July 12, 2004
P.L. 108-265 “Child Nutrition and
WIC Reauthorization Act of 2004” As Signed by President Bush on
June 30, 2004
S. 2507, the Child Nutrition and WIC Reauthorization Act of 2004, was signed
into law (P.L. 108-265) by President Bush on June 30, 2004, just prior to the
expiration of the temporary extension of Child Nutrition programs. This
legislation reauthorizes the School Lunch Program, School Breakfast Program,
Summer Food Service Program, Child and Adult Care Food Program, and WIC (Special
Nutrition Program for Women Infants and Children) for five years, through
2009. S. 2507, as enacted, is modeled after a Senate Agriculture
Committee-passed bill (S. 2507) sponsored by Chairman Thad Cochran (R-MS) and
Ranking Member Tom Harkin (D-IA). Earlier this spring, the House of
Representatives adopted its own version of child nutrition reauthorization, the
Child Nutrition Improvement and Integrity Act (H.R. 3873). After the
Senate Agriculture Committee passed the bill on May 19, 2004, bipartisan
negotiations between the House and Senate over the detail of a consensus
approach began. This bipartisan agreement, a reworking of S. 2507, was
approved under unanimous consent by voice vote in the Senate on June 23.
On June 24, the House of Representatives considered the bill under unanimous
consent and approved it without objection. This analysis reflects the
contents of the bill that was passed by Congress and signed into law on June 30,
2004.
Analysis of Provisions of P.L. 108-265
Nutrition Education and Promotion
S. 2507 contains a variety of provisions aimed at improving the nutrition of
children. Specific provisions include:
- Funds for Nutrition Promotion: S. 2507 authorizes funding to be
made available to state agencies to promote nutrition in child nutrition
programs. The funding level is based on the number of lunches served by
a school food authority under the National School Lunch Program. A state
agency may reserve some of the funding to distribute nutrition messages and
materials developed by USDA. State agencies or other institutions
receiving the funds are required to document nutrition promotion activities
conduced with the money.
- Fluid Milk: This legislation expands the types of milk that can be
served under the Child Nutrition Programs and requires schools to offer milk
in a variety of fat contents. In addition, schools will be required to
provide a nutritionally-equivalent substitute to milk for children that submit
written documentation from a physician that they are unable to consume
milk. If the cost of providing the substitute exceeds the amount
reimbursed under the School Lunch Program, school authorities will be
responsible for the excess cost. Finally, S. 2507 prohibits a school
from imposing any restrictions on days or times when milk may be sold on
school grounds.
- Dietary Guidelines: S. 2507 requires the USDA to issue regulations
for increased consumption of foods and food ingredients in accordance with the
most recent Dietary Guidelines for Americans.
- Fresh Fruit and Vegetable Program: S. 2507 expands the Fresh Fruit
and Vegetable Program to additional states and specifies that program
expansion should target children in low-income areas.
- Access to Local Foods and School Gardens:
S. 2507 authorizes the USDA to provide grants and technical assistance to
improve access to local foods in schools and institutions participating in the
Child Nutrition programs. The grants may support farm-to-cafeteria
activities such as school gardens, nutrition education activities or
curriculum planning that incorporates agricultural activities.
- Local Wellness Policy: S. 2507 directs local educational agencies
to establish a local school wellness policy for schools that (1) includes
goals for nutrition education, physical activity, and other school-based
activities; (2) includes nutrition guidelines for all foods available on each
school campus during the school day with the objectives of promoting student
health and reducing childhood obesity; (3) provides an assurance that
guidelines for reimbursable meals will at least reflect the minimum standards
established by the USDA; (4) establishes a plan for measuring implementation
of the local wellness policy; and (5) involves a variety of community members
in the development of the school wellness policy. The USDA will support
the development of local wellness policies by providing technical assistance
and making best practices information available.
- Team Nutrition Network: S. 2507 defines the purposes of the Team
Nutrition Network and makes available grants to establish team nutrition
networks in individual communities. Team nutrition networks will promote
nutrition education and active lifestyles. The bill also allows for an
independent evaluation of the Team Nutrition program.
- Sense of Congress: S. 2507 contains a section indicating the sense
of Congress regarding efforts to prevent and reduce childhood obesity.
This section notes efforts made by the State of Arkansas to combat childhood
obesity and suggests that these efforts could serve as a model for other
states. Actions taken by the State of Arkansas include: annual
measurements of body mass index of all children from kindergarten -
12th grade, providing health information about body mass index to
parents and children, and interventions as the community and school level to
address obesity, the risk of obesity, and the condition of being overweight,
including efforts to encourage healthy eating habits and increased physical
activity.
National School Lunch Program
and School Breakfast Program
The Child Nutrition and WIC Reauthorization Act of 2004 reauthorizes the
National School Lunch and School Breakfast Programs for five years, through
2009. In addition, the legislation includes a variety of provisions aimed
at expanding program access and reducing the administrative burden of the School
Lunch and Breakfast programs. Specific changes include:
- Direct Certification: S. 2507 requires state education agencies and
state food stamp agencies to establish the process of direct
certification. With direct certification, categorically-eligible
children are automatically eligible to receive free school meals without
having to be separately deemed eligible for school meals.
Categorically-eligible groups include: children from households participating
in the food stamp program, children from families participating in Temporary
Assistance for Needy Families, homeless children or youth (as defined by the
McKinney-Vento Homeless Assistance Act), homeless or runaway children served
by the Runaway and Homeless Youth Act, or migrant children (as defined by the
Elementary and Secondary Education Act of 1965). In order to implement
direct certification, the local educational agency must verify a child’s
status with the appropriate State or local agency. The requirements for
direct certification are phased in over time, depending on the size of the
school district. S. 2507 also establishes guidelines to limit access to
information regarding household income and eligibility for free meals and
establishes criminal penalties for misuse of such information. Finally,
funding in the amount of $9,000,000 is authorized to implement direct
certification.
- Program Applications: S. 2507 simplifies the application
process for school meals, by limiting the number of applications that must be
submitted for one household. A family only has to submit one application
for all children in the household (even if the children attend different
schools).
- Verification: Local educational agencies are required to randomly
select for verification the lesser of three percent of approved applications
or 3,000 error prone applications. An error prone application refers to
an approved household that indicates monthly income that is within $100, or an
annual income that is within $1,200, of the income eligibility limitation for
free or reduced price meals. If the local educational agency has a
non-response rate of less than 20 percent or has more than 20,000 children
certified to receive free or reduced price meals, the agency conducts the
verification process by using an alternative sample size of the sum of the
lesser of 1,000 or one percent of all applications and the lesser of 500 or
half of one percent of directly certified applications. Directly
certified applications can also be verified by obtaining household income
information from the public agency administering the Food Stamp Program, the
food distribution program on Indian reservations, the Temporary Assistance to
Needy Families Program, or the state Medicaid program. Finally, S. 2507
commissions an evaluation of the direct verification procedure. Based on
the results of this evaluation, the USDA may require additional States or
state agencies to implement direct verification.
- Duration of Eligibility: Once a student is certified to receive
free or reduced-price meals, this eligibility will remain in place until the
following school year.
- Runaway, Homeless, and Migrant Youth: Children meeting the
requirements outlined in the McKinney-Vento Homeless Assistance Act, the
Runaway and Homeless Youth Act, or defined as a migratory child by the
Elementary and Secondary Education Act of 1965 are categorically eligible to
receive free lunches and breakfasts.
- Certification by Local Educational Agencies: S. 2507 replaces the
term “local school authorities” with the term “local educational
agencies.” In addition, the definition of “local educational agencies”
is expanded to include private nonprofit schools that participate in the child
nutrition programs.
- Purchases of Locally Produced Foods: This initiative is extended
from 2007 to 2009.
- Food and Nutrition Projects Integrated With Elementary School
Curricula: This program is eliminated by S. 2507.
- Training and Technical Assistance: S. 2507 authorizes funds to
provide technical assistance and training in the procurement of goods and
services under the Child Nutrition programs.
- Free Meal Eligibility: S. 2507 authorizes the USDA to implement a
pilot program in five states which would make it possible for children from
households with incomes up to 185% of poverty to receive free school
meals. This program would be evaluated after three years. The
impact of this program would be evaluated in terms of: certification and
participation rates in the school lunch and breakfast programs, rates of lunch
and breakfast skipping, academic achievement, and the allocation of funds
authorized in Title I of the Elementary and Secondary Education Act.
School Breakfast Program
S. 2507 contains two provisions specific to the School Breakfast Program:
- Severe Need Assistance: S. 2507 provides additional assistance in
initiating or operating a school breakfast program to schools that qualify to
receive severe needs assistance. Schools that qualify for this
assistance are those that serve a high number of free or reduced-price
meals.
- Review of Best Practices: S. 2507 provides that the USDA should
contract with an independent research organization to collect and disseminate
a review of best practices in the School Breakfast Program.
Summer Food Service Program
S. 2507 reauthorizes the Summer Food Service Program for five years, through
2009. In addition, the bill makes a number of improvements aimed at
increasing access to the program. These changes include:
Seamless Summer Option: S. 2507 continues the provision that allows
school food service authorities to provide meals during the summer and school
vacations under the school lunch and breakfast programs.
Rural Area Eligibility Pilot Program: S. 2507 authorizes a two-year
pilot program in the State of Pennsylvania to reduce area eligibility in rural
areas from 50 percent to 40 percent. The USDA will conduct an evaluation
of this pilot program to determine the effect of the reduced threshold on the
number of sponsors in the area, the number of sites operating the program, the
location of the sites, the services provided, and other factors determined by
the USDA. This report will be submitted to the appropriate Congressional
committees.
Rural Transportation: S. 2507 authorizes the USDA to provide grants
for the purpose of providing transportation to and from summer food sites in
rural areas. These grants will be made available to up to five state
agencies and up to 60 service institutions and grant funds can be used during
the three-fiscal year period beginning in FY 2005.
Lugar Pilot Program: S. 2507 makes permanent the Lugar Pilot
Program in the states in which it was currently operating in May 2004. In
addition, the legislation expands the program to an additional six states that
are determined by a formula that takes into account Summer Food Service Program
participation and renames the program “Simplified Summer Food Programs.”
Finally, eligibility to serve as a sponsor in the Simplified Summer Food Program
is expanded to private nonprofit organizations.
Residential Camp Eligibility: During the
summers of 2004 and 2005, the USDA will select one residential camp in no more
than two states to identify and evaluate alternative methods of determining the
eligibility of residential private non-profit camps to participate in the Summer
Food Service Program. Residential camps selected will be reimbursed at the
usual Summer Food Service Program rates for meals served to all children at the
camp. The camp will be reimbursed for up to three meals or two meals and
one snack each day.
Child and Adult Care Food Program (CACFP)
The Child and Adult Care Food Program is reauthorized through 2009. In
addition the following changes were made:
- For-Profit Centers: S. 2507 makes for-profit child care centers
permanently eligible to participate in the CACFP if they serve 25 percent or
more low-income children.
- Simplifying Program Administration: S. 2507 makes a number of
changes that will simplify CACFP administration. First, the legislation
extends the length of time that a home day care can be classified as Tier One
from three to five years. Also, the bill establishes an audit disregard
level that is consistent with the disregard in other child nutrition
programs. Finally, S. 2507 makes it possible for state administering
agencies and family home daycare sponsoring organizations to establish
permanent agreements with CACFP providers.
- Rural Area Eligibility Pilot Program: S. 2507 authorizes a two-year
pilot program in the State of Nebraska to reduce area eligibility for family
daycare homes in rural areas from 50 percent to 40 percent. The USDA
will conduct an evaluation of this pilot program to determine the effect of
the reduced threshold on the number of family daycare homes participating in
the CACFP, the number of family daycare homes defined as Tier One as a result
of the pilot program, the location of family home daycares, services provided
to eligible children, and other factors determined by the USDA. This
report will be submitted to the appropriate Congressional committees.
- Children in Emergency Shelters: S. 2507 expands the age limit for
CACFP eligibility from age 12 to age 18 for children residing in emergency
shelters.
- Paperwork Reduction: The USDA will work with States to examine the
feasibility of reducing paperwork resulting from regulations and recordkeeping
requirements for all CACFP participants.
- Early Child Nutrition Education for Limited-English Proficient
Families: S. 2507 establishes a limited number of grants to aid in the
development of health and nutrition education programs for limited-English
proficient individuals through the CACFP. The grants will be awarded by
the USDA in States that have experienced a growth in the limited-English
proficient population of at least 100 percent between the years 1990 and
2000. Grants can be used to develop an interactive tool kit for use by
health educators, to conduct training and provide technical assistance for
health educators, or to establish collaborations with child care centers and
sponsoring organizations participating in the CACFP to identify
limited-English-proficient families and enhance the capacity of child care
centers and sponsoring organizations to use appropriate obesity prevention
strategies.
Special Supplemental Nutrition Program for Women, Infants, and Children
(WIC)
The WIC Program is reauthorized through 2009. In addition the following
changes were made:
- Definition of Nutrition Education: S. 2507 expands the definition
of nutrition education in the WIC program to include physical activity.
- Definition of Supplemental Foods: The definition of supplemental
foods is expanded to reference the promotion of health of the population
served by the WIC program.
- Other Definitions: S. 2507 adds definitions of the terms “primary
contract infant formula” and “state alliance”
- Certification Period: Breastfeeding women are certified for the WIC
program for one year or until a woman stops breastfeeding, whichever is
earlier.
- Review of Supplemental Foods: S. 2507 requires the USDA to review
supplemental foods available under the WIC program, and taking into
consideration the recommendations of a study conducted by the National Academy
of Sciences, Institute of Medicine, update the supplemental foods available
through the program.
- Healthy People 2010 Initiative: Directs state and local agencies to
partner with employers, health care professionals, and other private sector
entities to encourage breastfeeding.
- State Alliances: State alliances cannot be formed among States
whose infant participation exceeds 100,000. Exceptions are made for
States with a small number of WIC participants and Indian or Tribal
organizations.
- Rebate Invoices: States should ensure that rebate invoices provide
an accurate estimate or an actual count of the number of units sold to WIC
participants.
- Cent-for-Cent Adjustments: Maufacuturers are required to adjust for
price changes subsequent to the opening of the bidding process.
- Authorized Infant Formula Wholesalers, Distributors, Retailers, and
Manufacturers: The state agency is required to maintain a list of licensed
infant formula wholesalers, distributors, retailers, and manufacturers.
- Vendor Cost Containment: S. 2507 implements procedures to maintain
competitive pricing among WIC vendors.
- Farmers’ Market Nutrition Program: The Farmer’s Market Nutrition
Program within the WIC program is reauthorized for five years through
2009.
Other
S. 2507 contains a number of provisions that affect all Child Nutrition
Programs. These include:
- Exclusion of the Military Housing Allowance: S. 2507 permanently
excludes the military housing allowance from the determination of household
income.
- Year-Round Child Nutrition Program: S. 2507 creates a year-round
child nutrition program in the State of California. Service institutions
or private nonprofit organizations can be reimbursed for up to two meals per
day served during the summer months and for one snack per day served during
the regular school calendar.
- Food Safety: S. 2507 requires that information about food safety
inspections on food used in the child nutrition programs be posted in a
visible location and be made available to the public. Also, states and
local government have the option to require more stringent and more frequent
food safety inspections than are required by federal law.
- Notice of Irradiated Food Products: S. 2507 requires the USDA to
establish procedures to govern the use of irradiated food products in the
Child Nutrition programs. The legislation establishes minimum
requirements that states and school food service authorities are provided with
information about the safety of irradiated foods, that states and school food
authorities are given information about how to educate parents and students
about these foods, and that irradiated foods must be labeled.
Administration of the Child Nutrition Programs
S. 2507 contains a number of provisions aimed at improving the administration
of Child Nutrition Programs.
- Administrative Error Reduction: The USDA should work with state and
local educational agencies to develop and distribute training and technical
assistance material relating to the administration of school meals programs
that are representative of the best management and administrative
practices. S. 2507 also authorizes federal funds to be used to provide
training and technical assistance and material to improve program integrity
and administrative accuracy and to assist state educational agencies in
reviewing administrative practices of local educational agencies.
- Administrative Reviews: S. 2507 clarifies guidelines for
administrative reviews of local educational agencies by state educational
agencies. The bill also clarifies steps that should be taken if a local
educational agency fails to meet the criteria established by the USDA.
Finally, guidelines are established for retaining funds after administrative
reviews. Retained funds should be returned to the USDA and used to
provide training and technical assistance to reduce future errors or to assist
State educational agencies in reviewing the administrative practices of local
educational agencies.
- Program Evaluation: S. 2507 authorizes the USDA to conduct annual
performance assessments of the child nutrition programs. These
assessments may evaluate the cost of producing meals and the nutrient profile
of meals served under the programs. Also, an assessment may be conducted
to determine the feasibility of improving the certification process for school
meals programs.
- State Administrative Expenses: This legislation makes available to
States for administrative costs not less than the amount made available for
fiscal year 2004. Beginning in 2008, the amount made available to States
for administrative costs will be adjusted to reflect percentage change between
the index published by the Bureau of Economic Analysis of the Department of
Commerce in the second preceding fiscal year and the preceding fiscal
year. States are also required to submit to the USDA a plan that
describes how funds will be used for technology and information management
systems improvements.
- Technology Infrastructure Grants: The USDA will provide grants to
local educational agencies, school food authorities, and schools to assist
with the cost of purchasing or upgrading technology and information management
systems.
- Food Service Management Institute: S. 2507 reauthorizes the Food
Service Management Institute and clarifies the type of training and technical
assistance that it should provide.
For further information please contact: Sheri Steisel (sheri.steisel@ncsl.org), Lee
Posey (lee.posey@ncsl.org) or Katie
Gigliotti (katherine.gigliotti@ncsl.org)
Prepared by: Katherine Gigliotti, Emerson Hunger Fellow Human
Services and Welfare Committee July 14, 2004
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