national average payment rate for 
lunches under section 4 of this Act and the national 
average payment rate for reduced-price lunches under 
section 11 of this Act; 
"(iii] (I) the number of supplements served by (II) 
the national average payment rate for supplements deter-
mined under clause (C) of paragraph (2) of this subsec-
tion; and 
"(C) for meals served to all other children in these institu-
tions, each State shall receive an amount equal to the sum 
of the products obtained by multiplying— 
(i) (I) the number of breakfasts served to such chil-
dren by (II) the national average payment rate for 
breakfasts under section 4 of the Child Nutrition Act of 
1966; 
"(ii) (I) the number of lunches and suppers served to 
such children by (II) the national average payment rate 
for lunches under section 4 of this Act; and 
"(iii) (I) the number of supplements served to such 
children by (II) the national average payment rate for 
supplements determined under clause (C) of paragraph 
(3) of this subsection. 
" (5) For meals served in family or group day care homes, each 
State shall receive amounts sufficient to make payments for such 
meals under subsection (f) (4) of this section. 
"(d) Any eligible public institution shall be approved for participa-
tion in the child care food program upon its request. Any eligible 
private institution shall be approved for participation if it (1) has 
26 use 1 et seq. tax exempt status under the Internal Revenue Code of 1954 or, under 
conditions established by the Secretary, is moving toward compliance 
Avith the requirements for tax exempt status, or (2) is currently operat-
ing a Federal program requiring nonprofit status. Family or group 
day care homes need not have individual tax exempt certification if 
they are sponsored by an institution that has tax exempt status, or, 
under conditions established by the Secretary, such institution is mov-
ing toward compliance with the reqiiirements for tax exempt status or 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3607 
is currently operating a Federal program requiring nonprofit status. 
An institution applying for participation under this section shall be Notification, 
notified of approval or disapproval in writing within thirty days after 
the date its completed application is filed. If an institution submits an 
incomplete application to the State, the State shall so notify the insti-
tution within fifteen days of receipt of the application, and shall pro-
vide teclmical assistance, if necessary, to the institution for the purpose 
of completing its application. 
"(e) The State shall provide, in accordance with regulations issued Hearing. 
by the Secretary, a fair hearing and a prompt determination to any 
institution aggrieved by the action of the State as it affects the par-
ticipation of such institution in the program authorized by this section, 
O
T
- its claim for reimbursement under this section. 
"(f)(1) Funds paid to any State under this section shall be dis-
bursed to eligible institutions by the State under agreements approved 
by the Secretary. Disbursements to any institution shall be made only 
for the purpose of assisting in financing the cost of providing meals 
to children attending institutions, or in family or group day-care 
homes. Disbursement to any institution shall not be dependent upon 
the collection of moneys from participating children. All valid claims 
from such institutions shall be paid within forty-five days of receipt by 
the State. The State shall notify the institution within fifteen days of 
receipt of a claim if the claim as submitted is not valid because it is 
incomplete or incorrect. 
"(2) The Secretary shall establish maximum per meal reimburse-
ment rates for each of the three categories of institutions specified in 
subsections (c) (1), (2), and (3) of this section. Such maximum reim-
bursement rates for lunches and suppers shall be equal to the maximum 
reimbursement rates established by the Secretary for lunches served 
under the national school lunch program. The disbursement to any 
institution for meals provided under this section shall not be less, 
for any fiscal year, than the sum of the products obtained by multi-
plying the total number of each type of meal (breakfast, lunch or 
supper, 01- supplement) served in such institution in that fiscal year 
by the applicable national average payment rates for States for each 
such type of meal at that category of institution, unless the resulting 
sum exceeds the cost to the institution of providing such meals. 
"(3) Institutions, other than family or group day care home spon-
soring organizations, may elect to receive reimbursement in accordance 
with the eligibility of each enrolled child for free, reduced-price, or 
paid meals under section 9 of this Act. Such reimbursement shall be 42 USC 1758. 
based on (A) the national average payment rates for lunches under 
section 4 of this Act; (B) the national average payment rates for free 
lunches and reduced-price lunches under section 11 of this Act; (C) 
the national average payment rates for breakfasts, free breakfasts, and 
reduced-price breakfasts under section 4 of the Child Nutrition Act of 
1966; and (D) the national average payment rates for supplements 42 USC 1773. 
under subsection (c) of this section. Reimbursements to such institu-
tions shall be made under the same procedures for determining such 
reimbursement levels as were prescribed by regulations in effect on 
September 30,1978. 
"(4) Institutions that participate in the program under this section 
as family or group day care home sponsoring organizations shall be 
provided, for payment to such homes, a reimbursement factor in an 
amount determined by the Secretary to be adequate to cover the cost 
Notification. 
Maximum per 
meal 
reimbursement 
rates. 
92 STAT. 3608 
PUBLIC LAW 95-627—NOV. 10, 1978 
Administrative 
expenses, 
reimbursement. 
Advance 
payments. 
Agricultural 
commodities. 
of obtaining and preparing food and prescribed labor costs, involved 
in providing meals under this section, without a requirement for 
documentation of such costs. Such institutions shall also receive 
reimbursement for their administrative expenses. Keimbursement for 
administrative expenses shall not exceed maximum allowable levels 
prescribed by the Secretary. Reimbursement for administrative 
expenses shall also include start-up funds to finance the administrative 
expenses for such institutions to initiate successful opei-ation under the 
program. Such start-up funds shall be in addition to other reimburse-
ment to such institutions for administrative expenses. Start-up funds 
shall be payable to enable institutions satisfying the criteria of sub-
section (d) of this section, and any other standards prescribed by the 
Secretary, to develop an application for participation in the program 
as a family or group day care home sponsoring organization or 
to implement the program upon approval of the application. Such 
start-up funds shall be payable in accordance with the procedures 
prescribed by the Secretary. The amount of start-up funds payable to 
an institution shall be not less than the institution's anticipated 
reimbursement for administrative expenses under the program for 
one month and not more than the institution's anticipated reimburse-
ment for administrative expenses under the program for two months. 
"(5) By the first day of each month of operation, the State shall 
provide advance payments for the month to each approved institution 
in an amount that reflects the full level of valid claims customarily 
received from such institution for one month's operation. In the case 
of a newly participating institution, the amount of the advance shall 
reflect the State's best estimate of the level of valid claims such institu-
tions will submit. If the State has reason to believe that an institution 
will not be able to submit a valid claim covering the period for which 
such an advance has been made, the subsequent month's advance pay-
ment shall be withheld until the State receives a valid claim. Payments 
advanced to institutions that are not subsequently deducted from a 
valid claim for reimbursement shall be repaid upon demand by the 
State. Any prior payment that is under dispute may be subtracted 
from an advance payment. 
"(?) (1) Meals served by institutions participating in the program 
under this section shall consist of a combination of foods that meet 
minimum nutritional requirements prescribed by the Secretary on the 
basis of tested nutritional research. Such meals shall be served free to 
needy children. 
" (2) No institution may be prohibited from serving breakfast, lunch, 
supper, and supplements to any eligible child each day, except in the 
case of institutions that provide care to schoolchildren outside of 
school hours. 
"(3) No physical segregation or other discrimination against any 
child shall be made because of his or her inability to pay, nor shall 
there be any overt identification of any such child by special tokens 
or tickets, different meals or meal service, announced or published lists 
of names, or other means. 
"(4) Each institution shall, insofar as practicable, use in its food 
service foods designated from time to time by the Secretary as being 
in abundance, either nationally or in the food service area, or foods 
donated by the Secretary. 
"(h) The Secretary shall donate agricultural commodities produced 
in the United States for use in institutions participating in the child 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3609 
42 use 1759a. 
care food program under this section. The value of such commodities 
(or cash in lieu of commodities) donated to each State for each school 
year shall be, at a minimum, the amount obtained by multiplying the 
number of lunches and suppers served in participatmg institutions in 
that State during that school year by the rate for commodities or cash 
in lieu thereof established for that school year under section 6(e) of 
this Act. Any State receiving assistance under this section for insti-
tutions participating in the child care food program may, upon appli-
cation to the Secretary, receive cash in lieu of some or all of the 
commodities to which it would otherwise be entitled under this sub-
section. In determining whether to request cash in lieu of commodi-
ties, the State shall base its decision on the preferences of individual 
participating institutions within the State, unless this proves imprac-
ticable due to the small number of institutions preferring donated 
commodities. 
"(i) For the child care food program, the State plan required under 
section 11(e) of this Act shall provide, in addition to other informa-
tion required by regulation or available from regular reporting: 
"(1) the number of institutions and the number of family or 
group day care homes participating in the program, together 
with the average daily attendance in such institutions; 
"(2) the number of institutions and the number of family or 
group day care homes in the State that are licensed, approved, 
or registered or that receive funds under title XX of the Social 
Security Act, and the number of such institutions and homes that 
participate in the program authorized under this section; 
"(3) the action program, the State proposes to undertake to use 
the Federal funds provided under this section, including the 
State's plans to (A) extend the program to all eligible institutions 
(placing priority on reaching institutions in needy areas first), 
(B) assist family or group day care homes in obtaining sponsor-
ing organizations, and (C) encourage eligible institutions to 
participate in the program; 
"(4) a plan for the conduct of audits; and 
"(5) a plan to monitor program performance and measure 
progress in achieving program goals. 
" (j) The Secretary shall make available for each fiscal year to States 
administering the child care food program, for the purpose of con-
ducting audits of participating institutions, an amount up to 2 per-
cent of the funds used by each State in the program under this section, 
during the second preceding fiscal year. 
"(k) The Secretary may issue regulations directing States to Regulations, 
develop and provide for the use of a standard form of agreement 
between each family or group day care sponsoring organization and 
the family or group day care homes participating in the program 
under such organization, for the purpose of specifying the rights and 
responsibilities of each party. 
"(1) (1) The Secretary shall study the administrative coste of insti- Studies, 
tutions participating in the program under this section, including the 
cost effect of such factors as the types of institutions, the number of 
children served, and the location of institutions in urban or rural areas. 
The Secretary may prescribe maximum allowable levels of administra-
tive payments that reflect the costs of institutions participating in the 
program. 
39-194 O—80—pt. 3 
fi2 
: QL3 
92 STAT. 3610 
PUBLIC LAW 95-627—NOV. 10, 1978 
"(2) The Secretary shall conduct a study of the food service opera-
tions carried out in the program under this section. Such study shall 
include, but not be limited to (1) an evaluation of meal quality^ as 
related to costs; and (2) a determination of whether maximum reim-
bursement levels should be set for food service costs, including whether 
different reimbursement levels should be established for self-prepared 
meals and vendored meals, economies of scale, and differences between 
food service operations in institutions and family and group day care 
homes. 
"(3) The Secretary shall conduct a study on licensing problems 
faced by institutions and family or group day care homes. Such study 
shall include, but not be limited to, an evaluation of the licensing 
requirements under this section. 
" (4) Of the funds appropriated for the fiscal year ending September 
30, 1979, to carry out the purposes of this section, not to exceed 
$2,000,000 shall be available to the Secretary for the purpose of con-
ducting the studies required under paragraphs (1), (2), and (3) of 
Report and 
this subsection. The Secretary shall report the results of such studies 
recommendations to Congress, along with any recommendations the Secretary wishes to 
to Congress. 
make, not later than eighteen months after enactment of the Child 
Nutrition Amendments of 1978. 
"(m) In any State where the State is not permitted by law or is 
otherwise unable to disburse the funds payable to it under this section 
to any institution in the State, the Secretary shall withhold all funds 
to which such State would be entitled and shall use such funds for the 
same purposes and subject to the same conditions as are required of a 
State. 
"(n) (1) Of the sums appropriated for each fiscal year to carry out 
the purposes of this section, $6,000,000 shall be available to the Secre-
tary for the purposes of providing equipment assistance to enable 
institutions to establish, maintain, and expand the child care food 
program. The Secretary shall allocate among the States during each 
fiscal year the funds available under this subsection. Such allocation 
shall be based on the ratio of the number of children below the age of 
six in each State who are members of families that satisfy the income 
standards for free and reduced-price school meals under section 9 of 
this Act to the number of such children in all States. In making such 
allocation, the Secretary shall use the most recent data available. 
"(2) If an}^ State cannot use all of the funds allocated to it under 
this subsection, the Secretary shall make reallocations to the remain-
ing States in the manner set forth in paragraph (1) of this subsection 
for allocating funds. Payments to any State of funds allocated under 
this subsection for any fiscal year shall be made upon condition that 
at least one-fourth of the cost of equipment financed under this sub-
section shall be financed from sources within the State, except that this 
condition shall not apply to equipment obtained for institutions that 
are especially needy, as determined by the State. 
Criteria. 
"(3) Each State shall establish criteria for determining institutions 
that are especially needy for purposes of this subsection and shall 
inform all institutions within the State of those criteria. Such criteria 
shall be submitted to the Secretary for approval and be included in the 
State plan of operation for the child care food program required by 
subsection (i) of this section. 
" (4) Within thirty days of notification by the Secretary to the State 
of the amount of funds available under this subsection, the State shall 
Equipment 
assistance. 
Allocation. 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3611 
Standards. 
42 use 1397. 
notify institutions of the availability of funds for food service equip-
ment. The Secretary shall establish standards to assure prompt action 
by States on requests by institutions for such funds and shall also 
prescribe a priority system to be followed by States in allocating funds 
under this subsection. 
"(5) The Secretary shall issue regulations authorizing the State to Regulations, 
disburse funds under this subsection directly to a supplier of food 
service equipment if the funds are used to purchase equipment for an 
institution that (A) meets all the requirements for participation under 
this section, except for the licensing requirements, and (B) satisfies 
all the requirements for licensing, except for a requirement for food 
service equipment. The State shall retain legal title to such equipment 
until the State and the institution sign an agreement authorizing the 
institution to participate in the program under this section. 
"(o) States participating in the program under this section shall 
provide sufficient training, technical assistance, and monitoring to 
facilitate expansion and effective operation of the program, and shall 
take affirmative action to expand the availability of benefits under this 
section. Such action, at a minimum, shall include annual notification 
to each nonparticipating institution or family or group day care home 
within the State that is licensed, approved, or registered, or that 
receives funds under title XX of the Social Security Act, of the avail-
ability of the program, the requirements for program participation, 
the availability of food service equipment funds under the program, 
and the application procedures to be followed in the program. The list 
of institutions so notified each year shall be available to the public 
upon request. The Secretary shall assist the States in developing plans 
to fulfill the requirements of this subsection. 
"(p) Expenditures of funds from State and local sources for the 
maintenance of food programs for children shall not be diminished as 
a result of funds received under this section. 
"(q) States and institutions participating in the program under this 
section shall keep such accounts and records as may be necessary to 
enable the Secretary to determine whether there has been compliance 
with the requirements of this section. Such accounts and records shall 
be available at all times for inspection and audit by representatives of 
the Secretary, the Comptroller General of the United States, and 
appropriate State representatives and shall be preserved for such 
period of time, not in excess of five years, as the Secretary determines 
necessary. 
"(r) There are hereby authorized to be appropriated for each fiscal 
year such funds as are necessary to carry out the purposes of this 
section.". 
SPECIAL SUPPLEMENTAL FOOD PROGRAM 
SEC. 3. Section 17 of the Child Nutrition Act of 1966 is amended to 
read as follows: 
Recordkeeping. 
Inspection and 
audit. 
Appropriation 
authorization. 
'SPECIAL SUPPLEMENTAL FOOD PROGRAM 
"SEC. 17. (a) Congress finds that substantial numbers of pregnant, 42 USC 1786. 
postpartum, and breastfeeding women, infants, and young children 
from families with inadequate income are at special risk with respect 
to their physical and mental health by reason of inadequate nutrition 
or health care, or both. It is, therefore, the purpose of the program 
92 STAT. 3612 
PUBLIC LAW 95-627—NOV. 10, 1978 
authorized by this section to provide, up to the authorization levels set 
forth in subsection (g) of this section, supplemental foods and nutri-
tion education through any eligible local agency that applies for par-
ticipation in the program. The program shall serve as an adjunct to 
good health care, during critical times of growth and development, 
to prevent the occurrence of health problems and improve the health 
status of these persons. 
Definitions. 
" (b) As used in this section— 
"(1) 'Administrative costs' means costs that shall include, but 
not be limited to, costs for certification of eligibility of persons 
for participation in the program; centrifuges, measuring boards, 
spectrophotometers, and scales used for such certification; food 
delivery; monitoring; nutrition education; outreach; start-up 
costs; and general administration applicable to implementation of 
the program under this section, such as the cost of staff, warehouse 
facilities, transportation, insurance, developing and printing food 
instruments, and administration of State and local agency offices. 
"(2) 'Breastfeeding women' means women up to one year post-
partum who are breastfeeding their infants. 
"(3) 'Children' means persons who have had their first birthday 
but have not yet attained their fifth birthday. 
"(4) 'Competent professional authority' means physicians, 
nutritionists, registered nurses, dietitians, or State or local medi-
cally trained health officials, or persons designated by physicians 
or State or local medically trained health officials, in accordance 
with standards prescribed by the Secretary, as being competent 
professionally to evaluate nutritional risk. 
"(5) 'Infants' means persons under one year of age. 
"(6) 'Local agency' means a public health or welfare agency 
or a private nonprofit health or welfare agency, which, directly 
or through an agency or physician with which it has contracted, 
provides health services. The term shall include an Indian tribe, 
band, or group recognized by the Department of the Interior, the 
Indian Health Service of the Department of Health, Education, 
and Welfare, or an intertribal council or group that is an author-
ized representative of Indian tribes, bands, or groups recognized 
by the Department of the Interior. 
"(7) 'Nutrition education' means individual or group sessions 
and the provision of materials designed to improve health status 
that achieve positive change in dietary habits, and emphasize 
relationships between nutrition and health, all in keeping with 
the individual's personal, cultural, and socioeconomic preferences. 
"(8) 'Nutritional risk' means (A) detrimental or abnormal 
nutritional conditions detectable by biochemical or anthropomet-
ric measurements, (B) other documented nutritionally related 
medical conditions, (C) dietary deficiencies that impair or 
endanger health, or (D) conditions that predispose persons to 
inadequate nutritional patterns or nutritionally related medical 
conditions, including, but not limited to, alcoholism and drug 
addiction. 
"(9) 'Plan of operation and administration' means a document 
that describes the manner in which the State agency intends to 
implement and operate the program. 
" (10) 'Postpartum women' means women up to six months after 
termination of pregnancy. 
PUBLIC LAW 95-627~NOV. 10, 1978 
92 STAT. 3613 
"(11) 'Pregnant women' means women determined to have one 
oi- more fetuses in utero. 
"(12) 'Secretary' means the Secretary of Agriculture. 
"(13) 'State agency' means the health department or com-
parable agency of each State; an Indian tribe, band, or group 
recognized by the Department of the Interior; an intertribal coun-
cil or group that is the authorized representative of Indian tribes, 
bands, or groups recognized by the Department of the Interior; 
or the Indian Health Service of the Department of Health, Edu-
cation, and Welfare. 
"(14) 'Supplemental foods' means those foods containing nutri-
ents determined by nutritional research to be lacking in the diets 
of pregnant, breastfeeding, and postpartum women, infants, and 
children, as prescribed by the Secretary. State agencies may, with 
the approval of the Secretary, substitute different foods providing 
the nutritional equivalent of foods prescribed by the Secretary, to 
allow for different cultural eating patterns. 
"(c) (1) The Secretary may carry out a special supplemental food 
program to assist State agencies through grants-in-aid and other means 
to provide, through local agencies, at no cost, supplemental foods and 
nutrition education to low-income pregnant, postpartum, and breast-
feeding women, infants, and children who satisfy the eligibility 
requirements specified in subsection (d) of this section. The program 
shall be supplementary to the food stamp program (91 Stat. 958) and 
to any program under which foods are distributed to needy families in 
lieu of food stamps. 
"(2) Subject to the authorization levels specified in subsection (g) of 
this section for the fiscal years ending September 30, 1979, and 
September 30, 1980, and subject to amounts appropriated for this 
program for the fiscal years ending September 30,1981, and September 
30, 1982— 
"(A) the Secretary shall make cash grants to State agencies for 
the purpose of administering the program, and 
"(B) any State agency approved eligible local agency that 
applies to participate m or expand the program under this section 
shall immediately be provided with the necessary funds to carry 
out the program. 
"(3) Nothing in this subsection shall be construed to permit the 
Secretary to reduce ratably the amount of foods that an eligible local 
agency shall distribute under the program to participants. The 
Secretary shall take affirmative action to ensure that the program is 
instituted in areas most in need of supplemental foods. The existence Regulations, 
of a commodity supplemental food program under section 1304 of the 
Food and Agriculture Act of 1977 shall not preclude the approval of 7 U
S
C 612c note, 
an application from an eligible local agency to participate in the 1307 note, 
program under this section nor the operation of such program within 
the same geographic area as that of the commodity supplemental food 
program, but the Secretary shall issue such regulations as are necessary 
to prevent dual receipt of benefits under the commodity supplemental 
food program and the program under this section. 
_ "(d) (1) Participation in the program under this section shall be Program 
limited to pregnant, postpartum, and breastfeeding women, infants, participation, 
and children from low-income families who are determined by a 
competent professional authority to be at nutritional risk. 
92 STAT. 3614 
PUBLIC LAW 95-627—NOV. 10, 1978 
Income 
eligibility. 
42 use 1758. 
Certification. 
Nutrition 
education. 
Training. 
Evaluation. 
State operation 
and 
administration 
plan, submittal to 
Secretary of 
Agriculture. 
"(2) The Secretary shall establish income eligibility standards to be 
used in conjunction with the nutritional risk criteria in determining 
eligibility of persons for participation in the program. Persons at 
nutritional risk shall be eligible for the program only if they are 
members of families that satisfy the income standards prescribed for 
free and reduced-price school meals under section 9 of the National 
School Lunch Act. 
"(3) Persons shall be certified for participation in accordance with 
general procedures prescribed by the Secretary. 
"(e) (1) The State agency shall ensure that nutrition education is 
provided to all pregnant, postpartum, and breastfeeding participants 
in the program and to parents or caretakers of infant and child 
participants in the program. The State agency may also provide 
nutrition education to pregnant, postpartum, and breastfeeding women 
and to parents or caretakers of infants and children enrolled at local 
agencies operating the program under this section who do not 
participate in the program. The Secretary shall prescribe standards to 
ensure that adequate nutrition education services are provided. The 
State agency shall provide training to persons providing nutrition 
education under this section. Nutrition education shall be evaluated 
annually by each State agency, and such evaluation shall include the 
views of participants concerning the effectiveness of the nutrition 
education they have received. 
"(2) The Secretary shall, after submitting proposed nutrition 
education materials to the Secretary of Health, Education, and 
Welfare for comment, issue such materials for use in the program 
under this section. 
"(f) (1) Each State agency shall submit annually to the Secretary, 
by a date specified by the Secretary, a plan of operation and 
administration for approval by the Secretary as a prerequisite to 
receiving funds under this section. The plan shall include, among such 
other information as the Secretary may require— 
"(A) a description of how the State agency will distribute 
administrative funds, including start-up funds, to local agencies 
operating under the program; 
"(B) a description of the State agency's financial management 
system; 
"(C) a description of methods used to determine nutritional 
risk; 
"(D) a budget for administrative funds; 
"(E) the staffing pattern; 
"(F) nutrition education goals and action plans, including a 
description of the methods that will be used to meet the special 
nutrition education needs of migrants and Indians; 
"(G) plans to provide program benefits under this section to 
eligible migrants and Indians; 
(H) a list of all areas and special populations, in priority 
order based on relative need, within the jurisdiction of the State 
agency, and the State agency's plans to initiate or expand 
operations under the program in areas most in need of supple-
mental foods, including plans to inform nonparticipating local 
agencies of the availability and benefits of the program and the 
availability of technical assistance in implementing the program, 
and a description of how the State agency will take all reasonable 
actions to identify potential local agencies and encourage such 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3615 
agencies to implement or expand operations under the program 
within the following year in the neediest one-third of all areas 
unserved or partially served; 
"(1) a description of how the State agency's delivery system 
will enable low-income persons to receive supplemental foods 
under this program, in accordance with standards developed by 
the Secretary; 
"(J) the State agency's plans for informing eligible persons of 
the program under this section in accordance with paragraph (8) 
of this subsection; 
" (K) a description of how the State agency plans to coordinate 
operations under the program with special counseling services 
such as, but not limited to, the expanded food and nutrition 
education program, family planning, imnumization, prenatal care, 
well-child care, alcohol and drug abuse counseling, child abuse 
counseling, and with the food stamp program; and 
"(L) a copy of the procedure manual developed by the State 
agency for the program under this section. 
The Secretary shall not approve any plan that permits any person to 
part icipate simultaneously in both the program authorized under this 
section and the commodity supplemental food program under section 
1304 of the Food and Agriculture Act of 1977. 
7 USC 612c note. 
"(2) Not less than one month prior to the submission to the Gov- Hearings, 
ernor of the plan of operation and administration required by this 
subsection, the State agency shall conduct hearings to enable the gen-
eral public to participate in the development of the State agency plan. 
"(3) The Secretary shall establish procedures under Avhich eligible Eligible migrants, 
migrants may, to the maximum extent feasible, continue to participate 
in the program under this section when they are present in States 
other than the State in which they were originally certified for par-
ticipation in the program. Each State agency shall be responsible for 
administering the program for migrant populations within its 
jurisdiction. 
"(4) State agencies shall submit monthly financial reports and par-
ticipation data to the Secretary. 
"(5) State and local agencies operating under the program shall Recordkeeping, 
keep such accounts and records, including medical records, as may be 
necessary to enable the Secretary to determine whether there has been 
compliance with this section and to determine and evaluate the benefits 
of the nutritional assistance provided under this section. Such accounts 
and records shall at all times be available for inspection and audit by 
representatives of the Secretary and shall be preserved for such period 
of time, not in excess of five years, as the Secretary determines 
necessary. 
"(6) The State agency, upon receipt of a completed application Notification, 
from a local agency for participation in the program (and the Sec-
retary, upon receipt of a completed application from a State agency), 
shall notify the applicant agency in writing within thirty days of the 
approval or disapproval of the application, and any disapproval shall 
be accompanied with a statement of the reasons for such disapproval. 
Within fifteen days after receipt of an incomplete application, the Notification. 
State acfcncy (or the Secretary) shall notify the applicant agency of 
the additional information needed to complete the application. 
" (7) Local agencies participating in the program under this section Notification, 
shall notify persons of their eligibility or ineligibility for the pro-
92 STAT. 3616 
PUBLIC LAW 95-627—NOV. 10, 1978 
Hearing. 
Standards. 
Regulation. 
Appropriation 
authorization. 
gram within twenty days of the date that the household, during office 
hours of a local agency, personally makes an oral or written request 
to participate in the program. The Secretary shall establish a shorter 
notification period for categories of persons who, due to special 
nutritional risk conditions, must receive benefits more expeditiously. 
" (8) The State agency shall, in cooperation with participating local 
agencies, publicize the availability of program benefits, including the 
eligibility criteria for participation and the location of local agencies 
operating the program. Such information shall be publicly announced 
by the State agency and by local agencies at least annually. Such 
information shall also be distributed to offices and organizations that 
deal with significant numbers of potentially eligible persons, including 
health and medical organizations, hospitals and clinics, welfare and 
unemployment offices, social service agencies, farmworker organiza-
tions, Indian tribal organizations, and religious and community orga-
nizations in low income areas. 
"(9) The State agency shall grant a fair hearing, and a prompt 
determination thereafter, in accordance with regulations issued by 
the Secretary, to any applicant, participant, or local agency aggrieved 
by the action of a State or local agency as it affects participation. 
"(10) If a person certified as eligible for participation in the pro-
gram under this section in one area moves to another area in which the 
program is operating, that person's certification of eligibility shall 
remain valid for the period for which the person was originally 
certified. 
"(11) The Secretary shall establish standards for the proper, effi-
cient, and effective administration of the program, including standards 
that will ensure sufficient State agency staff. If the Secretary deter-
mines that a State agency has failed without good cause to administer 
the program in a manner consistent with this section or to implement 
the approved plan of operation and administration under this sub-
section, the Secretary may withhold such amounts of the State agency's 
administrative funds as the Secretary deems appropriate. Upon cor-
rection of such failure during a fiscal year by a State agency, any 
funds so withheld for such fiscal year shall be provided the State 
agency. 
" (12) The Secretary shall prescribe by regulation the supplemental 
foods to be made available in the program under this section. To the 
degree possible, the Secretary shall assure that the fat, sugar, and salt 
content of the prescribed foods is appropriate. Products specifically 
designed for pregnant, postpartum, and breastfeeding women, or 
infants shall be available at the discretion of the Secretary if the 
products are commercially available or are justified to and approved 
by the Secretary based on clinical tests performed in accordance with 
standards prescribed by the Secretary. 
"(13) A competent professional authority shall be responsible for 
prescribing the appropriate supplemental foods, taking into account 
medical and nutritional conditions and cultural eating patterns. 
" (14) The State agency shall (A) provide nutrition education mate-
rials and instruction in languages other than English and (B) use 
appropriate foreign language materials in the administration of the 
pros:ram, in areas in which a substantial number of low-income house-
holds speak a language other than English. 
"(g) There are hereby authorized to be appropriated $550,000,000 
for the fiscal year ending September 30, 1979, $800,000,000 for the 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3617 
fiscal year ending September 30, 1980, $900,000,000 for the fiscal year 
ending September 30, 1981, and $950,000,000 for the fiscal year ending 
September 30, 1982, for the purpose of carrying out the program 
authorized by this section. Of the sums appropriated for any fiscal year 
for the program under this section, one-half of 1 percent, not to exceed 
$3,000,000, shall be available to the Secretary for the purpose of 
evaluating program performance, evaluating health benefits, and 
administration of pilot projects, including projects designed to meet 
the special needs of migrants, Indians, and rural populations. 
" (h) (1) The Secretary shall make 20 percent of the funds provided 
under this section each fiscal year (other than funds expended for 
evaluation and pilot projects under subsection (g) of this section) 
available for State agency and local agency administrative costs. 
When reallocating funds, the Secretary may exceed the 20 percent 
limitation for administrative costs if the Secretary determines such 
action necessary for the proper, efficient, and effective administration 
of the program. Not less than one-sixth of the funds expended by each 
State agency for administrative costs under this subsection shall be 
used for nutrition education activities, unless the State agency requests 
that it be authorized to expend a lesser amount and such request is 
accompanied by documentation that other funds will be used to conduct 
such activities. 
"(2) The Secretary, for each of the fiscal years 1979 through 1982, Administrative 
shall allocate administrative funds to each State agency on the basis funds, allocation, 
of a formula determined by the Secretary, which shall include a mini-
mum amount, and which shall be designed to take into account the 
varying needs of State agencies based on factors such as the number of 
local agencies and the number of persons participating in the program 
at those agencies. 
"(3) Each State agency shall provide, from its allocation for admin-
istrative funds, funds to local agencies for their administrative costs. 
Each State agency shall distribute administrative funds to local Guidelines, 
agencies under allocation standards developed by the State agency in 
cooperation with the several local agencies, which satisfy allocation 
guidelines established by the Secretary. Such allocation standards shall 
take into account factors deemed appropriate to further proper, effi-
cient, and effective administration of the program, such as local agency 
staffing needs, density of population, number of persons served, and 
availability of administrative support from other sources. These 
allocation standards shall be included in the plan of operation and 
administration required by subsection (f) of this section. 
"(4) The State agency shall forward in advance to local agencies 
those administrative funds necessary for successful commencement of 
program operations under this section during the three months follow-
ing approval or until a program reaches its projected caseload level, 
whichever comes first. 
" (i) By the beginning of each fiscal year, the Secretary shall divide, 
among the State agencies, the funds provided in accordance with this 
section on the basis of a formula determined by the Secretary. Each 
State agency's allocation, as so determined, shall constitute the State 
agency's authorized operational level for that year, except that the 
Secretary shall reallocate funds periodically if the Secretary deter-
mines that a State agency is unable to spend its allocation. For pur-
poses of the formula, if Indians are served by the health department 
of a State, the formula shall be based on the State population inclusive 
92 STAT. 3618 
PUBLIC LAW 95-627—NOV. 10, 1978 
Report. 
National 
Advisory Council 
on Maternal, 
Infant, and Fetal 
Nutrition, 
establishment, 
membership. 
7 u s e 612c note, 
1307 note. 
Terms. 
Study. 
Report to the 
President and 
Congress. 
of the Indians within the State boundaries. If Indians residing in the 
State are served by a State agency other than the health department of 
the State, the population of the tribes within the jurisdiction of the 
State being so served shall not be included in the formula for such 
State, and shall instead be included in the formula for the State 
agency serving the Indians. Notwithstanding any other provision of 
this section, the Secretary may use a portion of a State agency's allo-
cation to purchase supplemental foods for donation to the State agency 
under this section. 
"(j) By October 1 of each year, the Secretary shall prepare a report 
describing plans to ensure that, to the maximum extent feasible, eligible 
members of migrant populations continue to participate in the pro-
gram as such persons move among States. The report shall be made 
available to the National Advisory Council on Maternal, Infant, and 
Fetal Nutrition. 
"(k) (1) There is hereby established a National Advisory Council 
on Maternal, Infant, and Fetal Nutrition (referred to in this sub-
section as the 'Council') composed of twenty-one members appointed 
by the Secretary. One member shall be a State director of a program 
under this section; one member shall be a State official responsible for 
a commodity supplemental food program under section 1304 of the 
Food and Agriculture Act of 1977; one member shall be a State fiscal 
officer of a program under this section (or the equivalent thereof); 
one member shall be a State health officer (or the equivalent thereof); 
one member shall be a local agency director of a program under this 
section in an urban area; one member shall be a local agency director 
of a program under this section in a rural area; one member shall be a 
project director of a commodity supplemental food program; one 
member shall be a State public health nutrition director (or the equiva-
lent thereof); one member shall be a representative of an organization 
serving migrants; one member shall be an official from a State agency 
predominantly serving Indians; three members shall be parent partici-
pants of a program under this section or of a commodity supplemental 
food program; one member shall be a pediatrician; one member shall 
be an obstetrician; one member shall be a representative of a nonprofit 
public interest organization that has experience with and knowledge 
of the special supplemental food program; one member shall be a 
person involved at the retail sales level of food in the special supple-
mental food program; two members shall be officials of the Depart-
ment of Health, Education, and Welfare appointed by the Secretary 
of Health, Education, and Welfare; and two members shall be officials 
of the Department of Agriculture appointed by the Secretary. 
"(2) Members of the Council appointed from outside the Depart-
ment of Agriculture and the Department of Health, Education, and 
Welfare shall be appointed for terms not exceeding three years. State 
and local officials shall serve only during their official tenure, and the 
tenure of parent participants shall not exceed two years. Persons 
appointed to complete an unexpired term shall serve only for the 
remainder of such term. 
"(3) The Secretary shall designate a Chairman and a Vice Chair-
man. The Council shall meet at the call of the Chairman, but shall 
meet at least once a year. Eleven members shall constitute a quorum. 
"(4) The Council shall make a continuing study of the operation 
of the program under this section and related programs to determine 
how the program may be improved. The Council shall submit once 
every two years to the President and Congress, beginning with the 
fiscal year ending September 30, 1980, a written report, together with 
its recommendations on such program operations. 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3619 
"(5) The Secretary shall provide the Council with such technical 
and other assistance, including secretarial and clerical assistance, as 
may be required to carry out its functions. 
"(6) Members of the Council shall serve without compensation but 
shall be reimbursed for necessary travel and subsistence expenses 
incurred by them in the performance of the duties of the Council. 
Parent participant members of the Council, in addition to reimburse-
ment for necessary travel and subsistence, shall, at the discretion of 
the Secretary, be compensated in advance for other personal expenses 
related to participation on the Council, such as child care expenses 
and lost wages during scheduled Council meetings. 
"(1) Foods available under section 416 of the Agriculture Act of 
1949, including, but not limited to, dry milk, or purchased under sec-
tion 32 of the Act of August 24,1935, may be donated by the Secretary, 
at the request of a State agency, for distribution to programs con-
ducted under this section. The Secretary may purchase and distribute, 
at the request of a State agency, supplemental foods for donation to 
programs conducted under this section, with appropriated funds, 
including funds appropriated under this section.". 
Assistance. 
Travel and 
subsistence 
expenses, 
reimbursement. 
7 u s e 1431. 
7 u s e 612c. 
REDTJCED-PRICE REIMBURSEMENTS 
SEC. 4. The fifth sentence of section 11(a) of the National School 
Lunch Act is amended by striking out "10" and inserting in lieu 
thereof "20", and by inserting immediately before the period at the 
end thereof the following: " : Provided^ That if in any State all schools 
charge students a uniform price for reduced-price lunches, and such 
price is less than 20 cents, the special assistance factor prescribed for 
reduced-price lunches in such State shall be equal to the special assist-
ance factor for free lunches reduced by either 10 cents or the price 
charged for reduced-price lunches in such State, whichever is greater". 
42 u s e 1759a. 
USING COMMODITY PRICES FOR COMMODITY INDEXES 
SEC. 5. (a) Section 3 of the Child Nutrition Act of 1966 is amended 
by striking out "series of food away from home of the Consumer Price 
Index" and inserting in lieu thereof "Producer Price Index for Fresh 
Processed Milk" and by amending the fifth sentence thereof to read as 
follows: "Children who qualify for free lunches under guidelines 
established by the Secretary shall, at the option of the school involved 
(or of the local educational agency involved in the case of a public 
school) also be eligible for free milk upon their request.". 
(b) Section 6(e) of the National School Lunch Act is amended by 
striking out "the series for food away from home of the Consumer 
Price Index published by the Bureau of Labor Statistics of the 
Department of Labor," and inserting in lieu thereof the following: 
"the Price Index for Food Used in Schools and Institutions. The Index 
shall be computed using five major food components in the Bureau of 
Labor Statistics' Producer Price Index (cereal and bakery products, 
meats, poultrj^ and fish, dairy products, processed fruits and vege-
tables, and fats and oils). Each component shall be weighted using the 
same relative weight as determined by the Bureau of Labor Statistics. 
The value of food assistance for each meal shall be adjusted each July 
1 by the annual percentage change in a three-month simple average 
value of the Price Index for Foods Used in Schools and Institutions 
for March, April, and May each year.". 
42 use 1772. 
42 use 1755. 
92 STAT. 3620 
PUBLIC LAW 95-627—NOV. 10, 1978 
42 use 1759a. 
(c) Section 11(a) of the National School Lunch Act is amended 
by inserting "for All Urban Consumers" after "Consumer Price 
Index". 
42 use 1761. 
(d) Section 13 (b) (1) of the National School Lunch Act is amended 
by inserting "for All Urban Consumers" after "Consumer Price 
Index". 
SCHOOL BREAKFAST EXPANSION 
PROGRAM 
Combined Allocation for Breakfast and Lunch 
42 use 1760. 
SEC. 6. (a) (1) Section 12 of the National School Lunch Act is 
amended by adding at the end thereof a new subsection (h) as follows: 
42 use 1771 
" (h) No provision of this Act or of the Child Nutrition Act of 1966 
note. 
shall require any school receiving funds under this Act and the Child 
Nutrition Act of 1966 to account separately for the cost incurred in the 
school lunch and school breakfast programs. In no event, however, 
shall reimbursement to school food authorities exceed the net cost of 
operating both the lunch and breakfast programs, taking into account 
the total costs and total incomes of both programs.". 
Equipment Assistance 
42 use 1774. 
(b) Section 5 of the Child Nutrition Act of 1966 is amended by— 
(1) striking out "$40,000,000" the second time it appears in sub-
section (a) and inserting in lieu thereof "$75,000,000"; 
(2) inserting after "schools without a food service program" in 
the fourth sentence of subsection (b) the following: ", schools 
that do not serve both breakfasts and lunches but that will use 
food service equipment to initiate the service of breakfasts or 
lunches,"; 
(3) amending the last sentence of subsection (b) to read as 
follows: "After making funds available to such schools, the Secre-
tary shall make the remaining funds available to eligible schools 
that do not meet the priority criteria, for the purpose of purchas-
ing needed replacement equipment."; 
(4) striking out "without the facilities to prepare and cook hot 
meals or receive hot meals" the first time that phrase appears in 
subsection (e) and inserting in lieu thereof "that do not serve 
breakfasts or lunches but that plan to use food service equipment 
to initiate a breakfast or lunch program"; 
(5) striking out "without the facilities to prepare and cook 
hot meals or receive hot meals" all other times that phrase appears 
in subsection (e) and inserting in lieu thereof "moving toward 
the initiation of the service of breakfasts"; and 
(6) striking out "331/^" in subsection (e) and inserting in lieu 
thereof "40". 
Especially Needy 
(c) The first sentence of section 4(d) of the Child Nutrition Act of 
42 use 1773. 
1966 is amended to read as follows: "Each State educational agency 
shall establish eligibility standards for providing additional assist-
ance to schools in severe need, which shall include those schools in 
which the service of breakfasts is required pursuant to State law and 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3621 
those schools (having a breakfast program or desiring to initiate a 
breakfast program) in which, during the most recent second preceding 
school year for which lunches were served, 40 percent or more of the 
lunches served to students at the school were served free or at a 
reduced price and in which the rate per meal established by the Secre-
tary is insufficient to cover the costs of the breakfast program.". 
ALTERNATE FOODS 
(d) The Secretary shall not limit or prohibit, during the school year 
1978-79, the use of formulated grain-fruit products currently 
approved for use in the school breakfast program. The Secretary shall 
consult experts in child nutrition, industry representatives, and school 
food service personnel and school administrators (including person-
nel and administrators in school systems using such products) with 
respect to the continued use of formulated grain-fruit products in the 
school breakfast program, and shall also take into account the findings 
and recommendations in the report on this subject of the General 
Accounting Office. The Secretary shall not promulgate a final rule 
disapproving the use of such products in the school breakfast program 
beyond the 1978-79 school year until the Secretary has notified the 
appropriate committees of Congress, and such rule shall not take 
effect until sixty days after such notification. 
42 use 1773 
note. 
Notification. 
STATE ADMINISTRATIVE EXPENSES 
SEC. 7. (a) Section 7(a) of the Child Nutrition Act of 1966 is 
amended to read as follows: 
"SEC. 7. (a) (1) Each fiscal year, the Secretary shall make available 
to the States for their administrative costs an amount equal to not 
less than li/^ percent of the Federal funds expended under sections 
4,11, and 17 of the National School Lunch Act and 3, 4, and 5 of this 
Act during the second preceding fiscal year. The Secretary shall 
allocate the funds so provided in accordance with paragraphs (2), 
(3), and (4) of this subsection. There are hereby authorized to be 
appropriated such sums as may be necessary to carry out the pur-
poses of this section. 
"(2) The Secretary shall allocate to each State for administrative 
costs incurred in any fiscal year in connection with the programs 
authorized under the National School Lunch Act or under this Act, 
except for the programs authorized under section 13 or 17 of the 
National School Lunch Act or under section 17 of this Act, an amount 
equal to not less than 1 percent and not more than 11^ percent of 
the funds expended by each State under sections 4 and 11 of the 
National School Lunch Act and sections 3, 4, and 5 of this Act during 
the second preceding fiscal year. In no case shall the grant available 
to any State under this subsection be less than the amount such State 
was allocated in the fiscal year ending September 30,1978, or $100,000, 
whichever is larger. 
"(3) The Secretary shall allocate to each State for its administra-
tive costs incurred under the program authorized by section 17 of the 
National School Lunch Act in any fiscal year an amount, based upon 
42 use 1776. 
42 use 1754, 
1759a, 1766. 
42 use 
1772-1774. 
42 use 1751 
note. 
42 use 1761, 
1766. 
Ante, p. 3611. 
92 STAT. 3622 
PUBLIC LAW 95-627—NOV. 10, 1978 
funds expended under that program in the second preceding fiscal 
vear, equal to (A) 20 percent of the first $50,000, (B) 10 percent of the 
next $100,000, (C) 5 percent of the next $250,000, and (D) 21/2 percent 
of any remaining funds. The Secretary may adjust any State's alloca-
tion to reflect changes in the size of its program. 
"(4) The remaining funds appropriated under this section shall be 
allocated among the States by the Secretary in amounts the Secretary 
determines necessary for the improvement in the States of the adminis-
tration of the programs authorized under the National School Lunch 
42 use 1751 
Act and this Act, except for section 17 of this Act, including, but not 
note. 
limited to, improved program integrity and the quality of meals served 
^«.e,p.3611. 
to children. ^ 
^ 
^ 
^ 
^ 
^ 
"
^ 
"(5) Funds available to States under this subsection and under sec-
42 use 1761. 
tion 13(k) (1) of the National School Lunch Act shall be used for the 
costs of administration of the programs for which the allocations are 
made, except that States may transfer up to 10 percent of any of the 
amounts allocated among such programs. 
"(6) Where the Secretary is responsible for the administration of 
programs under this Act or the National School Lunch Act, the 
amount of funds that would be allocated to the State agency under 
this section and under section 13 (k) (1) of the National School Lunch 
Act shall be retained by the Secretary for the Secretary's use in the 
administration of such programs.". 
State Administrative Expenses for Summer Feeding 
42 use 1761. 
(b) Section 13 (k) (1) of the National School Lunch Act is amended 
to read as follows: 
"(k) (1) The Secretary shall pay to each State for its administrative 
costs incurred under this section in any fiscal year an amount equal to 
(A) 20 percent of the first $50,000 in funds distributed to that State 
for the program in the preceding^ fiscal year; (B) 10 percent of the 
next $100,000 distributed to that State for the program in the preced-
ing fiscal year; (C) 5 percent of the next $250,000 in funds distributed 
to that State for the program in the preceding fiscal year, and (D) 214 
percent of any remaining funds distributed to that State for the 
program in the preceding fiscal year: Provided, That such amounts 
may be adjusted by the Secretary to reflect changes in the size of that 
State's program since the preceding fiscal year.". 
INCOME POVERTY GUIDELINES 
42 use 1758. 
SEC. 8. Section 9(b)(1) of the National School Lunch Act is 
amended by— 
(1) amending the second sentence to read as follows: "The 
income poverty sidelines shall be the nonfarm income poverty 
guidelines prescribed by the Office of Management and Budget 
adjusted annually under section 625 of the Economic Opportunity 
Act of 1964, as amended (42 U.S.C. 2971d) : Provided, That the 
income poverty guidelines for the period commencing July 1, 
1978, shall be made as up to date as possible by multiplying the 
nonfarm income poverty guidelines based on the average 1977 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3623 
Consumer Price Index, by the change between the average 1977 
Consumer Price Index and the Consumer Price Index of March 
1978, using the most current procedures of the Office of Manage-
ment and Budget. The income poverty guidelines for future peri-
ods shall be similarly adjusted."; and 
(2) amending the fifth sentence to read as follows: "The income 
guidelines for free lunches shall be prescribed at 25 percent above 
the applicable family size income levels in the income poverty 
guidelines prescribed by the Secretary.". 
STUDY OF MENU CHOICE 
SEC. 9. The National School Lunch Act is amended by adding at 
the end thereof a new section 22 as follows: 
"STUDY OF MENU CHOICE 
•'SEC. 22. As a means of diminishing waste of foods without endan-
gering nutritional integrity of meals served, the Secretary shall con-
duct a study to determine the cost and feasibility of requiring schools 
to offer a choice of menu items within the required meal patterns. This 
study shall, as a minimum, include different needs and capabilities of 
elementary and secondary schools for such a requirement. The Secre-
tary shall develop regulations designed to diminish such waste based 
on the results of this study.". 
42 use 1769c. 
MISCELLANB:OUS PROVISIONS 
SEC. 10. (a) Section 12 of the National School Lunch Act is amended 42 USC 1760. 
by adding at the end thereof new subsections (f) and (g) as follows: 
"(f) In providing assistance for school breakfasts and lunches 
served in Alaska, Hawaii, Guam, American Samoa, Puerto Rico, the 
Virgin Islands of the United States, the Trust Territory of the Pacific 
Islands, and the Commonwealth of the Northern Mariana Islands, 
the Secretary may establish appropriate adjustments for each such 
State to the national average payment rates prescribed under sections 
4 and 11 of this Act and section 4 of the Child Nutrition Act of 1966, 
to reflect the differences between the costs of providing lunches and 
breakfasts in those States and the costs of providing lunches and 
breakfasts in all other States. 
"(g) Whoever embezzles, willfully misapplies, steals, or obtains by Penalty, 
fraud any funds, assets, or property that are the subject of a grant 
or other form of assistance under this Act or the Child Nutrition Act 
of 1966, whether received directly or indirectly from the United States 
Department of Agriculture, or whoever receives, conceals, or retains 
such funds, assets, or property to his use or gain, knowing such funds, 
assets, or property have been embezzled, willfully misapplied, stolen, 
or obtained by fraud shall, if such funds, assets, or property are of the 
value of $100 or more, be fined not more than $10,000 or imprisoned 
not more than five years, or both, or, if such funds, assets, or property 
are of a value of less than $100, shall be fined not more than $1,000 or 
imprisoned for not more than one year, or both.". 
(b) Section 12(d) (7) of the National School Lunch Act is amended 
to read as follows: 
42 
USC 
1754, 
1759a. 
42 
USC 
1773. 
42 
USC 
1771 
note. 
92 STAT. 3624 
PUBLIC LAW 95-627—NOV. 10, 1978 
"School year." 
42 use 1784. 
42 use 1757. 
Ante, p. 3611. 
42 use 1761. 
"ehild" or 
"children." 
42 use 1784. 
Ante, p. 3611. 
42 use 1769. 
Reimbursement. 
42 use 1758. 
" (7) 'School year' means the annual period from July 1 through 
June 30.". 
(c) Section 15(e) of the Child Nutrition Act of 1966 is amended to 
read as follows: 
"(e) 'School year' means the annual period from July 1 throusrh 
June 30.". 
^ 
& 
(d) (1) Section 8 of the National School Lunch Act is amended by 
inserting after the second sentence the following new sentence: "The 
terms 'child' and 'children' as used in this Act shall be deemed to 
include persons regardless of age who are determined by the State 
educational agency, in accordance with regulations prescribed by the 
Secretary, to be mentally or physically handicapped and who are 
attending any child care institution as defined in section 17 of this Act 
or any nonresidential public or nonprofit private school of high school 
grade or under for the purpose of participating in a school program 
established for mentally or physically handicapped: Provided, That 
no institution that is not otherwise eligible to participate in the pro-
gram under section 17 of this Act shall be deemed so eligible because 
of this sentence.". 
(2) Section 13(a) (1) (D) (ii) of the National School Lunch Act is 
amended by inserting "or nonprofit private" after "public". 
(3) Section 15 of the Child Nutrition Act of 1966 is amended by 
adding at the end thereof a new subsection as follows: 
"(f) Except as used in section 17 of this xAct, the terms 'child' and 
'children' as used in this Act, shall be deemed to include persons regard-
less of age who are determined by the State educational agency, in 
accordance with regulations prescribed by the Secretary, to be men-
tally or physically handicapped and who are attending any nonresi-
dential public or nonprofit private school of high school grade or under 
for the purpose of participating in a school program established for 
mentally or physically handicapped.". 
SCHOOL LUNCH PROGRAM PILOT PROJECTS 
SEC. 11. Section 20 of the National School Lunch Act is amended 
b y -
(1) inserting before the period at the end of the first sentence 
of subsection (c) the following: ", except for the pilot projects 
conducted under subsection (d) of this section"; and 
(2) adding at the end thereof a new subsection (d) as follows: 
"(d) (1) The Secretary may conduct pilot projects in not more than 
fourteen school districts (or other appropriate units), of which not 
more than two may be located in any administrative region of the Food 
and Nutrition Service of the Department of Agriculture, for the pur-
pose of determining the feasibility, cost, and other consequences of pro-
viding lunches free to all children, without regard to the income of 
the children's families, during the school year beginning July 1,1979. 
"(2) The Secretary shall reimburse school food authorities par-
ticipating in a pilot project under this subsection for all lunches served 
to children on the same basis that the Secretary normally provides for 
lunches served to children meeting the eligibility requirements for free 
lunches under section 9 of this Act. 
PUBLIC LAW 95-627—NOV. 10, 1978 
92 STAT. 3625 
"(3) The Secretary shall submit to the appropriate committees of 
the Senate and the House of Representatives a report on the pilot 
projects conducted under this subsection not later than six months 
after the conclusion of such projects. 
"(4) There are hereby authorized to be appropriated such sums as 
are necessary for the fiscal year beginning October 1, 1978, for the 
purpose of conducting an evaluation of pilot projects conducted under 
this subsection and for the purpose of makmg additional payments 
for lunches served to children (beyond what the school food authori-
ties would otherwise receive under sections 4 and 11 of this Act) to 
school food authorities participating in pilot projects.". 
Report to 
congressional 
committees. 
Appropriation 
authorization. 
42 USG 1754, 
1759a. 
PURCHASES o r SEAFOOD PRODUCTS FOR SCHOOL LUNCHES 
SEC. 12. (a) Section 6(e) of the National School Lunch Act is 42 USC 1755. 
amended by inserting in the second sentence "(which may include 
domestic 
seafood 
commodities 
and 
their 
products)" 
after 
"alternatives". 
(b) Section 14(a) (1) of the National School Lunch Act is amended 42 USC 1762a. 
by inserting "(which may include domestic seafood commodities and 
their products)" after "such section". 
IMPLEMENTATION 
SEC. 13. (a) The Secretary shall promulgate regulations to imple-
ment the provisions of section 3 of this Act within one hundred and 
twenty days of the date of enactment of this Act. 
(b) The provisions of section 17 of the National School Lunch Act 
and section 17 of the Child Nutrition Act of 1966, in effect prior to 
the effective date of sections 2 and 3 of this Act, which are relevant to 
current regulations of the Secretary governing the child care food pro-
gram and the special supplemental food program, respectively, shall 
remain in effect until such regulations are revoked, superseded, 
amended, or modified by regulations issued under those sections as 
amended by sections 2 and 3 of this Act. 
(c) Pending proceedings under section 17 of the National School 
Lunch Act and section 17 of the Child Nutrition Act of 1966 shall not 
be abated by reason of any provision of sections 2 and 3 of this Act, 
but shall be disposed of under the applicable provisions of section 17 
of the National School Lunch Act and section 17 of the Child Nutri-
tion Act of 1966 in effect prior to the effective date of sections 2 and 3 
of this Act. 
(d) Appropriations made available to carry out section 17 of the 
National School Lunch Act and section 17 of the Child Nutrition Act 
of 1966 shall be available to carry out the provisions of sections 2 and 
3 of this Act. 
EFFECTIVE DATE 
SEC. 14. The provisions of this Act, except sections 4, 5, and 8, shall 
become effective October 1, 1978. The provisions of section 4 of this 
Act shall become effective Janary 1, 1979. The provisions of sections 
5 and 8 of this Act shall become effective July 1,1979, except that the 
Regulations. 
42 USC 1786 
note. 
Ante, pp. 3603, 
3611. 
42 USC 1755 
"note. 
39-194 O—80—pt. 3 
63 : QL3 
92 STAT. 3626 
PUBLIC LAW 95-627—NOV. 10, 1978 
Secretary may make the necessary changes in the income poverty guide-
lines for the special supplemental food program under section 17 of 
the Child Nutrition Act of 1966 not earlier than October 1,1978, and 
not later than July 1,1979. 
Approved November 10, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-1153 
accompanying H.R. 12511, Pt. I (Comm. on 
Education and Labor) and Pt. II (Comm. on Appropriations). 
SENATE REPORTS: No. 95-884 (Comm. on Agriculture, Nutrition, and Forestry) and 
No. 95-1020 (Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
July 21, considered and passed Senate. 
Oct. 10, H.R. 12511 considered in House. 
Oct. 15, considered and passed House, amended. 
Oct. 15, Senate concurred in House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 45: 
Nov. 10, Presidential statement.