An Act to amend the National School Lunch Act and the Child Nutrition Act of 1966 in order to revise and extend the summer food program, to revise the special milk program, to revise the school breakfast program, to authorize the Secretary of Agriculture to carry out a program of nutrition information and education as part of food service programs for children conducted under such Acts, and for other purposes.
PL 95-166 (H.R.1139), enacted 11/10/1977

PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1325 
Public Law 95-166 
95th Congress 
An Act 
To amend the National School Lunch Act and the Child Nutrition Act of 1966 in 
order to revise and extend the summer food program, to revise the special milk 
program, to revise the school breakfast program, to authorize the Secretary of 
Agriculture to carry out a program of nutrition information and education 
as part of food service programs for children conducted under such Acts, and 
for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of A7ne?ica in Congress assembled, That this Act may 
be cited as the "National School Lunch Act and Child Nutrition 
Amendments of 1977". 
SUMMEr: FOOD SERVICE PROGRAM FOR CHILDREN 
SEC. 2. Section 13 of the National School Lunch Act is amended to 
read as f 
ollow s: 
"SUMMER FOOD SERVICE PROGRAM FOR CHILDREN 
"SEC. 13. (a) (1) The Secretary is authorized to carry out a program 
to assist States, through grants-in-aid and other means, to initiate, 
maintain, and expand nonprofit food service i)rograms for children in 
service institutions. For purposes of this section, (A) 'program' means 
the summer food service program for children authorized by this sec-
tion; (B) 'service institutions' means nonresidential public or private 
nonprofit institutions, and residential public or private nonprofit sum-
mer camps, that develop special summer or school vacation programs 
providing food service similar to that made available to children dur-
ing the school year under the school lunch program under this Act 
or the school breakfast program under the Child Nutrition Act of 
1966; (C) 'areas in which poor economic conditions exist' means areas 
in which at least 331/3 percent of the children are eligible for free or 
reduced price school meals under this Act and the Child Nutrition Act 
of 1966, as determined by information provided from departments of 
welfare, zoning commissions, census tracts, by the number of free and 
reduced price lunches or breakfasts served to children attending public 
and nonprofit private schools located in the area of program food 
service sites, or from other appropriate sources, including statements 
of eligibility based upon income for children enrolled in the program; 
(D) 'children' means individuals who are eighteen years of age and 
under, and individuals who are older than eighteen who are (i) deter-
mined by a State educational agency or a local public educational 
agency of a State, in accordance with regulations prescribed by the 
Secretary, to be mentally or physically handicapped, and (ii) partici-
pating in a public school program established for the mentally or 
physically handicapped; and (E) 'State' means any of the fifty States, 
the District of ("olumbia, the Commonwealth of Puerto Rico, the Vir-
gin Islands of the United States, Guam, American Samoa, the Trust 
Territory of the Pacific Islands, and the Northern Mariana Islands. 
"(2) To the maximum extent feasible, consistent with the purposes 
of this section, any food service under the program shall use meals 
prepared at the facilities of the service institution or at the food service 
Nov. 10, 1977 
[H.R. 1139] 
National School 
Lunch Act and 
Child Nutrition 
Amendments of 
1977. 
42 u s e 1751 
note. 
42 u s e 1761. 
Assistance to 
States. 
Definitions. 
42 use 1771 
note. 
91 STAT. 1326 
PUBLIC LAW 95-166—NOV. 10, 1977 
Service 
institutions, 
eligibility. 
Participation, 
priorities. 
Reimbursement, 
limitations. 
42 use 1771 
note. 
Payments to 
institutions. 
Adjustments. 
Meals per day, 
limitation. 
facilities of public and nonprofit private schools. The Secretary shall 
assist States in the development of information and technical assist-
ance to encourage increased service of meals prepared at the facilities 
of service institutions and at public and nonprofit private schools. 
"(3) Eligible service institutions entitled to participate in the pro-
gram shall be limited to those that— 
"(A) 
demonstrate adequate administrative and 
financial 
responsibility to manage an effective food service; 
"(B) have not been seriously deficient in operating under the 
program ; 
"(C) either conduct a regularly scheduled food service for chil-
dren from areas in which poor economic conditions exist or qualify 
as camps; and 
"(D) provide an ongoing year-round service to the community 
to be served under the program (except that an otherwise eligible 
service institution shall not be disqualified for failure to meet this 
requirement for ongoing year-round service if the State deter-
mines that its disqualification would result in an area in which 
poor economic conditions exist not being served or in a significant 
number of needy children not having reasonable access to a sum-
mer food service program). 
"(4) The following order of priority shall be used by the State in 
determining participation where more than one eligible service insti-
tution proposes to serve the same area: 
"(A) local schools or service institutions that have demon-
strated successful program performance in a prior year; 
"(B) service institutions that prepare meals at their own facili-
ties or operate only one site; 
"(C) service institutions that use local school food facilities for 
the preparation of meals; 
"(D) other service institutions that have demonstrated ability 
for successful program operation; and 
"(E) service institutions that plan to integrate the program 
with Federal, State, or local employment programs. 
The Secretary and the States, in carrying out their respective func-
tions under this section, shall actively seek eligible service institu-
tions located in rural areas, for the purpose of assisting such service 
institutions in applying to participate in the program. 
"(5) Camps that satisfy all other eligibility requirements of this 
section shall receive reimbursement only for meals served to children 
who meet the eligibility requirements for free or reduced price meals, 
as determined under this Act and the Child Nutrition Act of 1966. 
"(b)(1) Payments to service institutions shall equal the full cost 
of food service operations (which cost shall include the cost of obtain-
ing, preparing, and serving food, but shall not include administrative 
costs), except tl at such payments to any institution shall not exceed 
(1) 85.75 cents for each lunch and supper served; (2) 47.75 cents for 
each breakfast served; or (3) 22.50 cents for each meal supplement 
served: Provided^ That such amounts shall be adjusted each January 1 
to the nearest one-fourth cent in accordance with the changes for 
the twelve-month period ending the preceding November 30 in the 
series for food away from home of the Consumer Price Index pub-
lished by the Bureau of Labor Statistics of the Department of Labor: 
Provided further, That the Secretary may make such adjustments in 
the maximum reimbursement levels as the Secretary determines appro-
priate after making the study prescribed in paragraph (4) of this 
subsection. 
"(2) Any service institution shall be pennitted to serve up to three 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1327 
meals per day of operation if at least one of the three meals is a meal 
supplement, and any service institution that is a camp shall be per-
mitted to serve up to four meals per day of operation, if the service 
institution has the administrative capability, and the food preparation 
and food holding capabilities (where applicable), to manage more 
than one meal service per day, and if the service period of different 
meals does not coincide or overlap. Such meals may include a break-
fast, a lunch, a supper, and meal supplements. 
"(3) Every service institution, when applying for participation in 
the program, shall submit a complete budget for administrative costs 
related to the program, which shall be subject to approval by the 
State. Payment to service institutions for administrative costs shall 
equal the full amount of State approved administrative costs 
incurred, except that such payment to service institutions may not 
exceed the maximum allowable levels determined by the Secretary 
pursuant to the study prescribed in paragraph (4) of this subsection. 
"(4) (A) The Secretary shall conduct a study of the food service 
operations carried out under the program. Such study shall include, 
but shall not be limited to— 
"(i) an evaluation of meal quality as related to costs; and 
"(ii) a determination whether adjustments in the maximum 
reimbursement levels for food service operation costs prescribed 
in paragraph (1) of this subsection should be made, including 
whether different reimbursement levels should be established 
for self-prepared meals and vendored meals and which site-
related costs, if any, should be considered as part of administrative 
costs. 
"(B) The Secretary shall also study the administrative costs of 
service institutions participating in the program and shall thereafter 
prescribe maximum allowable levels for administrative payments that 
reflect the costs of such service institutions, taking into account the 
number of sites and children served, and such other factors as the 
Secretary determines appropriate to further the goals of efficient and 
effective administration of the program. 
"(C) The Secretary shall report the results of such studies to Con-
gress not later than December 1, 1977. 
"(c) Payments shall be made to service institutions only for meals 
served during the months of May through September, except in the 
case of service institutions that operate food service programs for 
children on school vacation at any time under a continuous school 
calendar. 
"(d) Not later than April 15, May 15, and July 1, of each year, the 
Secretary shall forward to each State a letter of credit (advance 
program payment) that shall be available to each State for the pay-
ment of meals to be served in the month for which the letter of credit 
is issued. The amount of the advance program payment shall be an 
amount which the State demonstrates, to the satisfaction of the Secre-
tary, to be necessary for advance program payments to service 
institutions in accordance with subsection (e) of this section. The 
Secretary shall also forward such advance program payments, by 
the first day of the month prior to the month in which the program 
will be conducted, to States that operate the program in months other 
than May through September. The Secretary shall forward any 
remaining payments due pursuant to subsection (b) of this section not 
later than sixty days following receipt of valid claims therefor. 
"(e)(1) Not later than June 1, July 15, and August 15 of each 
year, or, in the case of service institutions that operate under a 
Budget, 
submittal. 
State approval. 
Operations, 
study. 
Administrative 
costs, study. 
Results, report to 
Congress. 
Advance program 
payments to 
States. 
Letter of credit, 
forwarding to 
States. 
91 STAT. 1328 
PUBLIC LAW 95-166—NOV. 10, 1977 
Certification. 
Payments, 
computation. 
Limitation. 
Valid claims, 
receipt. 
Withholding. 
Meals, contents. 
ffii,mG'.l f,-!--^ 
Quality 
assurance, 
specifications and 
standards. 
Meal preparation 
contracts, 
requirements. 
Inspection and 
testing. 
continuous school calendar, the first day of each month of operation, 
the State shall forward advance program payments to each service 
institution: Provided^ That (A) the State shall not release the second 
month's advance program payment to any service institution that 
has not certified that it has held training sessions for its own person-
nel and the site personnel with regard to program duties and responsi-
bilities, and (B) no advance program payment may be made for any 
month in which the service institution will operate under the program 
for less than ten days. 
"(2) The amount of the advance program payment for any month 
in the case of any service institution shall be an amount equal to (A) 
the total program payment for meals served by such service institution 
in the same calendar month of the preceding calendar year, (B) 50 
percent of the amount established by the State to be needed by such 
service institution for meals if such service institution contracts with a 
food service management company, or (C) 65 percent of the amount 
established by the State to be needed by such service institution for 
meals if such service institution prepares its own meals, whichever 
amount is greatest: Provided, That the advance program payment may 
not exceed the total amount estimated by the State to be needed by such 
service institution for meals to be served in the month for which such 
advance program payment is made or $40,000, whichever is less, except 
that a State may make a larger advance program payment to such 
service institution where the State determines that such larger pay-
ment is necessary for the operation of the program by such service 
institution and sufficient administrative and management capability to 
justify a larger payment is demonstrated. The State shall forward any 
remaining payment due a service institution not later than seventy-
five days following receipt of valid claims. If the State has reason to 
believe that a service institution will not be able to submit a valid 
claim for reimbursement covering the period for which an advance 
program payment has been made, the subsequent month's advance 
program payment shall be withheld until such time as the State has 
received a valid claim. Program payments advanced to service insti-
tutions 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 
program payment. 
"(f) Service institutions receiving funds under this section shall 
serve meals consisting of a combination of foods and meeting mini-
mum nutritional standards prescribed by the Secretary on the basis 
of tested nutritional research. Such meals shall be served without 
cost to children attending service institutions approved for operation 
under this section, except that, in the case of camps, charges may be 
made for meals served to children other than those who meet the 
eligibility requirements for free or reduced price meals in accordance 
with subsection (a) (5) of this section. To assure meal quality. States 
shall, with the assistance of the Secretary, prescribed model meal speci-
fications and model food quality standards, and ensure that all service 
institutions contracting for the preparation of meals with food service 
management companies include in their contracts menu cycles, local 
food safety standards, and food quality standards approved by the 
State. Such contracts shall require (A) periodic inspections, by an 
independent agency or the local health department for the locality in 
which the meals are served, of meals prepared in accordance with the 
contract in order to determine bacteria levels present in such meals, 
and (B) that bacteria levels conform to the standards which are 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1329 
applied by the local health authority for that locality with respect to 
the levels of bacteria that may be present in meals served by other 
establishments in that locality. Such inspections and any testing 
resulting therefrom 
shall be in accordance with the 
practices 
employed by such local health authority. 
"(^<r) The Secretary shall publish proposed regulations relating to 
the implementation of the program by November 1 of each fiscal year, 
final regulations by January 1 of each fiscal year, and guidelines, 
applications, and handbooks by February 1 of each fiscal year: 
Provided^ That for fiscal year 1978, those portions of the regulations 
relating to payment rates for both food service operations and admin-
istrative costs need not be published until December 1 and February 1, 
respectively. In order to improve program planning, the Secretary 
may provide that service institutions be paid as startup costs not to 
exceed 20 percent of the administrative funds provided for in the 
administrative budget approved by the State under subsection (b) (3) 
of this section. Any payments made for startup costs shall be sub-
tracted from amounts otherwise payable for administrative costs 
subsequently made to service institutions under subsection (b) (3) 
of this section. 
"(h) Each service institution shall, insofar as practicable, use in 
its food service under the program foods designated from time to time 
by the Secretary as being in abundance. The Secretary is authorized to 
donate to States, for distribution to service institutions, food avail-
able under section 416 of the Agricultural Act of 1949 (7 U.S.C. 
1431), or purchased under section 32 of the Act of August 24, 1935 
(7 U.S.C. 612c) or section 709 of the Food and Agriculture Act of 
1965 (7 U.S.C. 1446a-l). Donated foods may be distributed only to 
service institutions that can use commodities efficiently and effectively, 
as determined by the Secretary. 
"(i) If any State (1) is unable for any reason to disburse the funds 
otherwise payable to it under this section, or (2) does not operate the 
program in accordance with the requirements of this section, the Sec-
retary shall assume authority for administration of the program in 
such State, and shall disburse the funds directly to service institutions 
in the State for the same purposes and subject to the same conditions 
as are required of a State disbursing funds made available under this 
section. In cases described in clause (1) of the preceding sentence, the 
State shall notify the Secretary, not later than January 1 of each fiscal 
year in which the program is operated, of its intention not to admin-
ister the program. 
"(j) 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. 
"(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 $50,000 in funds distributed to that State for the program in the 
preceding fiscal year; (C) 5 percent of the next $100,000 in funds dis-
tributed to that State for the program in the preceding fiscal year; and 
(D) 2 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. 
"(2) The Secretary shall establish standards and effective dates 
for the proper, efficient, and effective administration of the program 
Regulations, 
guidelines, and 
applications, 
publication. 
Startup costs. 
Donated foods. 
Administration, 
inability by State. 
Notification. 
Administrative 
costs, payment. 
Adjustment. 
Standards and 
effective dates, 
establishment, 
91 STAT. 1330 
PUBLIC LAW 95-166—NOV. 10, 1977 
Funds, 
withholding. 
Inspection funds. 
Food service 
management 
companies, 
subcontracts. 
Additional 
conditions. 
Bids. 
Review. 
Registration. 
Record, 
availability to 
States. 
Small and 
minority-owned 
businesses. 
Contract, 
standard form. 
Bid and contract 
procedures, 
requirements. 
by the State. If the Secretary finds that the State has failed without 
good cause to meet any of the Secretary's standards or has failed with-
out good cause to carry out the approved State management and 
administration plan under subsection (n) of this section, the Secretary 
may withhold from the State such funds authorized under this subsec-
tion as the Secretary determines to be appropriate. 
"(3) To provide for adequate nutritional and food quality moni-
toring, and to further the implementation of the program, an addi-
tional amount, not to exceed the lesser of actual costs or 1 percent of 
program funds, shall be made available by the Secretary to States 
to pay for State or local health department inspections, and to 
reinspect facilities and deliveries to test meal quality. 
" (1) (1) Service institutions may contract on a competitive basis only 
with food service management companies registered with the State in 
which they operate for the furnishing of meals or management of the 
entire food service under the program, except that a food service 
management company entering into a contract with a service institu-
tion under this section may not subcontract with a single company for 
the total meal, with or without milk, or for the assembly of the meal. 
The Secretary shall prescribe additional conditions and limitations 
governing assignment of all or any part of a contract entered into by a 
food service management company under this section. Any food service 
management company shall, in its bid, provide the service institution 
information as to its meal capacity. The State shall, upon award of 
any bid, review the company's registration to calculate how many 
remaining meals the food service management company is equipped 
to prepare. 
(2) Each State shall provide for the registration of food service 
management companies. For the purposes of this section, registration 
shall include, at a minimum— 
"(A) certification that the company meets applicable State and 
local health, safety, and sanitation standards; 
"(B) disclosure of past and present company owners, officers, 
and directors, and their relationship, if any, to any service institu-
tion or food service management company that received program 
funds in any prior fiscal year; 
".(C) records of contract terminations or disallowances, and 
health, safety, and sanitary code violations, in regard to program 
operations in prior fiscal years; and 
"(D) the addresses of the company's food preparation and 
distribution sites, 
No food service management company may be registered if the State 
determines that such company (i) lacks the administrative and finan-
cial capability to perform under the program, or (ii) has been seri-
ously deficient in its participation in the program in prior fiscal years. 
" (3) In order to ensure that only qualified food service management 
companies contract for services in all States, the Secretary shall main-
tain a record of all registered food service management companies 
and their program record for the purpose of making such information 
available to the States. 
"(4) In accordance with regulations issued by the Secretary, posi-
tive efforts shall be made by service institutions to use small busi-
nesses and minority-owned businesses as sources of supplies and 
services. Such efforts shall afford those sources the maximum feasible 
opportunity to compete for contracts using program funds. 
"(5) Each State, with the assistance of the Secretary, shall establish 
a standard form of contract for use by service institutions and food 
service management companies. The Secretary shall prescribe require-
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1331 
merits governing bid and contract procedures for acquisition of the 
services of food service management companies, including, but not lim-
ited to, bonding requirements (which may provide exemptions appli-
cable to contracts of $100,000 or less), procedures for review of 
contracts by States, and safeguards to prevent collusive bidding activi-
ties between service institutions and food service management 
companies. 
"(m) States and service institutions participating in programs 
under this section shall keep such accounts and records as may be nec-
essary to enable the Secretary to determine whether there has been 
compliance with this section and the regulations issued hereunder. 
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. 
"(n) Each State desiring to participate in the program shall notify 
the Secretary by January 1 of each year of its intent to administer the 
program and shall submit for approval by February 15 a management 
and administration plan for the program for the fiscal year, which 
shall include, but not be limited to, (1) the State's administrative 
budget for the fiscal year, and the State's plans to comply with any 
standards prescribed by the Secretary under subsection (k) of this sec-
tion; (2) the State's plans for use of program funds and funds from 
within the State to the maximum extent practicable to reach needy 
children, including the State's methods for assessing need, and its 
plans and schedule for informing service institutions of the avail-
ability of the program; (3) the State's best estimate of the number and 
character of service institutions and sites to be approved, and of meals 
to be served and children to participate for the fiscal year, and a 
description of the estimating methods used; (4) the State's plans and 
schedule for providing technical assistance and training eligible serv-
ice institutions; (5) the State's schedule for application by service 
institutions; (6) the actions to be taken to maximize the use of meals 
prepared by service institutions and the use of school food service 
facilities; (7) the State's plans for monitoring and inspecting service 
institutions, feeding sites, and food service management companies and 
for ensuring that such companies do not enter into contracts for more 
meals than they can provide effectively and efficiently; (8) the State's 
plan and schedule for registering food service management companies; 
(9) the State's plan for timely and effective action against program 
violators; (10) the State's plan for determining the amounts of pro-
gram payments to service institutions and for disbursing such pay-
ments; (11) the State's plan for ensuring fiscal integrity by auditing 
service institutions not subject to auditing requirements prescribed 
by the Secretary; and (12) the State's procedure for granting a hear-
ing and prompt determination to any service institution wishing to 
appeal a State ruling denying the service institution's application for 
program participation or for program reimbursement. 
"(o)(l) Whoever, in connection with any application, procure-
ment, recordkeeping entry, claim for reimbursement, or other docu-
ment or statement made in connection with the program, knowingly 
and willfully falsifies, conceals, or covers up by any trick, scheme, or 
device a material fact, or makes any false, fictitious, or fraudulent state-
ments or representations, or makes or uses any false writing or docu-
ment knowing the same to contain any false, "fictitious, or fraudulent 
statement or entry, or whoever, in connection with the program, 
knowingly makes an opportunity for any person to defraud the United 
States, or does or omits to do any act with intent to enable any person 
Accounts and 
records, 
retention. 
Inspection and 
audit, 
availability. 
Management and 
administration 
plan, notification 
and submittal to 
Secretary. 
Penalties. 
91 STAT. 1332 
PUBLIC LAW 95-166—NOV. 10, 1977 
Appropriation 
authorization. 
to defraud the United States, shall be fined not more than $10,000 or 
imprisoned not more than five years, or both. 
"(2) Whoever being a partner, officer, director, or managing agent 
connected in any capacity with any partnership, association, corpora-
tion, business, or organization, either public or private, that receives 
benefits under the program, knowingly or willfully embezzles, mis-
applies, steals, or obtains by fraud, false statement, or forgery, any 
benefits provided by this section or any money, funds, assets, or prop-
erty derived from benefits provided by this section, shall be fined not 
more than $10,000 or imprisoned for not more than five years, or both 
(but, if the benefits, money, funds, assets, or property involved is not 
over $200. then the penalty shall be a fine of not more than $1,000 or 
imprisonment for not more than one year, or both). 
"(3) If two or more persons conspire or collude to accomplish any 
act made unlawful under this subsection, and one or more of such 
persons do any act to eifect the object of the conspiracy or collusion, 
each shall be fined not more than $10,000 or imprisoned for not more 
than five years, or both. 
"(p) For the fiscal years beginning October 1, 1977, and ending 
September 30, 1980, there are herebj?^ authorized to be aj)propriated 
such sums as are necessary to carry out the purposes of this section.". 
42 use 1754, 
1756, 1757, 
1760, 1766, 
1774. 
42 use 1754. 
42 use 1774. 
,i 
, 
CONFORMING AMENDMENT 
SEC. 3. The National School Lunch Act and the Child Nutrition Act 
of 1966 are each amended by striking out "nonfood assistance" each 
time such phrase appears in such Acts and by inserting in lieu thereof 
"food service equipment assistance". The heading of section 5 of the 
National School Lunch Act is amended to read "FOOD SERVICE EQUIP-
MENT ASSISTANCE", and the heading of section 5 of the Child Nutrition 
Act of 1966 is amended to read "FOOD SERVICE EQUIPMENT ASSISTANCE". 
eonditions. 
42 use 1774. 
State 
apportionment. 
.^S'liSi^S^ 
,, , _ 
FOOD SERVICE E Q U I P M E N T 
ASSISTANCE 
. 
iv 
-
SEC. 4. Section 5 of the Child Nutrition Act of 1966 is amended by— 
(1) striking out the last sentence of subsection (b) and insert-
ing in lieu thereof the following: "Payments to any State of funds 
apportioned under the provisions of this subsection for any fiscal 
year shall be made upon condition that at least one-fourth of the 
cost of equipment financed under this subsection shall be borne 
by funds from sources within the State, except that such condi-
tion shall not apply with respect to funds used under this section 
to assist schools that are especially needy, as determined by 
criteria to be established by each State and approved by the Secre-
tary. States shall apportion their share of funds under this sub-
section by giving priority to schools without a food service 
program and schools without the facilities to prepare and cook hot 
meals at the schools (including schools having equipment that 
is so antiquated or impaired as to endanger the continuation of 
an adequate food service program or the ability to prepare and 
cook hot meals) or at a kitchen that serves the schools and that 
is operated by the local school district or by a nonprofit private 
school or the authority that is responsible for the administration 
of one or more nonprofit private schools. After making funds 
available to such schools, the State shall make the remaining funds 
available to schools with a food service program and with the 
facilities to prepare and cook hot meals at the schools or at a 
kitchen that serves the schools and that is operated by the local 
school district or by a nonprofit private school or the authority 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1333 
Funds for States 
administered by 
Secretary, 
withholding. 
' * that is responsible for the administration of one or more nonprofit 
private schools, for the purpose of purchasing needed replace-
ment equipment."; 
(2) amending subsection (e) to read as follows: 
State 
"(e) For the fiscal years ending September 30, 1978, September 30, apportionment. 
1979, and September 30, 1980, 331/3 percent of the funds appropriated 
for the purposes of this section shall be reserved to the Secretary to 
assist schools without a food service program and schools without the 
facilities to prepare and cook hot meals or receive hot meals. The Sec-
retary shall apportion the funds so reserved among the States on the 
basis of the ratio of the number of children in each State enrolled in 
schools without a food service program and in schools without the 
facilities to prepare and cook hot meals or receive hot meals to the 
number of children in all States enrolled in schools without a food 
service program and in schools without the facilities to prepare and 
cook hot meals or receive hot meals. In those States in which the Secre-
tary administers the food service equipment assistance program in 
nonprofit private schools, the Secretary shall withhold from the funds 
apportioned to any such State under this subsection an amount which 
bears the same ratio to such funds as the number of children enrolled 
in nonprofit private schools without a food service program or without 
the facilities to prepare and cook hot meals or receive hot meals in such 
State bears to the total number of children enrolled in all schools with-
out a food service program or without the facilities to prepare and 
cook hot meals or receive hot meals in such State. The funds so 
reserved, apportioned, and withheld shall be used by the State, or the 
Secretary in the case of nonprofit private schools, only to assist schools 
without a food service program and schools without the facilities to 
prepare and cook hot meals or receive hot meals. If any State cannot 
use all the funds apportioned to it under the provisions of this sub-
section, the Secretary shall make further apportionment to the remain-
ing States for use only in assisting schools without a food service 
program and schools without the facilities to prepare and cook hot 
meals or receive hot meals. If after such further apportionment, any 
funds received under this subsection remain unused, the Secretary shall 
immediately apportion such funds among the States in accordance with 
the provisions of subsection (b) of this section. Payment to any State Condition, 
of funds under the provisions of this subsection shall be made upon the 
condition that at least one-fourth of the cost of the equipment financed 
shall be borne by funds from sources within the State, except that such 
condition shall not apply with respect to funds used under this sub-
section to assist schools that are especially needy, as determined by 
criteria established by each State and approved by the Secretary."; 
(3) adding at the end thereof a new subsection (f) to read as 
follows: 
"(f) (1) Funds authorized for the purposes of this section shall be 
5
; 
used only for facilities that enable schools, or local public or private 
nonprofit institutions under the conditions prescribed in paragraph 
(2) of this subsection, to prepare and cook hot meals or receive hot 
meals at the school or institution unless the school can demonstrate 
to the satisfaction of the State (or, in the case of nonprofit private 
schools in States where the Secretary administers the food service 
equipment program in such schools, to the satisfaction of the Secre-
tary) that an alternative method of meal preparation is necessary for 
the introduction or continued existence of the school lunch or break-
fast program in such school or to improve the consumption of food or 
the participation of eligible children in the program. 
"(2) If a school authorized to receive funds under this section 
91 STAT. 1334 
PUBLIC LAW 95-166—NOV. 10, 1977 
cannot establish a food service program of hot meals prepared and 
cooked by the school, or received by the school, and the school enters 
into an agreement with a public or private nonprofit institution to 
provide the school lunch or breakfast program for children attending 
T 'li-i, 
the school, the funds provided under this section may be used for food 
service facilities to be located at such institution, if (A) the school 
retains legal title to such facilities and, (B) in the case of funds made 
available under subsection (e) of this section, the institution would 
otherwise be without such facilities."; and 
(4) striking out the comma after "as amended" in subsection 
(a), inserting a period in lieu thereof, and striking out the remain-
der of the sentence. 
I
f 
J 
COMMODITY DISTRIBUTION PROGRAM 
; = 
Estimated 
SEC. 5. Section 6(b) of the National School Lunch Act is amended 
valuation. 
to read as follows: 
42 use 1755. 
"(b) Not later than May 15 of ea'ch school year, the Secretary shall 
make an estimate of the value of agricultural commodities and other 
foods that will be delivered during that school year to States for 
Payment. 
the school lunch program. If such estimated value is less than the 
total level of assistance authorized under subsection (e) of this section, 
the Secretary shall pay to each State educational agency, not later than 
June 15 of that school year, an amount of funds that is equal to the 
difference between the value of such deliveries as then programed 
for such State and the total level of assistance authorized under sub-
Funds for States 
sexition (e) of this section. In any State in which the Secretary directly 
administered by 
administers the school lunch program in any of the schools of the State, 
Secretary, 
tlie Secretary shall withhold from the funds to be paid to such State 
withholding. 
under the provisions of this subsection an amount that bears the same 
ratio to the total of such payment as the number of lunches served in 
schools in which the school lunch program is directly administered by 
the Secretary during thait school year bears to the total of such 1 unches 
served under the school lunch program in all the schools in such State 
in such school year. Each State educational agency, and the Secretary 
in the case of private schools in which the Secretary directly admin-
isters the school lunch program, shall promptly and equitably disburse, 
such funds to schools participating in the school lunch program, and 
such disbursements shall be used by such schools to purchase United 
States agricultural commodities and other foods for their food service 
program. Such foods shall be limited to the requirements for lunches 
and breakfasits for children as provided for in regulations issued by 
the Secretary.". 
42 u s e 1762a. 
Appropriation 
authorization. 
PURCHASE OF FOODS FOR THE COMMODITY DISTRIBUTIOX PROGRAM 
SEC. 6, Section 14 of the National School Lunch Act is amended by— 
(1) striking out "September 30, 1977" in subsection (a) and 
inserting in lieu thereof "September 30, 1982"; and 
(2) adding at the end thereof new subsections (c), (d), and (e) 
as follows: 
"(c) The Secretary may use funds appropriated from the general 
fund of the Treasury to purchase agricultural commodities and their 
products of the types customarily purchased for donation under section 
707(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 
3045f(a) (4)) or for cash payments in lieu of such donations under 
section 707(d)_(l) of such Act (42 U.S.C. 3045f (d) (1)). There are 
hereby authorized to be appropriated such sums as are necessary to 
carry out the purposes of this subsection. 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1335 
"(d) In providing assistance under this Act and the Child Nutrition 
Act of 1966 for school lunch and breakfast programs, the Secretary 
shall establish procedures which will— 
" (1) ensure that the views of local school districts and private 
nonprofit schools with respect to the type of commodity assistance 
needed in schools are fully and accurately reflected in reports to 
the Secretary by the State with respect to State commodity pref-
erences and that such views are considered by the Secretary in the 
purchase and distribution of commodities and by the States in 
the allocation of such commodities among schools within the 
States; 
"(2) solicit the views of States with respect to the acceptability 
of commodities; 
"(3) ensure that the timing of commodity deliveries to States 
is consistent with State school year calendars and that such 
deliveries occur with sufficient advance notice; 
"(4) provide for systemajtic review of the costs and benefits of 
providing commodities of the kind and quantity that are suitable 
to the needs of local school districts and private nonprofit schools; 
and 
" (5) make available technical assistance on the use of commodi-
ties available under this Act and the Child Nutrition Act of 1966. 
Within eighteen months after the date of the enactment of this sub-
section, the Secretary shall report to Congress on the impact of proce-
dures established under this subsection, including the nutritional, 
economic, and administrative benefits of such procedures. In purchas-
ing commodities for programs carried out under this Act and the 
Child Nutrition Act of 1966, the Secretary shall establish procedures 
to ensure that contracts for the purchase of such commodities shall 
not be entered into unless the previous history and current patterns of 
the contracting party with respect to compliance with applicable meat 
inspection laws and with other appropriate standards relating to the 
wholesomeness of food for human consumption are taken into 
account. 
"(e) Each State educational agency that receives food assistance 
payments under this section for any school year shall establish for such 
year an advisory council, which shall be composed of representatives 
of schools in the State that participate in the school lunch program. 
The council shall advise such State agency with respect to the needs 
of such schools relating to the manner of selection and distribution of 
commodity assistance for such program.". 
Assistance, 
procedures. 
42 use 1771 
note. 
Cost and benefits, 
review. 
Technical 
assistance. 
Report to 
Congress. 
Procedures. 
State advisory 
councils, 
establishment 
and membership. 
REFUSAL OP COMMODITIES 
SEC. 7. Section 6(a) of the National School Lunch Act is amended 42 USC 1755, 
by inserting immediately after the first sentence the following: "Any 
school participating in food service programs under this Act 
may refuse to accept delivery of not more than 20 percent of the total 
value of agricultural commodities and other foods tendered to it in 
any school year; and if a school so refuses, that school may receive, in 
lieu of the refused commodities, other commodities to the extent that 
other commodities are available to the State during that year.". 
ACCEPTANCE OF OFFERED FOODS 
SEC. 8. The third sentence of section 9(a) of the National School 
Lunch Act is amended to read as follows: "Students in senior high 
schools that participate in the school lunch program under this Act 
Senior high 
school students. 
42 USC 1758. 
91 STAT. 1336 
PUBLIC LAW 95-166—NOV. 10, 1977 
.
>
f - • 
(and, when approved by the local school district or nonprofit private 
i 
schools, students in any other grade level in any junior high school or 
'• ' 
middle school) shall not be required to accept offered foods they do 
not intend to consume, and any such failure to accept offered foods 
shall not affect the full charge to the student for a lunch meeting the 
requirements of this subsection or the amount of payments made under 
this Act to any such school for such lunch.". 
SPECIAL ASSISTANCE 
Appropriation 
SEC. 9. Section 11(a) of the National School Lunch Act is amended 
authorization. 
by inserting; immediately after the first sentence the following new 
4z U31. iit>^a. 
sentences: "In the case of any school which determines that at least 
80 percent of the children in attendance during a school year (herein-
after in this sentence referred to as the 'first school year') are eligible 
for free lunches or reduced-price lunches, special-assistance payments 
9in 
rifsv 
' 
shall be paid to the State educational agency with respect to that 
school, if that school so requests for the school year following the first 
school year, on the basis of the number of free lunches or reduced-price 
lunches, as the case may be, that are served by that school during 
I, 
the school year for which the request is made, to those children who 
were determined to be so eligible in the first school year and the number 
of free lunches and reduced-price lunches served during that year to 
i
t , 
other children determined for that year to be eligible for such lunches. 
In the case of any school that (1) elects to serve all children in that 
. 
school free lunches under the.school lunch program during any period 
\^ 
of three successive school years and (2) pays, from sources other than 
^ ^ 
Federal funds, for the costs of serving such lunches which are in 
excess of the value of assistance received under this Act with respect to 
the number of lunches served during that period, special-assistance 
payments shall be paid to the State educational agency with respect 
to that school during that period on the basis of the number of lunches 
determined under the succeeding sentence. For purposes of making 
special-assistance payments in accordance with the preceding sen-
tence, the number of lunches served by a school to children eligible for 
free lunches and reduced-price lunches during each school year of the 
three-school-year period shall be deemed to be the number of lunches 
served by that school to children eligible for free lunches and reduced-
price lunches during the first school year of such period, unless that 
school elects, for purposes of computing the amount of such payments, 
to determine on a more frequent basis the number of children eligible 
for free and reduced-price lunches who are served lunches during such 
period.". 
PILOT PROJECTS 
SEC. 10. The National School Lunch Act is amended by— 
42 use 1755. 
(1) inserting in section 6(a)(3) immediately after "par-
ticipants in these programs" the following: ", for pilot projects 
and the cash-in-lieu of commodities study required to be carried 
out under section 20 of this Act,"; and 
(2) adding at the end thereof a new section 20 as follows: 
a PILOT PROJECTS 
42 use 1769. 
"SEC. 20. (a) The Secretary shall conduct pilot projects with respect 
to local school districts or other appropriate units, or groups of pro-
gram participants, for the purpose of determining whether there may 
: 
be more efficient, healthful, economical, and reliable methods of 
operating school lunch, school breakfast, and summer feeding pro-
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1337 
grams under this Act and the Child Nutrition Act of 1966, and 42 USC 1771 
methods for operating such programs that will result in improved '
l
o
*
®
-
delivery of benefits thereunder in accordance with the purposes of 
such Acts. Such projects shall, notwithstanding any other provision Project contents, 
of law, include (1) not more than ten projects providing participating 
schools or other institutions the option of receiving all or part cash 
assistance in lieu of commodities under such Acts for such nutrition 
programs operated in such schools or institutions, (2) projects designed 
to streamline or reduce reporting requirements by local school dis-
tricts, and (3) projects using the United States Department of Agri-
culture Extension Service to aid in nutrition training and education 
in schools and other institutions. 
"(b) The Secretary shall conduct a study to analyze the impact and Study, 
effect of cash payments in lieu of commodities. The study shall be 
limited to a comparison between a State that phased out its commodity 
distribution facilities prior to June 30,1974, and elected to receive cash 
payments in lieu of donated foods, and a State not eligible for cash 
payments in lieu of donated foods. Such study shall include an assess-
ment of the administrative feasibility and nutritional impact of cash 
payments in lieu of donated foods, the cost savings, if any, that may 
be effected thereby at the Federal, State, and local levels, any addi-
tional costs that may be placed on programs and participating stu-
dents, the impact on Federal programs designed to provide adequate 
income to farmers, the impact on the quality of food served, and the 
impact on plate waste in school lunch and breakfast programs. 
"(c) The Secretary shall report to Congress, not later than eighteen Report to 
months after the date of the enactment of this section, on the results of Congress, 
the pilot projects and study conducted under this section. In connec- Contents, 
tion with such pilot projects, such report shall include an assessment 
of the methods employed in such projects for operating school lunch, 
school breakfast, and summer feeding programs, in terms of the fol-
lowing factors— 
"(1) the administrative feasibility and nutritional impact; 
"(2) the cost savings that may be effected at Federal, State, 
^ 
and local levels; 
"(3) the impact on Federal programs designed to provide ade-
quate income to farmers; 
" (4) the impact on the quality of food served; and 
"(5) the impact on plate waste.". 
SPECIAL, MILK PROGRAM 
SEC. 11. The fifth sentence of section 3 of the Child Nutrition Act of 
1966 is amended to read as follows: "Children who qualify for free 42 USC 1772 
lunches under guidelines set forth by the Secretary shall also be eligi-
ble for free milk, when milk is made available at times other than the 
periods of meal service in outlets that operate a food service program 
under sections 4 and 17 of the National School Lunch Act and section 
4 of this Act.". 
SCHOOL BREAKFAST 
PROGRAM 
42 USC 1753. 
42 USC 1766. 
Infra. 
SEC. 12. Section 4 of the Child Nutrition Act of 1966 is amended 42 USC 1773. 
by-
(1) inserting "(1)" after the subsection designation for sub-
section (b); 
(2) striking out the last sentence in subsection (b); and 
(3) adding at the end of subsection (b) a new paragraph (2) 
as follows: 
91 STAT. 1338 
PUBLIC LAW 95-166—NOV. 10, 1977 
Additional 
payments, severe 
need. 
Maximum 
payment, free 
breakfast. 
Maximum 
payment, reduced 
price breakfast. 
Severe need 
assistance, 
eligibility. 
42 u s e 1759a. 
42 u s e 1773. 
"(2) (A) The Secretary shall make additional payments for break-
fasts served to children qualifying for a free or reduced-price meal at 
schools that are in severe need. 
"(B) The maximum payment for each such free breakfast shall be 
the higher of— 
" (i) the national average payment established by the Secretary 
for free breakfasts plus 10 cents, or 
"(ii) 45 cents, which shall be adjusted on a semiannual basis 
each July 1 and January 1 to the nearest one-fourth cent in 
accordance with changes in the series for food away from home 
of the Consumer Price Index published by the Bureau of Labor 
Statistics of the Department of Labor for the most recent six-
month period for which such data are available, except that the 
initial such adjustment shall be made on January 1, 1978, and 
shall reflect the change in the series of food away from home dur-
ing the period November 1,1976, to October 31,1977. 
"(C) The maximum payment for each such reduced-price break-
fast shall be five cents less than the maximum payment for each free 
breakfast as determined under clause (B) of this paragraph."; and 
(4) amending subsection (d) to read as follows: 
"(d) Each State educational agency shall establish eligibility stand-
ards for providing additional assistance to schools in severe need where 
the rate per meal established by the Secretary is insufficient to carry 
out an effective breakfast program in such a school. Such eligibility 
standards shall be submitted to the Secretary for approval and 
included in the State plan of child nutrition operations required by 
section 11(e) (1) of the National School Lunch Act. Pursuant to those 
State eligibility standards, a school, upon the submission of appro-
priate documentation about the need circumstances in that school and 
the school's eligibility for additional assistance, shall be entitled to 
receive 100 percent of the operating costs of the breakfast program, 
including the costs of obtaining, preparing, and serving food, or the 
meal reimbursement rate specified in paragraph (2) of section 4(b) 
of this Act, whichever is less.". 
42 u s e 1769a. 
42 u s e 1771 
note. 
Report to 
eongress. 
REDUCTION OF PAPERWORK 
SEC. 13. The National School Lunch Act is amended by adding at 
the end thereof a new section 21 as follows: 
"REDUCTION OF PAPERWORK 
"SEC. 21. In carrying out functions under this Act and the Child 
Nutrition Act of 1966, the Secretary shall reduce, to the maximum 
extent possible, the paperwork required of State and local educational 
agencies, schools, and other agencies participating in child nutrition 
programs under such Acts. The Secretary shall report to Congress 
not later than one year after the date of enactment of this section 
on the extent to which a reduction in such paperwork has occurred.". 
STATE ADMINISTRATIVE EXPENSES 
42 use 1776. 
42 use 1751 
note. 
SEC. 14. Section 7 of the Child Nutrition Act of 1966 is amended to 
read as follows: 
"SEC. 7. (a) (1) The Secretary shall pay to each State for its 
administrative costs incurred pursuant to the administration of this 
Act and the National School Lunch Act for the fiscal year ending 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1339 
September 30, 1978, an amount equal to 1 percent, and for each of the 
fiscal years ending September 30, 1979, and September 30, 1980, an 
amount not less than 1 percent and not greater than li/^ percent of the 
funds used by each State under sections 4, 11, and 17 of the National 
School Lunch Act and under sections 3, 4, and 5 of this Act during the 
second fiscal year preceding the fiscal year for which the amounts are 
to be paid: Provided^ That in no case shall the payment to any 
State under this section be less than $75,000 per year nor shall any 
State receive less than the amount allocated to it for fiscal year 1977. 
The percentages specified in the foregoing sentence shall apply only 
to the first $100,000,000 in funds used under the prescribed sections 
of law. For those funds used that exceed $100,000,000, the Secretary 
shall pay an amount equal to 1 percent of such funds. 
"(2) The Secretary shall make aA^ailable to States administering 
the child care food program, for the purpose of conducting audits of 
participating child care institutions, an amount up to 2 percent of the 
funds used by each State under section 17 of the National School 
Lunch Act during the second fiscal year preceding the fiscal year for 
which the amount is to be paid. 
"(b) The Secretary, in cooperation with the several States, shall 
develop State staffing standards for the administration by each State 
of sections 4,11, and 17 of the National School Lunch Act, and sections 
3, 4, and 5 of this Act, that will ensure sufficient staff for the planning 
and administration of programs covered by State administrative 
expenses. 
"(c) Funds paid to a State under subsection (a) of this section may 
be used to pay salaries, including employee benefits and travel 
expenses, for administrative and supervisory personnel; for support 
services; for office equipment; and for staff development. 
"(d) If any State agency agrees to assume responsibility for the 
administration of food service programs in nonprofit private schools 
or child care institutions that were previously administered by the 
Secretary, an appropriate adjustment shall be made in the adminis-
trative funds paid under this section to the State not later than the 
succeeding fiscal year. 
"(e) Notwithstanding any other provision of law, funds available 
to each State under this section for fiscal year 1978 that are not 
obligated or expended in that fiscal year shall remain available for 
obligation and expenditure by that State in fiscal year 1979. For fiscal 
year 1979, and the succeeding fiscal year, the Secretary shall establish 
a date by which each State shall submit to the Secretary a plan for 
the disbursement of funds provided under this section for each such 
year, and the Secretary shall reallocate any unused funds, as evidenced 
by such plans, to other States as the Secretary deems appropriate. 
"(f) The State may use a portion of the funds available under this 
section to assist in the administration of the commodity distribution 
program. 
"(g) Each State shall submit to the Secretary for approval by 
October 1 of each year an annual plan for the use of State adminis-
trative expense funds, including a staff formula for State personnel, 
system level supervisory and operating personnel, and school level 
personnel. 
"(h) Payments of funds under this section shall be made only to 
States that agree to maintain a level of funding out of State reve-
nues, for administrative costs in connection with programs under this 
Act (except section 17 of this Act) and the National School Lunch 
42 u s e 1753, 
1759a, 1766. 
42 use 
1772-1775. 
Minimum 
payment. 
Audit expenses. 
42 u s e 1766. 
Staffing 
standards. 
42 
use 
1753, 
1759a, 1766. 
42 use 
1772-1775. 
Funds, usage. 
Fund adjustment. 
State 
administered 
programs. 
Unused funds. 
State plan, use of 
funds. 
State funding 
requirement. 
42 u s e 1786. 
91 STAT. 1340 
PUBLIC LAW 95-166—NOV. 10, 1977 
42 use 1761. 
Act (except section 13 of that Act), not less than the amount expended 
or obligated in fiscal year 1977. 
Appropriation 
"(i) For the fiscal years beginning October 1,1977, and ending Sep-
authorization. 
tember 30, 1980, there are hereby authorized to be appropriated such 
sums as may be necessary for the purposes of this section.". 
NUTRITION EDUCATION AND TRAINING 
SEC. 15. Tlie Child Nutrition Act of 1966 is amended by adding at 
the end thereof a new section 19 as follows: 
" N U T R I T I O N 
EDUCATION AND TRAINING 
42 use 1788. 
"SEC. 19. (a) Congress finds that— 
"(1) the proper nutrition of the Nation's children is a matter of 
highest priority; 
"(2) the lack of understanding of the principles of good nutrition 
and their relationship to health can contribute to a child's rejection 
' 
of highly nutritious foods and consequent plate waste in school food 
service operations; 
"(3) many school food service personnel have not had adequate 
training in food service management skills and principles, and many 
teachers and school food service operators have not had adequate 
training in the fundamentals of nutrition or how to convey this 
information so as to motivate children to practice sound eating habits; 
"(4) parents exert a significant influence on children in the devel-
opment of nutritional habits and lack of nutritional knowledge on the 
part of parents can have detrimental effects on children's nutritional 
development; and 
"(5) there is a need to create opportunities for children to learn 
• 
about the importance of the principles of good nutrition in their daily 
lives and how these principles are applied in the school cafeteria. 
u 
PURPOSE 
"(b) It is the purpose of this section to encourage effective dissemi-
nation of scientifically valid information to children participating or 
eligible to participate in the school lunch and related child nutrition 
programs by establishing a system of grants to State educational 
agencies for the development of comprehensive nutrition information 
and education programs. Such nutrition education programs shall 
fully use as a learning laboratory the school lunch and child nutrition 
programs. 
"DEFINITIONS 
"(c) For purposes of this section, the term 'nutrition information 
and education program' means a multidisciplinary program by which 
scientifically valid information about foods and nutrients is imparted 
in a manner that individuals receiving such information will under-
stand the principles of nutrition and seek to maximize their well-being 
through food consumption practices. Nutrition education programs 
shall include, but not be limited to, (A) instructing students with 
regard to the nutritional value of foods and the relationship between 
food and human health; (B) training school food service personnel 
in the principles and practices of food service management; (C) 
instructing teachers in sound principles of nutrition education; and 
(D) developing and using classroom materials and curricula. 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1341 
; ; ; . i u H T JK 
" N U T R I T I O N 
INFORMATION AND TRAINING 
"(d)(1) The Secretary is authorized to formulate and carry out 
ia nutrition information and education program, through a system 
of grants to State educational agencies, to provide for (A) the nutri-
tional training of educational and food service personnel, (B) the 
food service management training of school food service personnel, 
and (C) the conduct of nutrition education activities in scnools and 
child care institutions. 
"(2) The program is to be coordinated at the State level with other 
nutrition activities conducted by education, health, and State Coop-
erative Extension Service agencies. In formulating the program, the 
Secretary and the State may solicit the advice and recommendations 
of the National Advisory Council on Child Nutrition; State educa-
tional agencies; the Department of Health, Education, and Welfare ; 
and other interested groups and individuals concerned with improve-
ment of child nutrition. 
"(3) If a State educational agency is conducting or applying to 
conduct a health education program which includes a school-related 
nutrition education component as defined by the Secretary, and that 
health education program is eligible for funds under programs admin-
istered by the Department of Health, Education, and Welfare, the 
Secretary may make funds authorized in this section available to the 
Department of Health, Education, and Welfare to fund the nutrition 
education component of the State program without requiring an 
additional grant application. 
" (4) The Secretary, in carrying out the provisions of this subsec-
tion, shall make grants to State educational agencies who, in turn, 
may contract with land-grant colleges eligible to receive funds under 
the Act of July 2, 1862 (12 Stat. 503, as amended; 7 U.S.C. 301-305, 
307, and 308), or the Act of August 30,1890 (26 Stat. 417, as amended; 
7 U.S.C. 321-326 and 328), including the Tuskegee Institute, other 
institutions of higher education, and nonprofit organizations and agen-
cies, for the training of educational and school food service personnel 
with respect to providing nutrition education programs in schools and 
the training of school food service personnel in school food service 
management. Such grants may be used to develop and conduct training 
programs for early childhood, elementary, and secondary educational 
E
ersonnel and food service personnel with respect to the relationship 
etween food, nutrition, and health; educational methods and tech-
niques, and issues relating to nutrition education; and principles and 
skills of food service management for cafeteria personnel. 
"(5) The State, in carrying out the provisions of this subsection, 
mav contract with State and local educational agencies, land-grant 
colleges eligible to receive funds under the Act of July 2, 1862 (12 
Stat. 503, as amended; 7 U.S.C. 301-305, 307, and 308), or the act of 
August 30,1890 (26 Stat. 417, as amended; 7 U.S.C. 321-326 and 328) j 
including the Tuskegee Institute, other institutions of higher educa-
tion, and other public or private nonprofit educational or research 
agencies, institutions, or organizations to pay the cost of pilot demon-
stration projects in elementary and secondary schools with respect to 
nutrition education. Such projects may include, but are not limited 
to, projects for the development, demonstration, testing, and evalua-
tion of curricula for use in early childhood, elementary, and secondary 
education programs. 
"(6) Notwithstanding any other provision of this section, if, in any 
State, the State educational agency is prohibited by law from admin-
istering the program authorized by this section iii nonprofit private 
Grants. 
Coordination 
with other 
nutrition 
activities. 
Coordination 
with HEW. 
Transfer of funds. 
Nutrition 
training. 
Grants. 
State contractci. 
Pilot projects. 
State contractsi. 
Private schools, 
program 
administration. 
91 STAT. 1342 
PUBLIC LAW 95-166—NOV. 10, 1977 
Planning and 
assessment 
grants. 
Administrative 
expenses. 
schools and institutions, the Secretary may administer the program 
with respect to such schools and institutions. 
"AGREEMENTS WITH STATE AGENCIES 
"(e) The Secretary is authorized to enter into agreements with 
State educational agencies incorporating the provisions of this section, 
and issue such regulations as are necessary to implement this section. 
a-
USE OF FUNDS 
"(f)(1) The funds made available under this section may, under 
guidelines established by the Secretary, be used by State educational 
agencies for (A) employing a nutrition education specialist to coordi-
nate the program, including travel and related personnel costs; (B) 
undertaking an assessment of the nutrition education needs of the 
State; (C) developing a Stat« plan of operation and management for 
nutrition education; (D) applying for and carrying out planning and 
assessment grants; (E) pilot projects and related purposes; (F) the 
planning, development, and conduct of nutrition education programs 
and workshops for food service and educational personnel; (G) coor-
dinating and promoting nutrition information and education activi-
ties in local school districts (incorporating, to the maximum extent 
practicable, as a learning laboratory, the child nutrition programs); 
(H) contracting with public and private nonprofit educational institu-
tions for the conduct of nutrition education instruction and programs 
relating to the purposes of this section; and (I) related nutrition edu-
cation purposes, including the preparation, testing, distribution, and 
evaluation of visual aids and other informational and educational 
materials. 
"(2) Any State desiring to receive grants authorized by this section 
may, from the funds appropriated to carry out this section, receive 
a planning and assessment grant for the purposes of carrying out the 
responsibilities described in clauses (A), (B), (C), and (D) of para-
graph (1) of this subsection. Any State receiving a planning and 
assessment grant, may, during the first year of participation, be 
advanced a portion of the funds necessary to carry,out such responsi-
bilities: Provided, That in order to receive additional funding, the 
State must carry out such responsibilities. 
"(3) An amount not to exceed 15 percent of each State's grant may 
be used for up to 50 percent of the expenditures for overall admin-
istrative and supervisory purposes in connection with the program 
authorized under this section. 
"(4) Nothing in this section shall prohibit State or local educa-
tional agencies from making available or distributing to adults nutri-
tion education materials, resources, activities, or programs authorized 
under this section. 
"ACCOUNTS, RECORDS, AND REPORTS 
"(g) (1) State educational agencies participating in programs under 
this section shall keep such accounts and records as may be necessary 
to enable the Secretary to determine whether there has been compli-
ance with this section and the regulations issued hereunder. 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 deter-
mines to be necessary. 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1343 
"(2) State educational agencies shall provide reports on expendi-
tures of Federal funds, program participation, program costs, and 
related matters, in such form and at such times as the Secretary may 
prescribe. 
'STATE COORDINATORS FOR N U T R I T I O N ; 
STATE P L A N 
State 
coordinators for 
nutrition. 
Contents. 
"(h)(1) In order to be eligible for assistance under this section, 
a State shall appoint a nutrition education specialist to serve as a 
State coordinator for school nutrition education. It shall be the respon-
sibility of the State coordinator to make an assessment of the nutrition 
education needs in the State as provided in paragraph (2) of this sub-
section, prepare a State plan as provided in paragraph (3) of this 
subsection, and coordinate programs under this Act with all other 
nutrition education programs provided by the State with Federal or 
State funds. 
"(2) Upon receipt of funds authorized by this section, the State 
coordinator shall prepare an itemized budget and assess the nutrition 
education needs of the State. Such assessment shall include, but not 
be limited to, the identification and location of all students in need 
of nutrition education. The assessment shall also identify State and 
local individual, group, and institutional resources within the State 
for materials, facilities, staffs, and methods related to nutrition 
education. 
" (3) Within nine months after the award of the planning and assess- State plan, 
nient grant, the State coordinator shall develop, prepare, and furnish 
the Secretary, for approval, a comprehensive plan for nutrition edu-
cation within such State. The Secretary shall act on such plan not later 
than sixty days after it is received. Each such plan shall describe (A) 
the findings of the nutrition education needs assessment within the 
State; (B) provisions for coordinating the nutrition education pro-
gram carried out with funds made available under this section with 
any related publicly supported programs being carried out within the 
State; (C) plans for soliciting the advice and recommendations of the 
National Advisory Council on Child Nutrition, the State educational 
agency, interested teachers, food nutrition professionals and para-
professionals, school food service personnel, administrators, repre-
sentatives from consumer groups, parents, and other individuals 
concerned with the improvement of child nutrition; (D) plans for 
reaching all students in the State with instruction in the nutritional 
value of foods and the relationships among food, nutrition, and health, 
for training food service personnel in the principles and skills of food 
service management, and for instructing teachers in sound principles 
of nutrition education; and (E) plans for using, on a priority basis, 
the resources of the land-grant colleges eligible to receive funds under 
the Act of July 2, 1862 (12 Stat. 503; 7 U.S.C. 301-305, 307, and 308), 
or the Act of August 30, 1890 (26 Stat. 417, as amended; 7 U.S.C. 
321-326 and 328), including the Tuskegee Institute. To the maximum 
extent practicable, the State's performance under such plan shall be 
reviewed and evaluated by the Secretary on a regular basis, including 
the use of public hearings. 
Review. 
Hearings. 
APPROPRIATIONS 
AUTHORIZED 
"(]") (1) For the fiscal years beginning October 1, 1977, and Octo- FY 1977 and 
ber 1,1978, grants to the States for the conduct of nutrition education 1978. 
and information programs shall be based on a rate of 50 cents for each 
91 STAT. 1344 
PUBLIC LAW 95-166—NOV. 10, 1977 
child enrolled in schools or in institutions within the State, except that 
no State shall receive an amount less than $75,000 per year. 
FY 1979. 
"(2) For the fiscal year beofinning October 1, 1979, there is hereby 
authorized to be appropriated for grants to each State for the con-
duct of nutrition education and information programs, an amount 
equal to the higher of (A) 50 cents for each child enrolled in schools 
or in institutions within each State, or (B) $75,000 for each State. 
Grants to each State from such appropriations shall be based on a rate 
of 50 cents for each child enrolled in schools or in institutions within 
such State, except that no State shall receive an amount less than 
$75,000 for that year. If funds appropriated for such year are insuf-
ficient to pay the amount to which each State is entitled under the 
preceding sentence, the amount of such grant shall be ratably reduced 
to the extent necessary so that the total of such amounts paid does 
not exceed the amount of appropriated funds. If additional funds 
become available for making such payments, such amounts shall be 
increased on the same basis as they were reduced. 
Enrollment data. 
"(3) Enrollment data used for purposes of this subsection shall be 
the latest available as certified by the Office of Education of the Depart-
ment of Health, Education, and Welfare.". 
NATIONAL ADVISORY COUNCIL ON CHILD 
NUTRITION 
42 use 1763. 
SEC 16. Section 15 of the National School Lunch Act is amended 
i>y- 
. . 
. 
(1) striking out in the first sentence "fifteen" and inserting in 
lieu thereof "nineteen"; 
(2) inserting immediately after "classroom teacher," in the 
second sentence the following: "two members shall be parents 
of children in schools that participate in the school lunch program 
under this Act, two members shall be senior high school students 
who participate in the school lunch program under this Act,"; 
(3) amending subsection (b) to read as follows: 
Term. 
"(b) The fifteen members of the Council appointed from outside 
the Department of Agriculture shall be appointed for terms of two 
years, except that the appointments for 1978 shall be made as follows: 
Two replacements, one parent, and one senior high school student shall 
be appointed for terms of two years; and two replacements, one par-
ent, and one senior high school student shall be appointed for terms of 
one year. Thereafter, all appointments shall be for a term of two years, 
except that a person appointed to fill an unexpired term shall serve 
only for the remainder of such term. Parents and senior high school 
students appointed to the Council shall be members of State or school 
district child nutrition councils or committees actively engaged in 
providing program advice and guidance to school officials administer-
ing the school lunch program. Such appointments shall be made in a 
manner to balance rural and urban representation between parents 
and students. Members appointed from the Department of Agricul-
ttire shall serve at the pleasure of the Secretary."; and 
Personal 
(4) striking out the period at the end of subsection (h) and 
expenses, 
inserting in lieu thereof the following: ": Provided^ That mem-
compensation. 
h^x'S. serving as parents, in addition to reimbursement for neces-
sary travel and subsistence, shall, at the discretion of the 
Secretary, be compensated for other personal expenses related to 
^ 
participation on the Council, such as child care expenses and lost 
wages during scheduled Council meetings.". 
PUBLIC LAW 95-166—NOV. 10, 1977 
91 STAT. 1345 
REGULATIONS ON SALE OF COMPETITIVE FOODS 
SEC. 17. Section 10 of the Child Nutrition Act of 1966 is amended 42 USC 1779. 
by inserting "approved by the Secretary" after "competitive foods" 
in the second sentence. 
NATIONAL ADVISORY COUNCIL ON THE SPECIAL SUPPLEMENTAL FOOD 
PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
SEC. 18. Section 17(h)(8) of the Child Nutrition Act of 1966 is 
amended by striking out the period at the end thereof and inserting in 
lieu thereof the following: ": Provided^ That parent recipient mem-
bers of the Council, in addition to reimbursement for necessary travel 
and subsistence, shall, at the discretion of the Secretary, be compen-
sated for other personal expenses related to participation on the Coun-
cil, such as child care expenses and lost wages during scheduled 
Council meetings.". 
42 USC 1786. 
TECHNICAL AMENDMENTS TO THE NATIONAL SCHOOL LUNCH ACT 
SEC. 19. Effective July 1, 1977, the National School Lunch Act is 
amended by— 
(a) striking out "fiscal" the second and third time that word appears 
in section 6(e) of the Act and inserting in lieu thereof "school"; 
(b) amending section 7 of the Act as follows: 
(1) by amending the first sentence to read as follows: "Funds 
appropriated to carry out section 4 or 5 during any fiscal yeq,r 
shall be available for payment to the States for disbursement by 
State educational agencies, in accordance with such agreements, 
not inconsistent with the provisions of this Act, as may be entered 
into by the Secretary and such State educational agencies, for the 
purpose of assisting schools of the States in supplying (1) agri-
cultural commodities and other foods for consumption by chil-
dren and (2) food service equipment assistance in furtherance of 
the school lunch program authorized under this Act."; 
(2) by striking out "fiscal" the second time that word appears 
in the third sentence and inserting in lieu thereof "fiscal or 
school"; 
(3) by striking out "fiscal" in the fourth sentence and insert-
ing in lieu thereof "fiscal or school"; 
(4) by amending the sixth sentence to read as follows: "For 
the school year beginning in 1976, State revenue (other than 
revenues derived from the program) appropriated or used spe-
cifically for program purposes (other than salaries and adminis-
trative expenses at the State, as distinguished from local, level) 
shall constitute at least 8 percent of the matching requirement 
for the preceding school year, or, at the discretion of the Secre-
tary, fiscal year, and for each school year thereafter, at least 10 
percent of the matching requirement for the preceding school 
year."; 
(c) inserting at the end of section 12(d) of the Act a new para-
graph (7) as follows: 
"(7) 'School year' means the annual period determined in 
accordance with regulations issued by the Secretary."; and 
(d) striking out "fiscal year" each time that phrase appears in the 
last sentence of section 17(e) of the Act and inserting in lieu thereof 
"school year". 
Effective date. 
42 USC 1755. 
Payments to 
States. 
42 USC 1756. 
42 USC 1753, 
1754. 
42 USC 1756. 
"School year." 
42 USC 1760. 
42 USC 1766. 
91 STAT. 1346 
PUBLIC LAW 95-166—NOV. 10, 1977 
Effective date. 
42 u s e 1772. 
42 u s e 1774. 
"School year." 
42 u s e 1784. 
42 u s e 1786. 
TECHNICAL AMENDMENTS TO THE CHnjD NUTRITION ACT OF 
1966 
SEC. 20. Ejffective July 1, 1977, the Child Nutrition Act of 1966 is 
amended by— 
(1) striking out "fiscal" the second and third time that word 
appears in the sixth sentence of section 3 of the Act and inserting 
in lieu thereof "school"; 
(2) striking out "thereafter, beginning with the fiscal year 
ending June 30, 1976," in the sixth sentence of section 3 of the 
Act; 
(3) striking out "fiscal" the first and second time that word 
appears in section 5(b) of the Act and inserting in lieu thereof 
"school"; 
(4) striking out "fiscal" each place that word appears in sec-
tion 5(d) of the Act and inserting in lieu thereof "school"; 
(5) inserting at the end of section 15 of the Act the following 
new paragraph (e): 
"(e) 'School year' means the annual period determined in accord-
ance with regulations issued by the Secretary."; and 
(6) striking out "by January 1 of each year (by December 1 
in the case of fiscal year 1976)" in the second sentence of section 
17(d) of the Act and inserting in lieu thereof "each year by not 
later than a date specified by the Secretary". 
Approved November 10, 1977. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-281 (eomm. on Education and Labor) and No. 95-708 
(eomm. of eonference). 
SENATE REPORTS: No. 95-277 accompanying S. 1420 (eomm. on Agriculture, 
Nutrition, and Forestry) and No. 95-504 (eomm. of eonference). 
eONGRESSIONAL REeORD, Vol. 123 (1977):-
May 18, considered and passed House. 
l^- 
June 30, considered and passed Senate, amended, in lieu of S. 1420. 
Oct. 27, House agreed to conference report. 
Oct. 28, Senate agreed to conference report.