Funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be available for child feeding programs and nutritional programs authorized by law in the School Lunch Act, as amended, and the Child Nutrition Act, as amended, in the amount of $15,000,000 for the current fiscal year in addition to amounts heretofore provided for such purposes. Explanation of Language The proposed language would provide an additional $15,000,000 for the School Food Service Program. Purpose and Need for Supplemental Funds This requested increase of $15,000,000 will finance the additional cost of free or reduced-price lunches. It is necessary because sections 3 and 9 of Public Law 93-150 provide higher reimbursement rates for free and reduced-price lunchés, semi-annual adjustment of these reimbursement rates, and higher eligibility for reduced-price lunches for children from households with incomes up to 75 percent above the Secretary's poverty guidelines. 1 School Food Service Program: Sections 3 and 9 of Public Law 93-150, enacted November 7, 1973, provide for increases in the reimbursement rates, and subsequent semi-annual adjustment of these rates, for free and reduced price lunches. This law provides for an average payment to the States of 45 cents for free lunches and 35 cents for reduced price lunches, a substantial increase from FY 1973 when the average payment for free and reduced price lunches was 40 cents. It is estimated that 36 percent of the 4,000 million lunches will be served free and one percent at reduced price. The five percent upward adjustment on January 1 will increase the State-wide average reimbursement rates to 47.25 cents for free lunches and 37.25 cents for reduced price lunches. An increase of $15,000,000 is needed to cover this special assistance to needy school children. Funds for Strengthening Markets, Income and Supply (Section 32) Proposed Language Funds available under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall be available for child feeding programs and nutritional programs authorized by law in the School Lunch Act, as amended, and the Child Nutrition Act, as amended, in the amount of $15,000,000 for the current fiscal year in addition to amounts heretofore provided for such purposes. For an additional amount for the "National School Lunch Program and the School Breakfast Program", $ 71,500,000 to remain available until expended. Explanation of Language The proposed language would appropriate an additional $ 71,500,000 to fund increased reimbursement rates including Purpose and Need for Budget Supplemental The additional funds requested would enable the Secretary and cooperating State agencies to finance the increases in reimbursement rates for school lunch (section 4) and the school breakfast program. The new legislation also provides for statutory adjustment of reimbursement rates for these programs in January and June of each fiscal year should the Consumer Price Index of the cost of food away from home warrant such an In FY 1974 approximately $14,000,000 of the requested $ 71,500,000 is attributable to the increase in the Consumer Price Index for the months of September through November 1973. increase. |