National School Lunch, Special Milk, and School Breakfast Programs, National Average Payments/Maximum Reimbursement Rates, 44270-44273 [2020-15764]

Download as PDF 44270 Federal Register / Vol. 85, No. 141 / Wednesday, July 22, 2020 / Notices DEPARTMENT OF AGRICULTURE Food and Nutrition Service National School Lunch, Special Milk, and School Breakfast Programs, National Average Payments/Maximum Reimbursement Rates Food and Nutrition Service, Agriculture (USDA). ACTION: Notice. AGENCY: 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 that participates in the Special Milk Program for Children. DATES: These rates are effective from July 1, 2020 through June 30, 2021. FOR FURTHER INFORMATION CONTACT: J. Kevin Maskornick, Branch Chief, Program Monitoring and Operational Support Division, Child Nutrition Programs, Food and Nutrition Service, United States Department of Agriculture, (703) 305–2537, 1320 Braddock Place, Suite 401, Alexandria, VA 22314. SUPPLEMENTARY INFORMATION: 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. The annual rate adjustment for the Special Milk Program reflects changes in the Producer Price Index for Fluid Milk Products. Further adjustments are made to these rates to reflect higher costs of providing meals in Alaska, Guam, Hawaii, Puerto Rico, and the Virgin Islands. The payments and rates are prescribed on an annual basis each July. Overall, reimbursement rates this year for the National School Lunch and Breakfast Programs either remained the same or increased compared to last year while the rate for the Special Milk Program went down slightly. jbell on DSKJLSW7X2PROD with NOTICES SUMMARY: Background Special Milk Program for Children— Pursuant to section 3 of the Child VerDate Sep<11>2014 18:11 Jul 21, 2020 Jkt 250001 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. 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. 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.1759 (a)) 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 PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 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. Performance-based Reimbursement— In addition to the funding mentioned above, school food authorities certified as meeting the meal pattern and nutrition standard requirements set forth in 7 CFR parts 210 and 220 are eligible to receive performance-based cash assistance for each reimbursable lunch served (an additional seven cents per lunch available beginning July 1, 2019, 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. Adjusted 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, 2020 through June 30, 2021. Due to a higher cost of living, the average payments and maximum reimbursements for Alaska, Guam, Hawaii, Puerto Rico, and the Virgin Islands are higher than those for all other States. The District of Columbia uses figures specified for the contiguous States. These rates do not include the value of USDA Foods or cash-in-lieu of USDA Foods which schools receive as additional assistance for each meal served to participants under the Program. A notice announcing the value of USDA Foods and cash-in-lieu of USDA Foods is published separately in the Federal Register. 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 E:\FR\FM\22JYN1.SGM 22JYN1 Federal Register / Vol. 85, No. 141 / Wednesday, July 22, 2020 / Notices rounded down to the nearest whole cent. jbell on DSKJLSW7X2PROD with NOTICES Special Milk Program Payments For the period July 1, 2020 through June 30, 2021, the rate of reimbursement for a half-pint of milk served to a nonneedy child in a school or institution that participates in the Special Milk Program is 20.25 cents reflecting a decrease of 1.25 cents from the School Year (SY) 2019–2020 level. This change is based on the 5.65 percent decrease in the Producer Price Index for Fluid Milk Products from May 2019 to May 2020. 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 Program Payments Overall, payments for the National School Lunch Program and the Afterschool Snack Program either remained the same or increased from last year’s payments due to a 2.93 percent increase in the national average payment rates for schools and residential child care institutions for the period July 1, 2020 through June 30, 2021 in the Consumer Price Index for All Urban Consumers for the food away from home series during the 12-month period May 2019 to May 2020 (from a level of 283.394 in May 2019, as previously published in the Federal Register to 291.709 in May 2020). These changes are reflected below. Section 4 National Average Payment Factors—In school food authorities that served less than 60 percent free and reduced price lunches in School Year (SY) 2018–2019, the payments for meals served are: Contiguous States—paid rate—33 cents (1 cent increase from the SY 2019–2020 level), free and reduced price rate—33 cents (1 cent increase), maximum rate—41 cents (1 cent increase); Alaska—paid rate—54 cents (1 cent increase), free and reduced price rate—54 cents (1 cent increase), maximum rate—65 cents (2 cents increase); Guam, Hawaii, Puerto Rico, and the Virgin Islands—paid rate—39 cents (1 cent increase), free and reduced price rate—39 cents (1 cent increase), maximum rate—47 cents (1 cent increase). VerDate Sep<11>2014 18:11 Jul 21, 2020 Jkt 250001 In school food authorities that served 60 percent or more free and reduced price lunches in School Year 2018– 2019, payments are: Contiguous States—paid rate—35 cents (1 cent increase from the SY 2019–2020 level), free and reduced price rate—35 cents (1 cent increase), maximum rate—41 cents (1 cent increase); Alaska—paid rate—56 cents (1 cent increase), free and reduced price rate—56 cents (1 cent increase), maximum rate—65 cents (2 cents increase); Guam, Hawaii, Puerto Rico and the Virgin Islands—paid rate—41 cents (1 cent increase), free and reduced price rate—41 cents (1 cent increase), maximum rate—47 cents (1 cent increase). School food authorities certified to receive the performance-based cash assistance will receive an additional 7 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—3 dollars and 18 cents (9 cents increase from the SY 2019–2020 level), reduced price lunch—2 dollars and 78 cents (9 cents increase); Alaska—free lunch—5 dollars and 16 cents (15 cents increase), reduced price lunch—4 dollars and 76 cents (15 cents increase); Guam, Hawaii, Puerto Rico and the Virgin Islands—free lunch—3 dollars and 72 cents (10 cents increase), reduced price lunch—3 dollars and 32 cents (10 cents increase). Afterschool Snacks in Afterschool Care Programs—The payments are: Contiguous States—free snack—96 cents (2 cents increase from the SY 2019–2020 level), reduced price snack—48 cents (1 cent increase), paid snack—8 cents (no change); Alaska—free snack—1 dollar and 56 cents (4 cents increase), reduced price snack—78 cents (2 cents increase), paid snack—14 cents (1 cent increase); Guam, Hawaii, Puerto Rico and the Virgin Islands—free snack—1 dollar and 13 cents (3 cents increase), reduced price snack—56 cents (1 cent increase), paid snack—10 cents (no change). School Breakfast Program Payments Overall, payments for the National School Breakfast Program either remained the same or increased from last year’s payments due to a 2.93 percent increase in the national average payment rates for schools and residential child care institutions for the period July 1, 2020 through June 30, PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 44271 2021 in the Consumer Price Index for All Urban Consumers in the Food Away from Home series during the 12-month period May 2019 to May 2020 (from a level of 283.394 in May 2019, as previously published in the Federal Register to 291.709 in May 2020). These changes are reflected below. For schools ‘‘not in severe need’’ the payments are: Contiguous States—free breakfast—1 dollar and 89 cents (5 cents increase from the SY 2019–2020 level), reduced price breakfast—1 dollar and 59 cents (5 cents increase), paid breakfast— 32 cents (1 cent increase); Alaska—free breakfast—3 dollars and 3 cents (8 cents increase), reduced price breakfast—2 dollars and 73 cents (8 cents increase), paid breakfast—49 cents (2 cents increase); Guam, Hawaii, Puerto Rico and the Virgin Islands—free breakfast— 2 dollars and 21 cents (6 cents increase), reduced price breakfast—1 dollar and 91 cents (6 cents increase), paid breakfast— 37 cents (1 cent increase). For schools in ‘‘severe need’’ the payments are: Contiguous States—free breakfast—2 dollars and 26 cents (6 cents increase from the SY 2019–2020 level), reduced price breakfast—1 dollar and 96 cents (6 cents increase), paid breakfast—32 cents (1 cent increase); Alaska—free breakfast—3 dollars and 64 cents (11 cents increase), reduced price breakfast—3 dollars and 34 cents (11 cents increase), paid breakfast—49 cents (2 cents increase); Guam, Hawaii, Puerto Rico and the Virgin Islands—free breakfast—2 dollars and 64 cents (7 cents increase), reduced price breakfast—2 dollars and 34 cents (7 cents increase), paid breakfast—37 cents (1 cent increase). 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 are those specified for the contiguous States. E:\FR\FM\22JYN1.SGM 22JYN1 Federal Register / Vol. 85, No. 141 / Wednesday, July 22, 2020 / Notices This action is not a rule as defined by the Regulatory Flexibility Act (5 U.S.C. VerDate Sep<11>2014 18:11 Jul 21, 2020 Jkt 250001 601–612) and thus is exempt from the provisions of that Act. This notice has PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 been determined to be exempt under Executive Order 12866. E:\FR\FM\22JYN1.SGM 22JYN1 EN22JY20.000</GPH> jbell on DSKJLSW7X2PROD with NOTICES 44272 Federal Register / Vol. 85, No. 141 / Wednesday, July 22, 2020 / Notices 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. 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)). Pamilyn Miller, Administrator, Food and Nutrition Service. [FR Doc. 2020–15764 Filed 7–21–20; 8:45 am] BILLING CODE 3410–30–P DEPARTMENT OF AGRICULTURE Food and Nutrition Service Food Distribution Program: Value of Donated Foods From July 1, 2020 Through June 30, 2021 Food and Nutrition Service, Agriculture (USDA). ACTION: Notice. AGENCY: This notice announces the national average value of donated foods or, where applicable, cash in lieu of donated foods, to be provided in school year 2021 (July 1, 2020 through June 30, 2021) for each lunch served by schools participating in the National School Lunch Program (NSLP), and for each lunch and supper served by institutions participating in the Child and Adult Care Food Program (CACFP). DATES: Implementation date: July 1, 2020. SUMMARY: jbell on DSKJLSW7X2PROD with NOTICES FOR FURTHER INFORMATION CONTACT: Erica Antonson, Branch Chief, Policy Branch, Food Distribution Division, Food and Nutrition Service, U.S. Department of Agriculture, 1320 Braddock Place Alexandria, VA 22314, or telephone (703) 305–2680. SUPPLEMENTARY INFORMATION: These programs are located in the Assistance Listings under Nos. 10.555 and 10.558 and are subject to the provisions of Executive Order 12372, which requires intergovernmental consultation with State and local officials. (See 7 CFR part 3015, subpart V, and final rule related VerDate Sep<11>2014 18:11 Jul 21, 2020 Jkt 250001 notice published at 48 FR 29114, June 24, 1983.) This notice imposes no new reporting or recordkeeping provisions that are subject to Office of Management and Budget review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507). 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 was reviewed by the Office of Management and Budget under Executive Order 12866. Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a major rule, as defined by 5 U.S.C. 804(2). National Average Minimum Value of Donated Foods for the Period July 1, 2020 Through June 30, 2021 This notice implements mandatory provisions of sections 6(c) and 17(h)(1)(B) of the Richard B. Russell National School Lunch Act (the Act) (42 U.S.C. 1755(c) and 1766(h)(1)(B)). Section 6(c)(1)(A) of the Act establishes the national average value of donated food assistance to be given to States for each lunch served in the NSLP at 11.00 cents per meal. Pursuant to section 6(c)(1)(B), this amount is subject to annual adjustments on July 1 of each year to reflect changes in a three-month average value of the Producer Price Index for Foods Used in Schools and Institutions for March, April, and May each year (Price Index). Section 17(h)(1)(B) of the Act provides that the same value of donated foods (or cash in lieu of donated foods) for school lunches shall also be established for lunches and suppers served in the CACFP. Notice is hereby given that the national average minimum value of donated foods, or cash in lieu thereof, per lunch under the NSLP (7 CFR part 210) and per lunch and supper under the CACFP (7 CFR part 226) shall be 24.50 cents for the period July 1, 2020 through June 30, 2021. The Price Index is computed using five major food components in the Bureau of Labor Statistics Producer Price Index (cereal and bakery products; meats, poultry, and fish; dairy; processed fruits and vegetables; and fats and oils). Each component is weighted using the relative weight as determined by the Bureau of Labor Statistics. The value of food assistance is adjusted each July 1 by the annual percentage change in a three-month average value of the Price Index for March, April, and May each year. The three-month average of the Price Index increased by 3.33 percent from 206.58 for March, April, PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 44273 and May of 2019, as previously published in the Federal Register, to 213.45 for the same three months in 2020. When computed on the basis of unrounded data and rounded to the nearest one-quarter cent, the resulting national average for the period July 1, 2020 through June 30, 2021 will be 24.50 cents per meal. This is an increase of three quarters of a cent from the school year 2020 (July 1, 202019 through June 30, 2020) rate. Authority: Sections 6(c)(1)(A) and (B), 6(e)(1), and 17(h)(1)(B) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1755(c)(1)(A) and (B) and (e)(1), and 1766(h)(1)(B)). Pamilyn Miller, Administrator, Food and Nutrition Service. [FR Doc. 2020–15762 Filed 7–21–20; 8:45 am] BILLING CODE 3410–30–P DEPARTMENT OF AGRICULTURE Rural Business-Cooperative Service [Docket No. RBS–20-Business-0028] Stakeholder Listening Sessions on New Rural Innovation Stronger Economy (RISE) Regulation Rural Business-Cooperative Service, USDA. ACTION: Notice. AGENCY: The Rural BusinessCooperative Service (RBCS) is hosting three listening sessions for public input about the new Rural Innovation Stronger Economy (RISE) program and regulation. The RISE program will assist rural job accelerator partnerships in improving the ability of distressed rural communities to create high-wage jobs, accelerate the formation of new businesses, and help rural communities identify and maximize local assets. This rule will be published as a direct-final regulation after addressing comments received from the listening sessions and written comments in response to this request for information. RBCS is currently drafting the RISE regulation and requests input on application implementation and project priorities to reach the desired outcomes. DATES: Listening sessions will be held on: July 28, 2020 at 2pm EDT virtually at https://attendee.gotowebinar.com/ register/5379245598321536014. July 30, 2020 at 2pm EDT virtually at https://attendee.gotowebinar.com/ register/2719620429219806478. ADDRESSES: Comments submitted in response to this notice may be submitted online Via the Federal eRulmaking Portal. Go to http:// SUMMARY: E:\FR\FM\22JYN1.SGM 22JYN1

Agencies

[Federal Register Volume 85, Number 141 (Wednesday, July 22, 2020)]
[Notices]
[Pages 44270-44273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15764]



[[Page 44270]]

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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, Agriculture (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 that 
participates in the Special Milk Program for Children.

DATES: These rates are effective from July 1, 2020 through June 30, 
2021.

FOR FURTHER INFORMATION CONTACT: J. Kevin Maskornick, Branch Chief, 
Program Monitoring and Operational Support Division, Child Nutrition 
Programs, Food and Nutrition Service, United States Department of 
Agriculture, (703) 305-2537, 1320 Braddock Place, Suite 401, 
Alexandria, VA 22314.

SUPPLEMENTARY INFORMATION: 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. The annual rate adjustment for the Special 
Milk Program reflects changes in the Producer Price Index for Fluid 
Milk Products. Further adjustments are made to these rates to reflect 
higher costs of providing meals in Alaska, Guam, Hawaii, Puerto Rico, 
and the Virgin Islands. The payments and rates are prescribed on an 
annual basis each July.
    Overall, reimbursement rates this year for the National School 
Lunch and Breakfast Programs either remained the same or increased 
compared to last year while the rate for the Special Milk Program went 
down slightly.

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.
    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.
    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.1759 (a)) 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.
    Performance-based Reimbursement--In addition to the funding 
mentioned above, school food authorities certified as meeting the meal 
pattern and nutrition standard requirements set forth in 7 CFR parts 
210 and 220 are eligible to receive performance-based cash assistance 
for each reimbursable lunch served (an additional seven cents per lunch 
available beginning July 1, 2019, 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.

Adjusted 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, 2020 through June 30, 2021. Due to a higher cost of 
living, the average payments and maximum reimbursements for Alaska, 
Guam, Hawaii, Puerto Rico, and the Virgin Islands are higher than those 
for all other States. The District of Columbia uses figures specified 
for the contiguous States. These rates do not include the value of USDA 
Foods or cash-in-lieu of USDA Foods which schools receive as additional 
assistance for each meal served to participants under the Program. A 
notice announcing the value of USDA Foods and cash-in-lieu of USDA 
Foods is published separately in the Federal Register.
    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

[[Page 44271]]

rounded down to the nearest whole cent.

Special Milk Program Payments

    For the period July 1, 2020 through June 30, 2021, the rate of 
reimbursement for a half-pint of milk served to a non-needy child in a 
school or institution that participates in the Special Milk Program is 
20.25 cents reflecting a decrease of 1.25 cents from the School Year 
(SY) 2019-2020 level. This change is based on the 5.65 percent decrease 
in the Producer Price Index for Fluid Milk Products from May 2019 to 
May 2020.
    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 Program Payments

    Overall, payments for the National School Lunch Program and the 
Afterschool Snack Program either remained the same or increased from 
last year's payments due to a 2.93 percent increase in the national 
average payment rates for schools and residential child care 
institutions for the period July 1, 2020 through June 30, 2021 in the 
Consumer Price Index for All Urban Consumers for the food away from 
home series during the 12-month period May 2019 to May 2020 (from a 
level of 283.394 in May 2019, as previously published in the Federal 
Register to 291.709 in May 2020).
    These changes are reflected below.
    Section 4 National Average Payment Factors--In school food 
authorities that served less than 60 percent free and reduced price 
lunches in School Year (SY) 2018-2019, the payments for meals served 
are: Contiguous States--paid rate--33 cents (1 cent increase from the 
SY 2019-2020 level), free and reduced price rate--33 cents (1 cent 
increase), maximum rate--41 cents (1 cent increase); Alaska--paid 
rate--54 cents (1 cent increase), free and reduced price rate--54 cents 
(1 cent increase), maximum rate--65 cents (2 cents increase); Guam, 
Hawaii, Puerto Rico, and the Virgin Islands--paid rate--39 cents (1 
cent increase), free and reduced price rate--39 cents (1 cent 
increase), maximum rate--47 cents (1 cent increase).
    In school food authorities that served 60 percent or more free and 
reduced price lunches in School Year 2018-2019, payments are: 
Contiguous States--paid rate--35 cents (1 cent increase from the SY 
2019-2020 level), free and reduced price rate--35 cents (1 cent 
increase), maximum rate--41 cents (1 cent increase); Alaska--paid 
rate--56 cents (1 cent increase), free and reduced price rate--56 cents 
(1 cent increase), maximum rate--65 cents (2 cents increase); Guam, 
Hawaii, Puerto Rico and the Virgin Islands--paid rate--41 cents (1 cent 
increase), free and reduced price rate--41 cents (1 cent increase), 
maximum rate--47 cents (1 cent increase).
    School food authorities certified to receive the performance-based 
cash assistance will receive an additional 7 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--3 dollars and 18 cents (9 cents increase from the SY 2019-
2020 level), reduced price lunch--2 dollars and 78 cents (9 cents 
increase); Alaska--free lunch--5 dollars and 16 cents (15 cents 
increase), reduced price lunch--4 dollars and 76 cents (15 cents 
increase); Guam, Hawaii, Puerto Rico and the Virgin Islands--free 
lunch--3 dollars and 72 cents (10 cents increase), reduced price 
lunch--3 dollars and 32 cents (10 cents increase).
    Afterschool Snacks in Afterschool Care Programs--The payments are: 
Contiguous States--free snack--96 cents (2 cents increase from the SY 
2019-2020 level), reduced price snack--48 cents (1 cent increase), paid 
snack--8 cents (no change); Alaska--free snack--1 dollar and 56 cents 
(4 cents increase), reduced price snack--78 cents (2 cents increase), 
paid snack--14 cents (1 cent increase); Guam, Hawaii, Puerto Rico and 
the Virgin Islands--free snack--1 dollar and 13 cents (3 cents 
increase), reduced price snack--56 cents (1 cent increase), paid 
snack--10 cents (no change).

School Breakfast Program Payments

    Overall, payments for the National School Breakfast Program either 
remained the same or increased from last year's payments due to a 2.93 
percent increase in the national average payment rates for schools and 
residential child care institutions for the period July 1, 2020 through 
June 30, 2021 in the Consumer Price Index for All Urban Consumers in 
the Food Away from Home series during the 12-month period May 2019 to 
May 2020 (from a level of 283.394 in May 2019, as previously published 
in the Federal Register to 291.709 in May 2020).
    These changes are reflected below.
    For schools ``not in severe need'' the payments are: Contiguous 
States--free breakfast--1 dollar and 89 cents (5 cents increase from 
the SY 2019-2020 level), reduced price breakfast--1 dollar and 59 cents 
(5 cents increase), paid breakfast--32 cents (1 cent increase); 
Alaska--free breakfast--3 dollars and 3 cents (8 cents increase), 
reduced price breakfast--2 dollars and 73 cents (8 cents increase), 
paid breakfast--49 cents (2 cents increase); Guam, Hawaii, Puerto Rico 
and the Virgin Islands--free breakfast--2 dollars and 21 cents (6 cents 
increase), reduced price breakfast--1 dollar and 91 cents (6 cents 
increase), paid breakfast--37 cents (1 cent increase).
    For schools in ``severe need'' the payments are: Contiguous 
States--free breakfast--2 dollars and 26 cents (6 cents increase from 
the SY 2019-2020 level), reduced price breakfast--1 dollar and 96 cents 
(6 cents increase), paid breakfast--32 cents (1 cent increase); 
Alaska--free breakfast--3 dollars and 64 cents (11 cents increase), 
reduced price breakfast--3 dollars and 34 cents (11 cents increase), 
paid breakfast--49 cents (2 cents increase); Guam, Hawaii, Puerto Rico 
and the Virgin Islands--free breakfast--2 dollars and 64 cents (7 cents 
increase), reduced price breakfast--2 dollars and 34 cents (7 cents 
increase), paid breakfast--37 cents (1 cent increase).

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 are those specified for the 
contiguous States.

[[Page 44272]]

[GRAPHIC] [TIFF OMITTED] TN22JY20.000

    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.

[[Page 44273]]

    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.
    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)).

Pamilyn Miller,
Administrator, Food and Nutrition Service.
[FR Doc. 2020-15764 Filed 7-21-20; 8:45 am]
BILLING CODE 3410-30-P