National School Lunch, Special Milk, and School Breakfast Programs, National Average Payments/Maximum Reimbursement Rates, 51842-51845 [2016-18650]

Download as PDF 51842 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices mstockstill on DSK3G9T082PROD with NOTICES The changes in the national average payment rates for centers reflect a 2.64 percent increase during the 12-month period, May 2015 to May 2016, (from 255.322 in May 2015, as previously published in the Federal Register, to 262.074 in May 2016) in the food away from home series of the CPI for All Urban Consumers. The changes in the food service payment rates for day care homes reflect a 0.69 percent decrease during the 12month period, May 2014 to May 2015, (from 241.019 in May 2015, as previously published in the Federal Register, to 239.354 in May 2016) in the food at home series of the CPI for All Urban Consumers. The changes in the administrative reimbursement rates for sponsoring organizations of day care homes reflect a 1.02 percent increase during the 12month period, May 2015 to May 2016 (from 237.805 in May 2015, as previously published in the Federal Register, to 240.236 in May 2016) in the series for all items of the CPI for All Urban Consumers. The total amount of payments available to each State agency for distribution to institutions participating in CACFP is based on the rates contained in this notice. This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601–612) and thus is exempt from the provisions of that Act. This notice has been determined to be exempt under Executive Order 12866. CACFP is listed in the Catalog of Federal Domestic Assistance under No. 10.558 and is subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 2 CFR 415.3–415.6). This notice has been determined to be not significant and was reviewed by the Office of Management and Budget (OMB) in conformance with Executive Order 12866. This notice imposes no new reporting or recordkeeping provisions that are subject to OMB review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3518). Authority: Sections 4(b)(2), 11, 17(c) and 17(f)(3)(B) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753(b)(2), 1759a, 1766(f)(3)(B)) and section 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)). Dated: August 2, 2016. Yvette S. Jackson, Acting Administrator, Food and Nutrition Service. [FR Doc. 2016–18646 Filed 8–4–16; 8:45 am] 17:42 Aug 04, 2016 Food and Nutrition Service National School Lunch, Special Milk, and School Breakfast Programs, National Average Payments/Maximum Reimbursement Rates AGENCY: Food and Nutrition Service, USDA. ACTION: Notice. This Notice announces the annual adjustments to the ‘‘national average payments,’’ the amount of money the Federal Government provides States for lunches, afterschool snacks and breakfasts served to children participating in the National School Lunch and School Breakfast Programs; to the ‘‘maximum reimbursement rates,’’ the maximum per lunch rate from Federal funds that a State can provide a school food authority for lunches served to children participating in the National School Lunch Program; and to the rate of reimbursement for a half-pint of milk served to non-needy children in a school or institution which participates in the Special Milk Program for Children. The payments and rates are prescribed on an annual basis each July. The annual payments and rates adjustments for the National School Lunch and School Breakfast Programs reflect changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers. Food and Nutrition Service has approved a 17-percent increase in school meal reimbursement rates for Puerto Rico to reflect their higher cost of providing school meals. The rate adjustment will take effect beginning July 1, 2016, for school year 2016–2017. This increase is based on data indicating that the cost of producing school lunches, breakfasts, and snacks are higher than those in the continental United States, as well as other factors impacting Puerto Rico’s school meal program. The annual rate adjustment for the Special Milk Program reflects changes in the Producer Price Index for Fluid Milk Products. SUMMARY: These rates are effective from July 1, 2016 through June 30, 2017 DATES: FOR FURTHER INFORMATION CONTACT: Jessica Saracino, Branch Chief, Program Monitoring and Operational Support Division, Child Nutrition Programs, Food and Nutrition Service, U.S. Department of Agriculture, 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302–1594; phone 703–457– 7743. SUPPLEMENTARY INFORMATION: BILLING CODE 3410–30–P VerDate Sep<11>2014 DEPARTMENT OF AGRICULTURE Jkt 238001 PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 Background Special Milk Program for Children— Pursuant to section 3 of the Child Nutrition Act of 1966, as amended (42 U.S.C. 1772), the Department announces the rate of reimbursement for a half-pint of milk served to non-needy children in a school or institution that participates in the Special Milk Program for Children. This rate is adjusted annually to reflect changes in the Producer Price Index for Fluid Milk Products, published by the Bureau of Labor Statistics of the Department of Labor. For the period July 1, 2016 through June 30, 2017, the rate of reimbursement for a half-pint of milk served to a nonneedy child in a school or institution which participates in the Special Milk Program is 19.75 cents. This reflects a decrease of .25 cents from the School Year (SY) 2015–16 level, based on the 1.32 percent decrease in the Producer Price Index for Fluid Milk Products from May 2015 to May 2016 (from a level of 219.0 in May 2015, as previously published in the Federal Register, to 216.1 in May 2016). As a reminder, schools or institutions with pricing programs that elect to serve milk free to eligible children continue to receive the average cost of a half-pint of milk (the total cost of all milk purchased during the claim period divided by the total number of purchased half-pints) for each half-pint served to an eligible child. National School Lunch and School Breakfast Programs—Pursuant to sections 11 and 17A of the Richard B. Russell National School Lunch Act, (42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), the Department annually announces the adjustments to the National Average Payment Factors and to the maximum Federal reimbursement rates for lunches and afterschool snacks served to children participating in the National School Lunch Program and breakfasts served to children participating in the School Breakfast Program. Adjustments are prescribed each July 1, based on changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. The changes in the national average payment rates for schools and residential child care institutions for the period July 1, 2016 through June 30, 2017 reflect a 2.64 percent increase in the Consumer Price Index for All Urban Consumers during the 12-month period May 2015 to May 2016 (from a level of 255.322 in May 2015, as previously published in the Federal Register, to E:\FR\FM\05AUN1.SGM 05AUN1 mstockstill on DSK3G9T082PROD with NOTICES Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices 262.074 in May 2016). Adjustments to the national average payment rates for all lunches served under the National School Lunch Program, breakfasts served under the School Breakfast Program, and afterschool snacks served under the National School Lunch Program are rounded down to the nearest whole cent. Lunch Payment Levels—Section 4 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1753) provides general cash for food assistance payments to States to assist schools in purchasing food. The Richard B. Russell National School Lunch Act provides two different section 4 payment levels for lunches served under the National School Lunch Program. The lower payment level applies to lunches served by school food authorities in which less than 60 percent of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced price. The higher payment level applies to lunches served by school food authorities in which 60 percent or more of the lunches served during the second preceding school year were served free or at a reduced price. To supplement these section 4 payments, section 11 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1759a) provides special cash assistance payments to aid schools in providing free and reduced price lunches. The section 11 National Average Payment Factor for each reduced price lunch served is set at 40 cents less than the factor for each free lunch. As authorized under sections 8 and 11 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1757 and 1759a), maximum reimbursement rates for each type of lunch are prescribed by the Department in this Notice. These maximum rates are to ensure equitable disbursement of Federal funds to school food authorities. Section 201 of the Healthy, HungerFree Kids Act of 2010—Section 201 of the Healthy, Hunger-Free Kids Act of 2010 made significant changes to the Richard B. Russell National School Lunch Act. On January 3, 2014, the final rule entitled, ‘‘Certification of Compliance With Meal Requirements for the National School Lunch Program Under the Healthy, Hunger-Free Kids Act of 2010’’ (79 FR 325), was published and provides eligible school food authorities with performance-based cash reimbursement in addition to the general and special cash assistance described above. The final rule requires that school food authorities be certified by the State agency as being in VerDate Sep<11>2014 17:42 Aug 04, 2016 Jkt 238001 compliance with the updated meal pattern and nutrition standard requirements set forth in amendments to 7 CFR parts 210 and 220 on January 26, 2012, in the final rule entitled ‘‘Nutrition Standards in the National School Lunch and School Breakfast Programs’’ (77 FR 4088). Certified school food authorities are eligible to receive performance-based cash assistance for each reimbursable lunch served (an additional six cents per lunch available beginning October 1, 2012, and adjusted annually thereafter). Afterschool Snack Payments in Afterschool Care Programs—Section 17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766a) establishes National Average Payments for free, reduced price and paid afterschool snacks as part of the National School Lunch Program. Breakfast Payment Factors—Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) establishes National Average Payment Factors for free, reduced price and paid breakfasts served under the School Breakfast Program and additional payments for free and reduced price breakfasts served in schools determined to be in ‘‘severe need’’ because they serve a high percentage of needy children. Revised Payments The following specific section 4, section 11 and section 17A National Average Payment Factors and maximum reimbursement rates for lunch, the afterschool snack rates, and the breakfast rates are in effect from July 1, 2016 through June 30, 2017. Beginning July 1, 2016, Puerto Rico will receive a 17-percent increase adjustment to these rates due to the higher cost of producing a meal in Puerto Rico. In addition, the average payments and maximum reimbursements for Alaska and Hawaii are higher due to the higher cost of living in these States. The District of Columbia, Virgin Islands, and Guam use the figures specified for the contiguous States. National School Lunch Program Payments Section 4 National Average Payment Factors—In school food authorities which served less than 60 percent free and reduced price lunches in School Year (SY) 2014–2015, the payments for meals served are: Contiguous States— paid rate—30 cents (1 cent increase from the SY 2015–2016 level), free and reduced price rate—30 cents (1 cent increase), maximum rate—38 cents (1 cent increase); Alaska—paid rate—49 cents (1 cent increase), free and reduced price rate—49 cents (1 cent increase), PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 51843 maximum rate—60 cents (2 cent increase); Hawaii and Puerto Rico—paid rate—35 cents (1 cent increase), free and reduced price rate—35 cents (1 cent increase), maximum rate—44 cents (2 cent increase). In school food authorities which served 60 percent or more free and reduced price lunches in School Year 2014–2015, payments are: Contiguous States—paid rate—32 cents (1 cent increase from the SY 2015–2016 level), free and reduced price rate—32 cents (1 cent increase), maximum rate—38 cents (1 cent increase); Alaska—paid rate—51 cents (1 cent increase), free and reduced price rate—51 cents (1 cents increase), maximum rate—60 cents (2 cent increase); Hawaii and Puerto Rico—paid rate—37 cents (1 cent increase), free and reduced price rate—37 cents (1 cent increase), maximum rate—44 cents (2 cent increase). School food authorities certified to receive the performance-based cash assistance will receive an additional 6 cents (adjusted annually) added to the above amounts as part of their section 4 payments. Section 11 National Average Payment Factors—Contiguous States—free lunch—286 cents (8 cent increase from the SY 2015–2016 level), reduced price lunch—246 cents (8 cent increase); Alaska—free lunch—463 cents (12 cent increase), reduced price lunch—423 cents (12 cent increase); Hawaii and Puerto Rico—free lunch—334 cents (8 cent increase), reduced price lunch— 294 cents (8 cent increase). Afterschool Snacks in Afterschool Care Programs—The payments are: Contiguous States—free snack—86 cents (2 cent increase from the SY 2015–2016 level), reduced price snack—43 cents (1 cent increase), paid snack—07 cents (no change); Alaska—free snack—140 cents (3 cent increase), reduced price snack— 70 cents (2 cent increase), paid snack— 12 cents (no change); Hawaii and Puerto Rico—free snack—101 cents (2 cent increase), reduced price snack—50 cents (1 cent increase), paid snack—09 cents (no change). School Breakfast Program Payments For schools ‘‘not in severe need’’ the payments are: Contiguous States—free breakfast—171 cents (5 cent increase from the SY 2015–2016 level), reduced price breakfast—141 cents (5 cent increase), paid breakfast—29 cents (no change); Alaska—free breakfast—273 cents (7 cent increase), reduced price breakfast—243 cents (7 cent increase), paid breakfast—44 cents (1 cent increase); Hawaii and Puerto Rico—free breakfast—199 cents (5 cent increase), reduced price breakfast—169 cents (5 E:\FR\FM\05AUN1.SGM 05AUN1 51844 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices increase); Hawaii and Puerto Rico—free breakfast—238 cents (6 cent increase), reduced price breakfast—208 cents (6 cent increase), paid breakfast—33 cents (no change). cent increase), paid breakfast—33 cents (no change). For schools in ‘‘severe need’’ the payments are: Contiguous States—free breakfast—204 cents (5 cent increase from the SY 2015–2016 level), reduced price breakfast—174 cents (5 cent increase), paid breakfast—29 cents (no change); Alaska—free breakfast—327 cents (8 cent increase), reduced price breakfast—297 cents (8 cent increase), paid breakfast—44 cents (1 cent Payment Chart The following chart illustrates the lunch National Average Payment Factors with the sections 4 and 11 already combined to indicate the per lunch amount; the maximum lunch reimbursement rates; the reimbursement rates for afterschool snacks served in afterschool care programs; the breakfast National Average Payment Factors including ‘‘severe need’’ schools; and the milk reimbursement rate. All amounts are expressed in dollars or fractions thereof. The payment factors and reimbursement rates used for the District of Columbia, Virgin Islands, and Guam are those specified for the contiguous States. SCHOOL PROGRAMS—MEAL, SNACK AND MILK PAYMENTS TO STATES AND SCHOOL FOOD AUTHORITIES—EXPRESSED IN DOLLARS OR FRACTIONS THEREOF [Effective from: July 1, 2016–June 30, 2017] Less than 60% + 6 cents 2 Less than 60% National School Lunch Program 1 Contiguous States: Paid ................................................... Reduced price ................................... Free ................................................... Alaska: Paid ................................................... Reduced price ................................... Free ................................................... Hawaii: Paid ................................................... Reduced price ................................... Free ................................................... Puerto Rico: 3 Paid ................................................... Reduced Price .................................. Free ................................................... 60% or more 60% or more + 6 cents 2 Maximum rate Maximum rate + 6 cents 2 0.30 2.76 3.16 0.36 2.82 3.22 0.32 2.78 3.18 0.38 2.84 3.24 0.38 2.93 3.33 0.44 2.99 3.39 0.49 4.72 5.12 0.55 4.78 5.18 0.51 4.74 5.14 0.57 4.80 5.20 0.60 4.98 5.38 0.66 5.04 5.44 0.35 3.29 3.69 0.41 3.35 3.75 0.37 3.31 3.71 0.43 3.37 3.77 0.44 3.49 3.89 0.50 3.55 3.95 0.35 3.29 3.69 0.41 3.35 3.75 0.37 3.31 3.71 0.43 3.37 3.77 0.44 3.49 3.89 0.50 3.55 3.95 Non-severe need School breakfast program Contiguous States: Paid ................................................................................................................................................................... Reduced price .................................................................................................................................................. Free .................................................................................................................................................................. Alaska: Paid ................................................................................................................................................................... Reduced price .................................................................................................................................................. Free .................................................................................................................................................................. Hawaii: Paid ................................................................................................................................................................... Reduced price .................................................................................................................................................. Free .................................................................................................................................................................. Puerto Rico: 3 Paid ................................................................................................................................................................... Reduced price .................................................................................................................................................. Free .................................................................................................................................................................. Special milk program All milk mstockstill on DSK3G9T082PROD with NOTICES Pricing Programs without Free Option ......................... Pricing Programs with Free Option .............................. Nonpricing Programs .................................................... Afterschool Snacks Served in Afterschool Care Programs Contiguous States: Paid ............................... Reduced price ............... Free ............................... Alaska: VerDate Sep<11>2014 17:42 Aug 04, 2016 0.07 0.43 0.86 Jkt 238001 Paid milk 0.1975 N/A 0.1975 N/A 0.1975 N/A Paid ............................... Reduced price ............... Free ............................... Hawaii: Paid ............................... Reduced price ............... Free ............................... Puerto Rico: 3 PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 Severe need 0.29 1.41 1.71 0.29 1.74 2.04 0.44 2.43 2.73 0.44 2.97 3.27 0.33 1.69 1.99 0.33 2.08 2.38 0.33 1.69 1.99 0.33 2.08 2.38 Free milk N/A. Average Cost Per 1/2 Pint of Milk. N/A. 0.12 0.70 1.40 0.09 0.50 1.01 Paid ............................... Reduced price ............... Free ............................... 0.09 0.50 1.01 1 Payment listed for Free and Reduced Price Lunches include both section 4 and section 11 funds. 2 Performance-based cash reimbursement (adjusted annually for inflation). E:\FR\FM\05AUN1.SGM 05AUN1 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices 3 Beginning July 1, 2016, FNS approved Puerto Rico to receive a 17-percent increase in school meal reimbursement rates. This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. 601–612) and thus is exempt from the provisions of that Act. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), no new recordkeeping or reporting requirements have been included that are subject to approval from the Office of Management and Budget. This notice has been determined to be not significant and was reviewed by the Office of Management and Budget in conformance with Executive Order 12866. National School Lunch, School Breakfast and Special Milk Programs are listed in the Catalog of Federal Domestic Assistance under No. 10.555, No. 10.553 and No. 10.556, respectively, and are subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 2 CFR 415.3–415.6). Authority: Sections 4, 8, 11 and 17A of the Richard B. Russell National School Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 1766a) and sections 3 and 4(b) of the Child Nutrition Act, as amended, (42 U.S.C. 1772 and 42 U.S.C. 1773(b)). Dated: August 2, 2016. Yvette S. Jackson, Acting Administrator, Food and Nutrition Service. [FR Doc. 2016–18650 Filed 8–4–16; 8:45 am] BILLING CODE 3410–30–P DEPARTMENT OF AGRICULTURE Forest Service Information Collection; Cooperative Wildland Fire Management and Stafford Act Response Agreements Forest Service USDA, Bureau of Land Management DOI, Fish and Wildlife Service DOI, National Park Service DOI, and Bureau of Indian Affairs DOI. ACTION: Notice and request for comment. AGENCY: In accordance with the Paperwork Reduction Act of 1995, the Forest Service is seeking comments from all interested individuals and organizations on the new information collection, Cooperative Wildland Fire Management and Stafford Act Response Agreements. DATES: Comments must be received in writing on or before October 4, 2016 to be assured of consideration. Comments received after that date will be considered to the extent practicable. mstockstill on DSK3G9T082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:42 Aug 04, 2016 Jkt 238001 Comments concerning this notice should be addressed to Tim Melchert, Cooperative Fire Specialist, USDA Forest Service, 1400 Independence Avenue SW., Washington, DC 20250. Comments also may be submitted via facsimile to 208–387–5398 or by email to: CoopFire_Agreements@fs.fed.us. The public may inspect comments received at Forest Service, U.S. Department of Agriculture, 1400 Independence Avenue SW., Washington, DC 20250 during normal business hours. Visitors are encouraged to call ahead to 202–205–1637 to facilitate entry to the building. FOR FURTHER INFORMATION CONTACT: Tim Melchert, Cooperative Fire Specialist, at USDA Forest Service, 208–387–5887. Individuals who use telecommunication devices for the deaf (TDD) may call the Federal Relay Service (FRS) at 1–800–877–8339 twenty-four hours a day, every day of the year, including holidays. SUPPLEMENTARY INFORMATION: In accordance with the Paperwork Reduction Act of 1995, Forest Service will submit a request for a new information collection to Office of Management and Budget. Title: Cooperative Wildland Fire Management and Stafford Act Response Agreements. OMB Number: 0596—NEW. Type of Request: New. Abstract: To allow the performance of specific activities in cooperation with Federal, State, local, and Tribal governments, Congress enacted authorities allowing the U.S. Department of Agriculture (USDA) and U.S. Department of the Interior (DOI) to enter into cooperative agreements with fire organizations to improve efficiency by facilitating the coordination and exchange of personnel, equipment, supplies, services, and funds among the parties in sustaining wildland fire management activities, such as prevention, preparedness, communication and education, fuels treatment and hazard mitigation, fire planning, response strategies, tactics and alternatives, suppression, and postfire rehabilitation and restoration. In addition, agreements allow for the parties to respond to presidentially declared emergencies or disasters. The primary authorities allowing for the agreements are the Reciprocal Fire Protection Act, 42 U.S.C. 1856, and the Stafford Act, 42 U.S.C. 5121. The proposed Cooperative Wildland Fire Management and Stafford Act Response Agreement template will allow authorized agencies to streamline ADDRESSES: PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 51845 coordination with other Federal, State, local, and Tribal governments in wildland fire protection activities, and to document in an agreement the roles and responsibilities among the parties, ensuring maximum protection of resources. To negotiate, develop, and administer Cooperative Wildland Fire Management and Stafford Act Response Agreements, the USDA Forest Service, DOI Bureau of Land Management, DOI Fish and Wildlife Service, DOI National Park Service, and DOI Bureau of Indian Affairs DOI must collect information from willing State, local, and Tribal governments from the pre-agreement to the closeout stage via telephone calls, emails, postal mail, and person-toperson meetings. There are multiple means for cooperators to communicate responses, which include forms, optional forms, templates, electronic documents, in person, telephone, and email. The scope of information collected includes the project type, project scope, financial plan, statement of work, and cooperator’s business information. Without the collected information, authorized Federal agencies would not be able to negotiate, create, develop, and administer cooperative agreements with cooperators for to wildland fire protection, approved severity activities, and presidentially declared emergencies or disasters. Authorized Federal agencies would be unable to develop or monitor projects, make payments, or identify financial and accounting errors. The regulations governing Federal financial assistance relationships are not applicable to agreement templates under this information collection request. The regulations in 2 CFR 200 set forth the general rules that are applicable to all grants and cooperative agreements made by the USDA and DOI. Because the Federal Government’s use of Cooperative Wildland Fire Management and Stafford Act Response Agreements entered into under cited Federal statutes are not financial assistance for the benefit of the recipient but instead are entered into for the mutual benefit of the Federal government and the nonFederal cooperators, the assistance regulations in 2 CFR 200, as adopted and supplemented by the USDA and DOI, are not applicable to such agreements. This is a new information collection request. The Cooperative Wildland Fire Management and Stafford Act Response Agreement template can be viewed at www.fs.fed.us/managing-land/fire/ master-agreement-template. Estimate of Annual Burden: 4 to 24 hours annually per respondent. E:\FR\FM\05AUN1.SGM 05AUN1

Agencies

[Federal Register Volume 81, Number 151 (Friday, August 5, 2016)]
[Notices]
[Pages 51842-51845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18650]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


National School Lunch, Special Milk, and School Breakfast 
Programs, National Average Payments/Maximum Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the annual adjustments to the ``national 
average payments,'' the amount of money the Federal Government provides 
States for lunches, afterschool snacks and breakfasts served to 
children participating in the National School Lunch and School 
Breakfast Programs; to the ``maximum reimbursement rates,'' the maximum 
per lunch rate from Federal funds that a State can provide a school 
food authority for lunches served to children participating in the 
National School Lunch Program; and to the rate of reimbursement for a 
half-pint of milk served to non-needy children in a school or 
institution which participates in the Special Milk Program for 
Children. The payments and rates are prescribed on an annual basis each 
July. The annual payments and rates adjustments for the National School 
Lunch and School Breakfast Programs reflect changes in the Food Away 
From Home series of the Consumer Price Index for All Urban Consumers. 
Food and Nutrition Service has approved a 17-percent increase in school 
meal reimbursement rates for Puerto Rico to reflect their higher cost 
of providing school meals. The rate adjustment will take effect 
beginning July 1, 2016, for school year 2016-2017. This increase is 
based on data indicating that the cost of producing school lunches, 
breakfasts, and snacks are higher than those in the continental United 
States, as well as other factors impacting Puerto Rico's school meal 
program. The annual rate adjustment for the Special Milk Program 
reflects changes in the Producer Price Index for Fluid Milk Products.

DATES: These rates are effective from July 1, 2016 through June 30, 
2017

FOR FURTHER INFORMATION CONTACT: Jessica Saracino, Branch Chief, 
Program Monitoring and Operational Support Division, Child Nutrition 
Programs, Food and Nutrition Service, U.S. Department of Agriculture, 
3101 Park Center Drive, Room 640, Alexandria, Virginia 22302-1594; 
phone 703-457-7743.

SUPPLEMENTARY INFORMATION:

Background

    Special Milk Program for Children--Pursuant to section 3 of the 
Child Nutrition Act of 1966, as amended (42 U.S.C. 1772), the 
Department announces the rate of reimbursement for a half-pint of milk 
served to non-needy children in a school or institution that 
participates in the Special Milk Program for Children. This rate is 
adjusted annually to reflect changes in the Producer Price Index for 
Fluid Milk Products, published by the Bureau of Labor Statistics of the 
Department of Labor.
    For the period July 1, 2016 through June 30, 2017, the rate of 
reimbursement for a half-pint of milk served to a non-needy child in a 
school or institution which participates in the Special Milk Program is 
19.75 cents. This reflects a decrease of .25 cents from the School Year 
(SY) 2015-16 level, based on the 1.32 percent decrease in the Producer 
Price Index for Fluid Milk Products from May 2015 to May 2016 (from a 
level of 219.0 in May 2015, as previously published in the Federal 
Register, to 216.1 in May 2016).
    As a reminder, schools or institutions with pricing programs that 
elect to serve milk free to eligible children continue to receive the 
average cost of a half-pint of milk (the total cost of all milk 
purchased during the claim period divided by the total number of 
purchased half-pints) for each half-pint served to an eligible child.
    National School Lunch and School Breakfast Programs--Pursuant to 
sections 11 and 17A of the Richard B. Russell National School Lunch 
Act, (42 U.S.C. 1759a and 1766a), and section 4 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773), the Department annually announces the 
adjustments to the National Average Payment Factors and to the maximum 
Federal reimbursement rates for lunches and afterschool snacks served 
to children participating in the National School Lunch Program and 
breakfasts served to children participating in the School Breakfast 
Program. Adjustments are prescribed each July 1, based on changes in 
the Food Away From Home series of the Consumer Price Index for All 
Urban Consumers, published by the Bureau of Labor Statistics of the 
Department of Labor. The changes in the national average payment rates 
for schools and residential child care institutions for the period July 
1, 2016 through June 30, 2017 reflect a 2.64 percent increase in the 
Consumer Price Index for All Urban Consumers during the 12-month period 
May 2015 to May 2016 (from a level of 255.322 in May 2015, as 
previously published in the Federal Register, to

[[Page 51843]]

262.074 in May 2016). Adjustments to the national average payment rates 
for all lunches served under the National School Lunch Program, 
breakfasts served under the School Breakfast Program, and afterschool 
snacks served under the National School Lunch Program are rounded down 
to the nearest whole cent.
    Lunch Payment Levels--Section 4 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1753) provides general cash for food 
assistance payments to States to assist schools in purchasing food. The 
Richard B. Russell National School Lunch Act provides two different 
section 4 payment levels for lunches served under the National School 
Lunch Program. The lower payment level applies to lunches served by 
school food authorities in which less than 60 percent of the lunches 
served in the school lunch program during the second preceding school 
year were served free or at a reduced price. The higher payment level 
applies to lunches served by school food authorities in which 60 
percent or more of the lunches served during the second preceding 
school year were served free or at a reduced price.
    To supplement these section 4 payments, section 11 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1759a) provides special 
cash assistance payments to aid schools in providing free and reduced 
price lunches. The section 11 National Average Payment Factor for each 
reduced price lunch served is set at 40 cents less than the factor for 
each free lunch.
    As authorized under sections 8 and 11 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1757 and 1759a), maximum 
reimbursement rates for each type of lunch are prescribed by the 
Department in this Notice. These maximum rates are to ensure equitable 
disbursement of Federal funds to school food authorities.
    Section 201 of the Healthy, Hunger-Free Kids Act of 2010--Section 
201 of the Healthy, Hunger-Free Kids Act of 2010 made significant 
changes to the Richard B. Russell National School Lunch Act. On January 
3, 2014, the final rule entitled, ``Certification of Compliance With 
Meal Requirements for the National School Lunch Program Under the 
Healthy, Hunger-Free Kids Act of 2010'' (79 FR 325), was published and 
provides eligible school food authorities with performance-based cash 
reimbursement in addition to the general and special cash assistance 
described above. The final rule requires that school food authorities 
be certified by the State agency as being in compliance with the 
updated meal pattern and nutrition standard requirements set forth in 
amendments to 7 CFR parts 210 and 220 on January 26, 2012, in the final 
rule entitled ``Nutrition Standards in the National School Lunch and 
School Breakfast Programs'' (77 FR 4088). Certified school food 
authorities are eligible to receive performance-based cash assistance 
for each reimbursable lunch served (an additional six cents per lunch 
available beginning October 1, 2012, and adjusted annually thereafter).
    Afterschool Snack Payments in Afterschool Care Programs--Section 
17A of the Richard B. Russell National School Lunch Act (42 U.S.C. 
1766a) establishes National Average Payments for free, reduced price 
and paid afterschool snacks as part of the National School Lunch 
Program.
    Breakfast Payment Factors--Section 4 of the Child Nutrition Act of 
1966 (42 U.S.C. 1773) establishes National Average Payment Factors for 
free, reduced price and paid breakfasts served under the School 
Breakfast Program and additional payments for free and reduced price 
breakfasts served in schools determined to be in ``severe need'' 
because they serve a high percentage of needy children.

Revised Payments

    The following specific section 4, section 11 and section 17A 
National Average Payment Factors and maximum reimbursement rates for 
lunch, the afterschool snack rates, and the breakfast rates are in 
effect from July 1, 2016 through June 30, 2017. Beginning July 1, 2016, 
Puerto Rico will receive a 17-percent increase adjustment to these 
rates due to the higher cost of producing a meal in Puerto Rico. In 
addition, the average payments and maximum reimbursements for Alaska 
and Hawaii are higher due to the higher cost of living in these States. 
The District of Columbia, Virgin Islands, and Guam use the figures 
specified for the contiguous States.

National School Lunch Program Payments

    Section 4 National Average Payment Factors--In school food 
authorities which served less than 60 percent free and reduced price 
lunches in School Year (SY) 2014-2015, the payments for meals served 
are: Contiguous States--paid rate--30 cents (1 cent increase from the 
SY 2015-2016 level), free and reduced price rate--30 cents (1 cent 
increase), maximum rate--38 cents (1 cent increase); Alaska--paid 
rate--49 cents (1 cent increase), free and reduced price rate--49 cents 
(1 cent increase), maximum rate--60 cents (2 cent increase); Hawaii and 
Puerto Rico--paid rate--35 cents (1 cent increase), free and reduced 
price rate--35 cents (1 cent increase), maximum rate--44 cents (2 cent 
increase).
    In school food authorities which served 60 percent or more free and 
reduced price lunches in School Year 2014-2015, payments are: 
Contiguous States--paid rate--32 cents (1 cent increase from the SY 
2015-2016 level), free and reduced price rate--32 cents (1 cent 
increase), maximum rate--38 cents (1 cent increase); Alaska--paid 
rate--51 cents (1 cent increase), free and reduced price rate--51 cents 
(1 cents increase), maximum rate--60 cents (2 cent increase); Hawaii 
and Puerto Rico--paid rate--37 cents (1 cent increase), free and 
reduced price rate--37 cents (1 cent increase), maximum rate--44 cents 
(2 cent increase).
    School food authorities certified to receive the performance-based 
cash assistance will receive an additional 6 cents (adjusted annually) 
added to the above amounts as part of their section 4 payments.
    Section 11 National Average Payment Factors--Contiguous States--
free lunch--286 cents (8 cent increase from the SY 2015-2016 level), 
reduced price lunch--246 cents (8 cent increase); Alaska--free lunch--
463 cents (12 cent increase), reduced price lunch--423 cents (12 cent 
increase); Hawaii and Puerto Rico--free lunch--334 cents (8 cent 
increase), reduced price lunch--294 cents (8 cent increase).
    Afterschool Snacks in Afterschool Care Programs--The payments are: 
Contiguous States--free snack--86 cents (2 cent increase from the SY 
2015-2016 level), reduced price snack--43 cents (1 cent increase), paid 
snack--07 cents (no change); Alaska--free snack--140 cents (3 cent 
increase), reduced price snack--70 cents (2 cent increase), paid 
snack--12 cents (no change); Hawaii and Puerto Rico--free snack--101 
cents (2 cent increase), reduced price snack--50 cents (1 cent 
increase), paid snack--09 cents (no change).

School Breakfast Program Payments

    For schools ``not in severe need'' the payments are: Contiguous 
States--free breakfast--171 cents (5 cent increase from the SY 2015-
2016 level), reduced price breakfast--141 cents (5 cent increase), paid 
breakfast--29 cents (no change); Alaska--free breakfast--273 cents (7 
cent increase), reduced price breakfast--243 cents (7 cent increase), 
paid breakfast--44 cents (1 cent increase); Hawaii and Puerto Rico--
free breakfast--199 cents (5 cent increase), reduced price breakfast--
169 cents (5

[[Page 51844]]

cent increase), paid breakfast--33 cents (no change).
    For schools in ``severe need'' the payments are: Contiguous 
States--free breakfast--204 cents (5 cent increase from the SY 2015-
2016 level), reduced price breakfast--174 cents (5 cent increase), paid 
breakfast--29 cents (no change); Alaska--free breakfast--327 cents (8 
cent increase), reduced price breakfast--297 cents (8 cent increase), 
paid breakfast--44 cents (1 cent increase); Hawaii and Puerto Rico--
free breakfast--238 cents (6 cent increase), reduced price breakfast--
208 cents (6 cent increase), paid breakfast--33 cents (no change).

Payment Chart

    The following chart illustrates the lunch National Average Payment 
Factors with the sections 4 and 11 already combined to indicate the per 
lunch amount; the maximum lunch reimbursement rates; the reimbursement 
rates for afterschool snacks served in afterschool care programs; the 
breakfast National Average Payment Factors including ``severe need'' 
schools; and the milk reimbursement rate. All amounts are expressed in 
dollars or fractions thereof. The payment factors and reimbursement 
rates used for the District of Columbia, Virgin Islands, and Guam are 
those specified for the contiguous States.

             School Programs--Meal, Snack and Milk Payments to States and School Food Authorities--Expressed in Dollars or Fractions Thereof
                                                      [Effective from: July 1, 2016-June 30, 2017]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Less than 60%                   60% or more +                  Maximum rate +
            National School Lunch Program \1\              Less than 60%   + 6 cents \2\    60% or more     6 cents \2\    Maximum rate     6 cents \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Contiguous States:
    Paid................................................            0.30            0.36            0.32            0.38            0.38            0.44
    Reduced price.......................................            2.76            2.82            2.78            2.84            2.93            2.99
    Free................................................            3.16            3.22            3.18            3.24            3.33            3.39
Alaska:
    Paid................................................            0.49            0.55            0.51            0.57            0.60            0.66
    Reduced price.......................................            4.72            4.78            4.74            4.80            4.98            5.04
    Free................................................            5.12            5.18            5.14            5.20            5.38            5.44
Hawaii:
    Paid................................................            0.35            0.41            0.37            0.43            0.44            0.50
    Reduced price.......................................            3.29            3.35            3.31            3.37            3.49            3.55
    Free................................................            3.69            3.75            3.71            3.77            3.89            3.95
Puerto Rico: \3\
    Paid................................................            0.35            0.41            0.37            0.43            0.44            0.50
    Reduced Price.......................................            3.29            3.35            3.31            3.37            3.49            3.55
    Free................................................            3.69            3.75            3.71            3.77            3.89            3.95
--------------------------------------------------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                            Non-severe
        School breakfast program               need         Severe need
------------------------------------------------------------------------
Contiguous States:
    Paid................................            0.29            0.29
    Reduced price.......................            1.41            1.74
    Free................................            1.71            2.04
Alaska:
    Paid................................            0.44            0.44
    Reduced price.......................            2.43            2.97
    Free................................            2.73            3.27
Hawaii:
    Paid................................            0.33            0.33
    Reduced price.......................            1.69            2.08
    Free................................            1.99            2.38
Puerto Rico: \3\
    Paid................................            0.33            0.33
    Reduced price.......................            1.69            2.08
    Free................................            1.99            2.38
------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
             Special milk program                  All milk        Paid milk                Free milk
----------------------------------------------------------------------------------------------------------------
Pricing Programs without Free Option..........          0.1975             N/A  N/A.
Pricing Programs with Free Option.............             N/A          0.1975  Average Cost Per 1/2 Pint of
                                                                                 Milk.
Nonpricing Programs...........................          0.1975             N/A  N/A.
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
 
------------------------------------------------------------------------
         Afterschool Snacks Served in Afterschool Care Programs
------------------------------------------------------------------------
Contiguous States:
    Paid................................................            0.07
    Reduced price.......................................            0.43
    Free................................................            0.86
Alaska:
    Paid................................................            0.12
    Reduced price.......................................            0.70
    Free................................................            1.40
Hawaii:
    Paid................................................            0.09
    Reduced price.......................................            0.50
    Free................................................            1.01
Puerto Rico: \3\
    Paid................................................            0.09
    Reduced price.......................................            0.50
    Free................................................            1.01
------------------------------------------------------------------------
\1\ Payment listed for Free and Reduced Price Lunches include both
  section 4 and section 11 funds.
\2\ Performance-based cash reimbursement (adjusted annually for
  inflation).

[[Page 51845]]

 
\3\ Beginning July 1, 2016, FNS approved Puerto Rico to receive a 17-
  percent increase in school meal reimbursement rates.

    This action is not a rule as defined by the Regulatory Flexibility 
Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that 
Act.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507), no new recordkeeping or reporting requirements have been 
included that are subject to approval from the Office of Management and 
Budget.
    This notice has been determined to be not significant and was 
reviewed by the Office of Management and Budget in conformance with 
Executive Order 12866.
    National School Lunch, School Breakfast and Special Milk Programs 
are listed in the Catalog of Federal Domestic Assistance under No. 
10.555, No. 10.553 and No. 10.556, respectively, and are subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials. (See 2 CFR 415.3-415.6).

    Authority: Sections 4, 8, 11 and 17A of the Richard B. Russell 
National School Lunch Act, as amended, (42 U.S.C. 1753, 1757, 1759a, 
1766a) and sections 3 and 4(b) of the Child Nutrition Act, as 
amended, (42 U.S.C. 1772 and 42 U.S.C. 1773(b)).

    Dated: August 2, 2016.
Yvette S. Jackson,
Acting Administrator, Food and Nutrition Service.
[FR Doc. 2016-18650 Filed 8-4-16; 8:45 am]
 BILLING CODE 3410-30-P