A bill to amend the National School Lunch Act to require eligibility for free lunches to be based on the nonfarm income poverty guidelines prescribed by the Office of Management and Budget.
PL 100-356 (S.2156), enacted 06/28/1988

PUBLIC LAW 100-356—JUNE 28, 1988 
102 STAT. 669 
Public Law 100-356 
100th Congress 
An Act 
To amend the National School Lunch Act to require eligibility for free lunches to be 
based on the nonfarm income poverty guidelines prescribed by the Office of 
Management and Budget. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. FREE LUNCH PROGRAM ELIGIBILITY. 
Section 9(bXlXA) of the National School Lunch Act (42 U.S.C. 
1758(b)(lXA)) is amended— 
(1) in the second sentence, by striking out "For the school 
years ending June 30, 1982, and June 30, 1983, the" and insert-
ing in lieu thereof "The"; and 
(2) by striking out the third sentence. 
SEC. 2. COMPUTATION OF CASH COMPENSATION TO DISTRICTS UNDER 
SECTION 14(g)(3) OF THE NATIONAL SCHOOL LUNCH ACT. 
(a) IN GENERAL.—Section 14(gX3XA) of the National School Lunch 
Act (42 U.S.C. 1762a(gX3XA)) is amended by adding at the end 
thereof the following new sentences: "The Secretary, in computing 
losses sustained by any school district under the preceding sentence, 
shall base such computation on the actual amount of assistance 
received by such school district under this Act for the school year 
ending June 30,1982, including— 
"(i) the value of assisteince in the form of commodities pro-
vided in addition to those provided pursuant to section 6(e) of 
this Act; and 
"(ii) the value of assistance provided in the form of either cash 
or commodity letters of credit. 
The Secretary may provide cash compensation under this subpara-
graph only to eligible school districts that submit applications for 
such compensation not later than May 1,1988.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 14(gX3XB) of the 
National School Lunch Act (42 U.S.C. 1762a(gX3XB)) is amended by 
striking out "$50,000" and inserting in lieu thereof "such sums £is 
may be necessary". 
(c) TIME FOR PAYMENT OF CLAIMS.—Section 14(gX3XA) of the Na-
tional School Lunch Act (42 U.S.C. 1762a(gX3XA)) is amended by 
adding at the end thereof the following new sentence: "The Sec-
retary shall complete action on any claim submitted under this 
subparagraph not later than 45 days after the date of the enactment 
of this sentence.". 
SEC. 3. FUNDS FOR NUTRITION SERVICES AND ADMINISTRATION. 
(a) CONVERSION OF FUNDS.—Section 17(hX5) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(hX5)) is amended by adding at the end 
thereof the following new subparagraphs: 
"(D) Following the implementation of an approved cost-saving 
strategy identified in subsection (hX5XA), a State agency may con-
June 28, 1988 
[S. 2156] 
State and local 
governments. 
102 STAT. 670 
PUBLIC LAW 100-356—JUNE 28, 1988 
vert, in addition to funds otherwise converted to nutrition services 
and administration funds under subparagraphs (A), (B), and (C) of 
subsection (hX5), food funds initially allocated to the State agency 
for program food purchases to nutrition services and administration 
funds. The amount of funds converted shall be limited to an amount 
sufficient to ensure that there is no more than a 2 percent annual 
decrease in the State agency's administrative grant per person if a 
larger decrease would otherwise result from increased program 
participation due to the cost-saving system of the State. 
"(E) For each such State agency, the total amount of funds 
transferred from any fiscal year shall not exceed the amounts set 
forth in section 17(iX3XD).". 
(b) COST-SAVINGS SYSTEMS.—Section 17(iX3) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(iX3)) is amended by adding at the end 
thereof the following new subparagraph: 
"(D) For State agencies implementing approved cost-savings 
strategies as identified in subsection (hXSXA), not more than 5 
percent of the amount of funds allocated under this section to such a 
State agency for supplemental foods for the fiscal year in which the 
system is implemented, and at the discretion of the Secretary, up to 
5 percent of the amount of funds allocated to such a State agency for 
the fiscal year following the fiscal year in which the system is 
implemented, may be expended by the State agency for expenses 
incurred under this section for supplemental foods during the 
succeeding fiscal year.". 
Approved June 28, 1988. 
LEGISLATIVE HISTORY—S. 2156: 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
May 27, considered and passed Senate. 
June 13, considered and passed House.